The UK market has recently faced challenges, with the FTSE 100 and FTSE 250 indices experiencing declines due to weak trade data from China, highlighting global economic uncertainties. In such a climate, identifying growth companies with high insider ownership can be appealing as they often reflect strong confidence from those closest to the business.
Top 10 Growth Companies With High Insider Ownership In The United Kingdom
Overview: Franchise Brands plc operates through its subsidiaries in franchising and related activities across the United Kingdom, Ireland, North America, and Continental Europe, with a market cap of £277.25 million.
Operations: The company's revenue is primarily derived from its segments, including Pirtek (£63.91 million), Water & Waste Services (£46.05 million), Filta International (£25.60 million), B2C Division (£5.75 million), and Azura (£0.81 million).
Insider Ownership: 22.6%
Earnings Growth Forecast: 29.4% p.a.
Franchise Brands is trading at 42.4% below its estimated fair value, with earnings having grown by 143.9% over the past year and forecasted to grow significantly, outpacing the UK market average. Revenue growth is projected at 7.4% annually, faster than the broader market's 3.7%. Recent insider activity shows substantial buying with no significant selling in the last three months, indicating strong insider confidence in future prospects despite revenue growth being slower than desired benchmarks.
Overview: Metals Exploration plc is involved in the identification, acquisition, exploration, and development of mining and processing properties in the United Kingdom and the Philippines, with a market capitalization of £221.28 million.
Operations: The company's revenue is primarily derived from its Metals & Mining segment, specifically in Gold & Other Precious Metals, generating $191.15 million.
Insider Ownership: 12.8%
Earnings Growth Forecast: 40.5% p.a.
Metals Exploration demonstrates robust growth potential with forecasted earnings growth of 40.5% annually, significantly outpacing the UK market's average. Revenue is expected to rise by 16.8% per year, supported by strategic expansions like the La India project in Nicaragua, which promises substantial job creation and economic impact. Recent insider activity shows more buying than selling, reflecting confidence despite past shareholder dilution and a decline in profit margins from last year’s high levels.
Overview: Nichols plc, along with its subsidiaries, supplies soft drinks to the retail, wholesale, catering, licensed, and leisure industries across the United Kingdom, the Middle East, Africa, and internationally with a market cap of £465.76 million.
Operations: The company's revenue is primarily derived from its Packaged segment, generating £132.82 million, and its Out of Home segment, contributing £39.99 million.
Insider Ownership: 28.5%
Earnings Growth Forecast: 14.8% p.a.
Nichols shows steady growth potential, with earnings forecasted to grow at 14.8% annually, slightly above the UK market's average. Recent trading updates indicate a modest revenue increase driven by the Vimto brand's strength in UK packaged goods, while strategic shifts in international markets aim to enhance profitability. Despite an unstable dividend track record and large one-off items affecting financial results, Nichols remains undervalued relative to its estimated fair value by 29.8%.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.
Companies discussed in this article include AIM:FRAN AIM:MTL and AIM:NICL.
