In recent weeks, the UK market has faced challenges, with the FTSE 100 and FTSE 250 indices experiencing declines amid concerns over China's economic recovery and its impact on global trade. As investors navigate these turbulent conditions, growth companies with high insider ownership can offer a compelling opportunity due to their potential for aligned interests and robust earnings growth.
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 capitalization of £268.59 million.
Operations: The company's revenue is primarily derived from its Pirtek segment (£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 43.5% below its estimated fair value, with earnings expected to grow significantly over the next three years, outpacing the UK market. Recent insider buying indicates confidence in its growth prospects. The company reported a strong increase in net income and sales for 2024, alongside strategic leadership changes to support its One Franchise Brands initiative aimed at boosting integration and operational efficiency.
Overview: Nichols plc, with a market cap of £447.50 million, supplies soft drinks to the retail, wholesale, catering, licensed, and leisure industries across the United Kingdom, the Middle East, Africa, and internationally.
Operations: The company's revenue segments consist of £132.82 million from Packaged and £39.99 million from Out of Home sales.
Insider Ownership: 27.7%
Earnings Growth Forecast: 14.8% p.a.
Nichols plc, with substantial insider ownership, is trading 33.2% below its estimated fair value. Earnings are forecast to grow at 14.8% annually, outpacing the UK market's growth rate. Despite a recent dip in net income to £17.84 million for 2024, the company increased its dividend due to strong cash generation. Recent executive changes include appointing Alan Williams as Non-Executive Director and addressing leadership continuity following the passing of CFO Richard Newman.
Overview: International Workplace Group plc, along with its subsidiaries, offers workspace solutions across the Americas, Europe, the Middle East, Africa, and the Asia Pacific with a market capitalization of £1.83 billion.
Operations: The company's revenue segments include $1.29 billion from the Americas, $334 million from the Asia Pacific, $389 million from Digital and Professional Services, and $1.67 billion from Europe, the Middle East, and Africa (EMEA).
Insider Ownership: 25.5%
Earnings Growth Forecast: 45.4% p.a.
International Workplace Group shows strong growth potential, with earnings forecast to grow significantly at 45.4% annually, surpassing the UK market average. Insider activity is positive, with more shares bought than sold recently. The company became profitable this year and has initiated a $50 million share buyback program to reduce share capital. Recent expansions include new Spaces centers in Sundbyberg and Malmö, enhancing its global network of flexible office solutions under various brands like Regus and Spaces.
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:NICL and LSE:IWG.
