In the current climate, the UK market is experiencing some turbulence, with the FTSE 100 and FTSE 250 indices facing downward pressure amid weak trade data from China. This environment highlights the importance of identifying growth companies that insiders are backing, as high insider ownership can signal confidence in a company's potential to thrive despite broader economic challenges.
Top 10 Growth Companies With High Insider Ownership In The United Kingdom
Overview: Brickability Group Plc, along with its subsidiaries, operates in the United Kingdom by supplying, distributing, and importing building products, with a market cap of £194.60 million.
Operations: The company's revenue is primarily derived from its Bricks and Building Materials segment at £403.25 million, followed by Importing at £94.77 million, Distribution at £62.72 million, and Contracting at £58.17 million.
Insider Ownership: 28.9%
Brickability Group's earnings are forecast to grow significantly at 34.6% per year, outperforming the UK market's expected growth of 14%. Despite trading at a good value and having more insider buying than selling recently, the company faces challenges with declining profit margins and revenue down from £681.09 million to £594.08 million last year. The unstable dividend track record and low future return on equity forecast may raise concerns for some investors.
Overview: Hochschild Mining plc is a precious metals company involved in the exploration, mining, processing, and sale of gold and silver across Peru, Argentina, the United States, Canada, Brazil, and Chile with a market cap of £1.05 billion.
Operations: The company's revenue segments include $266.70 million from San Jose and $451.91 million from Inmaculada.
Insider Ownership: 38.4%
Hochschild Mining's earnings are forecast to grow significantly at 49.8% annually, outpacing the UK market's 14% growth rate. Despite a high debt level and volatile share price, the company has become profitable this year with net income of US$39.52 million for H1 2024, reversing a previous loss. Trading at a significant discount to estimated fair value, its revenue is expected to grow faster than the market average but remains below high-growth benchmarks.
Overview: TBC Bank Group PLC operates through its subsidiaries to offer banking, leasing, insurance, brokerage, and card processing services to both corporate and individual clients in Georgia, Azerbaijan, and Uzbekistan with a market cap of £1.49 billion.
Operations: The company's revenue segments include GEL 2.13 billion from Segment Adjustment and GEL 236.42 million from Uzbekistan Operations.
Insider Ownership: 17.6%
TBC Bank Group is trading at 53.7% below its estimated fair value and shows strong growth potential, with revenue projected to grow at 18.9% annually, surpassing the UK market's average. Despite a low allowance for bad loans and an unstable dividend history, earnings are forecast to grow faster than the market at 15.3% per year. Recent executive changes include Giorgi Giguashvili as Company Secretary, enhancing corporate governance expertise within the firm.
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:BRCK LSE:HOC and LSE:TBCG.
