GlobalData shares sink on profit warning

(Sharecast News) - Shares in GlobalData plunged on Monday after the data and analytics group warned that full-year profits would fall short of market expectations as weaker-than-expected revenue growth and increased investment pressured margins. The shares were down 24.7% at 53.9p by 0947 BST, having touched a fresh 52-week low of 52.61p earlier in the session.

GlobalData said underlying revenue growth had been "more muted than expected" in the first half, and now expects full-year revenues to come in towards the lower end of the current analyst consensus range of £325.3m to £335.7m.

Meanwhile, targeted investment in AI-native workflows, proprietary data and human expertise means full-year margins are now expected to be broadly in line with the first-half adjusted EBITDA margin of 34%, leaving adjusted EBITDA below market expectations. Consensus currently stands at £121.0m to £126.7m.

The warning represents a deterioration from July, when GlobalData had expected full-year adjusted EBITDA merely to be at the low end of consensus.

For the six months to 30 June, revenue rose 4% to £162.9m, although underlying growth was just 1%. Adjusted EBITDA increased 5% to £54.8m, while reported pre-tax profit fell 6% to £23.2m because of higher finance charges.

Free cash flow dropped 27% to £31.3m and operating cash flow fell 23% to £50.8m. Net bank debt stood at £133.0m, compared with £16.8m a year earlier.

Chief executive Mike Danson said: "Revenue and growth remained below our ambitions and the benefits of the transformation have not yet been reflected in our financial performance."