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U.K. (FTSE) IT Industry Analysis

UpdatedMay 23, 2025
DataAggregated Company Financials
Companies19
  • 7D-2.9%
  • 3M8.9%
  • 1Y-11.7%
  • YTD7.3%

Over the last 7 days, the IT industry has dropped 2.9%, driven by Softcat declining 4.6%. On the other hand Smarter Web is actually up 39%. However, the industry is down 12% over the past year. As for the next few years, earnings are expected to grow by 15% per annum.

Industry Valuation and Performance

Has the U.K. IT Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 24 May 2025UK£8.5bUK£9.5bUK£319.3m20.7x26.7x0.9x
Mon, 21 Apr 2025UK£7.8bUK£9.6bUK£330.6m20.4x23.5x0.8x
Wed, 19 Mar 2025UK£8.2bUK£9.5bUK£334.1m20.6x24.7x0.9x
Fri, 14 Feb 2025UK£8.1bUK£9.0bUK£333.3m21.6x24.3x0.9x
Sun, 12 Jan 2025UK£7.8bUK£9.0bUK£335.5m25.2x23.3x0.9x
Tue, 10 Dec 2024UK£8.5bUK£9.0bUK£337.2m28.7x25.1x0.9x
Thu, 07 Nov 2024UK£8.5bUK£9.0bUK£322.5m23.5x26.2x0.9x
Sat, 05 Oct 2024UK£10.7bUK£9.7bUK£292.6m24x36.7x1.1x
Mon, 02 Sep 2024UK£11.5bUK£10.1bUK£360.9m27.6x31.8x1.1x
Wed, 31 Jul 2024UK£11.5bUK£10.2bUK£384.5m26.9x29.9x1.1x
Fri, 28 Jun 2024UK£11.8bUK£10.2bUK£380.8m27.4x31.1x1.2x
Sun, 26 May 2024UK£11.8bUK£10.2bUK£380.7m29.1x31.1x1.2x
Tue, 23 Apr 2024UK£9.9bUK£10.4bUK£355.2m27.3x27.8x0.9x
Thu, 21 Mar 2024UK£10.3bUK£10.5bUK£352.7m27x29.3x1x
Sat, 17 Feb 2024UK£11.1bUK£10.8bUK£359.4m25.5x30.8x1x
Mon, 15 Jan 2024UK£10.6bUK£12.8bUK£376.4m25.6x28.1x0.8x
Wed, 13 Dec 2023UK£10.2bUK£12.8bUK£379.5m23.4x26.8x0.8x
Fri, 10 Nov 2023UK£10.8bUK£13.4bUK£380.0m24.9x28.4x0.8x
Sun, 08 Oct 2023UK£10.9bUK£13.4bUK£372.3m26.1x29.4x0.8x
Tue, 05 Sep 2023UK£10.9bUK£12.6bUK£389.7m28.3x28.1x0.9x
Thu, 03 Aug 2023UK£11.0bUK£12.5bUK£404.7m26.5x27.1x0.9x
Sat, 01 Jul 2023UK£11.0bUK£12.5bUK£425.6m26.3x25.9x0.9x
Mon, 29 May 2023UK£11.1bUK£12.5bUK£424.5m26.2x26.2x0.9x
Wed, 26 Apr 2023UK£11.6bUK£12.4bUK£422.7m24.4x27.5x0.9x
Fri, 24 Mar 2023UK£11.6bUK£13.2bUK£422.5m27.7x27.5x0.9x
Sun, 19 Feb 2023UK£38.8bUK£22.0bUK£1.8b28x21.1x1.8x
Tue, 17 Jan 2023UK£38.0bUK£21.9bUK£1.8b28.5x21.2x1.7x
Thu, 15 Dec 2022UK£38.0bUK£21.6bUK£1.8b28x21.7x1.8x
Sat, 12 Nov 2022UK£37.6bUK£21.6bUK£1.8b28.2x21.1x1.7x
Mon, 10 Oct 2022UK£34.2bUK£21.7bUK£1.7b25.6x20.4x1.6x
Wed, 07 Sep 2022UK£32.1bUK£20.7bUK£1.6b28.7x19.5x1.5x
Fri, 05 Aug 2022UK£32.8bUK£20.6bUK£1.8b28.9x17.7x1.6x
Sun, 03 Jul 2022UK£19.2bUK£18.2bUK£822.1m28.7x23.3x1.1x
Tue, 31 May 2022UK£20.8bUK£18.0bUK£803.9m40.8x25.9x1.2x
Price to Earnings Ratio

25.9x


Total Market Cap: UK£20.8bTotal Earnings: UK£803.9mTotal Revenue: UK£18.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. IT Industry Price to Earnings3Y Average 34.1x202320242025
Current Industry PE
  • Investors are pessimistic on the British IT industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 26.7x which is lower than its 3-year average PE of 34.1x.
  • The 3-year average PS ratio of 1.6x is higher than the industry's current PS ratio of 0.89x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 27% per year over the last three years,
  • Revenues have also declined 19% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

Which industries have driven the changes within the U.K. Tech industry?

GB Market1.09%
Tech-1.40%
IT-2.92%
Internet Services and Infrastructure1.53%
Data Processing Services1.19%
IT Consulting-3.16%
Industry PE
  • Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 28.0x.
    • Analysts are expecting annual earnings growth of 13.5%, which is higher than its past year's earnings decline of 13.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 46% over the next 5 years.
  • However this is lower than its past earnings growth rate of 122% per year.
  • In contrast, the Data Processing Services industry is expected to see its earnings grow by 8.0% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
SWC Smarter WebUK£0.69122.6%
+UK£55.8m		n/aPE-200.8x
GST GSTechnologiesUK£0.0138.0%
+UK£2.2m		44.4%PS11.2x
RCN RedcentricUK£1.271.0%
+UK£2.0m		-16.3%PE332.8x
IOM iomart GroupUK£0.292.1%
+UK£676.1k		-78.8%PE9.6x
ELEG Electric GuitarUK£0.0008518.1%
+UK£156.0k		-95.5%PS17.9x
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Latest News

SWC

UK£0.69

Smarter Web

7D

122.6%

1Y

n/a

CLBS

UK£1.68

Celebrus Technologies

7D

-9.5%

1Y

-23.0%

Getting In Cheap On Celebrus Technologies plc (LON:CLBS) Is Unlikely

May 23
Getting In Cheap On Celebrus Technologies plc (LON:CLBS) Is Unlikely

KNOS

UK£7.23

Kainos Group

7D

-11.1%

1Y

-40.6%

Kainos Group (LON:KNOS) Has Announced A Dividend Of £0.191

May 22
Kainos Group (LON:KNOS) Has Announced A Dividend Of £0.191

TPX

UK£0.23

TPXimpact Holdings

7D

-8.0%

1Y

-29.2%

SPA

UK£0.52

1Spatial

7D

-4.6%

1Y

-32.2%

CCC

UK£25.06

Computacenter

7D

-1.2%

1Y

-11.8%

RCN

UK£1.27

Redcentric

7D

1.0%

1Y

-16.3%

IOM

UK£0.29

iomart Group

7D

2.1%

1Y

-78.8%

FDM

UK£2.23

FDM Group (Holdings)

7D

-6.5%

1Y

-49.5%

FDM Group (Holdings) (LON:FDM) Has Announced A Dividend Of £0.125

Apr 30
FDM Group (Holdings) (LON:FDM) Has Announced A Dividend Of £0.125

SCT

UK£17.47

Softcat

7D

-4.6%

1Y

1.9%

Softcat (LON:SCT) Will Pay A Dividend Of £0.089

Apr 10
Softcat (LON:SCT) Will Pay A Dividend Of £0.089

MTEC

UK£0.28

Made Tech Group

7D

-5.1%

1Y

69.7%

ELEG

UK£0.00085

Electric Guitar

7D

18.1%

1Y

-95.5%

GST

UK£0.013

GSTechnologies

7D

8.0%

1Y

44.4%