Stock Analysis

3 High Growth Stocks With Strong Insider Ownership On The UK Exchange

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The UK market has faced challenges recently, with the FTSE 100 closing lower due to weak trade data from China and concerns over global economic conditions. Despite these headwinds, investors often seek growth companies with strong insider ownership as they can indicate confidence in the company's future prospects.

Top 10 Growth Companies With High Insider Ownership In The United Kingdom

NameInsider OwnershipEarnings Growth
Filtronic (AIM:FTC)28.6%33.5%
Plant Health Care (AIM:PHC)34.4%121.3%
Gulf Keystone Petroleum (LSE:GKP)12.1%74.6%
Integrated Diagnostics Holdings (LSE:IDHC)26.7%23.5%
Helios Underwriting (AIM:HUW)23.9%14.7%
Belluscura (AIM:BELL)39.5%117.8%
Velocity Composites (AIM:VEL)27.6%173.3%
Judges Scientific (AIM:JDG)11.9%26.2%
B90 Holdings (AIM:B90)24.4%142.7%
Hochschild Mining (LSE:HOC)38.4%53.8%

Click here to see the full list of 66 stocks from our Fast Growing UK Companies With High Insider Ownership screener.

We'll examine a selection from our screener results.

Franchise Brands (AIM:FRAN)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Franchise Brands plc, with a market cap of £334.47 million, operates through its subsidiaries to engage in franchising and related activities across the United Kingdom, North America, and Europe.

Operations: The company's revenue segments include Azura (£0.75 million), Pirtek (£41.95 million), B2C Division (£6.11 million), Water & Waste (£48.88 million), and Filta International (£27.12 million).

Insider Ownership: 29.8%

Revenue Growth Forecast: 11.5% p.a.

Franchise Brands, a UK growth company with substantial insider ownership, is forecast to grow earnings by 40.65% annually and revenue by 11.5% per year, outpacing the broader market. Despite trading at 51.7% below estimated fair value and experiencing significant insider buying recently, profit margins have declined from last year. Recent executive changes include the appointment of Andrew Mallows as Interim CFO following Mark Fryer's departure and Christopher Stuckey joining as a Director.

AIM:FRAN Ownership Breakdown as at Aug 2024

Loungers (AIM:LGRS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Loungers plc operates cafés, bars, and restaurants under the Lounge and Cosy Club brand names in England and Wales, with a market cap of £287.66 million.

Operations: The company's revenue primarily comes from operating café bars and café restaurants, generating £353.49 million.

Insider Ownership: 13.7%

Revenue Growth Forecast: 12.2% p.a.

Loungers, a UK growth company with high insider ownership, reported robust financial results for the full year ending April 16, 2024. Sales increased to £353.49 million from £283.51 million last year, while net income rose to £9.12 million from £6.93 million. Basic earnings per share improved to £0.086 from £0.067 a year ago. Despite trading at 63.7% below estimated fair value, Loungers' earnings are forecast to grow significantly at 22.8% annually over the next three years, outpacing the broader UK market's growth rate of 13.5%.

AIM:LGRS Ownership Breakdown as at Aug 2024

Property Franchise Group (AIM:TPFG)

Simply Wall St Growth Rating: ★★★★★☆

Overview: The Property Franchise Group PLC manages and leases residential real estate properties in the United Kingdom, with a market cap of £282.97 million.

Operations: The company's revenue segments include £1.50 million from Financial Services and £25.78 million from Property Franchising.

Insider Ownership: 13.5%

Revenue Growth Forecast: 44.7% p.a.

Property Franchise Group, a UK growth company with high insider ownership, is forecast to see significant revenue and earnings growth at 44.7% and 36.7% per year respectively, outpacing the broader UK market. Despite trading at 61% below estimated fair value, shareholders faced substantial dilution last year and the dividend track record remains unstable. Recent executive changes include CFO David Raggett's planned retirement by end-2025, ensuring a smooth transition period for leadership continuity.

AIM:TPFG Earnings and Revenue Growth as at Aug 2024

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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.

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