Stock Analysis

UK Growth Companies With High Insider Ownership In July 2024

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Amidst a backdrop of global economic uncertainties and faltering trade data that have recently pressured the UK's FTSE indices, investors continue to seek stable opportunities within the market. High insider ownership in growth companies often signals strong confidence from those who know the business best, making such stocks potentially attractive during turbulent times.

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

NameInsider OwnershipEarnings Growth
Plant Health Care (AIM:PHC)34.2%121.3%
Petrofac (LSE:PFC)16.6%124%
Gulf Keystone Petroleum (LSE:GKP)12.1%74.6%
Integrated Diagnostics Holdings (LSE:IDHC)26.7%23.5%
Helios Underwriting (AIM:HUW)23.1%14.7%
LSL Property Services (LSE:LSL)10.8%33.3%
Velocity Composites (AIM:VEL)27.6%173.3%
B90 Holdings (AIM:B90)24.4%142.7%
Judges Scientific (AIM:JDG)11.5%25.9%
Hochschild Mining (LSE:HOC)38.4%54.9%

Click here to see the full list of 64 stocks from our Fast Growing UK Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

Franchise Brands (AIM:FRAN)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Franchise Brands plc operates a franchising business with activities in the United Kingdom, North America, and Europe, boasting a market capitalization of approximately £329.66 million.

Operations: The company's revenue is generated from several key segments: 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%

Earnings Growth Forecast: 40.7% p.a.

Franchise Brands, a UK-based company, is trading at 45.9% below its estimated fair value, signaling potential undervaluation. Analysts expect an 88.5% rise in stock price with projected annual earnings growth of 40.7%, outpacing the UK market forecast of 12.6%. Despite recent executive changes and lower profit margins year-over-year—2.5% compared to last year's 11.6%—the company reported substantial revenue growth from £69.84 million to £121.27 million annually, although net income declined from £8.13 million to £3.04 million.

AIM:FRAN Earnings and Revenue Growth as at Jul 2024

Property Franchise Group (AIM:TPFG)

Simply Wall St Growth Rating: ★★★★★☆

Overview: The Property Franchise Group PLC, operating in the United Kingdom, manages and leases residential real estate properties with a market capitalization of approximately £275.80 million.

Operations: The company generates revenue primarily from two segments: Financial Services (£1.50 million) and Property Franchising (£25.78 million).

Insider Ownership: 12.7%

Earnings Growth Forecast: 36.7% p.a.

Property Franchise Group PLC, despite substantial shareholder dilution over the past year, is poised for significant growth with earnings forecasted to increase by 36.71% annually. This outpaces the UK market's expected growth of 12.6%. The company also anticipates robust revenue growth at a rate of 44.7% per year, well above the market average of 3.5%. However, challenges include an unstable dividend track record and a forecasted low return on equity (13%) in three years' time.

AIM:TPFG Earnings and Revenue Growth as at Jul 2024

LSL Property Services (LSE:LSL)

Simply Wall St Growth Rating: ★★★★★☆

Overview: LSL Property Services plc operates in the UK, offering services to mortgage intermediaries and estate agency franchisees, as well as valuation services to lenders, with a market capitalization of approximately £343.98 million.

Operations: LSL Property Services generates revenue through three primary segments: Financial Services (£51.69 million), Surveying and Valuation (£67.83 million), and Estate Agency, excluding Financial Services (£24.89 million).

Insider Ownership: 10.8%

Earnings Growth Forecast: 33.3% p.a.

LSL Property Services, with recent board enhancements including the appointment of industry veterans Michael Stoop and Adrian Collins, is poised for strategic leadership. The company's earnings are expected to grow by 33.3% annually, outpacing the UK market forecast of 12.6%. Despite a slower revenue growth rate at 11% annually compared to some peers, LSL trades at a significant discount—47.1% below its estimated fair value—suggesting potential undervaluation. However, its dividend sustainability is questionable as it’s poorly covered by earnings and cash flow.

LSE:LSL Earnings and Revenue Growth as at Jul 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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