Stock Analysis

Three UK Growth Companies With Insider Ownership Exceeding 10%

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The United Kingdom's stock market has shown a stable trend recently, with a modest annual increase of 4.1% and expectations for earnings to grow by 13% annually over the next few years. In this context, stocks from growth companies with substantial insider ownership can offer potential advantages, as high insider stakes often align management’s interests with those of shareholders, fostering long-term value creation in a steadily growing market.

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

NameInsider OwnershipEarnings Growth
Plant Health Care (AIM:PHC)34.1%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%
Belluscura (AIM:BELL)39.5%117.8%
Velocity Composites (AIM:VEL)27.6%173.3%
B90 Holdings (AIM:B90)24.4%142.7%
Judges Scientific (AIM:JDG)11.5%25.3%
Hochschild Mining (LSE:HOC)38.4%42.6%

Click here to see the full list of 61 stocks from our Fast Growing UK Companies With High Insider Ownership screener.

Underneath we present a selection of stocks filtered out by our screen.

Craneware (AIM:CRW)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Craneware plc is a company that develops, licenses, and supports software for the healthcare industry in the United States, with a market capitalization of approximately £849.37 million.

Operations: The company generates revenue primarily through its healthcare software segment, which brought in $180.56 million.

Insider Ownership: 17%

Craneware, a UK-based company, is poised for notable growth with its earnings expected to increase by 29.39% annually over the next three years, outpacing the UK market average. Despite a forecast of modest revenue growth at 6.7% per year, the firm's strategic partnership with Microsoft enhances its technological capabilities and market reach through advanced AI applications and cloud solutions. This collaboration also introduces Craneware’s offerings on Azure Marketplace, aligning with increased value delivery in healthcare analytics and operational efficiency. However, its projected Return on Equity remains low at 11.2%, suggesting potential challenges in achieving high financial returns on shareholder equity.

AIM:CRW Earnings and Revenue Growth as at Jul 2024

Judges Scientific (AIM:JDG)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Judges Scientific plc is a company that designs, manufactures, and sells scientific instruments, with a market capitalization of approximately £753.79 million.

Operations: The firm operates primarily in two revenue segments: Vacuum, which generates £63.60 million, and Materials Sciences, contributing £72.50 million.

Insider Ownership: 11.5%

Judges Scientific, a UK-based company, demonstrates robust insider engagement with substantial buying activity over the past three months, underscoring strong internal confidence. Despite facing challenges like a high debt level and reduced profit margins year-over-year—down from 11% to 7%—the company is set for significant earnings growth at an annual rate of 25.3%, outstripping the UK market's average. Recent adjustments in company bylaws and a dividend increase further reflect proactive governance and shareholder value focus.

AIM:JDG 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 cap of approximately £343.98 million.

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

Insider Ownership: 10.8%

LSL Property Services has recently enhanced its board with experienced directors, signaling strong governance which aligns with its substantial insider ownership. The company's financial trajectory is set for notable growth, with earnings expected to rise by 33.3% annually, outpacing the UK market average significantly. Despite this promising outlook, dividends appear less secure, not fully backed by earnings or cash flow. Recent strategic moves like share buybacks underscore a commitment to shareholder value amidst a challenging financial landscape marked by a recent shift to profitability and aggressive revenue targets.

LSE:LSL Ownership Breakdown 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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