Stock Analysis

3 UK Growth Stocks With High Insider Ownership Expecting Up To 80% Earnings Growth

LSE:GKP
Source: Shutterstock

The UK stock market has recently faced challenges, with the FTSE 100 and FTSE 250 indices experiencing declines amid weak trade data from China, highlighting concerns about global economic recovery. In such uncertain times, growth companies with high insider ownership can be appealing to investors as they often signal confidence from those closest to the business and may offer robust earnings potential despite broader market pressures.

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

NameInsider OwnershipEarnings Growth
Gulf Keystone Petroleum (LSE:GKP)12.2%80.4%
Integrated Diagnostics Holdings (LSE:IDHC)27.6%23.7%
Facilities by ADF (AIM:ADF)13.1%190%
Foresight Group Holdings (LSE:FSG)34%29.0%
Judges Scientific (AIM:JDG)10.6%23%
Audioboom Group (AIM:BOOM)18.5%168.7%
B90 Holdings (AIM:B90)24.4%166.8%
Mortgage Advice Bureau (Holdings) (AIM:MAB1)19.8%26.4%
PensionBee Group (LSE:PBEE)38.8%67.7%
Anglo Asian Mining (AIM:AAZ)40%189.1%

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

We'll examine a selection from our screener results.

Brickability Group (AIM:BRCK)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Brickability Group Plc, with a market cap of £200.46 million, supplies, distributes, and imports building products in the United Kingdom through its subsidiaries.

Operations: The company's revenue segments are comprised of Importing (£94.77 million), Contracting (£58.17 million), Distribution (£62.72 million), and Bricks and Building Materials (£403.25 million).

Insider Ownership: 29.0%

Earnings Growth Forecast: 24.6% p.a.

Brickability Group is positioned as a growth company in the UK with significant insider ownership. Although its revenue is forecast to grow at 8.5% annually, slower than 20%, its earnings are expected to increase significantly by over 20% per year, outpacing the UK market average of 14.7%. Despite recent shareholder dilution and declining profit margins from 4.1% to 2.6%, the stock trades at a substantial discount of approximately 65% below estimated fair value and offers good relative value compared to peers.

AIM:BRCK Earnings and Revenue Growth as at Nov 2024
AIM:BRCK Earnings and Revenue Growth as at Nov 2024

Foresight Group Holdings (LSE:FSG)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Foresight Group Holdings Limited is an infrastructure and private equity manager operating in the United Kingdom, Italy, Luxembourg, Ireland, Spain, and Australia with a market cap of £513.10 million.

Operations: The company's revenue segments consist of £84.17 million from Infrastructure, £47.35 million from Private Equity, and £9.80 million from Foresight Capital Management.

Insider Ownership: 34%

Earnings Growth Forecast: 29.0% p.a.

Foresight Group Holdings demonstrates strong growth potential, with earnings expected to rise significantly at 29% annually, surpassing the UK market's average. Despite a forecasted revenue growth of 10.6% per year, slower than desired for high-growth firms, it remains above the UK market rate. The dividend yield of 4.98% is not well covered by earnings, posing sustainability concerns. Recent inclusion in the S&P Global BMI Index highlights its growing prominence among investors.

LSE:FSG Earnings and Revenue Growth as at Nov 2024
LSE:FSG Earnings and Revenue Growth as at Nov 2024

Gulf Keystone Petroleum (LSE:GKP)

Simply Wall St Growth Rating: ★★★★★★

Overview: Gulf Keystone Petroleum Limited focuses on the exploration, development, and production of oil and gas in the Kurdistan Region of Iraq, with a market cap of £311.77 million.

Operations: The company's revenue is derived from the exploration and production of oil and gas, totaling $115.15 million.

Insider Ownership: 12.2%

Earnings Growth Forecast: 80.4% p.a.

Gulf Keystone Petroleum exhibits strong growth prospects, with revenue forecasted to grow significantly faster than the UK market at 35.6% annually. The company is trading well below its estimated fair value, indicating potential undervaluation. Insider activity has been positive, with substantial buying over recent months and no significant selling. Despite a high dividend yield of 10.17%, it is not well covered by earnings or free cash flows, raising sustainability concerns. Recent board changes may impact strategic direction.

LSE:GKP Ownership Breakdown as at Nov 2024
LSE:GKP Ownership Breakdown as at Nov 2024

Summing It All Up

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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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