3
Annual Report & Accounts
For the year ended 31 December 2024
Decoding
the future
2024 Highlights
Note 1: Defined in the explanation of non-IFRS measures on page 29.
Key performance metrics
Contracted Forward Revenue1 +12%
£171.4m
(2023: £153.4m)
UNDERLYING GROWTH1: +4%
Net cash/(bank debt)1
-104%
£10.1m
(2023: (£243.9m))
Revenue
+5%
£285.5m
(2023: £273.1m)
UNDERLYING GROWTH1: +4%
Operating profit
-12%
£65.1m
(2023: £73.7m)
Operating profit margin
-4 pts
23%
(2023: 27%)
Adjusted EBITDA1
+5%
£116.8m
(2023: £110.8m)
Adjusted EBITDA margin1
0 pts
41%
(2023: 41%)
Profit before tax (PBT)
+32%
£54.9m
(2023: £41.5m)
Earnings per share (EPS)
0%
3.8p
(2023: 3.8p)
Adjusted EPS1
+10%
7.5p
(2023: 6.8p)
Total dividends
-46%
2.5p
(2023: 4.6p)
Contents
2024 Highlights
IFC
Strategic Report
2
Our Business
Principal Activity
4
Our Business Model
5
Chair’s Statement
8
Chief Executive’s Report
11
Chief Financial Officer’s Report
17
Principal and Emerging Risks and Uncertainties
30
Directors’ Section 172(1) Statement
41
Non-Financial and Sustainability Information
Statement
46
Going Concern and Viability
52
Directors’ Report
55
The Directors
56
Corporate Governance Report
58
Environmental, Social and Governance
66
Audit Committee Report
71
Directors’ Remuneration Report
77
Statement of Directors’ Responsibilities
89
Independent Auditor’s Report
90
Financial Statements
107
Group
Consolidated Income Statement
108
Consolidated Statement of Comprehensive Income 109
Consolidated Statement of Financial Position
110
Consolidated Statement of Changes in Equity
111
Consolidated Statement of Cash Flows
112
Notes to the Consolidated Financial Statements
113
Company
Company Statement of Financial Position
169
Company Statement of Changes in Equity
170
Notes to the Company Financial Statements
171
Advisers
178
Reliance on this document
Our Business Review on pages 2 to 29 has been prepared in
accordance with the Strategic Report requirements of section
414C(2)(a) of the Companies Act 2006. The intention of this
document is to provide information to shareholders and is not
designed to be relied upon by any other party or for any other
purpose.
Forward-looking statements
This document contains forward-looking statements which are made
by the Directors in good faith based on information available to them
at the time of approval of this report. In particular, all statements that
express forecasts, expectations and projections with respect to future
matters, including trends in results of operations, margins, growth
rates, overall market trends, the impact of interest or exchange rates,
the availability of financing, anticipated costs savings and synergies
and the execution of GlobalData Plc’s strategy, are forward-looking
statements. By their nature, forward-looking statements involve
risks and uncertainties because they relate to events and depend on
circumstances that will occur in the future. There are a number of
factors which could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking
statements, including a number of factors outside of GlobalData
Plc’s control. Any forward-looking statements speak only as of the
date they are made, and GlobalData Plc gives no undertaking to
update forward-looking statements to reflect any changes in its
expectations with regard thereto or any changes to events, conditions
or circumstances on which any such statement is based.
ANNUAL REPORT AND ACCOUNTS 2024
1
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
www.globaldata.com
Company No. 03925319
“2024 was transformational
for GlobalData following
Inflexion’s significant
investment in June 2024,
which strengthened
our balance sheet and
accelerated our growth
strategy.”
– Mike Danson, Chief Executive
2
•
Strong growth in both revenue and profit before tax:
•
Overall revenue growth of 5% at £285.5m (2023: £273.1m), which includes some
benefit of acquisitions and despite currency headwinds during the year.
•
Robust underlying revenue growth of 4% (2023: 7%).
•
Adjusted EBITDA up 5% to £116.8m (2023: £110.8m), Adjusted EBITDA margin
maintained at 41% (2023: 41%).
•
Operating Profit declined 12% to £65.1m having been impacted by current year
acquisition and integration expenses, restructuring costs incurred on the Healthcare
transaction and an increase in the share-based payment charge.
•
Profit before tax grew by £13.4m to £54.9m (2023: £41.5m), a 32% increase on prior
year reflecting trading performance and reduction in finance costs.
•
Operating cash flow was £97.6m (2023: £101.0m), a decrease of 3% reflecting one-
off cash costs associated with the Inflexion Healthcare transaction and the four
acquisitions.
•
Contracted Forward Revenue (being Invoiced Forward Revenue plus contracted
revenue not yet invoiced) grew by 12% to £171.4m (2023: £153.4m), the underlying
growth of this metric was 4%.
•
Invoiced Forward Revenue grew to £145.3m (underlying growth of 3%) at 31 December
2024 (31 December 2023: £135.2m).
•
Signed new £340m debt financing facilities giving the Group significant firepower to
execute its M&A strategy.
•
As part of the dividend rebasing to focus capital on M&A, final dividend proposed at
1.0p (2023: 3.2p).
Financial Highlights
•
Significant first-year progress against our three-year Growth Transformation Plan.
•
Investment for 40% of the Group’s Healthcare business by Inflexion Private Equity
Partners LLP (“Inflexion”) supports mid-term strategic goals, generating gross cash
proceeds of £451.4m. Pre-existing debt facilities fully settled and extinguished upon
transaction completion.
•
Platform strengthened with £88.0m of investment across four earning accretive
acquisitions (Business Trade Media International, LinkUp, Celent and Deallus).
•
Transformative year in AI:
•
Demonstrable impact for customers, with over 42,000 users now subscribed to
GlobalData’s AI Hub, transforming how users discover and apply insights in their daily
workflows.
•
Two Share Buyback Programmes completed returning £29.3m to shareholders; a
further £50m buyback announced for 2025.
•
Announced proposed move to the Main Market of the London Stock Exchange (“Main
Market”).
•
Completed, on 7 March 2025, the acquisition of AI Palette for a purchase price
of $11.5m, an AI Powered consumer insights platform offering an Innovation
Intelligence solution to the Consumer-packaged goods sector.
Operational Highlights
Strategic Report
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
3
•
Robust outlook is underpinned by high levels of revenue visibility, good execution of
the Growth Transformation Plan and a strong financial position that allows continued
investment in strategic growth opportunities.
•
Clear financial targets for FY25 and beyond:
•
Platform in place to accelerate organic and inorganic growth opportunities across our
two customer-focused divisions.
•
Targeting annualised revenue of £500m by the end of 2026, through a combination of
high single to double-digit organic revenue growth and M&A.
•
Steadily progressing towards 45% Adjusted EBITDA margin over the course of the
plan period and reinvesting into the Growth Transformation Plan.
Current Trading and Outlook
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
4
Our Vision
To be the leading data,
analytics, and insights
platform for the world’s
largest industries.
Principal Activity
GlobalData Plc (together with its
subsidiaries, ‘the Group’) is a data, insight,
and technology company that provides
decision-makers across the world’s most
successful companies with the intelligence
to act with conviction. Our connected
platform uniquely integrates proprietary
data, expert insight, and purpose-built AI
into a unified operating system that powers
the next generation of intelligence solutions.
Our Mission
To help our clients
decode the future, make
better decisions, and
reach more customers.
STRATEGIC REPORT
Our Business
20+
industry sector
coverage
(2023: 20)
3,740
employees
worldwide
(2023: 3,532)
4,900+
clients
(2023: 4,800+)
A snapshot of our
Group as at
31 December 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
The Group provides solutions across a breadth of industry
markets and functions, on a global scale on a single connected
platform. Our connected platform uniquely integrates
proprietary data, expert insight, and purpose-built AI into a
unified operating system that powers the next generation of
intelligence solutions.
Our solutions are used by organisations and decision-makers
across any industry to generate growth, build resilience, and
navigate a sustainable path to a more successful future.
5
ANNUAL REPORT AND ACCOUNTS 2024
Our Business Model
Recurring
revenue
Highly recurring
subscription revenue,
with high retention and
revenue visibility.
High incremental margins
Significant operating
leverage due to “build
once, sell multiple times”
model, and a largely fixed
cost base.
Scalable and
defensible position
Large, diversified
opportunities with
attractive tailwinds, strong
competitive moat and an
agile, scalable company
with One Platform.
Strong cash flow generation
Low capital requirements and
mostly advance customer payments
support high cash flow conversion,
working capital benefits and
capacity for reinvestment.
The visible and recurring revenue base creates a resilient
business model, with subscriptions making up approximately
80% of revenue. The balance of our revenue is made up of
ancillary services such as bespoke consulting, single copy reports
and events, all of which harness our core assets.
GlobalData’s client base is globally diversified, which reflects
our globally relevant data assets and gives the Group significant
market opportunity.
The Group assesses potential M&A targets and looks for the
same business model fundamentals in its targets, which enables
greater alignment and integration opportunities.
Our clients typically subscribe for 12 months’
access. This approach drives the following
business model attributes:
6
Capital Allocation
STRATEGIC REPORT
Our Business (continued)
Our objective is to achieve long-term compounding growth and maximise shareholder returns. The Group looks at resources to
deliver growth whilst also maintaining a focus on profitability.
INVESTING IN GROWTH
Reinvestment
The Group benefits from
significant operating leverage
due to stable fixed costs and a
lower variable cost model that
generates long-term margin
expansion in an accelerating
revenue growth environment.
We have a dynamic cost base,
which is largely people focused,
and has continued innovation
and investment embedded. This
agility allows us to direct our
resources to focus on underlying
growth.
We have a low capital intensity
model: capital spend typically
represents 1% – 1.5% of
revenue (2024: 2.5%, 2023:
1.5%). The increase in 2024
reflected additional investment
in the Growth Transformation
Plan activities, such as the
solutions product development.
Acquisitions
M&A is a significant growth
strategy for our business.
Our scalable One Platform
infrastructure enables
us to efficiently integrate
new datasets and content
capabilities into our existing
vertical offerings or expand
our breadth into new vertical
markets, enabling the Group to
realise synergies and value.
Our management team has
extensive experience of
acquiring and integrating assets
and we currently have an active
pipeline of businesses that we
are assessing and the financial
firepower to execute.
We have an ambition of
increasing our scale, through
M&A.
CAPITAL RETURN
Dividends
The cash generative and high
margin nature of our business
provides good optionality on
capital allocation. As a Board, we
feel committing to a progressive
dividend policy demonstrates
good financial discipline and
careful stewardship.
From 1 July 2024, the Group
has rebased the dividend which
reduces the payout of dividend
from this date. This reflects
the completion of the Inflexion
investment in the Healthcare
division and focuses more free
cash flow on acquisitions.
Share Purchase
The Company has a policy to
try and limit the dilution of its
existing shareholders created via
the Group’s Long-Term Incentive
Plans. As at 31 December 2024,
the Group had 45.4m options
in issue and 52.9m shares held
in treasury within the Group’s
Employee Benefit Trust.
Additionally, the Company
may, from time to time, use
excess cash (after investment
and dividend), to purchase
shares into treasury (within the
authorised annual limits).
GROWING OUR REVENUE – Ambition for high single/double digit annual organic growth
Volume Renewal
New Logo
Value Renewal
M&A
INCREASING OUR PROFITABILITY – Adj. EBITDA margin ambition to progress towards 45%
Cost Discipline
Technology Investment
Scalable Model
Process Optimisation
REINVEST AND RETURN CAPITAL
Reinvestment
Dividends/Share Buybacks
Acquisitions
The Group uses free-cash flow and debt to fund acquisitions and purchase shares for the Employee Benefit Trust and targets net
debt leverage no greater than 2-3 times of Adjusted EBITDA, being the multiple of Adjusted EBITDA (including the pre-acquisition
results of recent acquisitions) compared to net bank debt.
7
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Our Purpose – why do we exist?
Perspective when it matters.
When faced with an overwhelming volume of conflicting and
misleading information in today’s complex world, GlobalData
provides a deeper, trusted perspective.
Our role is to provide our customers with intelligence that
empowers their decision-makers to navigate a path to a more
successful future.
We want to help our clients decode the future, make better
decisions, and reach more customers. We believe Information
and Technology are forces for good.
One Platform
GlobalData’s connected platform model is the foundation of
our strategic advantage and is the result of years of continuous
capital investment, targeted acquisitions, and organic
development.
Our unified model governs everything we do, from how we
develop and manage our products to our approach to sales and
customer success, as well as supporting business operations.
At its core, this approach integrates our entire universe of
unique data, expert analysis, and innovative solutions into One
Platform, providing easy access to a complete and comparable
view of the world’s largest industries.
As a result of our unified model, we can respond rapidly to
changing customer needs and market opportunities, and
continuously manage and develop products quickly, at
scale, with minimal capital investment, as well as integrate
acquisitions quickly and unlock synergies.
Growth Transformation Plan
We launched our Growth Transformation Plan in 2024, which
focuses on four key pillars: Customer Obsession, World-Class
Product, Sales Excellence and Operational Agility.
Customer Obsession
•
Develop a trusted, global brand synonymous with
delivering exceptional customer value and service;
•
Develop a global community of engaged industry
professionals; and
•
Maintain a customer-centric culture that informs our
strategy, operating model, and business decisions.
World-Class Product
•
Develop an integrated suite of winning propositions with
clear competitive differentiation;
•
Provide “must-have” capabilities that are integral to our
clients and daily lives of professionals; and
•
Consistently lead the market in commercialising new
product development and innovation.
Sales Excellence
•
Consistently deliver best-in-class sales productivity
through targeted campaigns and tailored sales
enablement;
•
Provide new salespeople with the structured on-boarding
support required to accelerate “time-to-target”; and
•
Invest in the technology, people, and processes required
to deliver exceptional experiences across the customer
journey.
Operational Agility
•
Use our unified operating model and One Platform to
create an integrated portfolio greater than the sum of its
parts;
•
Ensure we have the organisational structure, capabilities
(e.g. people, process, technology), and high-performance
culture to execute; and
•
Provide effective portfolio-wide planning, business insight
and performance reporting, and governance.
8
STRATEGIC REPORT
Chair’s
Statement
Murray Legg, Chair
Dear Shareholders,
As I reflect on 2024, I am pleased to report that GlobalData
has made substantial progress in executing our Growth
Transformation Plan (“GTP”), which we launched at the
beginning of the year. This ambitious programme initially
focused on organisational transformation and bringing in
additional talent to help lead and drive the GTP and we ended
the year by completing four new acquisitions, each bringing
an invaluable capability and talent onto our platform.
The success of our transformation journey is dependent
on the dedication and expertise of our global team. We
have invested heavily in talent development and cultural
transformation, ensuring our organisation remains agile and
innovative. A significant amount of Board focus has been to
review the roll-out of the GTP across the business and, in
particular, overseeing the acquisition of key leadership talent
into the business. I am pleased with the progress we have
made in the early stages of our transformation journey, and I
am looking forward to continuing to deliver against the plan.
Growth Transformation Plan
The GTP was launched in January 2024 as a framework
to deliver long-term sustainable and scalable growth on
the back of exiting 2023 in a strong financial position, with
significant revenue visibility and impressive Adjusted EBITDA
margin, as well as a significant opportunity in terms of
Total Addressable Market (c.£20bn). The completion of the
minority sale of our Healthcare division (completed 28 June
2024) transformed the balance sheet by repaying debt and
delivering significant headroom to fund our M&A ambition.
8
“The GTP was launched in
January 2024 as a framework
to deliver long-term sustainable
and scalable growth on the
back of exiting 2023 in a
strong financial position, with
significant revenue visibility and
impressive Adjusted EBITDA
margin, as well as a significant
opportunity in terms of Total
Addressable Market (c.£20bn).”
– Murray Legg, Chair
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Our GTP framework focuses on four key pillars: Customer
Obsession, World Class Product, Sales Excellence and
Operational Agility. 2024 was focused on accelerating
implementation of key initiatives such as: getting closer to our
clients, putting Artificial Intelligence at the centre of how we
operate and investing in accretive M&A, all underpinned by
investment in people and organisational transformation.
The financial results for 2024 do not reflect the impact of
some of the initiatives that we have launched in the year, as
we look more to the medium term to see noticeable benefits.
However, we have set some of the foundational areas of
the transformation journey and with the four completed
acquisitions and organic growth, we are scaling towards the
£500m revenue target as set last year for the end of 2026.
Board Succession and Sustainability
The Board continues to place utmost importance on having the
governance and structures in place to fully support the Executive
Directors and Senior Leadership Team to succeed and ultimately
maximise shareholder return. During 2024, the Board focused on
the launch of the GTP and that the right leadership is in place to
ensure the programme is set up for success.
Annette Barnes and Andrew Day were appointed as Non-
Executive Directors of GlobalData in February 2017. Annette
serves as Chair of the Company’s Remuneration Committee and
is also the Company’s Senior Independent Director. Given that
their terms as recommended by the UK Corporate Governance
Code will expire in January 2026, the Company will shortly
be commencing a process to be led by myself to identify their
successors. It is intended that Annette’s successor as Chair of
the Remuneration Committee will be appointed in good time
during 2025 to ensure an orderly handover of Remuneration
Committee responsibilities. The Board will seek Annette’s and
Andrew’s re-elections at the 2025 AGM.
I joined the Board as Non-Executive Director on 24 February
2016 and was appointed as Chair on 20 April 2021 and
therefore, as prescribed by provision 19 of the UK Corporate
Governance Code, my term should have expired on 24 February
2025. However, following a review led by the Senior Independent
Director, and as permitted by the UK Corporate Governance
Code, the Board recommended a limited extension of my term
as Chair, which I have accepted. The extension will facilitate
stability, consistency and governance across a large programme
of transformation (including succession planning for the Board
and Remuneration Committee) and the Board believe that this
is in the best interests of the Company and all its shareholders.
Therefore, I will be seeking re-election at the 2025 AGM.
We continue to improve and evolve our climate-related
governance and reporting efforts, which includes disclosure of
our Non-Financial and Sustainability Information Statement
on page 46. Our near-term reduction and Net Zero targets
were validated by the Science Based Targets initiative (SBTi)
during 2024, confirming our robust approach to reducing GHG
emissions, and with independent experts, we have created
a roadmap of reductions to meet those targets. Our climate
discussions will continue in 2025, which will encompass the
review, monitoring, and discussion of climate-related financial
risks and opportunities as well as wider sustainability matters.
Looking Ahead
As we move into 2025, the Board remains confident in
our strategic direction and the opportunities ahead. The
foundations we have laid through the Growth Transformation
Plan position us well to capture the growing demand for
data-driven insights across all our market sectors.
We will continue to focus on accelerating organic growth,
exploring strategic acquisition opportunities, and delivering
increased value to our shareholders. The market for data and
analytics solutions continues to expand, and we are well-
positioned to capitalise on this growth.
We have announced our intention to move to a premium listing
on the London Stock Exchange (Main Market). We believe that
this move will provide the Group with access to a wider pool of UK
and international capital that will support our long-term growth
ambitions and also reflect the progress that the Group has made
in its scale, business model and governance arrangements.
On behalf of the Board, I would like to thank our shareholders
for their continued support, our clients for their trust in our
service offering, and our employees for their unwavering
commitment to excellence. The progress we have made in
2024 gives us confidence in our ability to deliver sustainable
growth and value creation in the years ahead.
Dividend
As noted in our half year results statement (published 31 July
2024), following on from the completion of the Healthcare
transaction and the strategy to focus more capital towards
M&A, we have rebased the dividend for the period from 1 July
2024. Therefore, we are pleased to propose a final dividend of
1.0 pence per share (2023: 3.2 pence per share), to be paid
on 2 May 2025 to shareholders on the register at the close of
business on 21 March 2025. The ex-dividend date will be on
20 March 2025. The proposed final dividend means that the
total dividend for the year is 2.5 pence per share (2023: 4.6
pence).
Murray Legg
Chair
10 March 2025
ANNUAL REPORT AND ACCOUNTS 2024
9
10
10
“As planned, 2024 was a significant
year of investment across our Growth
Transformation Plan initiatives.
We continued to invest in our AI
capabilities, as well as launching our
new client solutions offerings.”
– Mike Danson, Chief Executive
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
STRATEGIC REPORT
Chief Executive’s
Report
Mike Danson, Chief Executive
FY24 marked the start of our next growth chapter as we
launched our new Growth Transformation Plan 2024-2026. We
have spent a lot of time this year laying the foundations in order
to drive execution and further scale our One Platform. The first
year of the plan has been about building a strong foundation,
re-organising our business into two divisions and investing in
our sales force, AI capability and client solutions to position the
Group for successful execution.
The plan focuses on expanding sales headcount, innovating
through product development and embedding our wider AI
transformation programme, as well as scaling up our M&A
ambitions. This year, we saw significant investment in these core
areas, making 2024 a year of evolution for GlobalData putting
us in a strong position to accelerate our growth and deliver
sustainable value creation for our shareholders, the benefits of
which I’m pleased to say we are already starting to realise.
FY24 performance and investment across our
growth pillars
In FY24 we have delivered steady revenue growth of 5%
to £286m, within the range of market expectations (2023:
£273m), which represents 4% growth on an underlying basis.
We continued to invest in a number of planned initiatives to
secure future growth over the medium term, but with good cost
discipline, Adjusted EBITDA margin was maintained at 41%.
ANNUAL REPORT AND ACCOUNTS 2024
11
GlobalData closed the year with underlying Contracted Forward
Revenue (“CFR”) growth of 4%, providing strong visibility into
2025.
As planned, 2024 was a significant year of investment across
our Growth Transformation Plan initiatives. We continued to
invest in our AI capabilities, as well as launching our new client
solutions offerings and increasing our sales headcount with an
additional 30 senior sales positions.
The investment made by Inflexion in our Healthcare business,
in June 2024, was transformational in many respects. The
transaction valued the business at close to 22x Adjusted
EBITDA (based upon 12 months to 30 June 2023) and the
Group recognised a £412m gain directly within equity as a
result. The cash receipt has provided the wider Group with the
firepower to support growth through a bolt-on M&A strategy.
During the second half of the year we closed four acquisitions
for a combined equity value of £88m, the acquisitions are
expected to add c.£42m of revenues during FY25 and benefit
from improved contribution levels as the businesses become
fully integrated into the GlobalData business model. The
Group closes the year in a positive net cash position providing
additional flexibility to accelerate future value-creating M&A
activity. In addition to M&A, we have also deployed capital
towards share buybacks in the second half, maintaining a
disciplined approach to capital allocation.
12
Executing our Growth Transformation Plan
2024-2026
We have delivered good revenue growth while maintaining
strong margins, despite significant investments in our
transformation programme. Our strong recurring revenue
base has continued to expand, providing increased visibility
and stability to our future earnings. We aim for high-single to
double digit organic revenue growth and whilst our growth was
below this target in 2024, we firmly believe that we have the
right programme in place to accelerate the Group’s revenue
growth. In particular, I am confident that our customer focused
initiatives will have a positive impact on our target to achieve
>90% volume renewal rate (>£20k clients) over the medium
term. Our volume renewal rates have marginally reduced during
2024 to 83% (2023: 84%).
During the first year of the Growth Transformation Plan clear
progress has been made against our four strategic pillars which
are as follows:
Customer Obsession: our number one priority
Having reorganised our structure at the start of FY24, the
number one priority remains our customer obsession. We
believe this is the key enabler for sustainable value creation,
which is why investment in our people has been prioritised
with a concentration on three major areas; customer-driven
re-organisation, solutions-focused user interface, and customer
engagement.
Firstly, our re-organisation focused upon the separation of
the Healthcare business at an operational level, but the real
emphasis was setting up customer-centric organisational
structures. We hired a Chief Revenue Officer (“CRO”) and Chief
Operating Officer (“COO”) within the Healthcare division as well
as a Global CRO and COO covering all other industry sectors,
each with a customer-centric and growth transformation
mandate.
Within this structure we have hired strategic and major account
managers across the Group to help our focus on creating
strategic partnership and build customer relationships amongst
our larger client cohort. The reorganisation has taken time to
set up, which has impacted our trading results in the short term.
However, we are confident that the changes we have made are
the right ones and we are starting to see the early benefits of
this coming through in some initiatives.
Secondly, our Growth Transformation Plan is underpinned by a
clients solutions-based model. Our Solutions initiatives centre
around ensuring client delivery is focused and personalised
to the job role and use case for the proprietary data and
content. Through solutions such as Sales Intelligence, Strategic
Intelligence and Competitive Intelligence, we are creating tools,
workflows and configuration that is tailored to the user and
their required outcomes. Our investment in AI is allowing us to
do this at scale and with additional tools such as AI Hub and
virtual assistants, we are now creating a transformational user
interface and user experience. This powerful combination of
AI and human expertise is what continues to set us apart from
our peers. This is why it means greater focus on investment in
solutions and AI capabilities – all to provide better solutions to
our customers.
And finally, customer engagement remains central to our
success, where staying closer to and building stronger
relationships is of utmost importance. The strength of our
relationships is reflected in the frequency and quality of
client engagement across our divisions. The quality, insights
and specialist industry knowledge of our analysts is a key
value point in our service to clients, increasing the levels of
engagement is an extremely important value driver for our
customers and long term will increase the quality and longevity
of customer partnerships.
A key outcome of our Customer Obsession activities is to move
the business towards our target renewal rate (by volume) to
more than 90% over the medium term. Volume renewal rates
(customers >£20k) marginally reduced to 83% in FY24 (FY23:
84%). We also have a clear focus on increasing our penetration
with large clients. During 2024, our volume renewal rate for
clients spending more than £100,000 was 98% (FY23: 97%),
which reflects a client base of 431 clients (FY23: 406) with an
accumulated value of £123m (FY23: £114m).
STRATEGIC REPORT
Chief Executive’s
Report (continued)
Growth Transformation Plan 2024-2026
1. CUSTOMER DRIVEN RE-ORG
2. SOLUTIONS
3. CUSTOMER ENGAGEMENT
4. 2024 PRODUCT ENHANCEMENTS
5. SIGNIFICANT AI INVESTMENTS
6. ORGANIC VALUE CREATION PLAN
7. M&A PLAN
CUSTOMER OBSESSION
WORLD CLASS PRODUCTS
SALES EXCELLENCE
OPERATIONAL AGILITY
8. PEOPLE & CULTURE
9. TECHNOLOGY & AI
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
World Class Product: Significant investment in
products, solutions and AI capability
2024 has been a significant year for investment in our product
and AI capability. We see increasing demand from customers
for more sophisticated and efficient solutions and, as we
continue to innovate to stay at the forefront with our value-
adding product enhancements, we are actively transitioning to
a solutions-based model. Our AI capability is embedded across
the portfolio, and through investment in technology stack and
enhancing AI powered solutions, we are now offering a more
personalised experience to customers.
Moreover, following the successful beta trial of AI Hub, we now
see a demonstrable impact for customers, with over 42,000
users now subscribed to AI Hub, transforming how users
discover and apply insights in their daily workflows.
This success is primarily driven by our AI experts, as well as
broader workforce who nurture their skills through our AI
training programme. We launched ‘All in on AI’, an ongoing
campaign designed to give all colleagues the information
and tools they need to tell our AI story with clarity and
confidence, as well as the platform to provide feedback and
ideas.
Strategic use of AI remains one of our key competitive
differentiators, and this technology is embedded across our
One Platform.
Transformation is well underway to a solutions-based model:
Sales Excellence: Investing in sales to drive
organic growth
Now operating as two segments – Healthcare and Non-
Healthcare – our sales teams have been recalibrated to drive
organic value creation. Led by our two new CROs, we are
transforming the balance of our sales operation to be more
focused on larger clients given our opportunity to increase
average client value within the greater economics of this
customer cohort.
Our front-line sales personnel capacity has been expanded
from c.270 to 370 effective March 2025, including an additional
30 senior sales positions. We remain on track to grow our sales
team by more than 150 additional salespeople during the
Growth Transformation Plan. Our value creation plan focuses on
the following growth levers:
Reduction of churn – Our volume renewal rate was 83%
(customers >£20k), which is reflective of churn across our low
to mid-tier clients. Our focus on solutions and AI in customer
usability will help to reduce the training and onboarding
required by making the service more intuitive and tailored to
specific use cases. This approach will give us more scalability in
servicing client needs
And secondly, our new licence model gives more access to
clients via teams or enterprise licensing which will reduce
the single user risk that we have carried with a number of low
and mid-tier clients and drive more usage of the product and
ultimately more value to the customer.
ANNUAL REPORT AND ACCOUNTS 2024
13
Proprietary
Data
Connected
Platform
Proprietary Data
• 100+ terabytes of data based on
proprietary sources and methodologies
• Unrivalled breadth, depth and diversity
of data types across 300+ productised
data assets
• Sophisticated data operations
continuously collect, validate, enrich,
and analyse data in real-time
Human Expertise
• 800 expert analysts, consultants,
and journalists with deep specialisms
in sectors and domains
• 200 technologists & data scientists
building and deploying advanced
AI/ML analytics models (e.g.
Sentiment, Clustering, Forecasting)
• 1,200 highly-trained researchers
constantly cleaning, validating and
analysing information
AI & Technology
• Market-leading AI & Predictive Analytics
capabilities
• Agentic AI framework
• Supporting customer AI initiatives with
Direct Data feeds and Agentic APIs
Human
Expertise
AI &
Technology
S
O
L
U
T
I
O
N
S
S
O
L
U
T
I
O
N
S
14
Price – We have developed a new pricing model which does
not price the product by seat, but instead looks at teams and
enterprise usage. We believe by doing this, we are significantly
increasing the potential value to the customer and increasing
usage. In exchange for the additional value, which also includes
additional tools, solutions workflows and AI Hub without
additional charge, this will give us much stronger pricing power
going forwards.
Upsell/Cross Sell – Our new licence model will also drive
significant opportunity to increase penetration within our
existing clients, particularly within our larger clients. The
licensing model enables the expansion into different teams
and geographies, as well as more modularisation within the
data sets. Our solutions approach also gives us opportunities
to approach different use cases within a business and develop
new relationships with different teams in the organisation,
as well as giving additional opportunity for revenue with
configuration and custom work.
New Logo Sales – We continue to have a significant
opportunity across the industries we serve, with a Total
Addressable Market in excess of £20bn. We continue to invest
in our sales headcount, our organisational structure and our
processes.
The use of AI to optimise our internal processes, including our
renewals workflow, is showing early signs of improvement.
Embedding AI tools into the renewal workflow provides a
customer health scorecard, making the renewal process more
efficient.
Operational Agility: Supporting our operational
excellence through strategic M&A
Strategic, value-enhancing M&A remains a core pillar of our
growth strategy, and in 2024 we recognised a number of good
opportunities to enhance our platform. GlobalData’s centralised
model for our One Platform is key to the seamless execution of
our acquisitions. We have a proven playbook to integrate assets
onto our platform. From Day 1 there are benefits to the access
our centralised model provides which allows us to remove
costs, access synergies and set up new bolt-on acquisitions to
scale on our platform.
The investment from Inflexion, which completed in June 2024,
generated gross cash proceeds of £451.4m and resulted in
settlement of the Group’s pre-existing finance facilities. We
therefore now have the firepower to support growth through a
bolt-on M&A strategy. As part of our ongoing efforts to invest
and scale our One Platform to make it the best it can be, we
closed four M&A transactions for a combined equity value of
STRATEGIC REPORT
Chief Executive’s
Report (continued)
GlobalData Evolution
We were formed in 201 6, but have
long-standing heritage since 1967
2010
*Year Founded
2011
2012
2013
2014
2015
2016
2017
2018
2019
2021
2022
2023
2024
Canadean
1972*
Consumer
Research in the
beverage
sector
Conlumino
2011*
Analytical
Research
covering
multiple
retail sectors
Kable
1996*
Public Sector
Technology
Data
Pyramid
Research
1986*
Emerging
market
and service
opportunities
research
across TMT
Current
Analysis
1997*
Competitive
Intelligence
in Telecoms
and
Technology
ERC
1961*
A long heritage
in global
consumer
market
segments
MarketLine
1999*
Commercial
Intelligence
MEED
1957*
Middle
East Business
and projects
market
intelligence
LMC
Data,
analytics, and
insights of the
Automotive and
Agribusiness
markets
MBI
Film, Television
and Advertising
news, data and
insights
Deallus
Competitive
intelligence for
the global life
sciences sector
Celent
Research and
advisory firm on
technology for
financial
institutions
LinkUp
Job market data
&
analytics
Business
Trade Media
International
Ltd
B2B media
company
Inflexion
Partnership
Investment
agreement of
£434m for
minority stake
in GlobalData’s
Healthcare
division
TS Lombard
Macroeconomic
forecasting
and Invesment
Strategy
IHS
Market
Access and
Health
Economics
CM Research
Thematic
research
RapidScale
Cloud Solutions
Sociable
Pharma
Pharma
competitive
intelligence
Global
Ad Source
Advertising
intelligence
Aroq
Business
information and
news for
Automotive,
Beverage, Food
and Apparel
industries
Sportcal
Sports market
intelligence
Timetric
2008*
Construction
and financial
services sectors
Infinata
Business
intelligence
in the
BioPharm and
wealth
management
space
Verdict
1984*
Technology,
Business
and Innovation
intelligence
across
financial
services,
consumer
markets
and retail
PharmSource
Biopharmaceutical
Intelligence
Progressive
Digtal Media
1999*
Media, Business
information
Services,
Technology &
Communications
GlobalData
Data Analytics &
Consulting
across
Healthcare
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
c.£88m, with integration of the businesses progressing as
planned.
Our acquisition of Business Trade Media International is
in line with our GlobalData curve strategy, aimed at brand
enhancement and increased engagement with our clients
and prospects across the GlobalData assets. It will further
accelerate our capability in this area, giving us access to a
greater audience across our vertical coverage.
LinkUp, the leading provider of global job market data,
adds to our growing strategic intelligence offering as well
as strengthening its presence within the financial markets
audience. This complementary acquisition offers our new and
existing clients significant value by adding real-time proprietary
technology that indexes millions of job listings.
The acquisition of Celent represents a further complementary
acquisition, which is aligned closely to our bolt-on M&A
strategy, bringing our collective expertise and talent together
to create even more value for our existing customers as well as
opportunities to serve new customers in the financial services
market.
Towards the end of the year, we completed the acquisition of
Deallus, a market-leading competitive intelligence solutions
provider focused on the global life sciences sector. As we
embed Deallus into our One Platform, it will enhance our
capabilities in delivering life sciences solutions, building deeper,
more embedded relationships with major brands within the
pharmaceutical sector.
The final transaction was funded by the Group’s new £340m
debt financing facilities. These facilities, in addition to cash
on balance sheet, give us significant firepower to enable the
continued execution of our M&A strategy.
ANNUAL REPORT AND ACCOUNTS 2024
15
Maintaining a disciplined approach to capital allocation
Our objective remains to achieve long-term compounding growth to enhance shareholder value, and we maintain a disciplined
approach to capital.
16
To reflect the impact of the Healthcare transaction, the dividend
was rebased from 1 July 2024, and a progressive policy
will be applied in future years, taking into account growth in
profitability, free cash flow performance as well as investment
and M&A opportunity.
Whilst maintaining a disciplined approach to capital allocation,
we have used some funds for further share buybacks. The
Group has completed two Share Buyback Programmes
announced on 31 July 2024 and 23 September 2024, with
shares purchased to the value of £29.3m, with a further £50m
buyback announced for 2025.
ESG
We remain committed to creating an ethical and sustainable
business. Our near term and Net Zero targets have been
validated and were published by SBTi in June.
Following the appointment of our Chief People Officer in
January, we have enhanced our commitment to investing in
our people as a core component of our Growth Transformation
Plan. For example, as part of our AI strategy we have introduced
a foundational AI programme to create a unified understanding
of AI across the business. We have launched Phase 2 of the AI
training programme in the second half of this year, to continue
equipping our employees with relevant skills that they can use
in daily tasks to improve productivity and enhance customer
experiences.
Our Colleagues
During this year of change for GlobalData, we were pleased to
see such a high level of engagement among our colleagues who
continuously provide feedback on the ways we can improve our
business.
2024 has certainly been a year of operational achievements
driven by our dedicated colleagues, and I would like to thank
everyone for their energy and drive to make GlobalData the first
choice for intelligence solutions for our customers.
Proposed move from AIM to Main Market
In February 2025, the Group announced its intention to apply
for its ordinary shares to be admitted to the Equity Shares
(commercial company) listing segment of the Official List and
to trading on the main market for listed securities of the London
Stock Exchange plc (“Admission”). The Board believes that
Admission will further enhance the Company’s corporate profile
and recognition, as well as extending the opportunity to own the
Company’s ordinary shares to a broader group of UK and global
institutional shareholders.
Current Trading and Outlook
Looking ahead, we are confident in GlobalData’s outlook for
2025, underpinned by high levels of revenue visibility, good
execution of the Growth Transformation Plan and a strong
financial position that allows continued investment in strategic
growth opportunities.
Operationally and structurally, we have built a very strong
foundation this year, including re-organising and adding to our
teams for seamless execution in 2025.
We remain on track to progress towards 45% Adjusted EBITDA
margin over the course of the plan period and maintain our
ambition of high single to double-digit underlying organic
revenue growth, supplemented by strategic M&A to surpass
£500m annualised revenue by the end of our 3-year plan.
Mike Danson
Chief Executive
10 March 2025
STRATEGIC REPORT
Chief Executive’s
Report (continued)
17
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Explanatory notes
Revenue Bridge: The chart tracks the movement in revenue from 2023 to 2024, categorised into the following areas:
•
Impact of FX – Movement in foreign exchange rates adversely affected Group revenue by £4m in the year.
•
Acquisitions – revenues generated post-acquisition by BTMI and LinkUp. The acquisitions of Celent and Deallus did not impact Group revenues during FY24 due to the
acquisition date being 31/12/2024.
•
Organic Growth – defined as growth in business excluding impact of movement in exchange rates and acquisitions.
Revenue and Margin Progression: The chart tracks the revenue, Adjusted EBITDA and Adjusted EBITDA margin from 2021-2024.
STRATEGIC REPORT
Chief Financial
Officer’s Report
Graham Lilley, Chief Financial Officer
273
5
12
286
(4)
£m
Revenue
2023
Revenue
2024
Impact
of FX
Acquisitions
Organic
Growth
250
255
260
265
270
275
280
285
290
Revenue Bridge
Revenue and Adj EBITDA Margin Progression
Revenue
Adj EBITDA
Adj. EBITDA Margin
2021
£m
2022
2023
2024
300
250
200
150
100
50
0
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
18
STRATEGIC REPORT
Chief Financial
Officer’s Report (continued)
1. Defined in the explanation of non-IFRS measures on page 29.
£m
Year ended
31 December 2024
Year ended
31 December 2023
Change
%
Revenue
285.5
273.1
+5%
Operating profit
65.1
73.7
-12%
Depreciation
5.8
6.2
-6%
Amortisation of acquired intangible assets
8.9
9.0
-1%
Amortisation of software
1.9
1.6
+19%
Share-based payments charge
24.1
19.4
+24%
Restructuring and refinancing costs
5.3
1.7
+212%
Acquisition and integration costs
4.0
1.3
+208%
Costs relating to share-based payments scheme
0.3
0.2
+50%
Revaluation loss/(gain) on short- and long-term derivatives
1.7
(0.8)
-313%
Unrealised operating foreign exchange gain
(0.3)
(1.5)
-80%
Adjusted EBITDA1
116.8
110.8
+5%
Adjusted EBITDA margin1
41%
41%
0pts
Profit before tax
54.9
41.5
+32%
Amortisation of acquired intangible assets
8.9
9.0
-1%
Share-based payments charge
24.1
19.4
+24%
Restructuring and refinancing costs
5.3
1.7
+212%
Acquisition and integration costs
4.0
1.3
+208%
Costs relating to share-based payments scheme
0.3
0.2
+50%
Revaluation loss/(gain) on short- and long-term derivatives
1.7
(0.8)
-313%
Unrealised operating foreign exchange gain
(0.3)
(1.5)
-80%
Revaluation of interest rate swap
(2.8)
2.8
-200%
Adjusted profit before tax1
96.1
73.6
+31%
Adjusted income tax expense1
(27.2)
(18.5)
+47%
Adjusted profit after tax1
68.9
55.1
+25%
Allocated to equity holders of the parent
58.8
55.1
+7%
Allocated to non-controlling interest
10.1
–
+100%
Cash flow generated from operations
97.6
101.0
-3%
Interest paid
(10.9)
(23.0)
-53%
Income taxes paid
(40.7)
(12.0)
+239%
Contingent consideration paid
(0.5)
(0.2)
+150%
Principal elements of lease payments
(5.6)
(5.4)
+4%
Purchase of intangible and tangible assets
(7.2)
(4.2)
+71%
Free cash flow1
32.7
56.2
-42%
Operating cash flow conversion %1
84%
91%
-7pts
Free cash flow conversion %1
34%
76%
-42pts
Earnings attributable to equity holders:
Basic earnings per share (pence)
3.8
3.8
0%
Diluted earnings per share (pence)
3.7
3.8
-3%
Adjusted basic earnings per share (pence)
7.5
6.8
+10%
Adjusted diluted earnings per share (pence)
7.4
6.7
+10%
19
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Key Performance Indicators:
Financial Key Performance Indicators
The financial KPIs detailed below are used, in addition to statutory reporting measures, by the Executive Directors to monitor the
Group’s performance and progress.
The platform economics of our business model meant that we continued to see a large flow through of incremental revenue to
Adjusted EBITDA without material incremental cost of sale. Over the course of the past four years, we have seen material margin
improvement in the business, and since 2023, we are now reporting an Adjusted EBITDA margin in excess of 40%, at 41%.
We finished the year with good visibility on future revenues, following another good year of revenue growth. Contracted Forward
Revenue grew to £171.4m as at 31 December 2024 (31 December 2023: £153.4m).
The Group has changed its forward revenue metric to include contracted forward revenue, but un-invoiced at the balance sheet date.
The reason for this change is that the timing of invoices does not always reflect the underlying performance of ongoing contracted
revenue. For comparison, Invoiced Forward Revenue grew to £145.3m (underlying growth of 3%) at 31 December 2024 (31
December 2023: £135.2m).
Operational Key Performance Indicators
As at 31 December 2024, the total number of clients (>£5,000 spend) grew 4% to 4,979 (2023: 4,810) excluding the impact of the
recent acquisitions.
Revenue
Contracted
Forward Revenue
Adjusted
EBITDA
Adjusted
EBITDA Margin
Net Cash/
(Bank Debt)
2024
£285.5m
£171.4m
£116.8m
41%
£10.1m
2023
£273.1m
£153.4m
£110.8m
41%
(£243.9m)
% reported growth
+5%
+12%
+5%
0p.p.
-104%
% underlying growth
+4%
+4%
+7%
+1p.p.
N/a
Clients >£20,000
All Clients
(Above £5,000)
Value renewal
rate
Volume renewal
rate
Average client
value
(£’000)
Value renewal
rate
Volume renewal
rate
Average client
value
(£’000)
2024
93%
83%
£79.1
92%
79%
£49.7
2023
94%
84%
£76.2
94%
80%
£48.7
Movement
-1pt
-1pt
+4%
-2pts
-1pt
+2%
Our volume renewal rates were materially consistent with the previous year, although slightly down (1pt). As part of the Growth
Transformation Plan a number of initiatives and strategic focus has been on Customer Obsession and we believe that these will drive
towards our stated ambition of volume renewal rates of >90% over the longer term.
20
Financial Review Notes
The financial position and performance of the business are reflective of the key financial elements of our business model:
visible and recurring revenues, high incremental margins, scalable opportunity and strong cash flows. The Directors believe
that Adjusted EBITDA, Adjusted EBITDA margin, Adjusted profit before tax, Adjusted profit after tax and Adjusted earnings
per share provide additional useful information on the operational performance of the Group to shareholders, and internally
we review the results of the Group using these measures. The term ‘adjusted’ is not a defined term under IFRS and may
not therefore be comparable with similarly titled profit measures reported by other companies. It is not intended to be a
substitute for, or superior to, IFRS measures of profit.
The Directors also believe that reviewing revenue growth on an ‘underlying’ basis gives a useful view on the performance
of the business. By reviewing growth excluding the impact of currency and the impact of acquisitions, the Directors can
review performance on a like-for-like basis. The term ‘underlying’ is not a defined term under IFRS and may not therefore be
comparable with similarly titled measures reported by other companies.
Financial Key Performance Indicators (‘KPIs’)
The financial KPIs on page 19 are used, in addition to statutory reporting measures, by the Executive Directors to monitor
the Group’s performance and progress. These key performance indicators are used to measure progress against strategy, the
strength of the business and long-term prospects for our stakeholders.
Operational Key Performance Indicators
The operational key performance indicators below are used by the Directors to monitor the quality of revenue growth and
understand underlying performance. Our operational key performance indicators are:
Value Renewal Rate – this is calculated in reference to the total spend of existing clients with subscription contracts in the
last twelve months, compared to the total spend of those same clients in the twelve months prior to that.
Volume Renewal Rate – this is calculated in reference to the number of existing clients with subscription contracts in the
last twelve months, compared to the same number of clients in the twelve months prior to that.
Average Client Value – this is calculated using the total value of sales across our clients with subscription contracts and
dividing by the number of clients with subscription contracts, which shows an average value.
Our operational KPIs reference sales orders rather than revenue and therefore impact revenue recognised in the year as well
as Invoiced and Contracted Forward Revenue.
STRATEGIC REPORT
Chief Financial
Officer’s Report (continued)
21
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
The Group’s Performance this year
1. Inflexion Investment acquired 40% stake in the Group’s Healthcare business
On 21 December 2023, the Group announced that it had exchanged on a transaction to sell 40% of the Group’s Healthcare business
to Inflexion, the transaction completed on 28 June 2024. The financial impact of the transaction on the Group consolidated financial
statements is summarised below:
•
£451.4m gross cash proceeds received, £305m of pre-existing debt facilities were fully settled and extinguished on completion
of the transaction;
•
£412.0m gain recognised directly in retained profit within the Consolidated Statement of Changes in Equity;
•
£17.1m of non-controlling interest in the Consolidated Statement of Financial Position as at 31 December 2024.
2. Revenue
Revenue grew by 5% to £285.5m (2023: £273.1m). The majority of the increase came from underlying growth of 4%, aided by
c.2% benefit from acquisitions which was offset by c.2% adverse movements on currency. On an underlying basis, subscriptions
grew by 4% underpinned by continued strong renewal rates, and new business wins. As a result of the weighting of acquisitions,
subscription revenue as a proportion of total revenue reduced slightly to 75% (2023: 77%).
3. Profit before tax
Profit before tax for the year grew by £13.4m to £54.9m (2023: £41.5m), which represents stronger operating performance at an
Adjusted EBITDA level combined with a reduction in other operating costs, driven by lower finance costs (-£22.0m), reflecting a
reduction in average drawn debt in 2024 compared with 2023. Operating profits reduced by 12% in the year to £65.1m (2023:
£73.7m), primarily as a result of current year acquisition and integration expenses, combined with restructuring costs incurred on
the Healthcare transaction and an increase in the share-based payment charge.
£m
Year ended
31 December 2024
Year ended
31 December 2023
Change %
Revenue
285.5
273.1
+5%
Operating costs (excluding adjusting items)
(168.7)
(162.3)
+4%
Adjusted EBITDA
116.8
110.8
+5%
Depreciation
(5.8)
(6.2)
-6%
Amortisation of acquired intangible assets
(8.9)
(9.0)
-1%
Amortisation of software
(1.9)
(1.6)
+19%
Share-based payments charge
(24.1)
(19.4)
+24%
Restructuring and refinancing costs
(5.3)
(1.7)
+212%
Acquisition and integration costs
(4.0)
(1.3)
+208%
Costs relating to share-based payment schemes
(0.3)
(0.2)
+50%
Revaluation (loss)/ gain on short and long-term derivatives
(1.7)
0.8
-313%
Unrealised operating foreign exchange gains
0.3
1.5
-80%
Finance costs
(10.2)
(32.2)
-68%
Profit before tax
54.9
41.5
+32%
22
Adjusted EBITDA
Adjusted EBITDA increased by 5% to £116.8m (2023: £110.8m). The revenue growth of £12.4m (£11.9m of which was underlying
growth) was offset with cost increases of £6.4m (largely representing the full year impact of acquisitions which closed in the second
half of 2024), meaning that the overall net improvement to Adjusted EBITDA was £6.0m (incremental margin of 48%). The growth
in Adjusted EBITDA is reflective of the operational gearing in our business model and our ability to control what is a relatively fixed
cost base. Our underlying Adjusted EBITDA margin grew to 42%, but the impact of acquisitions reduced the overall Adjusted EBITDA
margin which remained at 41% (2023: 41%).
On an underlying basis, Adjusted EBITDA grew by 7% and Adjusted EBITDA margin increased by 1 percentage point, which is
reconciled below.
£m
£m
Revenue as reported - 2024
285.5
Add back currency movements
4.5
Deduct post-acquisition revenue of M&A
(5.0)
Revenue underlying - 2024
285.0
2023
273.1
Reported Growth
5%
Underlying Growth
4%
Adjusted EBITDA as reported - 2024
116.8
Add back currency movements
3.1
Deduct post-acquisition Adjusted EBITDA of M&A
(1.0)
Adjusted EBITDA underlying - 2024
118.9
2023
110.8
Reported Growth
5%
Underlying Growth
7%
Adjusted EBITDA margin underlying – 2024
42%
2023
41%
Movement
1pts
Adjusting items
The Group experienced a significant amount of corporate activity during 2024, including: Inflexion Healthcare investment which
required a large amount of corporate and legal restructuring pre-completion in order to establish the Healthcare sub-group;
acquisition and integration of four M&A transactions; launch of the initiatives associated with the Growth Transformation Plan.
Adjusting items grew by £14.7m in total, with some significant individual movements of note:
•
The share-based payment charge has increased from £19.4m to £24.1m, driven by new grants in the year and lower actual
churn than the previous model assumptions, which required trueing up in the year.
•
Acquisition and integration costs increased year on year, from £1.3m to £4.0m, reflective of additional M&A activity during
2024. The Group completed four acquisitions during the year, being BTMI, LinkUp, Celent and Deallus as disclosed in note 27.
•
Restructuring costs totalling £4.5m have been recognised within the Group, which have principally arisen as a result of the pre-
completion steps required to restructure the Group ahead of the Inflexion investment in the Healthcare business.
•
Unrealised foreign exchange losses of £1.4m were recognised during the year, in comparison with a total gain in 2023 of £2.3m.
STRATEGIC REPORT
Chief Financial
Officer’s Report (continued)
23
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Finance costs
Finance costs have decreased by 68% to £10.2m (2023: £32.2m) which is inclusive of a non-cash interest charge of £1.4m relating
to financial liabilities measured at amortised cost (2023: £5.1m), revaluation gain on the terminated interest rate swap of £2.8m
(2023: loss of £2.8m) and IFRS16 leases interest of £1.1m (2023: £1.1m). The cash paid in interest in 2024 was £10.9m (2023:
£23.0m) reflecting a decrease in average drawn debt in 2024 compared with 2023. The Group repaid £305.0m of debt on 28 June
2024 following the investment from Inflexion, which was the key driver in reduced interest payments in the year.
Finance costs in relation to the newly negotiated banking facilities are calculated on drawn debt based upon a margin range of
225-325bps, dependent on adjusted leverage, plus SONIA (Sterling Overnight Index Average rate). Undrawn debt carries interest at
one third of the prevailing margin.
Leases
Within our operating costs, depreciation in relation to right-of-use assets was £4.6m (2023: £5.1m). Our net finance costs include
interest of £1.1m in relation to lease liabilities (2023: £1.1m).
4. Foreign exchange impact on results
The Group derives around 60% of revenues in currencies other than Sterling, compared with around 40% of its cost base.
The impact of currency movements in the year reduced revenue by £4.5m, which mainly reflected volatility of Sterling against
US Dollar (average rate: 2024: 1.28, 2023: 1.24). By 31 December 2024, the rate of Sterling against US Dollar was comparable
with the previous year and therefore had limited impact on closing Contracted Forward Revenue. The Group cost base
benefitted from currency movements by £1.4m. The full impact of currency on Adjusted EBITDA was a reduction of £3.1m.
£m
Revenue
Operating
costs1
Adjusted
EBITDA
Adjusted EBITDA
margin
Contracted
Forward Revenue
As reported
285.5
(168.7)
116.8
41%
171.4
Add back currency movements
US Dollar
3.6
(1.5)
2.1
(0.1)
Euro
0.1
0.0
0.1
0.2
Other
0.8
0.1
0.9
0.4
Constant currency
290.0
(170.1)
119.9
41%
171.9
2023 – as reported
273.1
(162.3)
110.8
41%
153.4
Constant currency growth
6%
5%
8%
0p.p.
12%
1. Operating costs excluding adjusting items.
5. Taxation
The Group’s effective income tax rate (ETR) for the reporting period is 33.5% which exceeds the statutory UK income tax rate for the
period of 25.0%. The major components increasing the ETR are local withholding taxes chargeable on the distribution of profits from
overseas subsidiaries, for which double taxation relief is not available, and expenses that are non-deductible for tax purposes.
Key factors that may impact the Group’s future tax charge as a percentage of underlying profits are the mix of profits and
losses between the jurisdictions in which the Group operates and the corresponding tax rates in those territories, the impact of
non-deductible expenditure and non-taxable income and the utilisation (with a corresponding reduction in cash tax payments) of
previously unrecognised deferred tax assets.
The ETR for the reporting period has been elevated due to the separation of the Healthcare business and the subsequent investment
by Inflexion. This event is not expected to have an ongoing impact on the tax rate in future periods.
24
The tax effect of adjusting items in 2024 of £8.8m is broadly similar to the prior year (2023: £7.8m). Key variances include the
impact of adjusting for:
•
Tax deductible refinancing costs, arising from the new debt facilities agreed during 2024;
•
Tax deductible unrealised foreign exchange losses sustained during 2024; and
•
The closure of an interest rate swap during 2024, reversing the tax effect recognised in the prior year.
6. Earnings per share
Basic EPS was 3.8 pence per share (2023: 3.8 pence per share). Fully diluted profit per share was 3.7 pence per share (2023:
3.8 pence per share). Adjusted basic earnings per share grew from 6.8 pence per share to 7.5 pence per share, representing 10%
growth.
Growth in Adjusted earnings per share (+10%) rose above the growth in Adjusted EBITDA (+5%) mainly as a result of decreased
finance charges in the year. Cash interest charges decreased by £12.1m (-53%) as well as non-cash finance costs decreasing
by £9.9m compared with 2023. Non-cash finance charges include non-cash interest relating to financial liabilities measured at
amortised cost of £1.4m (2023: 5.1m). The decreased charge in the year reflects that the Group settled its pre-existing loan facility
in full during June 2024 therefore had £nil interest-bearing indebtedness until late December 2024 when £44.5m was drawn down
in relation to the new loan facilities.
7. Dividends
As noted in our half year results statement (published 31 July 2024), following on from the completion of the Healthcare transaction
and the strategy to focus more capital towards M&A, we have rebased the dividend for the period from 1 July 2024.
We are therefore proposing a final dividend of 1.0 pence per share (2023: 3.2 pence), to be paid on 2 May 2025 to shareholders on
the register at the close of business on 21 March 2025. The ex-dividend date will be on 20 March 2025. The proposed final dividend
increases the total dividend for the year to 2.5 pence per share (2023: 4.6 pence). The decrease of 46% is reflective of the dividend
being rebased from 1 July 2024.
8. Cash generation
Following completion of the investment agreement with Inflexion, the Group recognised gross cash proceeds of £451.4m which was
offset slightly by transaction costs recognised in equity of £30.6m.
Cash generated from operations was £97.6m (2023: £101.0m), a 3% decrease, representing 84% of Adjusted EBITDA (2023:
91%). The reduced conversion from EBITDA was driven by the increased number of adjusting items which impacted operating cash
flow, driven largely by M&A and the Inflexion transaction. Total adjusting items in 2024 impacting operating cashflow was £10.1m
(2023: £2.3m).
£m
Year ended
31 December 2024
Year ended
31 December 2023
Statutory income tax charge
18.4
10.7
Amortisation of acquired intangible assets
2.3
1.9
Share-based payments charge
5.0
4.8
Restructuring and refinancing costs
1.3
0.3
Costs relating to share-based payment schemes
0.1
–
Unrealised operating foreign exchange loss/(gain)
0.5
(0.6)
Revaluation of interest rate swap
(0.7)
0.7
Corporate tax rate change
(0.1)
0.4
Movement in unrecognised deferred tax
0.4
0.3
Adjusted income tax charge
27.2
18.5
Reconciliation of statutory income tax charge to adjusted income tax charge is presented below:
STRATEGIC REPORT
Chief Financial
Officer’s Report (continued)
25
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Capital expenditure was £7.2m in 2024 (2023: £4.2m), including £5.3m on software including assets under construction (2023:
£3.2m). Capital expenditure represented 2.5% of revenue (2023: 1.5%), which was higher than our normal target range because of
key capital initiatives related to our Growth Transformation Plan.
Total cash flows from operating activities were £45.5m (fall of £20.3m from 2023), which represented 70% of operating profit
(2023: 89%). During the year, the Group paid out £37.5m in dividends (2023: £32.2m).
Short- and long-term borrowings decreased by £223.3m to £40.4m as at 31 December 2024 (2023: £263.7m).
9. Net cash/(bank debt):
Net cash as at 31 December 2024 was £10.1m (2023: net bank debt of £243.9m).
The Group defines net bank debt as short- and long-term borrowings (note 20) less cash and cash equivalents. The amount excludes
items related to leases.
£m
2024
2023
Short- and long-term borrowings (note 20)
(40.4)
(263.7)
Cash
50.5
19.8
Net cash/(bank debt)
10.1
(243.9)
A reconciliation of cash generated from operations, free cash flow and opening and closing net bank debt is set out below.
£m
Year ended
31 December
2024
Year ended
31 December
2023
Growth
Cash flow generated from operations
97.6
101.0
-3%
Interest paid
(10.9)
(23.0)
-53%
Income taxes paid
(40.7)
(12.0)
+239%
Contingent consideration paid
(0.5)
(0.2)
+150%
Principal elements of lease payments
(5.6)
(5.4)
+4%
Purchase of intangible and tangible assets
(7.2)
(4.2)
+71%
Free cash flow
32.7
56.2
-42%
Dividends paid
(37.5)
(32.2)
+16%
Net M&A1
(79.4)
–
+100%
Acquisition of own shares
(52.5)
(11.9)
+341%
Acquisition of own shares for cancellation
(29.3)
–
+100%
Proceeds from sale of 40% of Healthcare business to non-controlling interest
443.4
–
+100%
Transaction costs relating to sale of 40% of Healthcare business to non-controlling interest
(30.6)
–
+100%
Receipt of loan from related party
8.0
–
+100%
Net cash flow
254.8
12.1
+2,006%
Opening net bank debt
(243.9)
(249.6)
-2%
Non-cash movement in borrowings
(1.4)
(5.1)
-73%
Currency translation
0.6
(1.3)
-146%
Closing net cash/ (bank debt)
10.1
(243.9)
-104%
Last 12 months Adjusted EBITDA2
116.8
110.8
+5%
Net bank debt leverage
0.1x
(2.2x)
+2.3x
1
Cash cost relating to acquisitions included in the Consolidated Statement of Cash Flows within investing activities (£68.7m) and financing activities (£10.7m).
2
Reflects 12 month rolling Adjusted EBITDA results, which for the 12 months ending 31 December 2024 and 31 December 2023 respectively, directly agrees to Adjusted EBITDA
reported for each financial year.
26
Additional current tax of £25.0m was paid on account during the period in relation to income tax liabilities arising from the
reorganisation steps required to facilitate the separation of the Healthcare business and the subsequent investment by Inflexion.
The reorganisation steps are expected to provide the Group with future tax benefits and deferred tax assets have been recognised
to reflect this, which will be unwound as and when such benefits are realised. Excluding the impact of the additional current tax
payments during the period, free cash flow would have been £57.7m.
10. M&A Transactions
During the year the Group invested £88.0m of equity value (headline purchase price) across four acquisitions. The reconciliation to
the net cash consideration paid at acquisition is provided below:
£m
BTMI
Linkup
Celent
Deallus
Total
Equity/Purchase Value
10.0
21.0
24.0
33.0
88.0
Estimated closing indebtedness
(3.7)
(4.2)
(4.4)
(12.2)
(24.5)
Other purchase adjustments
–
1.6
(0.4)
–
1.2
Cash Consideration
6.3
18.4
19.2
20.8
64.7
11. Contracted Forward Revenue
Invoiced Forward Revenue grew to £145.3m (reported growth of 7% and underlying growth of 3%) at 31 December 2024 (2023:
£135.2m).
£m
2024
2023
Deferred revenue
114.6
104.6
Amounts not due/subscription not started at 31 December
30.7
30.6
Invoiced Forward Revenue
145.3
135.2
Contracted not yet invoiced
26.1
18.2
Contracted Forward Revenue
171.4
153.4
£m
Contracted Forward Revenue as reported - 2024
171.4
Add back currency movements
0.5
Deduct Contracted Forward Revenue of acquisitions at 31 December
(12.8)
Contracted Forward Revenue underlying - 2024
159.1
2023
153.4
Reported growth
12%
Underlying growth
4%
£m
Invoiced Forward Revenue as reported - 2024
145.3
Add back currency movements
0.5
Deduct Invoiced Forward Revenue of acquisitions at 31 December
(6.9)
Invoiced Forward Revenue underlying - 2024
138.9
2023
135.2
Reported growth
7%
Underlying growth
3%
STRATEGIC REPORT
Chief Financial
Officer’s Report (continued)
27
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
12. Intangible assets
Intangible assets (excluding goodwill) have increased by £40.0m during the year, from £61.7m as at 31 December 2023 to
£101.7m as at 31 December 2024. This movement is driven by an amortisation charge for the year of £10.8m offset by additions of
£50.8m, which predominantly relate to intangibles identified in relation to acquisitions made in the year as detailed in note 27.
13. Trade receivables
Net trade receivables as at 31 December 2024 were £74.0m, representing 35% growth compared with the 31 December 2023
balance of £54.8m which includes the impact of trade receivables acquired through M&A activity during the year.
Financial Risk Management
The Group’s primary objective in managing foreign currency risk is to protect against the risk that the eventual Sterling net cash
flows will be affected by changes in foreign currency exchange rates. To do this, the Group enters into foreign exchange contracts
that limit the risk from movements in US Dollar and Euro exchange rates with Sterling. Due to the Group’s operations in India, the
Group also enters into foreign exchange contracts that limit the risk from movements in US Dollars with the Indian Rupee exchange
rate. While commercially and from a cash flow perspective this hedges the Group’s currency exposures, the Group elects not to
apply hedge accounting and accordingly any movements in the fair value of the foreign exchange contracts are recognised in the
income statement.
On 23 May 2023, the International Accounting Standards Board issued International Tax Reform – Pillar Two Model Rules –
Amendments to IAS 12 which clarify that IAS 12 applies to income taxes arising from tax law enacted or substantively enacted
to implement the Pillar Two model rules published by the OECD, including tax law that implements Qualified Domestic Minimum
Top-up Taxes. The Group has adopted these amendments. However, they are not yet applicable for the current reporting year as the
Group’s consolidated revenue is currently below the threshold of €750m.
Interest Rate Risk
Interest rate risk is the impact that fluctuations in market interest rates can have on the value of the Group’s interest-bearing assets
and liabilities and on the interest charge recognised in the income statement. The Group does not currently manage this risk with
the use of derivatives. The Group entered into an interest rate swap arrangement in relation to the previously held loan facilities,
which were settled in full during June 2024, at which point the swap arrangement was terminated.
Credit Risk
In the normal course of its business, the Group is exposed to credit risk from cash and trade and other receivables. Credit risk refers
to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. Trade receivables
consist of a large number of customers, spread across diverse industries and geographic markets, and the Group’s exposure to
credit risk is influenced mainly by the individual characteristics of each customer. The Group has adopted an approach of assessing
factors such as counterparty size, location and payment history as a means of mitigating the risk of financial loss from defaults. The
Group defines default as the debt being deemed completely unrecoverable.
28
Liquidity Risk and Going Concern
The Group’s approach to managing liquidity risk is to ensure, as far as possible, that it has sufficient liquidity to meet its
liabilities as they fall due, with surplus facilities to cope with any unexpected variances in timing of cash flows. The Group meets
its day-to-day working capital requirements through free cash flow, being operations-generated cash (with no external financing
required). Although the statement of financial position shows net current liabilities (current assets less current liabilities), included
in current liabilities is £112.9m of deferred revenue that represents future income earnings. Excluding deferred revenue held within
current liabilities, the Group has net current assets of £89.2m (2023: £49.8m).
Based on cash flow projections, the Group considers the existing financing facilities to be adequate to meet short-term
commitments. The Directors have a reasonable expectation that there are no material uncertainties that cast significant doubt
about the Group’s ability to continue in operation and meet its liabilities as they fall due for the foreseeable future, being a period
of at least 12 months from the date of approval of the financial statements. Accordingly, the Group has prepared the Annual Report
and Accounts on a going concern basis. The Directors have prepared a Going Concern and Long-Term Viability statement on
page 52, within the Strategic Report.
Graham Lilley
Chief Financial Officer
10 March 2025
STRATEGIC REPORT
Chief Financial
Officer’s Report (continued)
29
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Explanation of non-IFRS Measures
Financial measure
How we define it
Why we use it
Adjusted diluted EPS
Adjusted profit after tax per diluted share (reconciliation between statutory profit and adjusted profit
shown on page 18). Diluted share defined as total of basic weighted average number of shares (net of
shares held in treasury reserve) and share options in issue at end of period (reconciliation between basic
weighted average number of shares and diluted weighted average number of shares in note 12).
In order to assess the year-on-year operational business
performance.
Adjusted EBITDA
Earnings before interest, tax, depreciation and amortisation, adjusted to exclude costs associated with
acquisitions, restructuring of the Group, share-based payments, impairment, unrealised operating
exchange rate movements and the impact of foreign exchange contracts. This is reconciled to the statutory
operating profit on page 18.
Last 12 months Adjusted
EBITDA
Earnings before interest, tax, depreciation and amortisation, adjusted to exclude costs associated with
acquisitions, restructuring of the Group, share-based payments, impairment, unrealised operating
exchange rate movements and the impact of foreign exchange contracts in the 12 months preceding the
period end date. This is reconciled on page 25.
Adjusted EBITDA margin
Adjusted EBITDA as a percentage of revenue. This is calculated on page 18.
Adjusted EPS
Adjusted profit after tax per share (reconciliation between statutory profit and adjusted profit shown on
page 18).
Adjusted income tax
expense
Represents the statutory income tax expense adjusted for the tax effect on adjusting items. In addition, the
adjusted income tax expense includes the effect of any tax rate changes. This is reconciled to the statutory
income tax charge on page 24.
Adjusted profit before
tax
Profit before tax adjusted to exclude amortisation of acquired intangible assets, costs associated with
acquisitions, restructuring of the Group, share-based payments, impairment, unrealised operating
exchange rate movements, the impact of foreign exchange contracts and revaluation of the interest rate
swap. This is reconciled to profit before tax on page 18.
Adjusted profit after tax
The sum of adjusted profit before tax and adjusted income tax expense. This is calculated on page 18.
Constant currency
growth
Underlying growth is calculated by excluding the impact of movement in exchange rates. Constant currency
growth is reconciled to reported growth on page 23 for revenue, operating costs, Adjusted EBITDA,
Adjusted EBITDA margin and Contracted Forward Revenue.
To give the reader an idea of the growth of the business
without the impact of foreign exchange fluctuations, which
may add to the transparency and understanding of the
results.
Free cash flow
Cash flow generated from operations less interest paid, income taxes paid, contingent consideration paid,
principal elements of lease payments and purchase of intangible and tangible assets. This is calculated on
page 18.
Indicates the extent to which the Group generates cash from
Adjusted profits.
Free cash flow
conversion
Free cash flow divided by Adjusted profit before tax. This is calculated on page 18.
Invoiced Forward
Revenue
Invoiced Forward Revenue relates to amounts that are invoiced to clients at the statement of financial
position date, which relate to future revenue to be recognised. This is reconciled to deferred revenue on
page 26.
Acts as an indication of revenue visibility for the forthcoming
period.
Contracted Forward
Revenue
Defined as Invoiced Forward Revenue (as defined above) plus contracted revenue that has not yet been
invoiced as at the statement of financial position date. This is reconciled to deferred revenue on page 26.
Net cash/(bank debt)
Short and long-term borrowings (excluding lease liabilities) less cash and cash equivalents. This is
reconciled on page 25.
Provides an insight into the debt position of the Group, taking
into account current cash resources.
Net bank debt leverage
Net bank debt calculated as a multiple of the last 12 months Adjusted EBITDA. Detailed calculation is
provided on page 25.
Net cash flow
Free cash flow less dividends paid, net M&A costs, acquisition of own shares and cash received from
repayment of loans. This is calculated on page 25.
Indicates the extent to which the Group generates cash from
Adjusted profits.
Operating cash flow
conversion
Cash flow generated from operations divided by Adjusted EBITDA. This is calculated on page 18.
Indicates the extent to which the Group generates cash from
Adjusted EBITDA.
Organic growth
Organic growth is calculated by excluding the results of acquired businesses.
The reason we use organic and underlying growth as a
metric is to give the reader an idea of the growth of the
business without the impact of acquisitions and foreign
exchange fluctuations, which may add to the transparency
and understanding of the results. This also aids the Directors
to review performance on a like-for-like basis.
Underlying growth
Underlying growth is calculated by excluding the impact of movement in exchange rates and the results
of acquired businesses. Underlying revenue is reconciled to reported revenue on page 22. Underlying
Invoiced and Contracted Forward Revenues are reconciled to reported Invoiced and Contracted Forward
Revenues on page 26. Underlying Adjusted EBITDA and underlying Adjusted EBITDA margin are reconciled
to reported figures on page 22.
30
STRATEGIC REPORT
Principal and Emerging Risks
and Uncertainties
GlobalData’s mission is to help our clients decode the future, make better decisions, and reach more customers.
GlobalData Plc (together with its subsidiaries, ‘the Group’) is a data, insight, and technology company that provides
decision-makers across the world’s most successful companies with the intelligence to act with conviction. Our connected platform,
uniquely integrates proprietary data, expert insight, and purpose-built AI into a unified operating system that powers the next
generation of intelligence solutions.
Our Approach to Risk Management
The Group recognises that in order to be successful we are required to take some risks. However, those risks need to be taken in a
controlled environment. Our approach is one of responsible risk-taking in line with the principles, culture, tolerance and appetite as
directed by the Board. Our approach to risk management is always evolving and has matured, developing over time to better serve
the needs of a fast-growing business with risk management awareness becoming embedded across all business operations.
The Group’s Risk Management has three key components:
•
A Risk Appetite Statement: This provides a high-level indication of the type and amount of risk GlobalData is willing to take,
accept or tolerate in order to achieve its strategic goals and objectives. The Board sets the Group’s risk appetite and reviews
it at least annually. In doing so, the Board considers our strategic objectives, the Group’s principal risks and uncertainties and
assesses against the long-term viability of the Group.
•
A three lines of defence model on internal controls (first line: functions that own and manage risk; second line: functions
that oversee and specialise in compliance; third line: independent assurance): The model details the key internal controls,
policies and assurance that the Group has in its risk management processes, as well as those accountable and responsible for
their operation.
•
Our risk management processes and tools: These include an Annual Risk Assessment, assessment of internal controls and
review of the control environment. The Board also considers the views of the Senior Leadership Team and Audit Committee as
part of its systematic review of internal controls.
Oversight
The below chart reflects the roles and responsibilities within our risk management processes.
The Board
Audit Committee
Senior Leadership Team
Review and Confirmation
The Board’s responsibility is to review and approve the Group’s
strategy and objectives. The Board has overall responsibility for
risk management, determining the Group’s appetite for risk and
evaluating the Group’s risk management processes and internal
controls.
Challenges and Review
Risks are reviewed by the Audit Committee alongside
internal controls for ongoing adequacy of operating
effectiveness.
Ongoing Review, Control and
Implementation
The Senior Leadership Team are responsible for day-
today ownership of risk management and the design and
implementation of internal controls.
The Audit Committee has primary responsibility for oversight and scrutiny of risk management, monitoring the adequacy and
effectiveness of internal control and risk management systems and ensuring that a robust assessment of the principal risks facing
the Group has been undertaken. The Audit Committee reports to the Board on a regular basis.
31
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
In 2025 and moving forwards , the Audit Committee will take a wider remit on the Group’s risk management framework and will be renamed
as the Audit and Risk Committee.
Our Approach to Identifying the Principal Risks
Principal risks are identified by conducting regular risk discussions with key stakeholders across the business, including members of the Senior
Leadership Team and other risk owners. Risks facing each function within the business are discussed based on the views and experiences of
each risk owner, in addition to the internal controls in operation to mitigate the risks.
The principal risks and uncertainties are those categories of risk which are considered by the Board to be material to the Group’s strategic
development, performance and future prospects, as well as Group operations. In determining the principal risks, the Board considers the net
impact of mitigations and controls in place as well as considering the severity of the risk and likelihood of occurrence.
While the principal risk categories have not materially changed since our last Annual Report, the risk factors have evolved, and we have set out
in the report how these have changed in the year.
The identified principal risks are not the only risks facing the business but are those considered to have a material impact on the business, and
therefore are the focus of discussion at Board and Audit Committee meetings.
Annual Risk Assessment
At least annually, the Senior Leadership Team review the Group’s principal risks and perform a risk assessment. The assessment considers both
the existing principal risks as well as potential emerging risks of the Group. The assessment looks at both the likelihood of a risk event occurring
and the impact the event would have on our business, in addition to the controls and mitigations the Group has in place.
The assessment as at 31 December 2024 has concluded that there are no new principal risks that have emerged during the year however
Financial risk is now considered to be part of the wider Economic and geo-political risk category and not its own separate principal risk, as such
the Group is reporting eight principal risks. The Board continues to acknowledge the increased risk associated with the accelerated progression
of Artificial Intelligence, whilst we recognise the significant opportunity that AI presents the Group we are, at the same time, mindful of the risks
it also brings. The considerations and actions for AI have been documented in the below analysis of principal risks.
Climate change remains an emerging risk for the Group and one that the Board continues to monitor closely. However, as a data and analytics
company in which our products are created and distributed digitally, our carbon footprint is considerably smaller than those of many other
companies of our size. Therefore, we have concluded that climate change (including existing and emerging regulatory requirements related to
climate change) does not represent a principal risk to our business. The climate-related financial disclosures on page 46 provide further details
on the potential impact of climate change on our business.
Principal Risks
The principal risks and uncertainties reported are not the only risks facing the business but are those which the Board considers to be material
to the Group. The Directors consider that the principal and emerging risks and uncertainties facing the Group are:
Gross risk likelihood and impact:
Key: Link to Growth Transformation Plan (“G.T.P”): 1. Customer Obsession, 2. World-Class Products, 3. Sales Excellence,
4. Operational Agility
Likelihood
Impact
Regulatory Compliance
Economic and Geo-Political
Data Privacy
Product
People
Acquisition and Integration
Market
Cyber and IT
32
STRATEGIC REPORT
Principal and Emerging Risks
and Uncertainties (continued)
Business and Strategic Risks:
Risk
Description
Link to
G.T.P.
Potential Impact
Key Mitigations and Controls
Assessment
Product
1, 2
The success of the Group
is dependent on the quality
and relevance of our
products. Our vision to be
the leading data, analytics
and insights platform
for the World’s largest
industries means that our
content must be relevant
and of the highest quality
to help our clients be
successful.
A reduction in quality could
lead to a loss of customer
confidence, reputational
damage, loss of revenues
from new and renewable
business and impede our
ability to deliver on our
growth strategy.
The Group provides high-quality data and
analytics services. Our commitment to first-class
product quality is embedded in our day-to-day
operations.
• Regular product and research planning
meetings consolidate client feedback,
competitive positioning and new product
development to ensure relevance and drive
innovation.
• The Group has continued to significantly
expand its investment in and use of Artificial
Intelligence (‘AI’) throughout 2024 and we
will look to further the use of AI going forward
to improve the usability of our product for
our customers, enhance our research and
analysis capabilities, as well as realising
automation opportunities. AI is a material
opportunity, but only because of the quality
and “proprietary-ness” of our data.
We recognise the risk associated with the
accelerated progression of AI and have
policies in place internally which governs the
acceptable use of AI by all employees across
the Group.
• Standard Process Manuals set out consistent
research and publishing procedures, which
focus on quality and accuracy and are
continually reviewed for best practice.
• Internal Quality team independently checks
compliance against Standard Process
Manuals.
• External audit of Standard Process Manual
compliance.
• Internal production targets are set relating
to metrics such as timeliness and monitored
against performance metrics.
• Review of KPI metrics such as renewal rates
and customer numbers giving an indication of
customer satisfaction and product quality.
Risk Movement:
Stable.
There was no
material change
to this principal
risk in 2024. The
Group continually
looks for innovation
to enhance
capability and client
experience. We have
effective quality and
process controls
in operation and
have responded
to the risks of
the accelerated
progression of AI as
well as capitalising
on the opportunities
AI brings.
33
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Risk
Description
Link to
G.T.P.
Potential Impact
Key Mitigations and Controls
Assessment
Cyber and IT
1,4
Data is at the core of our
business operations.
A major cyber-attack or
IT failure could lead to
significant operational or
client disruption resulting
in reputational damage,
business interruption and a
risk of financial loss caused
by phishing or whaling
attacks or other cyber
infiltration.
IT, Cyber and Systems failures continue to be
a major area of risk for the Group however we
continue to ensure that we implement and
design best-practice and effective controls to
mitigate these risks.
• Continuous and proactive monitoring of the
cyber-threat landscape, including regular
external review of cyber security and website
security protocols.
• Internal Information Security team supported
by external consultancy who are engaged to
help with the design and implementation of
IT security.
• Business continuity plans are in place across
the Group, including disaster recovery
programmes, and plans to minimise business
disruption.
• Product and sales infrastructure hosted by
external third parties with adequate security
protocols.
• IT infrastructure is managed by third party
providers with 24-hour management and
monitoring with back-up and disaster
protocols.
• Performance of automated vulnerability scans
of externally exposed enterprise assets.
• Automated backups, including maintenance
and protection of back-up and recovery data.
• Periodic external penetration tests on Group
websites.
• Extensive information security policies
communicated to all employees as part of
the annual mandatory Information Security
Awareness training. All policies are also
available on the Group intranet site and
regularly updated.
Risk Movement:
Stable.
There was no
material change
to this principal
risk in 2024. IT
and Cyber controls
have continued
to be enhanced
and improved
throughout the
year; however,
we recognise that
cyber threats
including Distributed
Denial-of-Service
(DDoS) attacks,
malware and
hacking are an ever-
increasing threat
and will continue to
be a constant area
of focus given the
sophistication of
attackers.
34
Risk
Description
Link to
G.T.P.
Potential Impact
Key Mitigations and Controls
Assessment
People
1,2,3,4
GlobalData relies on the
talent of its employees
and failure to attract and
retain employees with
the appropriate skills and
experience could lead to
reduced innovation and
restrict the Company’s
ability to achieve future
growth targets and the
Group’s strategy.
The Group has more
than 2,000 employees
in Hyderabad, India, the
majority of whom are
analysts, researchers
and software/ technology
developers. The
concentration of resource
in one location exposes
the Group to localised
risk factors such as
environmental and
infrastructure risk, as
well as digital disruption.
The hiring of high-quality
talent, particularly within
the area of software/
technology development
is highly competitive,
securing the talent required
to continue GlobalData’s
product development and
innovation is therefore a key
risk factor.
The Group actively manages its talent and
ensures that there are succession plans for its
Board and Senior Leadership Team.
• Investment has been made during 2024
in the People function, including the
appointment of a Chief People Officer
supported by an enhanced team including
Talent Acquisition, People Business Partners,
Learning and Development and Internal
Communication.
• The Group benefits from an experienced
management team which has been enhanced
in 2024 with the appointment of a number of
key strategic roles including a Chief Operating
Officer and Chief Revenue Officer.
• Regular review of succession plans at Board
and Senior Leadership Team level.
• A continuation of the Employee Resource
Groups to help the Company foster an
inclusive, supportive, and empowered
community of employees where diverse
voices are heard, valued and championed.
• Group-wide colleague-engagement survey.
• The Group operates a Long-Term Incentive
Plan to attract and retain key employees.
• Annual appraisal process for all employees
which allows the Group to evaluate
performance and competence. The process
demonstrates to employees that the Group
is invested in their growth and development
with both positive feedback and well
communicated development feedback
leading to improved morale, enthusiasm and
performance.
Risk Movement:
Stable.
The risk has
remained stable
in 2024 (after an
‘increased’ risk
movement was
reported in 2023)
following significant
investment and
expansion of the
People function
and investment
in strategic roles
across the Group to
ensure we have the
right people with
the right skills in the
right roles.
STRATEGIC REPORT
Principal and Emerging Risks
and Uncertainties (continued)
35
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Risk
Description
Link to
G.T.P.
Potential Impact
Key Mitigations and Controls
Assessment
Market
(Competition and
Clients)
1,3
The Group operates in
highly competitive yet
fragmented markets.
Competitive threats
could impact its ability to
achieve its strategy due
to failure to keep up with
technology developments,
loss of market share to
competitors and reduced
financial performance.
The Group operates across a range of industry
sectors across the globe. The Group therefore
has a broad range of clients and competitors.
One of the Group’s unique selling points is
not only the breadth of its coverage, but also
its depth. Therefore, it has to ensure that the
depth of industry content is competitive and
comparable to its competition in that sector.
• The Group routinely reviews the competitive
landscape to identify potential threats and
acquisition opportunities.
• We are an innovative company with an
entrepreneurial culture to develop our
product and propositions ahead of our
competition. We believe that our adoption
of AI is leading the way in our industry and
enhancing the usability and experience of our
customers.
• There may be more competitive threats
around the use of AI in existing and emerging
competitors, therefore we have a strict
focus around the proprietary data and the
protecting the proprietary channels and
sources used in the collection process.
• We monitor our customer usage metrics and
actively seek feedback from our clients in
order to improve the services and customer
experience.
• Our datasets and technology platforms are
both unique and difficult to replicate.
• We aim to embed our products and services
in client organisations and workflows, thereby
increasing switching costs.
• We provide improved and best-in-class
client support, thereby improving customer
satisfaction and retention.
Risk Movement:
Stable.
There was no
material change
to this principal
risk in 2024. The
first of our Growth
Transformation Plan
pillars is Customer
Obsession and we
continue to focus
on exceeding our
clients’ expectations
by delivering world
class products
and stronger client
engagement.
36
Risk
Description
Link to
G.T.P.
Potential Impact
Key Mitigations and Controls
Assessment
Economic and
Geo-political
1,4
General economic/ political
instability, or a downturn
in a particular market or
sector could change the
demand for the Group’s
products and/ or restrict
the Group’s ability to trade
in certain jurisdictions
resulting in a loss of
revenues from new and
renewable business and
impeding the Company’s
ability to deliver on its
growth strategy.
The Group is impacted by a
number of financial risks:
The Group’s debt financing
is subject to interest rate
risk, with the bank’s margin
applied to SONIA (Sterling
Overnight Index Average
rate). Movement in SONIA
would cause variability in
interest payments.
The Group’s reporting
currency is Pounds
Sterling. Given the Group’s
significant international
operations, fluctuations in
currency exchange rates
can affect the Group’s
consolidated results.
High levels of inflation rates
can increase costs across
the Group.
As a global Group we are
subject to many forms
of direct and indirect
taxation, and because of
the many territories we are
active within, tax law and
compliance is a complex
area.
When the macro-economic environment leads
to financial uncertainty, we have the following
mitigations:
• The Group operates in three key geographic
markets, namely Europe, North America and
Asia Pacific, this balance provides resilience
and helps us manage localised market or
country-specific downturns. A significant
mitigation to the risk of currency fluctuations
is the natural hedge we have from our
global operations. We generate around 60%
of revenues from currencies other than
Sterling, which is predominantly US Dollar,
while around 40% of costs are derived
from non-Sterling currencies, which are all
primarily linked to movements of US Dollar.
• The net cash flow exposure is managed by
entering into foreign exchange contracts that
limit the risk from movements in US Dollar,
Euro and Indian Rupee exchange rates with
Sterling. Contracts are entered into in line
with our Board-approved treasury policy (the
policy is to hedge throughout the year at 20%
per quarter for a period of 12 months out, so
that in each quarter we enter with 80% of our
net cash flow hedged).
• In addition to our global operations, we also
operate across multiple industry sectors and
therefore are not reliant on one industry by
having good sector diversity.
• Our business model means that there is a
significant incremental margin on each sale
and therefore this means that we can be
competitive on pricing with our clients (who
may be facing economic challenges of their
own) without significantly impacting our
profitability.
• Visibility of revenue through invoiced revenue
and renewable contracts.
Risk Movement:
Stable.
There was no
material change to
this principal risk in
2024. We continue
to acknowledge
that the current
macro-economic
environment
presents a high-
risk situation but
have appropriate
mitigations in
place to limit the
risk to financial
performance.
STRATEGIC REPORT
Principal and Emerging Risks
and Uncertainties (continued)
37
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Risk
Description
Link to
G.T.P.
Potential Impact
Key Mitigations and Controls
Assessment
• The Group operates a focused approach to
cost management, including mitigating the
impact of inflation. As a Group we have a
relatively low percentage of external supplier
spend compared to the costs attributable
to payroll and related costs and would
look to mitigate increases in these through
advancements in technology and efficiency
savings, hence we do not see any significant
risk from this area (also see Economic and
Global Political Changes).
• We have an option to mitigate the risk of rising
interest rates by entering into an interest rate
swap which would fox the floating (SONIA)
element of the interest rate on the external
debt to a fixed rate.
• We have an internal tax and treasury team
with a remit to continually monitor and review
tax and treasury matters of the Group. We
engage a Big Four firm, independent to our
Group auditors, for tax advice and utilise their
global network to both plan our tax exposure
and manage compliance across the world.
• The Group has a Related Party Committee,
a separate subcommittee of the Audit
Committee, which monitors the controls in
place to identify related party transactions.
The Committee also authorises the type and
nature of each transaction, ensuring that each
transaction is entered into on an arm’s length
basis.
38
Risk
Description
Link to
G.T.P.
Potential Impact
Key Mitigations and Controls
Assessment
Acquisition and
Integration
1,2,4
Investing in
transformational M&A is a
significant growth strategy
for GlobalData and a key
strategic theme of the new
transformation plan.
Failure to identify M&A
opportunities and failing to
successfully integrate new
acquisitions would restrict
the Company’s ability to
achieve future growth
targets and the Group’s
strategy.
M&A enhances and expands GlobalData’s
existing platform and is a key contributor to the
Group’s compounding growth strategy.
In order to ensure the Group identifies suitable
targets and mitigates the risk of missing out on
key potential assets:
• The Group has an internal team dedicated to
M&A to research the market, build pipelines
and manage multiple relationships across the
market.
• In addition to the internal resource, external
advisers help the Group to identify and
engage with strategic targets.
During periods of high M&A activity, the
execution and integration risk is inherently high.
However, there are robust and effective controls
and processes in place to mitigate these risks.
• All acquisitions are subject to rigorous
financial, tax and legal due diligence (both
internal and with the aid of external advisers)
and operational review. A final business
case including a future financial forecast is
presented to the main Board as part of the
approval process.
• For smaller acquisitions, a separate
investment committee with delegated
responsibility from the Board review the
diligence process.
• 100-day post-acquisition plan to provide a
consistent and robust integration playbook
and a dedicated team to plan, execute and
integrate acquisitions.
As a Board, annual review of the capital
allocation strategy is performed to ensure
funding is available for M&A.
Risk Movement:
Increased.
M&A is a significant
growth strategy for
the Group however
increasing our
scale through M&A
at pace heightens
integration risk as
resource is directed
away from business-
as-usual activity.
STRATEGIC REPORT
Principal and Emerging Risks
and Uncertainties (continued)
39
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Risk
Description
Link to
G.T.P.
Potential Impact
Key Mitigations and Controls
Assessment
Data Privacy
1,4
The loss, theft or misuse
of personal data of
employees, clients and
others could cause
significant harm to our
key stakeholders and
could lead to reputational
loss, damage to customer
relationships, regulatory
sanctions and/ or significant
fines.
Collecting first-party data plays a crucial role
in delivering a better and scalable commercial
proposition for the Group and driving the future
business proposition. The Group operates robust
controls around this.
• The Data Privacy steering committee, led
by the Chief Financial Officer, provides
continuous monitoring of data and privacy
developments, adoption of best practice and
advice across the Group. This group consists
of information security, data protection,
commercial, legal and external advisers.
• In conjunction with the Data Privacy steering
committee the Group’s legal department
monitors laws and regulations surrounding
the use and management of data.
• Regular health checks are performed across
all sites to ensure compliance with policies
and procedures.
• Data Privacy responsibilities, policy and GDPR
forms part of the mandatory annual employee
training.
• IT, Cyber and Systems controls are in
operation to prevent unauthorised access.
Risk Movement:
Stable.
There was no
material change to
this principal risk in
2024. Data privacy
and information
security is critical for
our business, and
we have continued
to reinforce this
in our culture
and behaviours
throughout the year.
Operational risks:
40
Risk
Description
Link to
G.T.P.
Potential Impact
Key Mitigations and Controls
Assessment
Regulatory
Compliance
4
Failure to comply with
all applicable legal and
regulatory requirements
could result in fines or
imprisonment, reputational
damage and prevent the
Group from being able to
trade in some jurisdictions.
GlobalData is committed to complying with all
laws and regulations that apply to the Group.
• The Board receives annual training in respect
of their responsibilities as Directors of the
Company.
• The Board and Senior Leadership Team are
supported by external advisers and in-house
legal counsel.
• The majority of the Group’s operations are
based in the UK, US and India. Appropriate
advisers are employed in all geographies to
ensure that the Group remains compliant with
local laws and regulations.
• As part of GlobalData’s commitment to
following best practices in employee conduct,
all employees and contractors are required
to confirm their adherence to the Group Code
of Conduct and perform annual mandatory
compliance training covering other key Group
policies including anti-money laundering,
anti-bribery policy, data protection and
privacy. All global policies are available to all
employees on the Group’s intranet site.
• The Group operates an anonymous
whistleblowing hotline facilitated via an
independent company for anyone to raise a
concern.
• We are monitoring any potential future
regulation on AI, although because of our
focus on using AI within our pay-wall of
proprietary data we do not currently expect
any major legislation that would impact our
operations.
Risk Movement:
Stable
There was no
material change to
this principal risk in
2024. The Group
remains committed
to complying with all
laws and regulations
and controls
are in place to
mitigate the risk of
non-compliance.
STRATEGIC REPORT
Principal and Emerging Risks
and Uncertainties (continued)
41
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
The Board acknowledges its responsibility under section
172(1) of the Companies Act 2006 and below sets out the
key processes and considerations that demonstrate how the
Directors promote the success of the Company. The below
statement sets out the requirements of the Act, section 172(1),
and explains how the Directors discharge their duties.
As noted in the Corporate Governance Report (pages 58 to 64),
the Board meets monthly with papers circulated in advance to
allow the Directors to understand the performance and position
of the Group and matters arising for decision. Each decision that
is made by the Directors is supported by papers, which analyse
the possible outcomes, so a decision can be made that best
promotes the success of the Company and considers the impact
on the wider stakeholder group.
The Group has identified its stakeholder groups and analysed
each stakeholder based upon their level of interest in
GlobalData and their level of power/influence on the Group. The
Directors review this analysis, monitor the levels of engagement
with each stakeholder and build feedback and stakeholder
considerations into the governance and decision-making
process.
Factors (a) to (f) below are all taken into account during the
decision-making process.
(a) The likely consequences of any decision in the long term
Supporting each decision, the Board is given access to
management papers that set out impact analysis surrounding
decision-making. The papers include diligence on the financial
impact via forecasts, as well as non-financial factors and how
the decision fits with the strategy of the Group.
A primary example of this is the process by which the four
acquisitions during 2024 were considered by the Board. The
Directors, the Senior Leadership Team, including the M&A
team prepare a pack of information that considers: commercial
diligence and analysis of strategic fit; financial and tax diligence
on the target (including review of forecast and projections); and
legal and compliance diligence. The team set out the 100-day
plan for integration and discuss risks with the Board. This is
consolidated alongside external advice obtained through the
process and is reviewed to ensure that the long-term impact of
the acquisition is positive not only for the Group, but also for our
clients (enhancing our capability and offering), our employees
and shareholders.
In forming a view of whether to approve any M&A, the Board
reviews this information and consider the views of internal
management sponsors (particularly around the commercial
rationale, the likelihood of synergies being achieved and the
bandwidth to execute), as well as feedback that is received
from our bankers, Nominated Adviser and brokers. If there
are any challenges identified during this process, the Board
requests management to look at remedies and mitigations to
be put in place prior to the transaction completing. The Board
satisfy itself that the mitigations appropriately address the
identified issue and the cost of which are not prohibitive to the
deal proceeding.
The Group has a 5-year financial plan, supported by the
Growth Transformation Plan and has a number of KPIs linked
to stakeholders. KPIs such as renewal rates and average
client value give us insight into customer satisfaction and
pricing power of the product and KPIs such as Invoiced
Forward Revenue, revenue and earnings growth are key for our
shareholders, banks and our employees. By understanding the
drivers behind these KPIs the Board is able to take a view on
whether the wider strategy is effective or whether more focus
is needed on areas such as product development, pricing or
client services. The insight gives the Board a clear view on the
growth levers that will determine if the 5-year financial plan is
achievable or whether actions need to be taken to achieve it.
The plan is reviewed regularly to monitor our performance.
Strategy is discussed at the monthly Board meetings and
reviewed in detail each year, at the Board Away Day. This
strategic thinking is intrinsic to future decision-making.
(b) The interests of the Company’s employees
The Directors actively consider the interests of employees
in major decisions. Our commitment to our people remains
paramount because we recognise that the motivation, creativity
and engagement of our people is critical to the Group’s success.
We aim to be an employer of choice and one where our people
feel respected, rewarded and engaged. Our success and future
success depends on GlobalData being able to attract and retain
the right talent.
The Group holds regular Chief Executive Information Sessions
for all colleagues around the globe. The content of these
sessions, held by video conference, is aimed at keeping our
workforce aligned with our vision, mission and strategy and
delivers key strategic updates and initiatives as well as the
overall aim to increase the level of employee engagement.
The Group operates a series of Employee Resource Groups
(“ERGs”): Gender Balance, Race and Ethnicity (‘EmbRACE’),
LGBTQIA+ Allies (‘PRIDE’), which are all focused on our
Diversity, Equity and Inclusion, plus Mental Health Awareness.
STRATEGIC REPORT
Directors’ Section 172(1)
Statement
42
The Groups were set up to help the Company foster an
inclusive, supportive, and empowered community of employees
where diverse voices are heard, valued and championed.
Each ERG is now supported by a dedicated sponsor from the
Company’s Senior Leadership Team and to ensure that the
Board has a communication channel to the ERGs, Annette
Barnes attends some of the ERG meetings in her capacity as
our designated workforce Non-Executive Director. Feedback
and themes of the meetings are then fed back into the wider
Board, which is invaluable in assessing the culture, talent and
leadership of the business.
The designated workforce Non-Executive Director role has
the aim of forging closer relationships between the Board
and the workforce. In addition to involvement in the ERGs,
Annette provides independent oversight of the whistleblowing
hotline, providing a useful insight into employee matters.
Given Annette’s role as Remuneration Chair and her links
to employees, the Board does not believe that workforce
representation on the Board is required.
The Group benefits from the diversity and variety of its
workforce and is fully committed to maintaining and
encouraging diversity, including the composition of the Board.
The Board is currently made up of 6 male and 2 female
Directors.
During 2024, the Senior Leadership Team comprised of 7
male employees and 2 female employees and was made up of
8 members from the UK and 1 from Dubai.
The success of our transformation journey is dependent on
the dedication and expertise of our global team. During 2024
we have invested heavily in talent development and cultural
transformation, ensuring our organisation remains agile and
innovative. At GlobalData we encourage our people to be
actively involved in our strategy, product, and ongoing corporate
development, which has continued to be enhanced through the
Chief Executive Information Sessions during 2024. This has
enabled the Group to maintain a level of agility and the ability
to plan, design and launch product enhancements in relatively
short time frames. By nurturing our team’s skills and expertise,
particularly in AI capabilities, our colleagues will undoubtedly
play a pivotal role in shaping the future of GlobalData.
During 2024 we significantly invested in our talent development
initiatives, led by our Chief People Officer, Katherine Lunn, who
has focused on enhancing the employee proposition aligned
to five key pillars across culture and behaviour; reward and
performance; attraction and onboarding; sales enablement and
organisational agility. Katherine has also led on the investment
in and recruitment of new sales specialists and AI experts, both
of which are a key part of the Growth Transformation Plan.
(c) The need to foster the Company’s business relationships
with suppliers, customers and others
The Directors have identified the Group’s key stakeholders
and review, at least annually, to ensure there is sufficient
communication and engagement. The review of the stakeholder
map, which assesses the influence and interests of our
stakeholders, is used to guide our decision-making processes.
The key initiatives and developments for each stakeholder
group during the year are summarised below:
Our People
•
Continuation of regular Chief Executive Information
Sessions to all our global colleagues.
•
Annual individual performance reviews, with opportunity
for upward as well as downward feedback and links from
personal objectives to Group strategy.
•
Employee Resources Groups which help the Company
foster an inclusive, supportive, and empowered community
of employees where diverse voices are heard, valued and
championed. These Groups are supported by a dedicated
sponsor from the Company’s senior leadership with
some meetings attended by the designated workforce
Non-Executive Director, to ensure communication
channels to and from the Board are effective.
•
Group wide colleague engagement survey as part of our
commitment to creating an engaging environment for
GlobalData’s colleagues.
•
Group-wide internal intranet, with news, policies and
resources.
•
We are significantly investing in our talent development
initiatives, led by our Chief People Officer, Katherine Lunn,
who focuses on enhancing the employee proposition and
developing the capabilities of the global workforce.
Shareholders and investment community
During the past 12 months we have continued our increased
activity with the wider investor community.
•
Continued a high number of one-to-one meetings with our
shareholders and investment community, both following
our half year and full year results and meetings outside the
‘normal results cycle’.
•
Our interactions with the investor community have now
become much more international, with an increased
number of meetings in the United States of America and
mainland Europe.
STRATEGIC REPORT
Directors’ Section 172(1)
Statement (continued)
43
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
•
We held a capital markets day on 24 January 2024 which
focused on the launch of the Growth Transformation Plan
and the minority investment in the Healthcare division
giving investors the opportunity to review the Group
strategy in detail.
•
Attended a number of investor events held by our brokers.
•
The Group operates an enhanced Investor Relations
website.
Clients
•
Customer Obsession remains the Group’s number one
priority in the Growth Transformation Plan. A number of
strategic and major account managers were hired across
the Group in 2024 to drive the execution of our plan and
build customer relationships, including recruiting a Chief
Operating Officer and Chief Revenue Officer into the
business.
•
The Group is firmly focused on operating as a
customer-centric organisation with customer engagement
remaining central to our success. Page 12, within the Chief
Executive’s Report, discusses how the Group and its Board
address the Customer Obsession priority, and page 35
notes the controls that we have in place to ensure we
maintain strong relationships and partnerships with our
clients.
•
We have continued our collaborative initiative with our
top tier clients globally, involving relationship managers,
sales account managers, customer service, analysts and
consultants to embed deeper relationships with our key
customers. The initiative has involved more meetings with
our clients as well as using technology to understand their
needs in greater depth.
•
As an information services company, we want to be a
catalyst for positive change for the markets and customers
we serve. Both within and in front of the paywall, we
are providing data-led insight into key areas of ESG. We
recognise that ESG is strategically important to all our
clients and, because of the significant amount of data we
collect and analyse, we are creating a vast ecosystem of
ESG intelligence across our industries.
•
Our standard payment terms are zero days ahead of the
contract start and we monitor the average debtor days,
which were 68 days in 2024 (2023: 58).
•
We have a continued focus on product quality, innovation
and giving our clients timely insights in an ever-evolving
world.
Banks
•
On 28 June 2024 the total indebtedness of the Group
was fully repaid out of the proceeds of the Inflexion
investment. In December 2024 we completed on two new
debt financing facilities (a Healthcare facility and Non-
Healthcare facility) with 8 lenders in the syndicate.
•
We maintain a strong relationship with each of our lead
banks and meet regularly to discuss financing strategy and
financial performance.
•
We present financial information to the wider banking
group through quarterly management information packs
and one-to-one meetings.
•
The banks set our financial covenants for the bank debt,
which we monitor and forecast against each month to the
Board. The covenant test thresholds are taken into account
when making any financial decision, including approval of
M&A, to ensure compliance.
Auditors
•
We appointed Deloitte LLP as auditors for 2020 following
a decision to rotate audit firms in line with best practice.
Since appointment, Deloitte have endeavoured to fully
understand our business, its processes, people and
controls. Feedback from the recent audits has been fed
into the audit approach for 2024 and beyond.
•
Management and the Chief Financial Officer meet regularly
with the audit team throughout the year to discuss
company performance, transactions and strategy. The
Chair, Audit Committee Chair and Chief Executive also
regularly meet with the audit partner and senior team.
•
Feedback from the audit process, particularly around
internal controls is used by the Board to drive action and
decide upon priority areas in the annual risk and controls
review.
•
Deloitte is required to rotate the audit engagement partner
for the Group every five years. Our current audit partner,
Jon Young, is due to step down from his position after the
audit for 2024 has been concluded. The Board felt that
the quality of the audit over past 5 years has been strong
and have welcomed the robust challenge that Jon and the
team have consistently brought.
•
The Board considered whether a re-tendering process
was appropriate given 2024 is Deloitte’s fifth year as the
Group’s auditors, the Board however felt that the quality
and independence remained strong and therefore did not
run a re-tendering process.
44
•
After a robust review process by the Committee, together
with the involvement of the CFO, to select his replacement,
the Committee approved the appointment of the next audit
engagement partner with effect from the financial year
commencing on 1 January 2025.
Suppliers
•
While the majority of our cost base is people, we maintain
strong working relationships with our suppliers and
continually monitor supplier payment days. For key
suppliers we perform diligence around their working
practices and ethics as well as their financial stability and
viability.
•
For all new suppliers we use an onboarding form, which
documents our code of conduct and key policies around
data privacy, modern slavery and compliance.
(d) The impact of the Company’s operations on the
community and environment
The Group takes its responsibility within the community and
wider environment seriously and acknowledges that more can
be done. Our Environmental, Social and Governance (“ESG”)
Report on page 66 sets out the key themes that are considered
by the Board.
Our strategy is underpinned by ESG factors and ESG is integral
to everything that we do. It is the foundation of our company
and provides the platform for creating a successful and
sustainable company for the long term. As a company, we
understand that it is mutually beneficial to consider all our
stakeholders (our colleagues, our communities, our customers).
We believe that information and technology are both powerful
enablers of a successful transition towards a more sustainable
society.
For the year ended 31 December 2024, we have reported
energy intensity metrics for our UK companies on page 68. The
Company has a relatively low carbon footprint because of the
nature of its operations but acknowledges that improvements
can always be made.
GlobalData is a global company and has based itself in strategic
locations for the long term. Within each community in which we
operate, we try to engage with local issues and, in particular,
look to make positive contributions to those communities.
As a company, we have charity partners across the globe, with
a particular focus on charities that help with mental well-being,
education and empowering women in education.
(e) The desirability of the company maintaining a
reputation for high standards of business conduct
The Directors and the Company are committed to high
standards of business conduct and governance. The Group has
fully adopted the UK Corporate Governance Code despite there
being options for more reduced codes for companies on AIM.
GlobalData has improved its governance arrangements and
reporting over recent years:
•
As part of GlobalData’s commitment to following best
practices in business conduct, all employees and
contractors are required to confirm their adherence to the
Group Code of Conduct and perform annual mandatory
compliance training covering other key Group policies
including anti-money laundering, anti-bribery policy, data
protection and privacy. All global policies are available
to all employees on the Group’s intranet site and provide
guardrails for business conduct for the global operations.
•
Enhanced Enterprise Risk Management Framework
across the Group, with an emphasis on internal controls
around data privacy, data quality, cyber security and our
other principal risks. The review of risk, alongside the risk
appetite for the Group, guide the Board on where more
focus and investment is needed. In particular, the risk
appetite statement gives the Board a good framework
when looking at any matter for the Company, as it
appropriately frames the risk and ensures a proportionate
response to it.
•
Nominated Adviser provides annual training on Directors’
responsibilities, AIM listed rules and MAR (Market Abuse
Regulation).
•
Where there is a need to seek advice on particular issues,
the Board will seek advice from its lawyers and Nominated
Adviser to ensure the consideration of business conduct
and the Company’s reputation is maintained.
(f) The need to act fairly between members of the
Company
The Directors regularly meet with investors and give equal
access to all investors and potential investors. Through its
advisers, the Directors seek and obtain feedback from meeting
with the investors and incorporate feedback into the Group’s
decision-making processes.
The Related Party Transactions Committee ensures that there
are adequate controls in place to provide assurance that any
transaction which is or may be a related party transaction
STRATEGIC REPORT
Directors’ Section 172(1)
Statement (continued)
45
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
in nature is conducted on terms that are at arm’s length and
reasonable and aren’t favouring or disadvantaging the company
and any of its members. The Related Party Transactions
Committee comprises the Chair Murray Legg, Catherine Birkett,
Annette Barnes and Andrew Day. The Committee met three
times during 2024.
The Group’s capital allocation policy is set out on page 6, which
sets out the strategy on capital allocation including investment,
dividend and share buyback policies.
The Group operates share incentive plans for its employees. The
Group uses free cash flow to buy back shares, via its Employee
Benefit Trust, to limit the dilutive effect this has on existing
shareholders. Each year the company proposes an ordinary
resolution at its AGM to grant it authority to buy back up to 10%
of its shareholding, but will make decisions on share buyback
in reference to its cash flow and distributable reserves position.
As at 31 December 2024, there were 45.4 million share options
outstanding and the Company had 52.9 million shares held
in treasury, therefore there is currently no net dilution against
these options.
46
STRATEGIC REPORT
Non-Financial and Sustainability
Information Statement
The UK Government has mandated climate-related financial disclosures under the Companies (Strategic Report) (Climate-related
Financial Disclosure) Regulations 2022. These regulations are effective for accounting periods beginning on or after April 6, 2022,
and they mandate in-scope companies to report on material climate-related matters and their corresponding impact on business
operations.
In accordance with these regulations, we present Group’s disclosures describing the governance, risk management, strategy,
metrics and targets associated with climate-related financial risks and opportunities impacting our business.
1. Governance
The Board has overall responsibility for reviewing and approving the Group’s climate-related financial risk management strategies,
sustainability objectives, and decarbonisation initiatives. The Board has delegated responsibility for identifying, assessing and
managing climate-related financial risks and opportunities to the Climate Impact Steering Committee (CISC). The CISC is chaired by
the Chief Financial Officer with representation from HR, Facilities, Product (Research and Analysts) and Finance. The CISC reports to
the Audit Committee, the CISC met twice during the year to consider climate-related risks and opportunities.
The following table provides an overview of the responsibilities of the Board, the Audit Committee and CISC with respect to the
governance of climate-related financial risks:
Governance body
Responsibilities
The Board
•
Reviews the annual risk assessment and climate-related financial risks and
opportunities assessment. During 2024, the climate-related financial risks and
opportunities assessment performed by the CISC was integrated into the annual
risk assessment.
Audit Committee
•
Responsible for reviewing and challenging the Group’s risk management
processes.
•
The climate-related financial risks and opportunities assessment is reviewed by
the Audit Committee.
•
All members of the Audit Committee are members of the Board.
Climate Impact Steering Committee
(CISC)
•
Identifying, assessing and managing climate-related financial risks and
opportunities.
•
Developing and monitoring climate metrics and targets for the Group.
•
Executing climate-related strategies and initiatives including the design and
implementation of internal controls.
•
Ensuring that the Group has adequate mitigation strategies in place for the
climate-related financial risks identified.
Roles & responsibilities of our risk management processes for climate-related financial risks and opportunities:
The Board
Audit Committee
Climate Impact Steering
Committee (CISC)
Review and Confirmation
Challenge and Review
Ongoing Review, Control and
Implementation
47
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
2. Risk Management
The Group identifies and assesses risks at a group level. In setting out the principal risks, the Board considers the impact of
mitigations and controls in place. The Board reviews principal risks and the annual risk assessment. The assessment considers both
the existing principal risks and potential emerging risks for the Group.
It looks at the likelihood of a risk event, the impact that event would have on the Group and the controls and mitigations that the
Group has in place. See pages 30 to 40 for further details on our approach to risk management.
Having been established during 2023, the CISC conducted a process whereby potential climate-related financial risks and
opportunities were identified and assessed (refer to Table 1 below). These risks were further refined with the assistance of an
external consultant. This assessment was reviewed by the Audit Committee and the Board as a deep dive initial review separate
to the annual risk assessment process. The Board reviewed the mitigation measures and controls in place and has delegated
management of these risks to the CISC. During 2024, the climate-related financial risks and opportunities assessment was
integrated into our normal annual risk review.
3. Strategy
The risks and opportunities outlined in Table 1 below have been assessed within the context of the scenario analysis performed
by the Group and are aligned to either Scenario A or Scenario B, explained below. For this assessment, we used time horizons
consistent with those used for the Group’s Growth Transformation Plan. The following time horizons are applied to all risks and
opportunities:
Time
Definition
Rationale
Short
Present - 1 year
These risks are aligned with our annual financial planning cycle and will require
immediate mitigations to be put in place.
Medium
1 year - 3 years
These risks do not require immediate mitigation actions and would encompass a time
period spanning the Growth Transformation Plan. Planning considerations for these risks
would be undertaken accordingly.
Long
>3 years
These risks and opportunities are related to the physical or transition impacts of climate
change and have a longer-term impact on the business.
48
Table 1: Climate-related financial risks and opportunities and business resilience
Potential impact
Strategic responses and mitigations
Risk-1
Category
Physical risk
Data storage facilities in the UK, EU and India
could be subject to increased risks of flooding
or extreme heatwaves. Exposure to adverse
weather events could cause the facilities to
be under significant strain due to their cooling
requirements.
Extreme weather events across our major
jurisdictions (EMEA, NOAM, APAC) could disrupt
employees’ lives, lead to mass migration and
force workplaces to close. This could impact
the Group’s ability to serve its customers thus
resulting in revenue loss or reputational damage.
We have a diversified data storage strategy
to mitigate any potential impacts from
adverse weather events, ensuring that data
is stored in various locations to reduce
dependencies on any one facility.
Accompanying this strategy, the Group has
developed internal and external Disaster
Recovery Plans with service providers to
mitigate the impact on our data storage
facilities.
Our global footprint and diversified business
functions provide resilience against adverse
weather events. In the event of an impact
on our workforce in one geography, we
can adapt to mitigate disruptions to the
business by transferring key activities to
employees in other jurisdictions.
Type
Acute
Risk
Disruption to data storage
facilities and workforce due
to adverse weather events
Time Horizon
Medium term
Scenario B:
High-carbon economy
Risk-2
Category
Transition risk
An increase in the price of GHG emissions could
have an impact on energy costs. This has the
potential to increase our costs both operationally
and in our value chain, for example, data centre
costs passed onto us as the consumer.
Directly borne energy costs are not
a material expense for the Group,
representing less than 1% of our total cost
base. For this reason, we do not assess this
risk to have a material impact on the Group.
Where the Group has a direct purchasing
ability, we committed to transitioning
all energy contracts to 100% renewable
energy certified contracts as the contracts
expire. This has been achieved for the entire
group in 2024.
Our near-term reduction and Net Zero
targets were validated by the SBTi during
2024.
Type
Policy
Risk
Increased pricing of GHG
emissions
Time Horizon
Long term
Scenario A:
Low-carbon economy
Risk-3
Category
Transition risk
A failure to shift to new low-carbon technologies
could result in increased operational costs
compared to competitors. We may lose our
competitive advantage in the market as our
service price may need to increase to offset the
increased costs.
Additionally, as more customers are adopting
Net Zero targets, if we are not meeting these
targets, it could have an adverse impact on how
we are perceived in the market. Negative market
perception could impact our overall revenue
generating capabilities as customers may
choose competitors who have been pro-active in
adopting new technologies.
Most of our content databases are hosted
with best-in-class external service
providers. We are refining our procurement
processes to ensure that suppliers are also
acting responsibly and decarbonising their
own footprint.
For the on-premises data storage solutions
we use, we are striving to reduce the use
of non-renewable resources, find cleaner
energy sources and manage our facilities
with maximum environmental efficiency.
Type
Technology/Market
(customer)
Risk
Emerging data storage
technologies/Evolving
customer markets
Time Horizon
Long term
Scenario A:
Low-carbon economy
STRATEGIC REPORT
Non-Financial and Sustainability
Information Statement (continued)
49
ANNUAL REPORT AND ACCOUNTS 2024
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Potential impact
Strategic responses and mitigations
Opportunity-1
Category
Opportunity
Type
Market (customer)
Opportunity
Revenue growth due to
climate demand for ESG
insights.
Time Horizon
Medium term
Scenario A: Low-carbon
economy
As climate-related data becomes increasingly
critical for our client base, there are potential
opportunities for the Group to expand our
product offerings. Growing ESG reporting
requirements and stakeholder demands for
ESG data could lead to increased demand for
GlobalData’s services.
We have identified further ESG related data
and insights as a potential growth area
going forward.
The Group has proactively compiled
ESG-related data and established an
ESG-themed platform within its Thematic
Intelligence product. These initiatives
strategically position the Group to support
our clients in monitoring ESG metrics and
understanding the impact of ESG on their
business.
Scenario analysis
In FY24 we have assessed the qualitative ramifications of climate change on our operations, we have not performed quantitative
analysis. For Scenario A we have utilised climate scenarios published in line with the Paris Climate Agreement as this is a widely
available resource, for Scenario B this is considered the most likely scenario if no action is taken. We have identified two contrasting
scenarios within which we have completed risk assessments to our business based on the potential outcomes. Considering
the existing mitigating actions in place, we believe our business model is resilient to all the climate-related financial risks and
opportunities arising under both scenarios.
Scenario A: Significant action is taken to ensure global temperatures do not increase by more than 2oC with the aim of
establishing a low-carbon economy.
In line with the objective of the Paris Climate Agreement, this scenario could see global co-operation to implement new regulations
and policies that would enable the transition to a low-carbon economy. In addition, there would be shifts in consumer mindset
towards low-carbon alternatives. This scenario would pose increased transition risks and opportunities for our business; however,
we anticipate that this scenario will not have a material impact on our operations and business strategy.
The transition risks related to increased regulations could see increasing costs in our energy supply chain as well as increased
reporting requirements. However, we do not consider these to be a significant risk to the Group.
This scenario also presents an opportunity for increased revenue growth by leveraging the data and insights we offer to clients as
they navigate the transition risks confronting their organisations. We have initiated development of an ESG offering that supports
clients in monitoring ESG metrics and comprehending the impact of ESG on their operations.
Scenario B: Limited action is taken, resulting in a rise in global temperatures, potentially beyond 4oC.
In this scenario, a business-as-usual approach is taken globally with no concerted effort to regulate and drive policy in the
direction of a low carbon economy. The targets set out in the Paris Climate Agreement are not met. The result of this is that global
temperatures continue to rise, which increases the likelihood of more frequent adverse weather events and sea-level rise.
This scenario demonstrates an increase in physical risks confronting the Group, potentially manifesting as increased incidences
of extreme weather events such as floods and extreme heatwaves. We have identified material physical risks associated with
disruptions to our workforce and data storage facilities. We have also identified increases in operational costs due to sustained
changes in weather patterns as a material physical risk, resulting in the need for additional heating and cooling in our offices. The
CISC has developed strategic responses to ensure the adequate mitigation of these risks.
As we become more experienced in qualitative scenario analysis, we will aim to present further potential scenarios backed by
scientific analysis.
50
As a data and analytics company, the inherent nature of the industry in which the Group operates means that the repercussions of
climate change on our business and products are relatively low compared with many other sectors and companies of our size. The
Group acknowledges that while there are potential risks posed by climate change it also presents an opportunity for us to assist
clients in comprehending and managing the impact of climate within their own businesses and markets.
The Board has reviewed and approved the assessment of climate-related financial risks and agrees that there is no principal risk to
the Group arising from this assessment. The management of climate-related financial risks has been entrusted to the CISC, which
reports quarterly to the Audit Committee for continuing review and challenge.
4. Metrics and targets
Our near-term reduction and Net Zero targets were validated by the Science Based Targets initiative (SBTi) during 2024, confirming
our robust approach to reducing GHG emissions, and with independent experts, we have created a roadmap of reductions to meet
those targets. Using our Group’s global 2022 emissions as our benchmark year we are now tracking our performance. These figures
are presented on page 51.
The two near-term targets validated by the SBTi are shown below.
Overall Net Zero Target
To reach Net Zero greenhouse gas emissions across the value chain by 2050
Scope and Category
Target Language
Target Type
Scope 1 and 2
Reduce absolute Scope 1 and 2 GHG emissions 42% by FY2030 from a
FY2022 base year
Absolute
Scope 3
Reduce absolute Scope 3 GHG emissions 25% by FY2030 from a FY2022
base year
Absolute
Working towards these targets will allow us to mitigate the risk of increased operational costs due to the increasing price of GHG
emissions (Risk-2), as well as striving to reduce the use of non-renewable resources, find cleaner energy sources, and manage our
offices with maximum environmental efficiency. Additionally, working towards a net zero target will allow us to mitigate any adverse
impact on how we are perceived in the market if we fail meet our disclosed targets (Risk-3).
During 2024, we have implemented green energy contracts at all locations (including our offices in London, Hull, Dubai and
Australia) where we have direct utility purchasing ability, and taken the opportunity to negotiate longer term contracts that will
reduce the risk of unexpected energy increases.
We have expanded the collection of energy related data to encompass all our global locations and track monthly use across all sites.
This allows us to monitor and analyse energy use and associated greenhouse gas emissions on a more granular level which is being
used to find opportunities for cutting use and wasted energy. Such that in addition to the mandatory reporting under the Streamlined
Energy and Carbon Reporting (SECR) requirements which encompasses information in relation to assets owned or controlled within
the UK only (see page 67), we also can report more widely across our global footprint.
STRATEGIC REPORT
Non-Financial and Sustainability
Information Statement (continued)
51
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
2022 Base Year Calculations and 2023 Report (information available 1 year in arrears):
Emission Sources
2022
2023
Change (%)
Scope 1
98
96
-2%
Scope 2 (location-based)
951
1,027
8%
Scope 2 (market-based)
1,039
1,052
1%
Scope 3
9,902
12,775
29%
Total Scopes 1,2 &3 (location-based)
10,951
13,898
27%
Total Scopes 1,2 &3 (market-based)
11,039
13,923
26%
Scope 3 Breakdown:
Category 1 – Purchased goods and services
6,765
8,727
29%
Category 2 – Capital goods
391
681
74%
Category 3 – Fuel and energy related activities
308
322
5%
Category 4 – Upstream transportation and distribution
37
7
-81%
Category 5 – Waste generated in operations
41
15
-63%
Category 6 – Business travel
978
2,199
125%
Category 7 – Employee commuting
1,382
823
-40%
GHG emissions (tCO2e) summarised by scope
Progress against each of the targets is monitored using a linear glidepath from 2022 to the target year 2030. The Scope 1 and
2 emissions have remained level with the base year and the Scope 3 emissions have increased 29%. The Scope 3 increase is
predominantly due to an increase in emissions in purchased goods and services (increased 29%), which results from an increase
in spend when the spend-based measurement approach is used. Other increases have occurred in business travel (increased
125%); however, commuting emissions have reduced 40% resulting from more accurate information on modes of travel used from
employee surveys.
Scope 1 & 2 Target:
GlobalData’s near-term Scope 1 & 2 (market-based) target is to reduce absolute GHG emissions by 42% by 2030 from a 2022 base
year. This means a reduction of 478 tCO2e by 2030 based on the 2022 emissions of 1,137 tCO2e.
In 2023, Scope 1 emissions did not change significantly from 2022 with only a 2 tCO2e decrease (-2%); however, Scope 2 (market-
based) emissions have increased in 2023 by 76 tCO2e (+8%). The highest contributor to this increase was due to an increase of
electricity consumption in the Hyderabad offices, as we saw consistently greater occupancy levels after lower rates in the aftermath
of the Covid pandemic. Emissions in India increased by 67.4 tCO2e from 2022 (+11.5%). To achieve our target, we will continue to
conduct energy audits in other locations and continue to look into energy saving measures and waste reduction methods.
Scope 3 Target:
GlobalData’s near-term Scope 3 target is to reduce absolute GHG emissions by 25% by 2030 from a 2022 base year. This means a
reduction of 2,476 tCO2e by 2030 based on the 2022 emissions of 9,902 tCO2e.
In 2023, Scope 3 emissions have increased by 2,873 tCO2e (+29%). Purchased goods & services is the largest source of Scope 3
emissions (8,727 tCO2e in 2023) and increased by 1,962 tCO2e (+29%) this year. The increase is primarily due to the increase of
spend by GlobalData. To achieve our target, we will continue our Scope 3 emission reduction strategies, with a focus on purchased
goods and services, employee commuting and waste reduction. A key focus will be supplier engagement and a strategy for
improving information sharing, to enable us to benchmark our suppliers.
Business travel has also observed an increase in 2023 by 1,221 tCO2e (125%). This is primarily due to the increase in flight activity.
Employee commuting is the third highest contributor to Scope 3; however, there has been a decrease in emissions from the previous
year by 559 tCO2e (-40%). This reduction is due to a commuter survey that was sent out during 2024, which provided more detailed
data relating to the modes of travel for employees within the Company.
52
Going Concern
The Group meets its day-to-day working capital requirements through free cash flow. The Group has closing cash of £50.5m as at
31 December 2024 and net cash/ (bank debt) of £10.1m (31 December 2023: cash of £19.8m and net bank debt of £243.9m),
being cash and cash equivalents less short and long-term borrowings, excluding lease liabilities. On 28 June 2024, the Group fully
repaid the outstanding term loan and drawn RCF following the completion of the investment agreement with Inflexion. During
December 2024, the Group secured new debt financing facilities of £340m which mature in December 2027 (with an option to
extend further by a year). The facilities comprise of a £176.6m facility for the Healthcare business as well as a separate £163.4m
facility for the rest of the Group. As at 31 December 2024, the Group had drawn £37.0m from the Healthcare facility and £7.5m
from the rest of the Group facility. Further details of the Group’s loan facilities are provided in note 20.
The finance facilities were issued with debt covenants which are measured on a quarterly basis. There have been no breaches of
covenants in the year ended 31 December 2024. Management has reviewed forecast cash flows and there is no indication that there
will be any breach in the next 12 months.
The Directors have a reasonable expectation that there are no material uncertainties that cast significant doubt about the Group’s
ability to continue in operation and meet its liabilities as they fall due for the foreseeable future, being a period of at least 12 months
from the date of approval of the financial statements. To complete the going concern assessment the Directors have modelled
for each of the two Group segments (aligned with the two separate facilities) a base case, applied sensitivities to the base case
and modelled a reverse stress test for the period to September 2026. The base case models assumes that the Group’s financial
performance is consistent with the budget for 2025 followed by similar growth rates in 2026. Under the two base case models, the
Group maintains a significant level of positive liquidity headroom. The Directors have applied reasonable downside sensitivities to
each base case model, acknowledging that such risks and uncertainties exist. The downside scenarios modelled were as follows:
(i)
sales in 2025 being 17% lower than expectation for the Healthcare segment;
(ii)
sales in 2025 being 14% lower than expectation for the non-Healthcare segment;
(iii)
2025 costs being 2% higher than expectation for each segment; and
(iv)
sales and costs scenarios combined for each of the two segments.
The Group maintains liquidity and there remains headroom on the covenants under each scenario modelled across the two
segments.
In addition to performing scenario planning, the Directors have also conducted a reverse stress which shows that the Group can
afford to lose 51% of its sales across the Healthcare segment and 29% of its sales across the Non-Healthcare segment (37% across
the overall Group) to the end of September 2026 and maintain positive liquidity headroom, this extremely remote scenario assumes
no cost mitigation actions are taken.
Through our normal business practices, we are in regular communication with our lenders and are satisfied they will be in a position
to continue supporting us for the foreseeable future.
The Directors therefore consider the strong balance sheet, with good cash reserves and working capital along with financing
arrangements, provide ample liquidity. Accordingly, the Directors have prepared the financial statements on a going concern basis.
Long-Term Viability
The Directors have formally assessed the viability of the Group to December 2029 as part of the 5-year financial plan, taking
account of the Group’s current position, its cash flows and the potential impact of the principal risks as outlined on pages 30 to 40
of this Annual Report. The Directors have a reasonable expectation that the Group will be able to continue in operation and meet its
liabilities as they fall due over the period of their assessment. The Board considers this period as an appropriate review period as it
offers a medium-term view and gives actions and strategy sufficient time to review against.
The 5-year financial plan has been built on the basis that the Group continues to achieve consistent revenue growth. The 2025
budget is the basis for the plan. Our cost base is relatively fixed and predictable and as such we have assumed modest cost growth.
STRATEGIC REPORT
Going Concern
and Viability
53
ANNUAL REPORT AND ACCOUNTS 2024
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The cash flow assumptions follow our business model of our clients being invoiced in advance of the subscription start date and
suppliers and employees are paid within 30 days and at the end of the month respectively.
The 5-year financial plan has been subject to stress testing for the scenarios noted within the Going Concern statement above (in
which the sensitivities are modelled into subsequent years), the results of which show significant headroom in cash and facility
terms. The Group also has strong headroom in relation to the financial covenants in place and no breach is forecast.
The Group’s prospects are assessed primarily through the annual budgeting process. Detailed plans are prepared by the Senior
Leadership Team and are presented to the Board at the Annual Away Day, which allows a deep dive into various areas of the
business and provides the opportunity for input and scrutiny by the Board which ensures alignment with the overall Group strategy.
Progress against plan is presented to the Board throughout the year, commenting on performance and any newly identified risks.
The individual plans are then consolidated into an overall Group plan.
As noted on page 5 of the Annual Report, our business model has strong fundamental attributes, being significant recurring and
visible revenue streams, strong incremental margins, robust working capital and operational cash flow and scalable opportunity.
The Board feels that the Group’s four strategic priorities give the appropriate focus to protect the business from risks, threats and
uncertainties as well as giving the agility to pursue opportunities as they arise and to capitalise on the business model attributes.
The focus on being Client Centric, developing World-Class Products, Sales Excellence and Operational Agility are the correct focuses
aligned with the Group’s mission and vision.
The Board believes internal execution to be the single greatest risk against its 5-year financial plan. The Group recognises the key
mitigations to protect the Group from this as set out in its Principal Risks on page 34.
As a data and analytics company, the inherent nature of the industry in which the Group operates means that the repercussions of
climate change on our business and products are relatively low compared with many other sectors and companies of our size. The
Group acknowledges that while there are potential risks posed by climate change it also presents an opportunity for us to assist
clients in comprehending and managing the impact of climate within their own businesses and markets. Further disclosure is
provided within the Non-Financial and Sustainability Information Statement on pages 46 to 51.
During December 2024, the Group has secured new debt financing facilities of £340m which mature in December 2027 (with an
option to extend further by a year). The facilities comprise of a £176.6m facility for the Healthcare business as well as a separate
£163.4m facility for the rest of the Group. As at 31 December 2024, the Group had drawn £37.0m from Healthcare and £7.5m from
Group facilities. The Group has to date had a very supportive banking syndicate (as indicated by the successful renegotiation of the
finance facilities in December 2024). As such the Directors do not believe there will be any issues in renegotiating the loan facilities
in the future when necessary. On the basis that refinancing is possible on similar terms to the existing facilities, the Board has
reviewed forecast cash flows until 2029 which demonstrate the ability to trade with headroom on its facilities.
The Board is satisfied that the current financial position of the Group, its significant visibility on revenues and other business model
fundamentals provides a stable platform for the Group to pursue its mission and vision. The Board is confident that in pursuing the
four stated strategic priorities, this will protect business interests against threats and allow the Group to pursue opportunities that
will drive growth.
Mike Danson
This report was approved by the Board of Directors on 10 March 2025 and signed on its behalf by Mike Danson, Chief Executive
54
The Board continues to
place utmost importance
on having the governance
and structures in place to
fully support the Executive
Directors and Senior
Leadership Team to succeed
and ultimately maximise
shareholder return. During
2024, the Board focused on
the launch of the GTP and
that the right leadership
is in place to ensure the
programme is set up for
success.
54
55
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
55
/ Directors’ Report / Auditor’s Report / Financial Statements
55
Directors’
Report
The Directors
56
Corporate Governance Report
58
Environmental, Social and Governance
66
Audit Committee Report
71
Directors’ Remuneration Report
77
Statement of Directors’ Responsibilities
89
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
ANNUAL REPORT AND ACCOUNTS 2024
56
Mike Danson
Chief Executive
Mike Danson founded Datamonitor Plc, an online information
company, in 1990. In 2000, Datamonitor completed its
flotation on the London Stock Exchange and was sold to
Informa Plc for £502m in 2007. GlobalData acquired the
Datamonitor Financial, Datamonitor Consumer, MarketLine and
Verdict businesses from Informa Plc in 2015.
Annette Barnes
Non-Executive Director (Senior Independent
Director, Chair of Remuneration Committee)
Annette joined the Board in February 2017. Annette is also a
Non-Executive Director of Leeds Building Society and Stratos
Markets Ltd, in addition to conducting consulting / advisory
work. Prior to moving into a portfolio career, Annette’s most
recent Executive role was CEO of Lloyds Bank Private Banking
Limited and Managing Director for Wealth & Mass Affluent for
Lloyds Banking Group. Prior to that, Annette was Managing
Director of Bank of Scotland (Retail). Annette has over 35 years
of Financial Services experience, working for Lloyds Banking
Group, Bank of America, MBNA Europe Bank Ltd and NWS
Bank Ltd. Annette’s prior experience has given her an excellent
understanding of Technology, product channels to meet
customer needs, Operational Management and Risk.
Murray Legg
Non-Executive Chair
Murray is a Chartered Accountant with over 35 years of audit
and advisory experience gained with PricewaterhouseCoopers
in the UK, where he held a variety of senior management,
governance and client roles across a broad range of industry
sectors. Murray joined the Board in February 2016 and became
Non-Executive Chair in April 2021. Previously, Murray was also
a Non-Executive Director of Sutton and East Surrey Water Plc.
Graham Lilley
Chief Financial Officer
Graham joined the Group in 2011 and held senior finance
positions before becoming Chief Financial Officer in January
2018. Since joining, the Group has grown significantly
in scale and Graham has been involved in a number of
corporate transactions, including; M&A, debt raising and
corporate re-organisation. Graham started his career at
PricewaterhouseCoopers, where he qualified as a Chartered
Accountant and subsequently joined Datamonitor when it was
part of Informa Plc.
DIRECTORS’ REPORT
The Directors
The Directors who served the Group during the year and up to the date of signing were:
57
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Peter Harkness
Non-Executive Director
Peter Harkness has more than 35 years’ experience as
a Director or Chair of several successful businesses,
predominantly in the media sector. In addition to leading a
number of private equity deals, Peter has also spent more than
20 years as a Non-Executive Director of five quoted companies,
including Walker Greenbank Plc and Chrysalis VCT Plc, and
has twice been a Plc Chair. Peter was a Non-Executive Director
of Datamonitor until its sale to Informa Plc and was Chair of
the Butler Group until its sale to Datamonitor. Peter has also
undertaken Board roles in the Third Sector. Peter’s experience
and understanding of the media and information subscription
sector is an excellent asset for the GlobalData Board,
particularly how we sell and the selling process.
Julien Decot
Non-Executive Director
Julien is a veteran technology executive with more than
20 years’ experience in Silicon Valley and Europe across
multiple senior roles in major technology companies including
Amazon.com, eBay, Skype, Facebook and Intuit. He joined
Skype in 2007, where he built the team in charge of Strategy,
Business Development and Corporate Development. Prior to
joining Facebook, he founded a mobile messaging company
called TextMe, which reached 40m users and is now a
profitable and successful business. He joined Facebook in 2016
to lead Platform Partnerships for EMEA. Since 2022, he has
been leading International Business Development and Strategy
for Intuit. Julien holds a BA in Finance from ESCP Europe in
Paris, as well as an MBA from UC Berkeley.
Catherine Birkett
Non-Executive Director (Chair of Audit Committee)
Catherine Birkett is Chief Financial Officer of GoCardless, a
leading global account to account payments business. Joining
in 2018 she has overseen a period when revenue has increased
five times, lead three funding rounds, the last of which saw
GoCardless reach unicorn status. Alongside finance, Catherine
also leads legal, regulatory & compliance and business systems.
Before joining GoCardless, Catherine was Chief Financial Officer
for one of Europe’s fastest-growing telecoms providers, Interoute,
where she took the business from $20m to $800m in turnover
over 16 years, leading equity and debt raises, including an
inaugural high yield debt issue. While there, she also completed
10 acquisitions, including one for a business half the size of
Interoute, before overseeing a successful exit of the business in
May 2018.
Andrew Day
Non-Executive Director
Alongside his Non-Executive role at GlobalData, Andrew is
the Operating CEO for a Sports Technology business, ai.io and
holds a number of Non-Executive and advisory roles to a range
of technology and data companies including VSN International
and Data Leaders. Over the course of his career, Andrew has
held a range of executive level roles including Group Chief Data
Officer at Pepper Financial Services, Group Chief Data Officer
for J Sainsbury Plc, Business Intelligence Director at News UK
and General Manager of Business Intelligence at Telefonica.
With over 30 years of experience in commercially orientated
data and analytics, Andrew has a successful track record for
implementing transformational data-driven change across a
number of industry sectors.
57
58
The Board has set out its responsibility for preparing the Annual Report and Accounts on page 89. The Board considers the Annual
Report and the Accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for
shareholders to assess the Company’s position and performance, business model and strategy.
The Board is committed to the highest standards of corporate governance and throughout the year has adopted all requirements of
the UK Corporate Governance Code that are applicable to it as a ‘smaller company’ (defined in the UK Corporate Governance Code
as being a company below the FTSE 350), with the exception of the provisions listed below.
Throughout 2024 there has been one instance of non-compliance with the Code. This is listed below, together with the remedial
action taken and position as at 10 March 2025:
Non-compliance with the Code
Remediation taken
Compliant for the
full year ended
31 December
2024
Compliant as at
10 March 2025
In non-compliance with
provisions 40 and 41 of the UK
Corporate Governance Code, the
Remuneration Committee had
not engaged with employees
and shareholders when setting
remuneration.
The remuneration of the Executive Directors has not
been set following engagement with shareholders
and employees. Our Chief Executive does not
receive a salary and therefore the review by our
Remuneration Committee only relates to the role of
CFO and the Senior Leadership Team. The Committee
feels that its review of relevant benchmarks when
setting remuneration for the CFO is appropriate.
However, should there be any material change to the
remuneration arrangements of the Executive Directors
it will seek to consult with appropriate stakeholders.
The UK Corporate Governance Code is publicly available at: www.frc.org.uk/directors/corporate-governance-and-stewardship/
uk-corporate-governance-code
Details of GlobalData’s corporate governance practices are publicly available on its website www.globaldata.com.
Responsibility for governance matters lie with the Board, which is accountable to shareholders and wider stakeholders for the
activities of the Group.
Board Leadership and Company Purpose
The Group is led by the Board. The Executive Directors meet regularly with investors to discuss the performance and governance
of the Group and any feedback is communicated and distributed to the wider Board. The Chairs of the Remuneration and Audit
Committees make themselves available to discuss with investors annually at the AGM.
The Board assesses the basis on which the Company generates and preserves value over the long term and has prepared a
long-term viability statement on page 52, which considers the 5-year financial plan. The Board considers the opportunities and
threats to the business model and assessment is made on how the Group’s strategy is aligned to addressing the Group’s mission
and protecting the sustainability of the business. The regular challenge and governance provided by the Board keeps the Senior
Leadership Team and the entire organisation united in achieving the Group goals.
DIRECTORS’ REPORT
Corporate Governance
Report
59
ANNUAL REPORT AND ACCOUNTS 2024
The Board recognises that culture is an important aspect of
its four strategic priorities which ultimately drives the Group
towards its mission. The Group is a diverse, global business
but we aim to have a common tone across the organisation.
We promote agility, innovation, hard work and ethical
behaviours underpinned by our framework of ethical codes.
We invest in our employees’ training and development with
clear progression and career plans that allow our colleagues
to flourish. We deliver consistent training, communication
and policy across the Group and within different work groups.
We recognise that it is advantageous to promote different
cultures within different functions of the organisation which all
contribute to the overall culture of the business.
The Company has several company-sponsored and employee-
driven groups to help the Company foster an inclusive,
supportive, and empowered community of employees where
diverse voices are heard, valued and championed. These groups
are named Employee Resource Groups (‘ERGs’) and cover:
Gender Balance, Race and Ethnicity (‘EmbRACE’), LGBTQIA+
Allies (‘PRIDE’), which are all focused on our Diversity, Equity
and Inclusion, plus Mental Health Awareness. We encourage
our employees to share their feedback and ideas on the issues
that matter to them and their colleagues.
The ERGs act as a platform to gather and discuss feedback,
suggest ideas for improvement, and help to implement them.
Each group is led by passionate advocates with an executive
sponsor from our Senior Leadership Team and with some
meetings attended by Annette Barnes, our dedicated Non-
Executive Director for workforce engagement. Updates from
the initiatives led by the individual ERGs are published to
colleagues on the internal intranet. The role of designated
Non-Executive Director for employees has the aim of forging
closer relationships between the Board and the workforce.
This role includes being involved with the ERGs and reviewing
any feedback from the whistleblowing hotline, providing
a useful insight into employee matters. Due to these
responsibilities within the role of Remuneration Chair and its
links to employees, the Board does not believe that workforce
representation on the Board is required.
Our colleagues can also raise concerns in confidence and
anonymously via our whistleblowing hotline, which is facilitated
via an independent company, with any whistleblowing reports
notified to the Chief People Officer, the Group’s People Director,
the Group’s Chief Financial Officer and the Senior Independent
Non-Executive Director.
The Group operates an intranet, which every employee has
access to. The intranet publishes Company policies and
procedures, and it is also used to communicate Company
events, activities and regular corporate updates from the Chief
Executive.
The Directors have set out its wider stakeholder analysis in the
Directors’ Section 172(1) Statement. The Board views renewal
rates (which are published in the Chief Financial Officer’s
Report) and payment statistics for a high-level view on the
health of client and supplier engagement, but also has deep
dives into engagement through discussion with commercial
managers.
Division of Responsibilities
The Board is made up of two Executive Directors and six Non-
Executive Directors. The Executive Directors who have served
during the year are Mike Danson and Graham Lilley.
The Chair is responsible for the running of the Board and,
together with the Board members, approving the strategy of the
Group. The Chief Executive is responsible for developing the
Group’s strategy and operational management of the business.
The Senior Independent Director provides a sounding board for
the Chair and serves as an intermediary for the other Directors
and shareholders.
Our Non-Executive team comprises the Chair, Murray Legg;
the Senior Independent Director, Annette Barnes; Andrew Day;
Catherine Birkett; Julien Decot and Peter Harkness.
All the Non-Executive Directors are considered independent,
with the exception of Murray Legg and Peter Harkness,
who are not considered to be independent as at 10 March
2025 under the definition of the Code due to time served as
Directors. However, the Board believe both Murray and Peter
are independent of mind and bring valuable experience to the
Company.
The Non-Executive Directors’ shareholdings are detailed in the
Directors’ Interests table on page 64 of the report.
In 2024, the Board met 12 times during the year and there is
a formal schedule of matters reserved for the consideration
of the Board. The Board is responsible to the shareholders
for the proper management of the Group. The Board sets and
monitors the Group strategy, reviewing trading performance,
ensuring adequate funding, examining development
possibilities and formulating policy on key issues. The Board is
also responsible for monitoring the current and emerging risk
and control environment, and has set out its approach to risk
on pages 30 to 40. The Board confirms that it has completed
a robust assessment of the Group’s principal and emerging
risks during the year. The Non-Executive Directors have the
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
60
opportunity to meet without the Executive Directors in order
to discuss the performance of the Board, its committees and
individual Directors.
All members of the Board have access to the Company
Secretary who is responsible for advising the Board on all
governance matters. Procedures are in place for the Directors in
the furtherance of their duties to take independent professional
advice, if necessary, at the Company’s expense. The Company
Secretary ensures that the Board and its committees are
supplied with papers to enable them to consider matters in
good time for meetings and to enable them to discharge their
duties. Responsibility for the appointment and removal of the
Company Secretary is held by the Board as a whole.
The Board has procedures that require Directors to notify the
Chair and Company Secretary of all new external interests and
any actual or perceived conflicts of interest that may affect their
role as a Director of the Company. As part of this process, the
Board considers each conflict situation separately according to
the particular situation and in conjunction with the Company’s
Articles.
Composition, Succession and Evaluation
The Nominations Committee was established to lead the
process for appointments and manage succession plans for
its executives. During the period, the committee comprised
of one Executive Director and three Non-Executive Directors,
including the Chair. The Board is committed to ensuring that
the Nominations Committee always consists of a majority of
Independent Non-Executive Directors and, in support of this,
appointed Julien Decot as a committee member on 7 March
2025. The Non-Executive Chair of the Board, Murray Legg,
shall remain as the Nominations Committee Chair, in line with
the committee’s terms of reference. Where the Nominations
Committee uses an external search agency to appoint a
member of the Board, it is disclosed in the Annual Report. When
making new appointments the Board takes into consideration
other demands on Directors’ time, and external appointments
by any members of the Board require prior approval to confirm
no conflicts of interest or significant demands on time.
The role of the Nominations Committee is to:
•
be responsible for identifying and nominating for the
Board’s approval, candidates from a wide range of
backgrounds to fill Board vacancies as and when they
arise;
•
consider proposals for the reappointment or promotion
of Directors and also any proposal for their dismissal,
retirement, non-reappointment or any substantial change
in their duties or responsibilities or the term of their
appointment;
•
before the Board makes any appointment, evaluate the
balance of skills, experience, independence, knowledge
and diversity on the Board, and, in light of this evaluation,
prepare a description of the role and capabilities required
for a particular appointment;
•
for the appointment of a Chair, prepare a job specification,
including the time commitment expected, and require a
proposed chair to disclose other significant commitments
to the Board before appointment and disclose any changes
to the Chair’s commitments to the Board as they arise;
•
ensure that on appointment to the Board, Non-Executive
Directors receive a formal letter of appointment setting
out clearly what is expected of them in terms of time
commitment, committee service and involvement outside
Board meetings and the induction process; and
•
keep under review the number of external directorships
held by each Director.
The Group benefits from the diversity and variety of its
workforce and is fully committed to maintaining and
encouraging diversity, including the composition of the Board.
The Board is currently made up of 6 male Directors and 2
female Directors and the Senior Leadership Team had 7 male
employees and 2 female employees serve during the year.
All Directors are required to stand for re-election every year. The
terms and conditions of the appointment of the Non-Executive
Directors are available for inspection at our registered office.
Prior to recommending reappointments at the AGM, the Board
considers whether each Non-Executive Director continues to be
independent and to appropriately challenge Management, as
well as each other, in Board and Committee meetings. Following
review, the Board has reaffirmed that each Non-Executive
Director is able to offer an external perspective on the business,
is able to constructively challenge and scrutinise activities, is
independent in character and judgement, and has the required
experience necessary to perform their role as an independent
Director.
The Board conducts an annual evaluation process, which is
undertaken by all Directors via an online survey, to determine
overall performance of the Board during the year. Results are
fed back and debated, and are used to drive the future actions
and objectives of the Board.
As a ‘smaller company’ (defined in the UK Corporate
Governance Code as being a company below the FTSE 350)
the Board has decided that the internal evaluation of Board
performance conducted in the year is sufficient and that
external facilitation of the evaluation is not necessary in this
financial period.
DIRECTORS’ REPORT
Corporate Governance
Report (continued)
61
ANNUAL REPORT AND ACCOUNTS 2024
In addition, all Board members are subject to an annual
appraisal by virtue of their role within the Board, fostering a
culture of continuous improvement and professional growth
within the Group. The Chair appraises the Chief Executive and
the Non-Executive Directors, the Chief Executive appraises the
Chief Financial Officer and the entire Board appraises the Chair
which is delivered by the Senior Independent Non-Executive
Director.
The Nominations Committee periodically reviews succession
plans for the Board and Senior Management, with plans
prepared on an immediate, medium and long-term basis,
with the aim of developing a diverse pipeline. Annette Barnes
and Andrew Day were both appointed to the Board as Non-
Executive Directors on 27 February 2017. Their terms, as
recommended by the UK Corporate Governance Code, will not
expire until 2026 and therefore the Board recommends their
re-election at the 2025 AGM. In the meantime, the Nominations
Committee is planning for succession with respect to both
appointments.
Murray Legg was first appointed to the Board on 24 February
2016 and was appointed Chair on 20 April 2021. Provision
19 of the UK Corporate Governance Code prescribes that the
chair of a board should not remain in post beyond nine years
from the date of their first appointment to the board. However,
it also permits this period to be extended for a limited time,
particularly in those cases where the chair was an existing non-
executive director on appointment, as is the case with Murray.
Following a thorough review led by the Senior Independent
Director in conjunction with professional advisors, the Board
was satisfied that an extension was appropriate in order to
facilitate effective succession planning and promote stability,
consistency and governance as part of the Group’s ongoing
Growth Transformation Plan. The Board therefore believes it to
be in the best interests of the Company and its shareholders for
Murray to remain as Chair, and recommends his re-election at
the 2025 AGM.
On 10 January 2025 the Nominations Committee met
and confirmed all Non-Executive Directors continue to be
independent, with the exception of Peter Harkness, who is
not considered to be independent under the definition of the
Code due to time served as a Director. Since 24 February
2025, Murray Legg was also not considered to be independent
under the definition of the code due to time served as Director.
However, the Committee continues to consider both Murray
and Peter to be independent of mind and noted the valuable
experience both Board members bring to the Group.
Board
Audit
Committee
Remuneration
Committee
Nominations
Committee
Related Party
Transactions
Committee
Number of meetings
Murray Legg
12
–
3
1
3
Mike Danson
12
–
–
1
–
Graham Lilley
12
–
–
–
–
Annette Barnes
12
4
3
1
3
Peter Harkness
12
–
–
–
–
Andrew Day
11
4
3
1
2
Catherine Birkett
12
4
–
–
2
Julien Decot
12
4
3
–
–
Board meetings during the year:
Audit, Risk and Internal Control
The Board has established Audit, Nomination, Related Party Transactions and Remuneration Committees with mandates to deal
with specific aspects of its business. In addition, there is a Board, Audit Committee and Remuneration Committee at the Healthcare
sub-group level. The table below details the membership and attendance of individual Directors at the Group Board and committee
meetings held during the year ended 31 December 2024.
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
62
The Audit Committee met four times in the year with the external
auditors in attendance. The Chair, CEO and CFO attend the
meetings by invitation.
The Audit Committee is responsible for:
•
Monitoring the integrity of the financial statements and any
formal announcements relating to the Group’s financial
performance, and reviewing significant financial reporting
judgements contained in them;
•
Providing advice on whether the Annual Report and
Accounts, taken as a whole, is fair, balanced and
understandable, and provides the information necessary
for shareholders to assess the Group’s position and
performance, business model and strategy;
•
Reviewing the Group’s internal financial controls and
internal control and risk management systems;
•
Considering annually whether there is a need for an internal
audit function and reporting its view and findings to the
Board;
•
Conducting the tender process and making
recommendations to the Board about the appointment,
reappointment and removal of the external auditor, and
approving the remuneration and terms of engagement of the
external auditor;
•
Reviewing and monitoring the external auditor’s
independence and objectivity;
•
Reviewing the effectiveness of the external audit process,
taking into consideration relevant UK professional and
regulatory requirements; and
•
Developing and implementing policy on the engagement of
the external auditor to supply non-audit services, ensuring
there is prior approval of non-audit services, considering the
impact this may have on independence, taking into account
the relevant regulations and ethical guidance in this regard,
and reporting to the Board on any improvement or action
required.
The Audit Committee discharges its responsibilities through
receiving reports from Management and advisers, working closely
with the auditors, carrying out and reviewing risk assessments
and taking counsel where appropriate in areas when required to
make a judgement.
The Board has overall responsibility for the Group’s system of
internal controls and for monitoring its effectiveness. Such a
system is designed to manage rather than eliminate risk of failure
to achieve business objectives and can only provide reasonable
and not absolute assurance against material misstatement or
loss. The internal controls are considered within the Principal and
Emerging Risks and Uncertainties section of the Strategic Report
on pages 30 to 40.
The Directors review the effectiveness of the Group’s system of
internal controls. This review extends to all controls including
financial, operational, compliance and risk management. Formal
risk review is a regular Board agenda item.
The key controls reviewed by the Board during the year comprise
the following:
•
The preparation of comprehensive annual budgets and
business plans integrating both financial and operational
performance objectives, with an assessment of the
associated business and financial risks. The overall Group
budget and business plan is subject to approval by the
Board;
•
Weekly sales reports are produced and reviewed by
management;
•
Monthly management accounts are prepared and reviewed
by the Board. This includes reporting against KPIs and
exception reporting;
•
An organisational structure with formally defined lines of
responsibility including an organisational structure for the
Healthcare sub-group;
•
The monthly preparation and review of balance sheet
control account reconciliations; and
•
Regular review of IT and cyber security controls and
enhancements.
The Board, in conjunction with the Audit Committee, reviewed
the Annual Report and Accounts for the year ended 31 December
2024 to ensure that they provide a fair, balanced and
understandable reflection of the Group, its performance, position
and future prospects.
Remuneration
The Remuneration Committee comprises the Chair Annette
Barnes, Murray Legg, Andrew Day and Julien Decot. The
Remuneration Committee is responsible for determining the
service contract terms, remuneration and other benefits of
the Executive Directors and reviewing senior team members’
remuneration on an annual basis, details of which are set out
in the Directors’ Remuneration Report on pages 77 to 88. The
terms of reference of the Remuneration Committee are available
on the Company’s website and were refreshed during the period
to ensure the Committee continues to operate at maximum
effectiveness.
As part of Annette’s role as Remuneration Committee Chair, she
has undertaken the role of designated Non-Executive for the
workforce. This role involves a close working relationship with the
Group’s Chief People Officer and the ERGs. Engagement with the
workforce spans a range of items including culture, remuneration
and well-being. The Board see this as an important duty to drive
positive actions.
DIRECTORS’ REPORT
Corporate Governance
Report (continued)
63
ANNUAL REPORT AND ACCOUNTS 2024
To date, in non-compliance with provisions 40 and 41 of the
UK Corporate Governance Code, the remuneration of the
Executive Directors has not been set following engagement
with shareholders and employees. Specific engagement with
colleagues relating to executive remuneration has not taken
place due to there being no material changes during the period.
The remuneration of the Executive Directors has been set
as outlined in the Remuneration Policy which addresses the
requirements of provision 40 with the exception disclosed above.
The Committee feels that its review of relevant benchmarks
when setting Executive remuneration is appropriate. Should there
be any material change to the Remuneration arrangements of the
Executive Directors in the future the Remuneration Committee
will seek to consult with key stakeholders.
Related Party Transactions
The Related Party Transactions (RPT) Committee comprises
the Chair Murray Legg, Catherine Birkett, Annette Barnes and
Andrew Day. The Committee met three times during 2024. The
Committee ensures that there are adequate controls in place
to provide assurance that any transaction which is or may be a
related party transaction in nature is conducted on terms that are
at arm’s length and reasonable.
Going Concern
The Group meets its day-to-day working capital requirements
through free cash flow. Based on cash flow projections, the Group
considers the existing financing facilities to be adequate to meet
short-term commitments as discussed in more detail on page 52.
The Directors have a reasonable expectation that there are
no material uncertainties that cast significant doubt about the
Group’s ability to continue in operation and meet its liabilities as
they fall due for the foreseeable future, being a period of at least
12 months from the date of approval of the financial statements.
Accordingly, the Group has prepared the Annual Report and
Accounts on a going concern basis.
Long-Term Viability
The Directors have set out a long-term viability statement on
page 52 of the Strategic Report.
Shareholder Relationships
The Company operates a corporate website at
www.globaldata.com where information is available to potential
investors and shareholders.
The Board uses the AGM to communicate with shareholders
and seek their participation, as well as one-to-one results
presentations with investors at each full year and interim results
announcement. The Group also held a Capital Markets Day
for its institutional investors, brokers and research analysts on
24 January 2024 to give an update on strategy. The Notice of the
Annual General Meeting will be circulated more than 21 clear
days prior to the meeting.
The Directors’ interests are disclosed on page 64, which includes
the shareholding of Mike Danson, who owns 474,092,406 shares
as at 10 March 2025, representing 57.6% of the total share
capital. There are no other individual shareholders owning more
than 10% of the company’s issued share capital.
There are no specific restrictions on the size of a holding nor on
the transfer of shares, which are both governed by the general
provisions of the Articles of Association and prevailing legislation.
The Directors are not aware of any agreements between holders
of the Company’s shares that may result in restrictions on the
transfer of securities or on voting rights.
No person has any special rights of control over the Company’s
share capital and all its issued shares are fully paid.
With regard to the appointment and replacement of Directors,
the Company is governed by its Articles of Association, the
Companies Act and related legislation. The Articles themselves
may be amended by special resolution of the shareholders.
The powers of Directors are described in the Board Terms of
Reference, copies of which are available upon request.
The Company has the authority to make market purchases of
up to 10% of the Company’s total issued ordinary share capital,
either for cancellation or for placing into treasury. The authority
is proposed each year as a resolution at the Company’s AGM for
shareholders to vote on.
Employee Policies
The Group places considerable value on the involvement of its
employees and keeps them informed on matters affecting them
as employees and on the factors affecting the performance of the
Group. This is achieved through formal and informal meetings. As
part of Group communications we hold regular Chief Executive
Information Sessions, which are video conference meetings
attended by all Group employees. These meetings are used as
a forum to keep our colleagues up to date with performance,
strategy and other corporate communication. Annette Barnes’
role as workforce designated Non-Executive also helps to
increase engagement between the Board and the wider
workforce.
The Group benefits from the diversity and variety of its workforce
and is fully committed to maintaining and encouraging diversity,
including the composition of the Board. It is the Group’s policy
to give full and fair consideration to the employment of disabled
persons, the continuing employment of employees becoming
disabled, and to the full development of the careers of disabled
employees, having regard to their particular abilities.
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
64
The Group does not discriminate on the grounds of gender, race,
disability, sexuality, religion, philosophical belief, political belief,
trade union membership or age as guided by the Equality Act
2010.
As at 31 December 2024, the Group employed the following
number of employees of each gender:
2024
No.
2023
No.
Male
2,113
1,964
Female
1,627
1,568
3,740
3,532
Health and Safety
It is the policy of the Group to conduct all business activities
in a responsible manner, free from recognised hazards
and to respect the environment, health and safety of our
employees, customers, suppliers, partners, neighbours and
the community at large.
Political Donations
The Group has not made any political donations during the
current year or prior year.
Supplier Payments Policy
It is the Group’s policy to abide by the payment terms agreed
with suppliers whenever it is satisfied that the supplier has
provided the goods and services in accordance with agreed
terms and conditions. During 2024, average creditor days
were 29 days (2023: 36 days).
Subsidiaries and Overseas Branches
Details of the Group’s subsidiaries are provided on page 165.
The Group operates branches in Spain and China.
Subsequent Events
On 18 December 2024, the Group completed on two debt
financing facilities (Healthcare and Non-Healthcare), which
both comprised of 8 syndicate members, however as at
31 December 2024, one member was outstanding to commit
to the facilities. The final syndicate member joined the facility
on 31 January 2025, bringing the total available Group facility
to £385.0m.
On 6 February 2025, the Group announced its proposed move
to the Main Market of the London Stock Exchange, as discussed
further within the Chief Executive’s Report on page 16.
On 6 February 2025, the Group also announced an additional
share buyback programme totalling £50.0m.
On 7 March 2025, the Group acquired the entire share
capital of AI Palette Pte. Ltd for a purchase price of $11.5m.
AI Palette is an AI Powered consumer insights platform
offering an Innovation Intelligence solution to the Consumer-
packaged goods sector. Further detail is given in note 27 of
the financial statements.
Dividends
These are disclosed within the Strategic Report on page 9.
Financial Instruments
Use of financial instruments and exposure to various
financial risks has been discussed within the Strategic Report
(page 27).
Future Developments
Future developments have been discussed within the Chief
Executive’s Report on page 16.
Directors’ Interests
Details of the Company’s share capital are set out in note 24
to the financial statements. As at 10 March 2025, Mike
Danson had a beneficial interest of 57.6% of the issued
ordinary share capital of the Company. No other person has
notified any interest in the ordinary shares of the Company, in
accordance with AIM Rule 17.
The interests of the Directors as at 10 March 2025 in the
ordinary shares of the Company were as follows:
Number of ordinary shares
Mike Danson
474,092,406
Peter Harkness
226,329
Murray Legg
164,200
Graham Lilley
142,327
As at 31 December 2024, Graham Lilley held 1,607,857 1/100
pence share options (2023: 2,142,857) all of which were in
Scheme 2.
Directors’ Indemnities
To the extent permitted by English law and the Articles, the
Directors are granted an indemnity from the Group in respect of
liability arising from, or in connection with, the execution of their
powers, duties and responsibilities as a Director of the Company
and any of its subsidiaries. The indemnity would not provide
coverage where the Director is proved to have acted fraudulently
or dishonestly. The Group purchases and maintains Directors’
and Officers’ insurance cover against certain legal liabilities and
the costs of claims in connection with any act or omission by its
Directors and Officers in the execution of their duties.
DIRECTORS’ REPORT
Corporate Governance
Report (continued)
65
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Strategic Report / Corporate Governance / Financial Statements
65
The Board is committed to achieving the highest
standards of corporate governance. The Group is
working towards full adoption of the UK Corporate
Governance Code. Responsibility for governance
matters lies with the Board, which is accountable to
s of the Group.
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
66
Our Company
The Board is committed to achieving the highest standards
of corporate governance. The Group is working towards full
adoption of the UK Corporate Governance Code. Responsibility
for governance matters lies with the Board, which is
accountable to shareholders and wider stakeholders for the
activities of the Group.
GlobalData has improved its governance arrangements and
reporting over recent years. During the year we have:
•
Reviewed areas in the UK Corporate Governance Code in
which we were not compliant. There is a table of actions
and outcomes on page 58 to demonstrate this;
•
Continued our enhanced reporting on remuneration
matters, as well as continuing to enhance engagement
with shareholders;
•
Defined strategic priorities to address the key foundational
requirements for a people enabled business. These aligned
to five key pillars across culture and behaviour; reward and
performance; attraction and onboarding; sales enablement
and organisational agility;
•
Continued the strong engagement with our people through
Employee Resource Groups, with a clear link to the Board
and the continuation of the annual Group-wide colleague
engagement survey as part of our commitment to creating
an engaging environment for GlobalData’s colleagues; and
•
Continued to progress towards a more mature control
environment and an enhanced Enterprise Risk
Management Framework across the Group.
Our People
The Group benefits from the diversity and variety of its
workforce and is fully committed to maintaining and
encouraging diversity. It is the Group’s policy to give full and
fair consideration to the employment of disabled persons, the
continuing employment of employees becoming disabled, and
to the full development of the careers of disabled employees,
having regard to their particular abilities.
The Group does not discriminate on the grounds of gender,
race, disability, sexuality, religion, philosophical belief, political
belief, trade union membership or age as guided by the Equality
Act 2010.
% Female
As at 31
December
2024
As at 31
December
2023
Change
Board
25%
25%
–
Senior Leadership
Team
22%
13%
+9 p.p.
Group Colleagues
44%
44%
–
DIRECTORS’ REPORT
Environmental, Social
and Governance
Environmental, Social and Governance (“ESG”) matters are a key part of our strategy, and the Board is focused on safeguarding
long-term viability and sustainable growth for the Group, our people, our clients, our environment and communities as well as our
shareholders.
We continue to recognise that how we engage with our people, clients, business partners, the wider community and environment
is fundamental to the Group’s success. The Group is committed to focusing on creating and maintaining positive long-term
relationships with our broad base of stakeholders.
Founded on 5 pillars, ESG is at the heart of who we are and what we do:
Our Company
Our People
Our Clients
Our Environment
Our Communities
We strive to establish
strong governance
which highlights our
core values.
Our colleagues and
the inclusive culture
they evolve in is key
to the success of our
organisation.
The intelligence we
provide our clients
with to drive growth,
positive social and
environmental impact
through their business.
Our effort to limit any
negative impact on the
environment.
The support we
provide to charitable
organisations globally.
67
ANNUAL REPORT AND ACCOUNTS 2024
During the year:
•
We have continued to promote the Group’s values:
•
Courage – We courageously guide our customers
and the markets we serve, to a more successful,
sustainable future. We are committed, trustworthy,
and resilient when making a positive difference.
•
Curiosity – The world is always changing and so
are we. We have a curiosity for opportunities to
innovate and do things better, with an appetite for
experimentation and thinking differently.
•
Collaboration – We work together and combine our
powerful resources to provide clarity in a complex
world. We believe in the collective power of data,
technology, expertise and collaborative relationships
to succeed.
•
Continued to engage with the colleague-led Employee
Resource Groups (ERGs), covering:
•
Gender Balance
•
Race and Ethnicity (‘EmbRACE’)
•
LGBTQIA+ Allies (‘PRIDE’)
•
Mental Health Awareness
•
Our Graduate and Internship programmes continue to
grow and develop and include a greater breadth of job
roles in the organisation.
•
Continued with an annual Group wide colleague
engagement survey as part of our commitment to an
engaging environment for GlobalData colleagues. The
results of this survey have been shared with colleagues
as part of the regular CEO communication sessions with
a commitment given to continue culture transformation
based on the survey feedback received.
Our Clients
Customer Obsession is our number one strategic priority and
we continue to focus on client needs and on providing unique
and innovative solutions. We strive to maintain strong customer
relationships and endeavour to build even deeper relationships.
We have a number of ongoing initiatives with the aim of
increasing engagement with our clients.
Our ongoing initiatives are aimed at providing clients with world-
class solutions delivered with exceptional levels of service.
With AI advancements helping to drive customer success, our
customer engagement intelligence is helping us to target specific
recommendations for clients such as flagging relevant content
and customising solutions. Initiatives are constantly underway
to ensure our people are engaging with customers as much as
possible, being face-to-face to understand customer needs in
order to pivot towards a more solutions-based approach.
The net result of our Customer Obsession is a continuation
of strong renewal rates, on a volume basis our renewal rates
were 83% (2023:84%), as well as greater levels of profitability.
Looking ahead, we remain laser focused on improving in the
different areas of Customer Obsession.
Our Environment
As a data and analytics company, our products are created
and distributed digitally. This means our carbon footprint is
considerably smaller than those of many other companies of our
size. However, we are committed to minimising the impact of our
operations on the environment.
The Group is pleased to report its current UK-based annual
energy usage and associated annual greenhouse gas (“GHG”)
emissions pursuant to the Companies (Directors’ Report) and
Limited Liability Partnerships (Energy and Carbon Report)
Regulations 2018 (“the 2018 Regulations”) that came into force
1 April 2019.
In accordance with the 2018 Regulations, the energy use
and associated GHG emissions are for those assets owned or
controlled within the UK only as defined by the operational
control boundary. Therefore, energy use and emissions are
aligned with financial reporting for the UK subsidiaries and
exclude the non-UK based subsidiaries that would not qualify
under the 2018 Regulations in their own right. This includes all
6 offices along with personal vehicles used for business mileage
(“grey fleet”).
The 2019 UK Government Environmental Reporting Guidelines
and the GHG Protocol Corporate Accounting and Reporting
Standard (revised edition) were followed. The 2024 UK
Government GHG Conversion Factors for Company Reporting
were used in emission calculations as these relate to the
majority of the reporting period. The report has been reviewed
independently by Zenergi Limited (trading as Briar Consulting
Engineers Limited).
Electricity and gas consumption were based on invoice records,
while mileage was used to calculate energy and emissions from
grey fleet. Where necessary, the pro-rata estimation technique
was used for gaps in data and the CIBSE benchmark has been
used to estimate consumption and associated emissions for one
site. Gross calorific values were used except for mileage energy
calculations as per Government GHG Conversion Factors.
The emissions are divided into mandatory and voluntary
emissions according to the 2018 Regulations, then further
divided into the direct combustion of fuels and the operation
of facilities (Scope 1), indirect emissions from purchased
electricity (Scope 2) and further indirect emissions that occur as
a consequence of company activities but occur from sources not
owned or controlled by the organisation (Scope 3).
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
68
Breakdown of Energy Consumption Used to Calculate Emissions (kWh)
Mandatory requirements:
2024
kWh
2023
kWh
Purchased electricity*
1,087,594
1,152,386
Gas
549,903
524,694
Heat*
74,404
74,404
Transport fuel
18,116
19,122
Total gross energy consumed (mandatory)
1,730,017
1,770,606
* 2023 data as previously reported included an element of estimation due to the close proximity to the year end. The numbers have since been updated with finalised
data.
Breakdown of Emissions Associated with the Reported Energy Use (tCO₂e)
Mandatory requirements:
2024
tCO₂e
2023
tCO₂e
Scope 1
Gas
100.6
96.0
Company-owned vehicles
–
0.1
Scope 2
Purchased electricity (location based)*
225.2
238.6
Heat*
13.6
13.6
Scope 3
Category 6: Business travel (grey fleet)
4.4
4.6
Total gross emissions (mandatory: location based)*
343.8
352.9
Voluntary requirements:
Scope 2
Purchased electricity (market based)*
204.3
280.8
Total gross emissions (mandatory and voluntary: market based)*
322.9
395.1
* 2023 data as previously reported included an element of estimation due to the close proximity to the year end. The numbers have since been updated with
finalised data.
Natural gas usage has increased on the previous year, we expect this use to remain relatively constant over the short to medium
term as there are limited options to reduce the demand, however, to reduce GHG emissions we have moved the supply to a 100%
biogas source.
Intensity Ratios
Our chosen carbon intensity ratio is gross tonnes of carbon dioxide equivalent emissions per million pounds (£m) of revenue. The
revenue relates to UK operations only to align with the energy and emission reporting boundary. This financial metric is considered
the most relevant to the Group’s energy consuming activities and provides a good comparison of performance over time and across
different organisations and sectors.
Year ended
31 December
2024
Year ended
31 December
2023
Tonnes of CO2e per £m of revenue*
1.78
1.90
* 2023 data as previously reported included an element of estimation due to the close proximity to the year end. The numbers have since been updated with
finalised data.
DIRECTORS’ REPORT
Environmental, Social
and Governance (continued)
69
ANNUAL REPORT AND ACCOUNTS 2024
Our activities are split between energy used in buildings and for business travel. As a consequence, we have also chosen to report
gross tonnes of carbon dioxide equivalent emissions per 1,000 metres squared of occupied building space for emissions related
to buildings, and gross tonnes of carbon dioxide equivalent transport emissions per 1,000 miles travelled for emissions related to
business travel.
Buildings
Year ended
31 December
2024
Year ended
31 December
2023
Tonnes of CO2e per 1,000 m2 Gross Internal Area (GIA)*
46.5
44.2
* 2023 data as previously reported included an element of estimation due to the close proximity to the year end. The numbers have since been updated with
finalised data.
Business Travel
Year ended
31 December
2024
Year ended
31 December
2023
Tonnes of CO2e per 1,000 miles
0.269
0.268
Whilst the emissions per 1,000 m2 intensity metric has increased as our property footprint has reduced during the year, our overall
electricity use has reduced. The Group will continue to consider property rationalisation and efficiency, where appropriate, to bring
down the overall energy consumption across the occupied portfolio.
Energy Efficiency Action During Current Financial Year
The Group continues to review energy efficiency across all locations and has implemented the following energy efficiency actions
this year:
•
The Group’s near-term science-based targets were validated by SBTi during 2024, providing the guiding principles for near-
term and Net Zero reductions.
•
Following on from the energy audit at our main London office last year, an energy audit of the Group’s second London office
location was conducted during December 2024 to establish additional energy reduction opportunities. A number of energy
saving opportunities were identified such as lighting upgrades to LEDs, the installation of time switches on point-of-use water
heaters and electricity housekeeping with an estimated emission savings averaging 3.7 tCO2e per year.
•
Scope 3 emission reduction strategies have begun with a focus on purchased goods and services, employee commuting and
waste reduction in particular:
•
Commenced our supplier engagement programme and strategy on improving information sharing. Purchased goods
and services represent the largest emissions source for the Group, however the calculations currently rely on a spend-
based approach. In order to drive emission reductions in purchased goods and services, it is imperative to progress from
the spend-based approach and begin to improve data flows across the supply chain through supplier engagement. The
outcome of this is to drive the availability of accurate, consistent, and auditable data across supply chains. By encouraging
suppliers to adopt carbon reduction measures and improving the visibility of their environmental data, the Group can
work collaboratively with its supply chain to lower emissions. This phased approach ensures manageable progress while
building stronger, greener partnerships.
•
A commuter survey has been issued to employees (to establish more accurate levels of reporting and to encourage
engagement with our Net Zero plans within the organisation) which provided further insights.
•
We have continued to monitor waste and water use across our locations and focus on further recycling opportunities.
2023 emission figures report a 63% reduction in waste generated from the 2022 baseline, and we will continue to expand
our data collection process to refine these figures which include an element of estimation. Whilst our business does not
produce a significant amount of waste in day-to-day operations, nor use significant amounts of water for processes such as
manufacturing, we recognise the need to minimise the use of both water and raw materials and recycle where possible.
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
70
The Directors believe that environmental risk factors are emerging for the Group but are not a principal risk to the Group.
Our Communities
As a company, we have charity partners across the globe, with a particular focus on charities that help with mental well-being,
education and empowering women in education. During the year we supported the following charities and communities:
•
Movember – Leading charity raising awareness of Men’s Health issues;
•
Sadhana Society – Established in 1996, the Sadhana Society is dedicated to the welfare of the intellectually challenged based
in Hyderabad. The charity operates a day-care and residential centre for children with intellectual disability;
•
PHIN – A local school and residential facility in Hyderabad for hearing impaired children. PHIN supports around 120 young
people;
•
Sai Seva Sangh – Sai Seva Sangh was established in August 1988 to provide education to underprivileged children, free shelter
to old age and impoverished women, with a special needs school for differently-abled rural children; and
•
Seva Bharathi – Runs multiple skills development programmes to help underprivileged women and children to become more
self-reliant.
We will continue to work with our charity partners and offer a volunteer programme to our colleagues to enable them to get more
involved directly in our communities as well as our usual fundraising efforts.
DIRECTORS’ REPORT
Environmental, Social
and Governance (continued)
71
ANNUAL REPORT AND ACCOUNTS 2024
Audit Committee – snapshot
Members, attendance and number of meetings:
The Committee comprises four independent Non-Executive Directors consisting of myself, Catherine Birkett, as Chair, Annette
Barnes, Andrew Day and Julien Decot. The biographies of each member are given on page 56.
I am satisfied that the Audit Committee has a good balance of experience and expertise and is appropriately independent
of the operations of the business. The Committee’s mix of financial and industry experience allows for effective discussion,
challenge and oversight of significant financial estimates and judgements.
During the year the Audit Committee met on four occasions. I am satisfied that the committee was presented with papers of
good quality and in a timely fashion.
Member
Role
No. of meetings attended
Catherine Birkett
Chair since April 2021
4
Annette Barnes
Member since February 2017
4
Andrew Day
Member since February 2017
4
Julien Decot
Member since February 2023
4
Terms of Reference
The Committee operates within the mandate as agreed by the Board. The Terms of Reference of the Audit Committee are
publicly available on the Company’s website.
Areas of responsibility
The Audit Committee assists the Board in setting governance standards and has specific responsibility over financial controls,
financial reporting and audit effectiveness. Specifically, the Audit Committee has the delegated responsibilities for the
following:
•
To monitor the integrity of the Group’s Financial Reporting including review of significant estimates and judgements;
•
To review and monitor the Group’s internal financial controls and risk management processes;
•
To oversee compliance, whistleblowing and fraud programmes, and monitor legal regulatory requirements regarding
financial reporting;
•
To make recommendations to the Board on the appointment, reappointment and removal of the Company’s external
auditor and approve the remuneration of the external auditor;
•
To review and monitor the external auditor’s independence and objectivity (including processes to review non-audit
services) and the effectiveness of the audit process; and
•
To report to the Board on how it discharges its responsibilities.
DIRECTORS’ REPORT
Audit Committee
Report
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
72
Audit Committee – snapshot (continued)
Key actions in 2024
In 2024, the Audit Committee has been focused on:
•
Monitoring the integrity of the Group’s Annual Report for the year ended 31 December 2023 to ensure it was fair,
balanced and understandable;
•
Reviewing the financial performance of the Group throughout the year;
•
Assessing the accounting implications for the year ended 31 December 2024 of the investment agreement with Inflexion
which completed in June 2024;
•
Reviewing the acquisition accounting in respect of the four M&A transactions in 2024, particularly the assumptions
behind the purchase price allocation;
•
Monitoring the adequacy and effectiveness of the Group’s internal control and risk management process, ensuring that a
robust assessment of the principal risks facing the Group has been undertaken;
•
Reviewing the Group’s climate-related financial risks and opportunities assessment;
•
Assessing the external assurance obtained by the Group and considering the need for further assurance, including
internal audit; and
•
Conducting a robust review process, together with the CFO, to select and appoint a replacement to the current lead audit
partner, who under the five-year audit partner rotation rules, rotates off after the publication of this Annual Report.
Key priorities in 2025
•
Review of the quality of earnings against the 2024 LTIP targets in respect of the three plans across both Schemes. This
review was performed prior to 10 March 2025;
•
Review of the financial performance of the Group;
•
Continue to apply robust scrutiny on M&A opportunities and integration, review the acquisition accounting and ensure
acquired businesses are quickly onboarded into our control environment;
•
Review and monitor the robustness of the Group’s plans in respect of the requirements of Provision 29 of the revised UK
Corporate Governance Code that will apply for our 2026 reporting year;
•
Continue to monitor and challenge the control environment and adequacy and effectiveness of the Group’s internal
control and risk management framework; and
•
Review of overseas operations, particularly any new areas that have been acquired through M&A.
DIRECTORS’ REPORT
Audit Committee
Report (continued)
73
ANNUAL REPORT AND ACCOUNTS 2024
Dear Shareholders
On behalf of the Audit Committee, I am pleased to present the Audit Committee report to you for the financial year ended
31 December 2024. The report provides an overview as to how the Committee operates, its activities and priorities during 2024
and its role in ensuring the integrity of the Group’s financial reporting and effectiveness of the Group’s risk management and internal
control processes.
The Audit Committee is a key part of the Group’s governance framework to which the Board has delegated oversight in respect of the
following areas: the integrity of financial reporting, the effectiveness of internal controls and risk management framework, significant
financial estimations and judgements, and the external auditor.
The Integrity of Financial Reporting
We reviewed the integrity of the financial statements and all formal announcements relating to financial performance during 2024.
As part of the review, we challenged Management on whether significant areas of judgement and significant risks were adequately
evaluated, reported and disclosed.
As well as the integrity, we also considered whether the report gives a fair, balanced and understandable reflection of the Group, its
performance, position and future prospects.
As part of the review, the Committee considered whether:
•
There are any material or sensitive omissions from the narrative and statements;
•
The narrative is a true and balanced reflection of events and performance in the year;
•
There is consistency throughout the Annual Report and Accounts;
•
There is a clear explanation of key performance indicators, their link to performance and strategy and equal prominence of
statutory performance measures; and
•
The appropriate accounting policies and practices had been applied and adequately disclosed.
In the view of the Committee, the Annual Report is fair, balanced and understandable in accordance with the requirements of the UK
Corporate Governance Code.
For the year ended 31 December 2024 the Group will be taking advantage of the provision of section 479A of the Companies Act
2006. The Company has thus elected that certain UK subsidiaries will be exempt from an audit on the basis that those subsidiaries
are included in the consolidated accounts of GlobalData Plc. The Audit Committee have approved this change in Group policy.
The Effectiveness of Internal Controls and Risk Management Framework
The Audit Committee monitors the adequacy and effectiveness of internal control and risk management systems and ensures that a
robust assessment of the principal risks facing the Group has been undertaken.
During the year, the Committee has assessed the documentation and review that has taken place with regard to the Group’s internal
controls and risk management procedures, in line with the policies set out in the Group’s Risk Management Framework. The Group’s
approach to internal controls is to follow a three lines of defence model and the Committee is satisfied, with the control design as
well as the policies and procedures in place. The Committee is satisfied that the review of internal controls and risk assessment were
carried out in a robust manner.
It was noted in the previous Audit Committee report for the year ended 31 December 2023 that the Committee recognised
some further actions were required to improve its systems, processes and controls in respect of the IT control environment. The
Committee has overseen how the Group has acted on the resulting recommendations, particularly in respect of Cyber security given
this is an ever-changing landscape. During the year the Group appointed a new Chief Security and Information Officer to strengthen
the Group’s capabilities in this area.
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
74
Our systems are critical to how we deliver our product to our customers and how we operate the business on a day-to-day basis. The
Committee therefore continues to recognise that ongoing investment in its systems is necessary to further enhance processes and
improve the control environment. The Group will therefore continue to invest in this area throughout 2025.
In January 2024, the Financial Reporting Council published a revised UK Corporate Governance Code (‘the Code’). The revised
Code aims to support good corporate governance, transparency, and investor confidence. The most significant revision is in “Section
4 – Audit, risk, and controls,” where Provision 29 now asks for an explicit effectiveness declaration over material controls as of the
balance sheet date. Provision 29 is applicable for accounting periods beginning on or after 1 January 2026 and hence 31 December
2026 is the first balance sheet date for which the declaration will be made by the Group.
The Audit Committee recognises that, whilst the Group’s current internal controls and risk management procedures provide a
good foundation for the requirements of Provision 29, this will need to be a key area of focus during 2025 as we look to make
improvements, particularly in the areas of testing the operating effectiveness of internal controls, to ensure that the Group is in a
strong position to report against the Code in 2026.
During 2024, the Audit Committee considered the need for a separate Internal Audit function and noted that there are some
elements of internal audit that are currently outsourced, including specific agreed-upon control reviews in our Indian business and
independent penetration testing of our websites, the results of which were both reported to the Board and Audit Committee. Due
to the size of the Group and procedures in place to monitor both trading performance and internal controls, it was concluded at the
time that an entirely separate Internal Audit department was not required.
The Audit Committee and Board are, however, continually assessing the need for additional assurance procedures and following
the announcement that the Group intends to move to a premium listing on the London Stock Exchange (Main Market), the Audit
Committee has reassessed its assurance programme and determined that the business is now of sufficient size and complexity to
warrant an Internal Audit function. The function will be set up in FY25 and the Group intends to engage a third-party, co-source
partner to support the Internal Audit team on audits that required a specific technical skillset.
DIRECTORS’ REPORT
Audit Committee
Report (continued)
75
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Significant Financial Estimations and Judgements
The Committee considered the following significant accounting matters for the year ended 31 December 2024:
Item
Committee consideration of estimation or judgement
Going Concern and
Viability Statement
The Committee reviewed Management’s assessment to support the preparation of the financial statements on a going concern
basis and the appropriateness of the Going Concern and Viability Statement in the Strategic Report. The Committee considered
the worst-case but plausible scenario models prepared by Management along with the mitigations available to the Group in its
five-year viability assessment and the going concern assessment to September 2026. After carefully considering the assumptions
supporting Management’s assessment, the Committee have concluded that the disclosures are appropriate.
Minority investment
in the Group’s
Healthcare business
On 21 December 2023, the Group announced that it had exchanged on a transaction to sell 40% of the Group’s Healthcare
business to Inflexion, the transaction completed on 28 June 2024.
Management assessed the accounting implications arising from the transaction for the year ended 31 December 2024, taking into
consideration the specific details set out in both the Share Option Agreement and Co-Investment Agreement. The most significant
judgements being:
•
Assessment of Control – Management considered the requirements of the applicable accounting standards, specifically
‘IFRS 10 – Consolidated Financial Statements’ and concluded that GlobalData Plc have control of the Healthcare business,
the results of which have therefore continued to be fully consolidated into the results of the GlobalData Plc Group from the
date of completion. As at the same date, the Group has recognised a non-controlling interest within equity in the Group’s
Statement of Financial Position.
•
Derivative valuation – On 4 June 2024, being the point at which all of the Conditions Precedent of the investment agreement
with Inflexion had been fulfilled, the Group exercised an option to sell the 40% shareholding in the Group’s Healthcare
business. The Put and Call Option, as specified in the Share Option Agreement, met the definition of a derivative as per
‘IFRS 9 – Financial Instruments’, the Option representing a financial derivative which gives GlobalData and Inflexion the right
to sell/buy the 40% shareholding at a specified price (£1,115m subject only to working capital adjustments) within a certain
time period (on or before the long stop date of 30 September 2024). In accordance with IFRS 9, the Put and Call Option was
measured at fair value with any movement in the fair value recognised in the Income Statement. Management considered
whether there were any indicators in either economic performance or business performance which would suggest a material
movement in the fair value of the Option between the date the Share Option Agreement was signed on 21 December 2023
and the date the Option was exercised on 4 June 2024 and concluded that there were no changes in either the external
economy or internal business performance between these dates and hence Management assigned a £nil fair value to the Put
and Call Option on the basis that the transaction price of £1,115m materially represented current market price.
The Committee has carefully considered Management’s detailed assessment in respect of each of the considerations noted above
and agree with the conclusions reached.
Assessment of
Operating Segments
The Group has previously reported one operating segment, being Data, Analytics and Insights, however during H1 2024 there
were a number restructuring and organisational changes within the Group associated with the transaction to sell 40% of
the Group’s Healthcare business to Inflexion. These changes resulted in the ring-fencing of the Healthcare business and the
production of discrete financial information at a Healthcare level. As such, Management have concluded that the Group now
operates under two segments: ‘Data, Analytics and Insights: Healthcare’ and ‘Data, Analytics and Insights: Non-Healthcare’.
The Committee agree with Management’s conclusion that the Group does now operate under two segments.
Assessment of Cash-
Generating Units
The Committee reviewed Management’s analysis of cash-generating units (“CGUs”) and assessed its conclusion that there were
3 CGUs as at the date of the intangible asset impairment review (31 December 2024), namely: Data, Analytics and Insights
(DA&I): Healthcare; DA&I: Non-Healthcare and Media Business Insights (MBI). In the prior year, Management had assessed that
the Group had two CGUs, being DA&I and MBI.
The Committee noted that during H1 2024, the Group undertook a restructuring exercise to carve out the Healthcare business
into separate legal entities. Management have assessed that on this basis the Group is now able to directly identify the cash
inflows of the Healthcare operations. The Non-Healthcare DA&I assets and liabilities continue to be co-mingled within the
remaining legal entities of the Group and as such are considered to be a single CGU.
Management assessed the four acquisitions in the year and concluded that they formed part of the DA&I: Healthcare CGU and
DA&I: Non-Healthcare CGU, as such no additional CGUs had been created. In reaching this conclusion Management noted that
the Group’s strategy is to integrate at speed acquisitions into the GlobalData platform, along with the sales operations, product
teams and central costs.
After careful consideration of Management’s assessment, the Committee are in agreement that there were 3 CGUs as at
31 December 2024.
Carrying value of
goodwill and acquired
intangible assets
The impairment test for the carrying value of goodwill and acquired intangible assets requires significant judgement and
estimation in respect of the forward-looking value-in-use calculations. The Audit Committee reviewed these calculations and
challenged the assumptions, particularly around the future revenue growth and discount rate used. The Committee concluded
that the impairment review had been completed in line with the provisions of IAS36 and that Management had used a range of
sensitivities to stress test the models used. The Audit Committee was satisfied with the conclusions reached by Management that
the carrying value of goodwill and intangible assets could be supported.
76
Item
Committee consideration of estimation or judgement
Acquisition
Accounting
During 2024 the Group completed on four acquisitions. In respect of each acquisition the Committee reviewed the acquisition
accounting, particularly in relation to the purchase price allocation exercise which involves the allocation of the purchase price
to tangible and intangible assets, the process of which requires various assumptions and judgements. The Group engaged
Kroll to assist Management with this valuation process in respect of each of the four acquisitions. The Committee reviewed the
assumptions and judgements behind these valuations and is satisfied that they are appropriate.
Adjusted performance
measures (APMs)
The Committee reviewed the Strategic Report and the financial statements contained within the Annual Report and Accounts to
ensure that APMs were not given undue prominence over statutory numbers, that adjustments made to get to the APMs were
consistent with previous years and that the adjustments gave the reader a clearer understanding of the underlying performance
of the business. The Committee is satisfied that the Annual Report and Accounts give a balanced and fair view of performance
and APMs are presented in a consistent and clear manner, so that they contribute to the reader’s overall understanding of the
accounts and the business performance.
Carrying value of
investments held by
Parent company
The net book value of Investments held by GlobalData Plc has increased by £758.1m to £983.2m as at 31 December 2024 due
to the internal restructuring prior to the completion of Inflexion’s investment in the Group’s Healthcare business. The impairment
test for the carrying value of the investments requires significant judgement and estimation in respect of the expected rate of
growth of sales, margins expected to be achieved and the appropriate discount rate to apply when valuing future dividend income
from subsidiaries. The Audit Committee was satisfied with the conclusions reached by Management that the carrying value of the
investments can be supported.
External Auditor
In order to maintain the independence of the external auditor, the Board has determined that non-audit work will not be offered
to the external auditor unless there are clear efficiencies and only where such work is permitted under the Financial Reporting
Council’s Ethical Standard. When assessing the independence and objectivity of the external auditor, the Committee considers the
assurances and information provided by Deloitte LLP (Deloitte) regarding the nature of the non-audit services it provides, as well
as any commercial business relationships between Deloitte and the Group. The Committee is comfortable that there have been no
instances of non-compliance or independence issues during the year.
The Audit Committee annually reviews the remuneration received by the auditors for audit services and non-audit work. Their audit
and non-audit fees are set, monitored and reviewed throughout the year (see note 6 of the financial statements).
The Group has adopted the Competition and Markets Authority Order (CMA Order) and will rotate audit firms at least every
20 years and tender at least every 10 years. 2024 was Deloitte’s fifth year as Group auditor. Deloitte is required to rotate the audit
engagement partner for the Group every five years. Our current audit partner, Jon Young, is due to step down from his position after
the audit for 2024 has been concluded. After a robust review process by the Committee, together with the involvement of the CFO,
to select his replacement, the Committee approved the appointment of the next audit engagement partner with effect from the
financial year commencing on 1 January 2025. The Committee is satisfied that Deloitte has been managing an orderly handover
to the new audit engagement partner to ensure there is a seamless transition and maintenance of high levels of audit quality and
effectiveness.
The Committee has reviewed the effectiveness of the audit and audit team and recommends the reappointment of Deloitte for
2025. We believe that their independence, their objectivity and the effectiveness of the external audit is strong. This is safeguarded
through their continuing challenge, their focused reporting and their discussions with both Management and the Audit Committee in
planning and concluding their work.
The Committee confirms that there are no contractual obligations that restrict the choice of external auditor.
Catherine Birkett
Chair of the Audit Committee
10 March 2025
DIRECTORS’ REPORT
Audit Committee
Report (continued)
77
ANNUAL REPORT AND ACCOUNTS 2024
Unaudited information
Remuneration Committee – snapshot
Members, attendance and number of meetings:
The Committee comprises four independent Non-Executive Directors and consists of myself, Annette Barnes, as Chair, Andrew
Day, Julien Decot and Murray Legg. Committee members do not receive performance related pay and have not been awarded any
Long-Term Incentive Plan (LTIP) options.
The composition of four independent Non-Executive Directors on the Committee as at 31 December 2024 is compliant with
the provisions of the UK Corporate Governance Code with each Committee member acting within a pre-approved appointment
period, in line with the Committee’s Terms of Reference. I am satisfied that the Remuneration Committee has a good balance of
experience and expertise and is appropriately independent of the operations of the business.
During the year the Remuneration Committee met on three occasions. I am satisfied that the Committee was presented with
papers of good quality and in a timely fashion.
Name
Details
No. of meetings
attended
Annette Barnes
Member since February 2017 (Chair since April 2021)
3
Murray Legg
Member since February 2016
3
Julien Decot
Member since April 2021
3
Andrew Day
Member since February 2017
3
Terms of Reference
The Committee operates within the mandate as agreed by the Board. The Terms of Reference of the Remuneration Committee
are publicly available on the Company’s website and were refreshed during the period to ensure the Committee continues to
operate at maximum effectiveness.
Areas of responsibility
The Remuneration Committee has the delegated responsibility for setting remuneration strategy and specific Executive Director
remuneration, in addition to overseeing remuneration strategy and culture for the Group. The key activities of the Remuneration
Committee are:
• Setting remuneration policy for Executive Directors;
• Setting remuneration for the Chair and Executive Director(s) and reviewing the remuneration of senior management, including the
Company Secretary, on an annual basis;
• Approving any awards and vesting events under LTIP schemes; and
• Reviewing broader workforce remuneration principles and alignment with culture.
DIRECTORS’ REPORT
Directors’ Remuneration
Report
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
78
Remuneration Committee – snapshot (continued)
Key actions in 2024
During 2024, the Remuneration Committee focused on:
• Maintaining governance and reporting with respect to remuneration themes, including the evaluation of remuneration strategy, a
review of our compensation philosophy and alignment with culture as part of a Group wide colleague engagement survey;
• Reviewing existing LTIP schemes to ensure they remained operationally valid and continued to meet their originally stated objectives
for all stakeholders;
• Engaging with different groups of colleagues, including interns, graduates and recent joiners, in addition to the colleague-led Employee
Resource Groups (ERGs), which were relaunched during the period to help foster an inclusive, supportive and empowered community
of employees;
• Monitoring the Group’s strategic priorities with respect to people and considering industry best practices related to remuneration, as
part of reviewing the terms and conditions of employment;
• Establishing a separate Remuneration sub-committee specific to the Group’s healthcare business, following the minority investment
by Inflexion, alongside an appropriate governance framework to ensure remuneration policies across the Group remain consistent; and
• Undertaking appropriate training to keep up to date with latest market trends.
Priorities for 2025
During 2025, the Remuneration Committee will focus on:
• Reviewing industry best practices relating to remuneration, ensuring policies and processes remain appropriate;
• Continuing to enhance links to the wider workforce population, including ongoing discussions with the colleague-led ERGs and their
senior management sponsors;
• Continuing our assessment of compensation philosophy as part of aligning workforce remuneration with culture, which continues to
provide visibility, clarity and transparency to colleagues;
• Reviewing long term incentives available to colleagues in both the healthcare business and the rest of the Group to ensure they remain
appropriate, are applied consistently across the Group, and continue to meet their originally stated objectives for all stakeholders.
This will include appraising the current LTIP performance targets for 2025 and 2026 and making adjustments, as required, to reflect
ongoing M&A activity;
• Assessing the suitability of a separate management incentive plan for senior team members in the healthcare business, aligned with
the needs of all stakeholders.
DIRECTORS’ REPORT
Directors’ Remuneration
Report (continued)
79
ANNUAL REPORT AND ACCOUNTS 2024
Dear Shareholders,
On behalf of the Remuneration Committee, I am pleased to present the Remuneration Committee report to you for the financial year
ended 31 December 2024.
The report contains three main sections: 1) Remuneration Committee update; 2) Remuneration policy report; and 3) Annual
remuneration report.
1. REMUNERATION COMMITTEE UPDATE
Committee update on LTIPs
As reported previously in my 2023 Directors’ Remuneration Report, LTIP Scheme 1 is now closed and certain participants chose to
defer their exercise upon vesting, as allowed under the scheme rules. Several option holders subsequently exercised during 2024 in
line with the Committee’s approval that such options can be exercised by participants at any point before 11 August 2033, subject to
compliance with the Company’s Share Dealing Code.
The Company continues to operate LTIP Schemes 2 and 4. Following the minority investment by Inflexion during the period, the
Committee concluded that individuals should be able to align their own performance with the business results that they can directly
influence, and therefore, that the Scheme 2 and Scheme 4 LTIP performance targets should be divided into three plans.
The below table summarises the changes that the Committee have made to LTIP Schemes 2 and 4, reflecting the original plan
targets split into three separate plans, to align with new business units, whilst retaining the same total targets, and ensuring they are
no more difficult to achieve for colleagues.
Scheme 2 (2019)
Scheme 4 (2021)
Original
performance
target
The remaining awards will vest based upon the following
proportions if Adjusted EBITDA targets are met, as
measured in the year end results for the below years:
– 2024 £110m Adjusted EBITDA (25% Vest)
– 2025 £125m Adjusted EBITDA* (25% Vest)
– 2026 £145m Adjusted EBITDA* (25% Vest)
The awards will vest based upon the following
proportions if Adjusted EBITDA targets are met, as
measured in the year end results for the below years:
– 2024 £110m Adjusted EBITDA (10% Vest)
– 2025 £125m Adjusted EBITDA* (20% Vest)
– 2026 £145m Adjusted EBITDA* (70% Vest)
Revised
performance
target
Plan 1 – healthcare business option holders
The remaining awards will vest based upon the following
proportions if Adjusted EBITDA targets are met, as
measured in the year end results for the below years:
– 2024 £60m Adjusted EBITDA (25% Vest)
– 2025 £68m Adjusted EBITDA* (25% Vest)
– 2026 £79m Adjusted EBITDA* (25% Vest)
Plan 2 – non-healthcare business option holders
The remaining awards will vest based upon the following
proportions if Adjusted EBITDA targets are met, as
measured in the year end results for the below years:
– 2024 £50m Adjusted EBITDA (25% Vest)
– 2025 £57m Adjusted EBITDA* (25% Vest)
– 2026 £66m Adjusted EBITDA* (25% Vest)
Plan 1 – healthcare business option holders
The awards will vest based upon the following
proportions if Adjusted EBITDA targets are met, as
measured in the year end results for the below years:
– 2024 £60m Adjusted EBITDA (10% Vest)
– 2025 £68m Adjusted EBITDA* (20% Vest)
– 2026 £79m Adjusted EBITDA* (70% Vest)
Plan 2 – non-healthcare business option holders
The awards will vest based upon the following
proportions if Adjusted EBITDA targets are met, as
measured in the year end results for the below years:
– 2024 £50m Adjusted EBITDA (10% Vest)
– 2025 £57m Adjusted EBITDA* (20% Vest)
– 2026 £66m Adjusted EBITDA* (70% Vest)
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
80
Scheme 2 (2019)
Scheme 4 (2021)
Revised
performance
target
(continued)
Plan 3 – corporate function option holders
The remaining awards will vest based upon the following
proportions if Adjusted EBITDA targets are met, as
measured in the year end results for the below years:
– 2024 £110m Adjusted EBITDA (25% Vest)
– 2025 £125m Adjusted EBITDA* (25% Vest)
– 2026 £145m Adjusted EBITDA* (25% Vest)
The performance targets for the corporate function
option holders have not changed.
Plan 3 – corporate function option holders
The awards will vest based upon the following
proportions if Adjusted EBITDA targets are met, as
measured in the year end results for the below years:
– 2024 £110m Adjusted EBITDA (10% Vest)
– 2025 £125m Adjusted EBITDA* (20% Vest)
– 2026 £145m Adjusted EBITDA* (70% Vest)
The performance targets for the corporate function
option holders have not changed.
* The targets for 2025 and 2026 currently exclude any adjustments for M&A. The Remuneration Committee will consider the recent M&A activity and issue revised
targets in due course
The results show that the Adjusted EBITDA performance targets for FY24 have been achieved. The Committee will review the
performance of both segments, in conjunction with the Healthcare Remuneration Committee, to determine an appropriate vesting
date following the publication of this report.
The Committee recognises that the performance periods for Schemes 2 and 4 may no longer be suitable for new entrants given
the 2023 and 2024 targets have already passed. As a result, during 2025, the Committee will assess whether modifications to the
existing schemes and / or the introduction of a new long-term incentive plan are necessary. This evaluation will aim to support the
objectives of our LTIP schemes: supporting long term growth whilst attracting and retaining key individuals and ensuring that reward
is closely aligned with the Company’s underlying performance.
Engagement with our colleagues
During the year, as our Employee Nominated Non-Executive, I have enjoyed spending time with different groups of colleagues and
listening to their perspectives, especially as they relate to the broader culture of the organisation.
The key themes from each meeting that I attended have been shared with both the Committee and the Board, highlighting the
ongoing actions that have been undertaken by colleagues and the Employee resource Groups (ERGs) during the period, including
raising awareness of unconscious racial bias, better representation of gender needs, creating a positive and inclusive work
environment for LGBTQIA+ employees and raising awareness of all aspects of mental health and wellbeing. Colleagues from the
ERGs have provided positive feedback in terms of the increased engagement from the Company’s senior leadership during the
period, with each ERG now supported by a dedicated sponsor.
The Committee will continue to engage with the ERGs during 2025 as they seek to promote diversity and inclusion; influence
organisational change and innovation; and drive employee engagement and retention.
Enhancing governance and reporting
In line with the Group’s Growth Transformation Plan and in support of our organisational objectives, we have continued to focus
on our governance and reporting and, during 2024, defined strategic priorities to address the key foundational requirements for a
people enabled business. These aligned to five key pillars across culture and behaviour; reward and performance; attraction and
onboarding; sales enablement and organisational agility.
We also continued with an annual Group wide colleague engagement survey as part of our commitment to an engaging environment
for GlobalData colleagues. This has allowed the Board and senior management to gain a better understanding of engagement drivers
within the business and how our values of Courage, Curiosity and Collaboration direct behaviours. The results of this survey have
been shared with colleagues as part of the regular CEO communication sessions with a commitment to act on the feedback received.
DIRECTORS’ REPORT
Directors’ Remuneration
Report (continued)
81
ANNUAL REPORT AND ACCOUNTS 2024
As reported previously in my 2023 Directors’ Remuneration Report, workforce remuneration continues to be monitored in line with
published advice and guidance from both the UK government and the Living Wage Foundation.
In recent AGMs we have included an advisory resolution to accept the Directors’ Remuneration Report. This is included to give
shareholders a platform through which any concerns or suggestions within the Directors’ Remuneration Report can be registered.
The AGM results, in relation to remuneration, have been presented in the Directors’ Remuneration Report.
2. REMUNERATION POLICY REPORT
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Remuneration Policy – overview
Purpose – The Executive Remuneration Policy aims to set out the policies and principles related to the elements of remuneration
considered for Executive pay. It also sets out the oversight and guidance the Remuneration Committee gives on aligning
Executive, senior management and the broader workforce’s pay to the Company’s performance, strategy and culture.
Principles – The policy has been implemented with the following key principles:
•
Remuneration policies and practices are designed to support strategy and promote long-term sustainable success.
•
Directors can exercise independent judgement and discretion when authorising remuneration outcomes.
•
The Remuneration Committee has delegated responsibility for setting remuneration strategy for Executive Directors and
setting specific remuneration for the Chair and Executive Director(s).
•
It is the intention of the policy to set remuneration which:
•
has clarity and is transparent
•
has a simple structure, without undue complexity
•
does not invite undue risk to the business
•
is predictable in outcome
•
is proportional to the delivery of strategy and long-term performance of the business
•
aligns to the culture of the business and its core values.
•
Similar principles to those applied to Executive Directors are taken into account by the CEO and CPO when setting the
remuneration and benefits of senior managers (which are reviewed annually by the Committee as part of evaluating total
reward) and other colleagues.
Responsibilities – The Remuneration Committee is responsible for determining the service contract terms, remuneration and
other benefits of the Executive Directors. The Committee is chaired by myself, Annette Barnes (an Independent Non-Executive
Director), supported by 3 Non-Executive Directors: Andrew Day, Julien Decot and Murray Legg.
The primary objectives of the Group’s policy on Executive remuneration are that it should be structured so as to attract and retain
executives of a high calibre with the skills and experience necessary to develop the Company successfully and, secondly, to reward
them in a way which encourages the creation of long-term value for the shareholders. The performance measurement of the
Executive Directors and the determination of their annual remuneration package is undertaken by the Remuneration Committee. No
Director is involved in setting their own remuneration.
The elements of remuneration that could be offered to Executive Directors are defined in the table below. The same remuneration
structure is considered when setting the policy for employees more generally, with the component elements of any package based
on the seniority of role and market trends. In the Committee’s opinion, the approach to executive remuneration aligns consistently
with the wider Group pay policy.
Currently, only our Chief Financial Officer (CFO) receives executive remuneration although the same principles would be applied
when agreeing the components of a remuneration package for any newly appointed executive directors.
82
Element
Purpose and link to
strategy
Operation
Maximum Opportunity
Base Salary
Is payable in cash
spread over 12 monthly
payments. It is set at
an appropriate level,
based on benchmark
data, to attract and
retain management of
a high calibre with the
necessary skills and
credentials required to
deliver a sustainable
business model and drive
shareholder returns.
Base salaries are normally reviewed annually but may be
reviewed at other times if the Committee considers this
appropriate. In determining base salary levels and any
salary increase, consideration is given to:
• the individual’s experience and the performance of the
Group and the individual;
• salary levels at other companies of a similar size and
complexity; and
• the pay levels and increases for other employees in the
Group.
While there is no maximum
salary level, salary
increases will generally
be awarded to ensure
compensation packages
remain in line with market
trends.
Benefits
Provide Executive
Directors with market-
competitive benefits
consistent with the role.
The Committee’s Policy is to set benefits at an appropriate
level, taking into account the market benchmarks and
benefits offered to the wider workforce. Executive Directors
can currently receive private health insurance and life
assurance as standard benefits, which is broadly in line with
senior roles within the Senior Leadership Team.
The overall level of benefits
will depend on the cost
of providing individual
items and the individual’s
circumstances.
For any all-employee share
plans which may be offered
in the future, the maximum
participation levels will be
the same as any maximum
applicable to other
employees (and consistent
with any relevant tax
limits).
Pension
To enable the
Company to offer
market-competitive
remuneration through the
provision of additional
retirement benefits.
Executive Directors are eligible for defined employer
contribution funding to the GlobalData Pension Plan,
payments into a personal fund and/or a cash allowance in
lieu of pension.
Pension arrangements are aligned with those offered to
senior roles within the Senior Leadership Team.
In accordance with
provision 39 of the
Corporate Governance
Code, the pension
contribution rates for
Executive Directors will be
in line with those available
to the majority of the
workforce.
Annual
Bonus Plan
Rewards Executive
Directors for delivery
of pre-defined EBITDA
Group performance
target measure set
annually by the Board.
Annual bonus is a cash award of up to 20% of base salary
focused on specific performance metrics relevant to each
year. In certain circumstances the Committee will have
the discretion to reduce the size (“malus”) or require the
repayment (“clawback”) of the bonus following receipt by
the Executive Director.
The minimum annual
bonus is 0% of salary, if
performance falls below
expected standards. The
maximum annual bonus
opportunity is 20% of
salary, payable in cash.
Long-Term
Incentive
Plan (LTIP)
Designed to reward
delivery of shareholder
value in the medium-
to-long term, with
vesting conditional on
the achievement of
pre-defined EBITDA
performance hurdles.
The Remuneration Committee can award share options
on any of our active LTIPs. The Committee will take into
account market conditions and incentives of the wider
workforce, ensuring that UK Corporate Governance Code
and Investment Association Principles are considered.
Full details of the share option schemes operated by the
Group are set out in note 25.
No maximum, but the
Committee will consider
benchmark data and
consult with shareholders
on material awards.
DIRECTORS’ REPORT
Directors’ Remuneration
Report (continued)
83
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Shareholding Guidelines
In line with provision 36 of the UK Corporate Governance Code and as outlined in last year’s report, the Committee has included a
policy on Executive Director shareholding requirements both during and post-employment, within the Remuneration policy.
The policy states that all Executive Directors should hold 100% of their base salary in shares within five years of appointment
and hold 100% of their base salary in shares for one-year post-employment and 50% for two years post-employment. As at
31 December 2024, the CFO held 142,327 shares with approximate value of £269,000, which equates to ~90% of his 2024 salary
(2023: ~86%). Given that the policy was implemented during 2022, the Committee is satisfied that he is working towards and will
soon fulfil this criteria. The CEO’s holding was 57.5% as at 31 December 2024.
Malus and Clawback
Malus and clawback provisions will apply to the Annual Bonus Plan and Long-Term Incentive Plan for a period of at least two
years after payment or vesting and may be effected, among other means, by requiring the transfer of shares, payment of cash or
reduction of awards or bonuses. Circumstances in which malus and clawback may be applied include a material misstatement of the
Company’s financial accounts, fraud or gross misconduct on the part of the award-holder or an error in calculating the award vesting
outcome. Participants in the performance-related bonus and LTIP are required to acknowledge their understanding and acceptance
of the malus and clawback provisions as a pre-condition to participating in these plans. The Committee is satisfied that the malus
and clawback provisions are appropriate and enforceable.
Operation of Remuneration policy
The Remuneration Policy operated as intended during the year, in terms of both remuneration performance and quantum. The policy
has been subject to an annual review, with no changes deemed necessary at this time. The Remuneration Committee has proactively
chosen not to apply discretion to any Executive Director Remuneration elements or outcomes during the year.
Specifically, the Committee has reviewed the CFO’s eligibility for a bonus award for 2024 based upon financial performance. The
minimum target threshold for a bonus payout, which was £128m EBITDA (excluding acquisitions) for 2024, was not achieved. This
results in a 0% payout for the CFO under the Corporate Bonus Plan for 2024. No upward discretion on this matter was deemed
appropriate by the Committee.
Loss of office policy
The Committee will honour Executive Directors’ contractual entitlements. Service contracts do not contain liquidated damages
clauses. If a contract is to be terminated, the Committee will determine such mitigation as it considers fair and reasonable in each
case. There are no contractual arrangements that would guarantee a pension with limited or no abatement on severance or early
retirement. Salary, benefits and pension will be paid over the notice period and the Committee has discretion to make a lump sum
payment in lieu of this value.
84
DIRECTORS’ REPORT
Directors’ Remuneration
Report (continued)
3. ANNUAL REMUNERATION REPORT
Executive Directors’ remuneration
The CFO’s salary was increased on 1 January 2024 from £250,000 per annum to £300,000 per annum. This increase followed a
thorough benchmarking review, conducted by HR and an assessment of the outputs conducted by the Remuneration Committee,
where it was determined that the CFO’s base salary had fallen below that of other AIM listed businesses of a similar size to the
Group. The increase also reflected that the CFO continues to be instrumental to the success of the Group and that his role has
expanded following a period of organic and acquisitive growth.
The CFO’s salary and total compensation was reviewed again for 2025, but as his total compensation continue to benchmark
appropriately, no further increase was deemed necessary.
Pay for Performance Scenarios
The charts below provide an illustration of the potential future reward opportunities for the CFO in 2025, and the potential split
between the different elements of remuneration under two different performance scenarios: ‘Minimum’ and ‘On-target’.
•
The ‘Minimum’ scenario reflects base salary (i.e. fixed remuneration) which is the only element of the CFO’s remuneration
package not linked to performance. The total ‘Minimum’ scenario is £300,000.
•
The ‘On-target’ scenario reflects target thresholds being met to trigger 100% of annual bonus payment as well as the share
options due to vest in 2025. Share options are valued at the fair value used to calculate the share-based payments charge for
the tranche related to 2025 performance (at a £1.65 share price). The total On-target LTIP scenario is £883,928. If the share
price were to rise by 50% to £2.48 in the next financial year, the ‘On-target’ scenario would total £1,328,571.
£0
£300,000
£600,000
£900,000
£1,200,000
£1,500,000
300,000
300,000 (24%)
60,000 (5%)
883,928 (71%)
Minimum
On Target
Salary
Performance bonus
LTIP
85
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Non-Executive Directors’ remuneration
All Non-Executive Directors (NED’s) have letters of appointment with the Company. The remuneration of NEDs is determined by the
Board, and that of the Chair, determined by the Remuneration Committee. No Director is involved in setting their own remuneration.
Both the Board and the Committee continue to monitor remuneration trends within the market, relative to similar sized businesses
and competitors, to ensure they are setting competitive packages. As noted previously, the Board believes a limited extension of
Murray Legg’s term as Chair is in the best interests of the Company and all its shareholders to help promote stability, consistency,
and governance across a large programme of transformation (including succession planning for the Board and Remuneration
Committee). Following a thorough benchmarking review, and recognising that the Chair’s base pay has not been increased since
May 2023, the Committee determined that the Chair’s base salary had fallen below that of other businesses of a similar size to the
Group. The Chair’s salary will therefore be increased, effective 1 April 2025, from £120,000 per annum to £150,000 per annum to
ensure that it remains aligned with current responsibilities and broader market trends.
A further benchmarking review will be undertaken by the Board during 2025 to determine whether NED fees have remained at
pace with the market. Following the benchmarking review, if it is deemed that NED fees have fallen behind market, appropriate
adjustments will be made.
Element
Purpose and link to
strategy
Operation
Maximum Opportunity
Chair and
Non-Executive
Directors’ Fees
The fees are set to attract
and retain high calibre
individuals by offering
market-competitive fees,
considering the time that
is required to fulfil the
relevant role.
Fees are reviewed periodically. The Chair of the
Board is paid a consolidated fee to reflect all the
duties associated with the position. The Non-
Executive Directors receive a base fee reflecting
their duties on the Board and memberships of
any Committees. The Chairs of Board Committees
are eligible for an additional fee, reflecting the
additional time and expertise required. The Chair
and Non-Executive Directors are covered under
the Group accident and travel policy as it relates to
work on behalf of the Company. Expenses in line
with Company policy will be reimbursed and the
Company will pay any tax incurred, as necessary.
There is no prescribed
individual maximum,
but the fee levels will
reflect prevailing market
practice and salary
increases across the
Group. The maximum
annual aggregate fee
for all Non-Executive
Directors is as set
out in the Company’s
Articles of Association
but may increase or
decrease if the Articles of
Association are amended
to reflect such a change.
AGM result and outcomes
The following table shows the non-binding result of the vote to receive and approve the Remuneration Report for the 2023 financial
year at the 2024 AGM.
Remuneration Report votes
% votes
In favour
658,421,723
98.01%
Against
11,253,915
1.68%
Votes withheld
2,105,000
0.31%
Total votes
671,780,638
I am pleased to report that the resolution was passed with over 98% of votes approving the Report.
86
DIRECTORS’ REPORT
Directors’ Remuneration
Report (continued)
Long-Term Incentive Plans
Total amounts charged to the income statement:
Year ended
31 December
2024
£m
Year ended
31 December
2023
£m
Scheme 1
–
–
Scheme 2
12.6
13.6
Scheme 4
11.5
5.8
24.1
19.4
The CFO was the only Executive Director to hold share options during 2024, analysed as follows:
Scheme 1
No.
Scheme 2
No.
Scheme 4
No.
Total
No.
Number of 1/100p options brought forward
–
2,142,857
–
2,142,857
Exercised 7 March 2024
–
(250,000)
–
(250,000)
Exercised 29 August 2024
–
(285,000)
–
(285,000)
Awards during 2024
–
–
–
–
Closing number of options
–
1,607,857
–
1,607,857
During the year the Group’s Employee Benefit Trust purchased an aggregate amount of 24.7m shares (nominal value: 1/100 pence)
at a total market value of £52.5m (representing 3.0% of the total share capital as at 31 December 2024). The purchased shares are
held in the Trust for the purpose of satisfying the exercise of share options under the Company’s Employee Share Option Plans. The
following table assumes vesting occurs in full.
Vesting Schedule
2025
2026
2027
Total
Scheme 1*
603,625
603,625
–
1,207,250
Scheme 2**
6,500,711
6,250,000
6,250,000
19,000,711
Scheme 4
2,600,793
5,023,015
17,580,554
25,204,362
Total
9,705,129
11,876,640
23,830,554
45,412,323
Shares held in trust
(9,705,129)
(11,876,640)
(23,830,554)
(45,412,323)
Maximum net dilution
0
0
0
0
* the remaining share options in Scheme 1 can be exercised anytime until 11 August 2033 and for the purposes of this analysis it has
been assumed they will be exercised over the next two years.
** it has been assumed that 250,711 unexercised share options that vested on 7 March 2024 with respect to the Scheme 2 2023
performance period will be exercised during 2025.
The total charge recognised for the schemes during the year ended 31 December 2024 was £24.1m (2023: £19.4m) The £4.7m
increase in the year-on-year charge is broadly the result of additional options granted during the period. The awards of the scheme
are settled with ordinary shares of the Company.
87
ANNUAL REPORT AND ACCOUNTS 2024
Directors’ emoluments
Audited information
Year ended
31 December 2024
Basic salary
Committee
Chair fees
Bonus
Share-
based
payment
Other
benefits
Total
Total
Fixed
Total
Variable
£000s
£000s
£000s
£000s
£000s
£000s
£000s
£000s
Murray Legg (Chair)
120
–
–
–
–
120
120
–
Mike Danson
–
–
–
–
–
–
–
–
Graham Lilley
300
–
–
1,062
3
1,365
301
1,064
Annette Barnes (SID)
55
15
–
–
7
77
70
7
Peter Harkness
55
–
–
–
–
55
55
–
Andrew Day
55
–
–
–
3
58
56
2
Catherine Birkett
55
15
–
–
1
71
71
–
Julien Decot
55
–
–
–
1
56
56
–
Year ended
31 December 2023
Basic salary
Committee
Chair fees
Bonus
Share-
based
payment
Other
benefits
Total
Total
Fixed
Total
Variable
£000s
£000s
£000s
£000s
£000s
£000s
£000s
£000s
Murray Legg (Chair)
113
–
–
–
–
113
113
–
Mike Danson
–
–
–
–
–
–
–
–
Graham Lilley
250
–
–
982
3
1,235
251
984
Annette Barnes (SID)
53
13
–
–
9
75
66
9
Peter Harkness
53
–
–
–
–
53
53
–
Andrew Day
53
–
–
–
2
55
55
–
Catherine Birkett
53
15
–
–
2
70
70
–
Julien Decot
53
–
–
–
2
55
55
–
As at 31 December 2024, Graham Lilley held 1,607,857 1/100 pence share options (2023: 2,142,857) all of which were in
Scheme 2. Further details are given in note 25. No other Executive Directors as at 31 December 2024 had share options.
The other benefits include employer’s pension contributions and travel expenses to GlobalData offices and on GlobalData business,
plus any associated tax due on said expenses. Share-based payment represents equity settled income received on the vesting of
share options in the year.
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
88
Percentage change in Directors’ remuneration
The table below shows the annual percentage change in base salary between 2024 vs. 2023 and 2023 vs. 2022 of the Executive
Directors of the Group compared to the increase to average salary per employee of the Group. The year-on-year analysis prior to this
is not presented as the comparatives are not meaningful. Over time, the percentage over five years will be disclosed.
% change
2024 v 2023
Salary
% change
2023 v 2022
Salary
Mike Danson
–
–
Graham Lilley
20
–
Average % increase for employees
5
6
Directors’ service agreements
It is the Group’s policy that Directors should not have service agreements with notice periods capable of exceeding 12 months.
The existing service agreements have neither fixed terms nor contractual termination payments but do have fixed notice
periods. The details of the service agreements of the Directors as at 31 December 2024 are:
Contract date
Notice period
Murray Legg
23 February 2016
3 months
Mike Danson
5 June 2009
12 months
Graham Lilley
5 April 2021
12 months
Annette Barnes
19 January 2017
3 months
Peter Harkness
12 April 2016
3 months
Andrew Day
19 January 2017
3 months
Catherine Birkett
23 February 2021
3 months
Julien Decot
13 April 2021
3 months
By order of the Board
By order of the Board
Annette Barnes
Chair of the Remuneration Committee
10 March 2025
DIRECTORS’ REPORT
Directors’ Remuneration
Report (continued)
89
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and
regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors are required
to prepare the Group financial statements in accordance with United Kingdom adopted international accounting standards. The
financial statements also comply with International Financial Reporting Standards (IFRSs) as issued by the IASB. The Directors have
chosen to prepare the parent Company financial statements in accordance with United Kingdom Generally Accepted Accounting
Practice (United Kingdom Accounting Standards and applicable law), including FRS 101 “Reduced Disclosure Framework”. Under
company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of
the state of affairs and profit or loss of the Company and the Group for that period.
In preparing these financial statements, the Directors are required to:
•
Select suitable accounting policies and then apply them consistently;
•
Make judgements and accounting estimates that are reasonable and prudent;
•
Present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable
information;
•
State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained
in the financial statements; and
•
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure
that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the
Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the
Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may
differ from legislation in other jurisdictions.
Auditors
A resolution to reappoint Deloitte LLP as auditors to the Company will be proposed at the Annual General Meeting.
Disclosure of information to auditors
The Directors confirm that: so far as each Director is aware, there is no relevant audit information of which the Group’s auditors are
unaware, and the Directors have taken all steps that they ought to have taken in order to make themselves aware of any relevant
audit information and establish that the Group’s auditors are aware of that information. This confirmation is given and should be
interpreted in accordance with the provisions of s418 of the Companies Act 2006.
Annual General Meeting
The Annual General Meeting will be held on 29 April 2025 at John Carpenter House, John Carpenter Street, London EC4Y 0AN at
10am.
Approved by the Board and signed on its behalf by
Mike Danson
Chief Executive
10 March 2025
DIRECTORS’ REPORT
Statement of Directors’ responsibilities
in respect of the Annual Report and the
financial statements
90
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GLOBALDATA PLC
Report on the audit of the financial statements
1. Opinion
We have audited the financial statements which comprise:
•
the consolidated income statement;
•
the consolidated statement of comprehensive income;
•
the consolidated and parent company statements of financial position;
•
the consolidated and parent company statements of changes in equity;
•
the consolidated statement of cash flows;
•
the material accounting policy information;
•
the related notes 1 to 29 to the consolidated financial statements; and
•
the related notes 1 to 14 to the parent company financial statements.
The financial reporting framework that has been applied in the preparation of the group financial statements is applicable law and
United Kingdom adopted international accounting standards and IFRS Accounting Standards as issued by the IASB. The financial
reporting framework that has been applied in the preparation of the parent company financial statements is applicable law and
United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework” (United Kingdom Generally Accepted
Accounting Practice).
2. Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements
section of our report.
We are independent of the group and the parent company in accordance with the ethical requirements that are relevant to our audit
of the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to listed
entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Independent Auditor’s
Report
In our opinion:
•
the financial statements of GlobalData plc (the ‘parent company’) and its subsidiaries (the ‘group’) give a true and fair view
of the state of the group’s and of the parent company’s affairs as at 31 December 2024 and of the group’s profit for the year
then ended;
•
the group financial statements have been properly prepared in accordance with United Kingdom adopted international
accounting standards and IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB);
•
the parent company financial statements have been properly prepared in accordance with United Kingdom Generally
Accepted Accounting Practice, including Financial Reporting Standard 101 “Reduced Disclosure Framework”; and
•
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
91
ANNUAL REPORT AND ACCOUNTS 2024
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
3. Summary of our audit approach
Key audit matters
The key audit matters that we identified in the current year were:
•
the accuracy of subscription revenue recognition;
•
the accounting impact of the sale of a minority interest in the Healthcare business;
•
the identification and valuation of intangible assets acquired in business combinations; and
•
the presentation of adjusting items.
Within this report, key audit matters are identified as follows:
Newly identified
Similar level of risk
Materiality
The materiality that we used for the group financial statements was £4,000,000 (2023:
£3,000,000) equating to 6.1% (2023: 5.9%) of group profit before tax adjusted to exclude the
amortisation of acquired intangibles.
Scoping
Our scoping covered 88% of group revenue, 97% of group profit before tax and 99% of group net
assets.
Significant changes in
our approach
In 2023, we identified a key audit matter related to the accounting impact of the agreements
signed relating to the future sale of a minority interest in the Healthcare business. In the current
year, the key audit matter identified is in relation to the accounting impact of the sale of the
minority interest, following completion of the transaction in June 2024.
We have identified a new key audit matter in relation to the identification and valuation of
intangible assets acquired as a result of the four material acquisitions made by the group in 2024.
We have also identified a new key audit matter in relation to the presentation of adjusting
items given their increased use as a result of the sale of the minority interest in the Healthcare
business.
4. Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
Our evaluation of the directors’ assessment of the group’s and parent company’s ability to continue to adopt the going concern basis
of accounting included:
•
consideration of the cash held by the group of £50.5m, short and long-term borrowings of £40.4m and remaining undrawn
facilities of £295.5m in the context of the operating cash flow needs of the group;
•
consideration of the group’s new borrowing facilities which mature at the end of December 2027 with an option to extend for a
further year, including the forecast for utilisation of the facilities throughout the going concern period;
•
assessment and sensitivity of the headroom on the group’s cash flow forecasts including the assumptions within the one-year
detailed budget;
•
evaluation of the group’s borrowing covenants and review of the scenarios which could lead to a covenant breach and
evaluation of whether any of those scenarios are reasonably possible;
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
92
•
assessment of the suitability of the model used by the group to forecast cash flows, including testing of clerical accuracy of the
model;
•
assessment of the historical accuracy of cash flow forecasts; and
•
evaluation of the appropriateness of the going concern disclosures included in the financial statements.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the group’s and parent company’s ability to continue as a going concern for
a period of at least twelve months from when the financial statements are authorised for issue.
In relation to the reporting on how the group has applied the UK Corporate Governance Code, we have nothing material to add
or draw attention to in relation to the directors’ statement in the financial statements about whether the directors considered it
appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of
this report.
5. Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to
fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of
resources in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
Independent Auditor’s
Report (continued)
93
ANNUAL REPORT AND ACCOUNTS 2024
5.1 Accuracy of subscription revenue recognition
Key audit matter
description
The specific nature of the risk of material misstatement in revenue recognition varies across the
group’s revenue streams, with total group revenue of £285.5m (2023: £273.1m).
The main source of revenue for the group is subscription revenue as set out by management in
the strategic report and note 5 to the consolidated financial statements. Subscription revenue
represents approximately 75% of total group consolidated revenue. Management’s accounting
policy is to recognise subscription revenue evenly over the period of the contractual term as the
performance obligations are satisfied evenly over the term of subscription.
We concluded that the accuracy of subscription revenue is a key audit matter because the
process by which subscription revenue is recognised in the consolidated income statement is
highly manual which gives rise to an increased risk of error. The group’s revenue recognition
accounting policies are disclosed in note 2 to the consolidated financial statements.
How the scope of our
audit responded to the
key audit matt
Our audit procedures in respect of this key audit matter included:
•
obtaining an understanding of the group’s business model and terms set out in customer
contracts and the sales process;
•
obtaining an understanding of relevant controls over the revenue recognition process from
the initiation of sales orders through to revenue recognition and cash collection, including
the review of expected revenue compared to actual revenue;
•
using data analytics, recalculating the subscription revenue recognised in the year; and
•
performing detailed testing of the data used in our analytic by obtaining and reviewing
relevant customer contracts, sales invoices and agreeing through to fulfilment data for a
sample of transactions to assess whether the underlying data was accurate, complete and
reliable for the purposes of our analytic.
Key observations
Based on the audit procedures performed we concluded that revenue from subscriptions was not
materially misstated.
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
94
5.2 Accounting impact of the sale of a minority interest in the healthcare business
Key audit matter
description
As disclosed in the Audit Committee report on page 75, on 28 June 2024, the Group completed
the sale of a 40% interest in the Healthcare business to Inflexion, with the group receiving gross
cash proceeds of £451.4m. The group utilised the cash proceeds to settle the pre-existing debt
facilities in full, resulting in an extinguishment of these facilities.
The sale of the minority interest followed a significant internal re-organisation to carve-out the
pre-existing trade and assets of the Healthcare business into five newly created Healthcare
entities, and a ring-fenced Healthcare business.
The group re-organisation crystallised current tax liabilities across the group, largely in the
material jurisdictions of the UK, US and India, resulting in an additional £25m of tax paid, as
disclosed on page 26 of the Chief Financial Officer’s report. In addition, the transaction led to the
recognition of new deferred tax assets arising from the transfer of assets as part of the internal
re-organisation.
The completion of the transaction resulted in multiple accounting implications and judgements
by management which included:
•
Whether the parent company retains control of the Healthcare business considering the
requirements of IFRS 10 – Consolidated Financial Statements.
•
The measurement of the non-controlling interest that has been recognised in the
consolidated statement of changes in equity.
•
The increase in the value of parent company investments in the company statement of
financial position and determining whether the value of these investments were recoverable
at the balance sheet date with reference to the transaction EBITDA multiple.
•
Whether discrete financial information is available at the Healthcare business level and as
such under IFRS 8 Operating Segments the Healthcare business is now a separate operating
segment.
•
Whether there are separately identifiable the cashflows for the Healthcare business, and
as such under IAS 36 Impairment of Assets the Healthcare business represents a separate
cash-generating unit (“CGU”).
Given the complexity of the transaction and the related accounting judgements, we determined
that this was a key audit matter in the current year.
The identification of cash-generating units and segmental reporting are disclosed as critical
accounting judgements in note 1 of the consolidated financial statements.
Independent Auditor’s
Report (continued)
95
ANNUAL REPORT AND ACCOUNTS 2024
How the scope of our
audit responded to the
key audit matter
Our audit procedures in respect of this key audit matter included:
•
with the involvement of our tax specialists, evaluating the tax analysis and workings of the
material jurisdictions (UK, US and India) and confirming the existence of new deferred tax
assets recognised;
•
challenging management’s assessment that the group retains control of the Healthcare
business following completion of the transaction by reviewing relevant agreements and
contracts, and confirming that the treatment is in line with the requirements of IFRS 10
Consolidated Financial Statements;
•
reperforming management’s calculation of the opening non-controlling interest recognised
upon completion of the sale, and reconciling the movement in the balance to the year-end
date;
•
with the involvement of our valuation specialists, assessing the appropriateness of relying
on the transaction EBITDA multiple to support the recoverability of investment balances and
benchmarking against comparable companies;
•
assessing that the Healthcare business is a separate operating segment as defined by
IFRS 8 Operating Segments by confirming that discrete financial information is provided to
and reviewed by the chief operating decision maker (“CODM”);
•
evaluating that the Healthcare business is a separate CGU as defined by IAS 36 Impairment
of Assets, and inspecting evidence, including internal management information, to confirm
that the cash flows of each CGU are independent of one-another; and
•
evaluating the appropriateness of relevant disclosures made in relation to the transaction in
the financial statements.
Key observations
Based on the audit procedures performed we are satisfied that management have appropriately
recorded the accounting and tax impact of the transaction.
We concur with management’s assessment that the group retains control of the Healthcare
business following the sale of a minority interest.
We concur with management’s assessment that the parent company investment balances
recognised following completion of the transaction are recoverable.
We concur with management’s assessment that discrete financial information is available for the
Healthcare business, resulting in the reporting of two operating segments under IFRS 8 operating
segments.
Finally, we concur with management’s conclusion that the Healthcare business is a separate
CGU as defined by IAS 36 impairment of assets, given that the cash flows of this group can be
separately identified from the wider group.
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
96
5.3 Identification and valuation of intangible assets acquired in business combinations
Key audit matter
description
During the year the group completed the acquisitions of Business Trade Media International
Limited, JobDig Inc (trading as Link-up), Celent and Galahad TopCo Limited, which owns the
Deallus group of companies. The group has recognised goodwill of £46.2m and £44.6m of
intangible assets relating to the acquisitions.
Intangible assets are made up of customer relationships, intellectual property and databases and
brands. Further details on the amounts recognised can be found in note 27 of the group financial
statements. Management’s accounting policy for the identification of and valuation of acquired
intangible assets is disclosed in note 2 of the consolidated financial statements.
Management engaged a valuation expert to support in the identification and valuation of
intangible assets and the overall preparation of the acquisition balance sheet positions including
goodwill.
Management have determined that the acquisitions have been integrated into existing group
CGUs for the purposes of performing impairment reviews under IAS 36 Impairment of Assets.
We identified this area as a key audit matter because of the size of the acquisitions in the context
of group materiality and the judgements associated with the key assumptions, including growth,
attrition, and discount rates, that underpin the valuation of intangible assets.
Acquisition accounting is identified as a significant financial estimate and judgement within the
Audit Committee report on page 76.
How the scope of our
audit responded to the
key audit matter
Our audit procedures in respect of this key audit matter included:
•
with the involvement of our valuation specialists, evaluating the appropriateness of
management’s methodologies used to identify and value intangible assets and the
reasonableness of key valuation assumptions including growth, attrition and discount rates;
•
challenging the assumptions determining the valuation of intangible assets through
benchmarking against analyst and industry consensus, considering both confirmatory and
contradictory evidence;
•
considering the reasonableness of useful economic lives of intangible assets recognised
through benchmarking to comparable peers and previous acquisitions;
•
assessing the competence, capabilities and objectivity of management’s valuation expert;
•
reviewing management’s assessment that the acquisitions were integrated into the group’s
existing CGUs for the purposes of performing impairment reviews under IAS 36 Impairment
of Assets; and
•
assessing the adequacy of disclosures relating to the identification and valuation of acquired
intangibles, taking into account the requirements of IFRS 3 Business Combinations.
Key observations
Based on the work performed, we determined that the identification and valuation of acquired
intangible assets in respect of the four acquisitions were appropriate.
Independent Auditor’s
Report (continued)
97
ANNUAL REPORT AND ACCOUNTS 2024
5.4 Presentation of adjusting items
Key audit matter
description
The group continues to present adjusted performance measures which exclude the impact
of adjusting items. Judgements made by management regarding the presentation of items
as adjusting therefore have a significant impact on the presentation of the group’s results. In
total, adjusting items of £44.0m have been presented in note 7 of the consolidated financial
statements (2023: £29.3m).
We have identified a key audit matter in respect of the presentation of items as adjusting.
Adjusted EBITDA and adjusted EBITDA margin are adjusted performance measures given
prominence in the financial highlights section of the group strategic report. Judgement
is exercised by management in determining whether the presentation of such items is in
accordance with guidance issued by the Financial Reporting Council (“FRC”) and European
Securities and Markets Authority (“ESMA”). There is a risk that costs or income may be presented
as adjusting which are underlying or recurring items, and therefore distort the reported adjusted
performance measures, whether due to fraud or error.
In particular, our procedures have focused on the presentation of the recurring share-based
payment charge of £24.1m (2023: £19.4m) and the restructuring and refinancing costs of £5.3m
(2023: £1.7m) largely related to the Healthcare transaction, as adjusting items.
Adjusting items and management’s rationale for presenting items as adjusting are set out in
note 7 of the consolidated financial statements and adjusted performance measures (“APM’s”)
are identified as a significant judgment on page 76 of the Audit Committee report. The group’s
accounting policy for the presentation of non-statutory alternative performance measures is
disclosed in note 2 of the consolidated financial statements.
How the scope of our
audit responded to the
key audit matter
Our audit procedures in respect of this key audit matter included:
•
We obtained an understanding of the relevant controls over the presentation of adjusting
items in the financial statements;
•
We evaluated the appropriateness of the inclusion of items, both individually and in
aggregate, within adjusted results, by completing the following procedures:
•
evaluating the consistency of items included year-on-year, benchmarking against
industry peers, challenging the nature of these items by reference to FRC and ESMA
guidance, and challenging in particular the inclusion of those items that recur annually;
•
testing a sample of adjusting items by agreeing to source documentation and
evaluating their nature and presentation as adjusting;
•
assessing the impact of adjusting items on the Directors’ remuneration targets based
on actual results for the period; and
•
evaluating whether the disclosures within the group financial statements provided
sufficient detail for the reader to understand the nature of these items and how
adjusted results reconcile to statutory results.
Key observations
We note that whilst the use of adjusting items is relatively extensive in comparison to industry
peers, they are in line with the accounting policy, consistently applied and adequately disclosed.
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
98
6. Our application of materiality
6.1 Materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic
decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope of
our audit work and in evaluating the results of our work.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Group financial statements
Parent company financial statements
Materiality
£4,000,000 (2023: £3,000,000)
£1,700,000 (2023: £1,280,000)
Basis for
determining
materiality
Group materiality equates to 6.1% (2023: 5.9%)
of profit before tax, adjusted to exclude the
amortisation of acquired intangible assets of £8.9m
as disclosed in note 7 of the consolidated financial
statements, as our basis for materiality.
Parent company materiality was determined based
on net assets but capped at 50% (2023: 50%) of
group performance materiality. Our materiality
represents 0.15% of net assets (2023: 1% of net
assets).
Rationale for
the benchmark
applied
We considered a range of measures, including
revenue, profit before tax, adjusted EBITDA
and profit before tax adjusted to exclude the
amortisation of acquired intangible assets.
We used profit before tax adjusted to exclude
the amortisation of acquired intangible assets
as the amortisation has a significant impact on
profit before tax and was subject to specific audit
procedures. Its exclusion resulted in a materiality
level that was more reflective of the profit
generation of the group before such acquisition-
related charges. We used a profit before tax-based
measure rather than adjusted EBITDA as the latter
is less closely aligned to measures calculated in
accordance with generally accepted accounting
principles.
Materiality represents 1% of revenue, 7% of profit
before tax, 3.4% of adjusted EBITDA and 6.1% of
profit before tax adjusted for the amortisation of
acquired intangibles.
Net assets are typically considered an appropriate
benchmark for materiality as the parent company
predominantly holds investments in trading
subsidiaries.
Independent Auditor’s
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ANNUAL REPORT AND ACCOUNTS 2024
6.2 Performance materiality
We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and
undetected misstatements exceed the materiality for the financial statements as a whole.
Group financial statements
Parent company financial statements
Performance
materiality
60% (2023: 60%) of group materiality
70% (2023: 70%) of parent company materiality
Basis and
rationale for
determining
performance
materiality
In determining performance materiality, we
considered our past experience of the group, our
risk assessment, including our assessment of the
group’s control environment and the value and
volume of corrected and uncorrected misstatements
identified during the prior year audit, as well as the
likelihood of these recurring in the current year.
In determining performance materiality, we
considered our past experience of the company
and our risk assessment, including our assessment
of the company’s control environment and the low
value and volume of corrected and uncorrected
misstatements identified during the prior year audit,
we well as the likelihood of these recurring in the
current year.
6.3 Error reporting threshold
We agreed with the Audit Committee that we would report to the Committee all audit differences in excess of £200,000 (2023:
£150,000), as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also report
to the Audit Committee on disclosure matters that we identified when assessing the overall presentation of the financial statements.
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Adjusted PBT
£65.2m
Group materiality £4.0m
Performance materiality
range £1.2m to £1.3m
Audit Committee
reporting threshold
£0.2m
Adjusted PBT
Group materiality
100
7. An overview of the scope of our audit
7.1 Identification and scoping of components
Our scoping has been performed in line with the requirements of ISA (UK) 600 Revised. We have obtained an understanding of the
group and its environment, including how components are organised within the group and the existence of group-wide controls.
Given the high degree of centralisation in processes and systems in the group, we tested the design and implementation of internal
controls over financial reporting and revenue recognition across all in scope entities at the group level.
Our audit scoping has been performed utilising professional judgment to obtain sufficient coverage over significant account balances
identified at the group level. Based on this assessment, we have performed audit procedures on one or more significant classes of
transactions, account balances or disclosures across the comparatively larger principal trading entities within the UK, USA, India and
the United Arab Emirates. The group audit team was in active dialogue with the component team in India to ensure that the work
was planned and performed in accordance with the overall group audit strategy and the requirements of our group audit instructions
to the component. The range of component performance materialities used is between £1.2m - £1.3m. For components where we
have performed audit procedures over at least one class of transaction, account balance or disclosure we have coverage of 88%
(2023: 93%) of group revenue, 97% (2023: 85%) of group profit before tax and 99% (2023: 98%) of group net assets.
The component or legal entity account balances not covered by our audit scope were subject to analytical procedures confirming
that there were no significant risks of material misstatement in the aggregated financial information. We considered quantitative and
qualitative factors in our assessment, including the residual balances not covered by our audit scope both as a percentage of the
total consolidated amount of the significant account and as a multiple of group materiality and the specific risks associated with the
component. Based on our assessment, we have concluded that audit risk has been reduced to an appropriately or acceptably low
level for all significant accounts.
In addition to the above, we also performed audit work on the group and parent company financial statements, including but not
limited to the consolidation of group results, consolidation and top-side journal entries and preparation of the financial statements.
Independent Auditor’s
Report (continued)
88%
97%
99%
12%
1%
3%
Revenue
Profit
before tax
Net assets
Audit procedures on one or more
classes of transactions, account
balances or disclosures
Analytical review
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ANNUAL REPORT AND ACCOUNTS 2024
7.2 Our consideration of the control environment
In assessing the control environment of the group, we identified four relevant IT systems. We obtained an understanding of the
controls in place and tested the general IT controls in relation to two of these: the main accounting system (SUN) and the sales
invoicing system (Salesforce). We also obtained an understanding of key manual controls to address the risk of management
override, the risk of fraud in revenue recognition and key judgements and estimates. We did not seek to take reliance on these
controls in our testing.
As described in the Audit Committee Report on page 73 ongoing investment is required in the group’s systems to further enhance
processes and improve the control environment. Accordingly, consistent with the prior year, and in line with our audit plan, we did
not rely on IT or manual controls and extended the scope of our substantive audit procedures and procedures over information
produced by the entity in response to the deficiencies identified.
7.3 Our consideration of climate-related risks
In planning our audit, we made enquiries of management to understand the extent of the potential impact of climate change risk on
the group’s financial statements.
We also engaged specialists to assist our assessment of the disclosures and climate impact during our audit process.
As disclosed in note 1, management concluded that there was no material impact arising from climate change on the financial
statements. Our evaluation of this conclusion included challenging key judgements and estimates in areas where we considered that
there was greatest potential for climate change impact.
We also considered the consistency of the climate change disclosures included in the strategic report on page 46 with the financial
statements and our knowledge from our audit.
7.4 Working with other auditors
We used one component audit team in India during the audit of the financial statements for the year ended 31 December 2024
(2023: one) and we were in regular contact with them throughout the year. In October 2024, the group engagement partner visited
the component in India to conduct an engagement partner-led discussion with the component auditors.
Our direction, supervision and review of the work performed by the component auditor in India has been carried out in line with
the requirements of ISA (UK) 600 Revised. As well as the visit in October 2024 noted above, we held team briefings for the India
component audit team to discuss the group risk assessment and group audit instructions, and to confirm their understanding of the
business and to discuss their local risk assessment.
The group audit team were responsible for designing the audit procedures for areas of significant and higher risks to be addressed
by the component auditors and issuing group audit instructions detailing the nature and form of the reporting required by the group
engagement team.
Throughout the audit we maintained regular contact in order to direct and supervise their audit approach. We virtually attended their
audit close meeting with local management, performed technology-enabled remote reviews of their working papers and reviewed
their reporting to us on the findings of their work.
The group audit team designed and carried out all audit procedures performed over other overseas component entities in the US and
UAE.
8. Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s
report thereon. The directors are responsible for the other information contained within the annual report.
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102
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in
our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives
rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that
there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
9. Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the parent company’s ability
to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no
realistic alternative but to do so.
10. Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
11. Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud is detailed below.
11.1 Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws
and regulations, we considered the following:
•
the nature of the industry and sector, control environment and business performance including the design of the group’s
remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
•
the group’s own assessment of the risks that irregularities may occur either as a result of fraud or error, that is continually
assessed and approved by the board during every Audit Committee meeting throughout the year;
•
results of our enquiries of management, the directors and the Audit Committee about their own identification and assessment
of the risks of irregularities, including those that are specific to the group’s sector;
Independent Auditor’s
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ANNUAL REPORT AND ACCOUNTS 2024
•
any matters we identified having obtained and reviewed the group’s documentation of their policies and procedures relating to:
•
identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-
compliance;
•
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
•
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
•
the matters discussed among the audit engagement team including component audit teams and relevant internal specialists,
including tax, financial instrument, valuations, ESG, IT, and share based payment specialists regarding how and where fraud
might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and
identified the greatest potential for fraud in the accuracy of subscription revenue recognition as discussed above. In common with all
audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the group operates in, focusing on provisions of those
laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements.
The key laws and regulations we considered in this context included the UK Companies Act and tax legislation in the jurisdictions in
which the group operates.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but
compliance with which may be fundamental to the group’s ability to operate or to avoid a material penalty.
11.2 Audit response to risks identified
As a result of performing the above, we identified accuracy of subscription revenue recognition as a key audit matter related to the
potential risk of fraud. The key audit matters section of our report explains the matter in more detail and also describes the specific
procedures we performed in response to that key audit matter.
In addition to the above, our procedures to respond to risks identified included the following:
•
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of
relevant laws and regulations described as having a direct effect on the financial statements;
•
enquiring of management, the Audit Committee and in-house and external legal counsel concerning actual and potential
litigation and claims;
•
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material
misstatement due to fraud;
•
reading minutes of meetings of those charged with governance; and
•
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and
other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias;
and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including
internal specialists and component audit teams and remained alert to any indications of fraud or non-compliance with laws and
regulations throughout the audit.
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104
Report on other legal and regulatory requirements
12. Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
•
the information given in the strategic report and the directors’ report for the financial year for which the financial
statements are prepared is consistent with the financial statements; and
•
the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the
course of the audit, we have not identified any material misstatements in the strategic report or the directors’ report.
13. Corporate Governance Statement
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial statements and our knowledge obtained during the audit:
•
the directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any
material uncertainties identified set out on page 52;
•
the directors’ explanation as to its assessment of the group’s prospects, the period this assessment covers and why the
period is appropriate set out on page 52;
•
the directors’ statement on fair, balanced and understandable set out on page 58;
•
the board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 30;
•
the section of the annual report that describes the review of effectiveness of risk management and internal control systems
set out on page 30; and
•
the section describing the work of the audit committee set out on page 72.
14. Opinion on other matter prescribed by our engagement letter
In our opinion the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the
provisions of the Companies Act 2006 that would have applied were the company a quoted company.
15. Matters on which we are required to report by exception
15.1 Adequacy of explanations received and accounting records
Under the Companies Act 2006 we are required to report to you if, in our opinion:
•
we have not received all the information and explanations we require for our audit; or
•
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been
received from branches not visited by us; or
•
the parent company financial statements are not in agreement with the accounting records and returns.
We have nothing to report in respect of these matters.
Independent Auditor’s
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ANNUAL REPORT AND ACCOUNTS 2024
15.2 Directors’ remuneration
Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of directors’ remuneration have
not been made.
We have nothing to report in respect of this matter.
16. Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to
state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the
opinions we have formed.
Jon Young FCA (Senior Statutory Auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
London, United Kingdom
10 March 2025
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106
106
GlobalData’s connected platform
model is the foundation of our
strategic advantage and is the
result of years of continuous
capital investment, targeted
acquisitions, and organic
development.
Our unified model governs
everything we do, from how we
develop and manage our products
to our approach to sales and
customer success, as well as
supporting business operations.
107
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
107
Financial
Statements
Group
Consolidated Income Statement
108
Consolidated Statement of Comprehensive Income
109
Consolidated Statement of Financial Position
110
Consolidated Statement of Changes in Equity
111
Consolidated Statement of Cash Flows
112
Notes to the Consolidated Financial Statements
113
Company
Company Statement of Financial Position
169
Company Statement of Changes in Equity
170
Notes to the Company Financial Statements
171
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Year ended Year ended
31 December 2024 31 December 2023
Notes £m £m
Continuing operations
Revenue 5 285.5 273.1
Operating expenses 6 (220.0) (197.7)
Losses on trade receivables 6 (1.0) (2.3)
Other income 0.6 0.6
Operating profit 65.1 73.7
Net finance costs 10 (10.2) (32.2)
Profit before tax 54.9 41.5
Income tax expense 11 (18.4) (10.7)
Profit for the year 36.5 30.8
Attributable to:
Equity holders of the parent 29.6 30.8
Non-controlling interest 6.9 –
Earnings per share attributable to equity holders:
Basic earnings per share (pence) 12 3.8 3.8
Diluted earnings per share (pence) 12 3.7 3.8
Reconciliation to Adjusted EBITDA:
Operating profit 65.1 73.7
Depreciation 5.8 6.2
Amortisation of software 1.9 1.6
Adjusting items 7 44.0 29.3
Adjusted EBITDA 116.8 110.8
The accompanying notes form an integral part of these financial statements.
108
FINANCIAL STATEMENTS
Consolidated Income Statement
Year ended Year ended
31 December 2024 31 December 2023
Notes £m £m
Profit for the year 36.5 30.8
Other comprehensive income
Items that will be classified subsequently to profit or loss
when specific conditions are met:
Cash flow hedge – effective portion of changes in fair value 16 – 0.7
Cash flow hedge – reclassification to profit or loss 16 – 3.2
Net exchange gain/(loss) on translation of foreign entities 24 0.6 (1.3)
Other comprehensive income, net of tax 0.6 2.6
Total comprehensive income for the year 37.1 33.4
Attributable to:
Equity holders of the parent 29.4 33.4
Non-controlling interest 7.7 –
The accompanying notes form an integral part of these financial statements.
109
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
FINANCIAL STATEMENTS
Consolidated Statement of
Comprehensive Income
110
31 December 2024 31 December 2023
Notes £m £m
Non-current assets
Property, plant and equipment 14 28.1 26.6
Goodwill 13 357.2 311.1
Other intangible assets 13 101.7 61.7
Investment in associate 28 4.0 –
Deferred tax assets 18 22.0 3.4
513.0 402.8
Current assets
Trade and other receivables 17 89.9 69.2
Current tax receivable 2.4 –
Short-term derivative assets 16 – 0.5
Cash and cash equivalents 50.5 19.8
142.8 89.5
Total assets 655.8 492.3
Current liabilities
Trade and other payables 19 (43.2) (32.4)
Deferred revenue 5 (112.9) (104.6)
Short-term lease liabilities 15 (4.0) (4.3)
Current tax payable (4.9) (2.8)
Short-term derivative liabilities 16 (1.3) (0.1)
Short-term provisions 23 (0.2) (0.1)
(166.5) (144.3)
Net current liabilities (23.7) (54.8)
Non-current liabilities
Long-term trade and other payables 19 (2.7) –
Deferred revenue 5 (1.7) –
Long-term provisions 23 (1.5) (1.4)
Deferred tax liabilities 18 – (0.9)
Long-term derivative liabilities 16 – (2.8)
Long-term lease liabilities 15 (22.1) (21.4)
Long-term borrowings 20 (40.4) (263.7)
(68.4) (290.2)
Total liabilities (234.9) (434.5)
Net assets 420.9 57.8
Equity
Share capital 24 0.2 0.2
Treasury reserve 24 (100.6) (65.4)
Other reserve 24 (44.3) (44.3)
Foreign currency translation reserve 24 (1.1) (2.0)
Retained profit 549.6 169.3
Equity attributable to equity holders of the parent 403.8 57.8
Non-controlling interest 24 17.1 –
Total equity 420.9 57.8
These financial statements were approved by the Board of Directors on 10 March 2025 and signed on its behalf by:
Murray Legg Mike Danson
Chair Chief Executive
Company Number 03925319.
The accompanying notes form an integral part of these financial statements.
FINANCIAL STATEMENTS
Consolidated Statement of
Financial Position
Equity
Foreign attributable
Cash flow currency to equity Non-
Share Treasury Other hedge translation Retained holders of controlling Total
capital reserve reserve reserve reserve profit the parent interest equity
Notes £m £m £m £m £m £m £m £m £m
Balance at 1 January 2023 0.2 (70.8) (44.3) (3.9) (0.7) 167.8 48.3 – 48.3
Profit for the year – – – – – 30.8 30.8 – 30.8
Other comprehensive income:
Cash flow hedge – reclassification to
profit or loss upon loan repayment 16 – – – 0.4 – – 0.4 – 0.4
Cash flow hedge – effective
portion of changes in fair value 16 – – – 0.7 – – 0.7 – 0.7
Cash flow hedge – reclassification to
profit or loss upon discontinuation of
hedge accounting 16 – – – 2.8 – – 2.8 – 2.8
Net exchange loss on translation
of foreign entities 24 – – – – (1.3) – (1.3) – (1.3)
Total comprehensive income
for the year – – – 3.9 (1.3) 30.8 33.4 – 33.4
Transactions with owners:
Share buyback 24 – (11.9) – – – – (11.9) – (11.9)
Dividends 24 – – – – – (32.2) (32.2) – (32.2)
Vesting of share options 25 – 17.3 – – – (17.3) – – –
Share-based payments charge 25 – – – – – 19.4 19.4 – 19.4
Tax on share-based payments 11 – – – – – 0.8 0.8 – 0.8
Balance at 31 December 2023 0.2 (65.4) (44.3) – (2.0) 169.3 57.8 – 57.8
Profit for the year – – – – – 29.6 29.6 6.9 36.5
Other comprehensive income:
Net exchange (loss)/gain on translation
of foreign entities 24 – – – – (0.2) – (0.2) 0.8 0.6
Total comprehensive income
for the year – – – – (0.2) 29.6 29.4 7.7 37.1
Transactions with owners:
Share buyback 24 – (52.5) – – – – (52.5) – (52.5)
Dividends 24 – – – – – (37.5) (37.5) – (37.5)
Vesting of share options 25 – 17.3 – – – (17.3) – – –
Gain from sale of 40% of Healthcare
business, net of transaction
costs incurred 24 – – – – 1.1 412.0 413.1 (0.3) 412.8
Equity issued to holders of
non-controlling interest 24 – – – – – – – 8.0 8.0
Share buyback and cancellation
scheme 24 – – – – – (29.3) (29.3) – (29.3)
Share-based payments charge 25 – – – – – 22.7 22.7 1.4 24.1
Tax on share-based payments 11 – – – – – 0.1 0.1 0.3 0.4
Balance at 31 December 2024 0.2 (100.6) (44.3) – (1.1) 549.6 403.8 17.1 420.9
The accompanying notes form an integral part of these financial statements.
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ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
FINANCIAL STATEMENTS
Consolidated Statement of
Changes in Equity
Year ended Year ended
31 December 2024 31 December 2023
Notes £m £m
Cash flows from operating activities
Profit for the year 36.5 30.8
Adjustments for:
Depreciation 14 5.8 6.2
Amortisation 13 10.8 10.6
Other income (0.6) (0.6)
Net finance costs 10 10.2 32.2
Taxation recognised in profit or loss 11 18.4 10.7
Share-based payments charge 25 24.1 19.4
Increase in trade and other receivables 22 (14.0) (6.5)
Increase/(decrease) in trade and other payables 22 4.7 (1.1)
Revaluation of short- and long-term derivatives 16 1.7 (0.8)
Increase in provisions 23 – 0.1
Cash generated from operations 97.6 101.0
Interest paid (10.9) (23.0)
Income taxes paid (40.7) (12.0)
Contingent consideration paid 27 (0.5) (0.2)
Total cash flows from operating activities 45.5 65.8
Cash flows from investing activities
Acquisitions 27 (68.7) –
Purchase of property, plant and equipment 14 (1.7) (0.9)
Purchase of intangible assets 13 (5.5) (3.3)
Total cash flows used in investing activities (75.9) (4.2)
Cash flows from financing activities
Receipt of loan from related party 24 8.0 –
Settlement of borrowings in relation to acquisitions 27 (10.7) –
Proceeds from sale of 40% of Healthcare business
to non-controlling interest 24 443.4 –
Transaction costs relating to sale of 40% of
Healthcare business to non-controlling interest 24 (30.6) –
Repayment of borrowings 20 (305.0) (25.0)
Proceeds from borrowings 20 82.7 –
Loan refinancing fee 20 (2.4) –
Acquisition of own shares 24 (52.5) (11.9)
Acquisition of own shares for cancellation 24 (29.3) –
Principal elements of lease payments 20 (5.6) (5.4)
Dividends paid 24 (37.5) (32.2)
Total cash flows from/(used in) financing activities 60.5 (74.5)
Net increase/(decrease) in cash and cash equivalents 30.1 (12.9)
Cash and cash equivalents at beginning of year 19.8 34.0
Effects of currency translation on cash and cash equivalents 0.6 (1.3)
Cash and cash equivalents at end of year 50.5 19.8
The accompanying notes form an integral part of these financial statements.
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FINANCIAL STATEMENTS
Consolidated Statement of Cash Flows
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1. General information
Nature of operations
The principal activity of GlobalData Plc and its subsidiaries (together ‘the Group’), a data, insight, and technology group, is to provide
decision-makers across the world’s most successful companies with the intelligence to act with conviction. Our connected platform
uniquely integrates proprietary data, expert insight, and purpose-built AI into a unified operating system that powers the next
generation of intelligence solutions.
GlobalData Plc (‘the Company’) is a company incorporated in the United Kingdom (England & Wales) and listed on the Alternative
Investment Market (AIM), therefore is publicly owned and limited by shares. The registered office of the Company is John Carpenter
House, John Carpenter Street, London, EC4Y 0AN. The registered number of the Company is 03925319.
Basis of preparation
These financial statements have been prepared in accordance with United Kingdom adopted international accounting standards and
with International Financial Reporting Standards as issued by the IASB.
The financial statements have been prepared on the historical cost basis, except for derivative financial instruments, which are
measured at fair value. These financial statements have been prepared in accordance with the accounting policies detailed below.
The accounting policies have been applied consistently throughout the Group and throughout the year.
These financial statements are presented in Pounds Sterling (£), which is also the functional currency of the Company. These
financial statements have been approved for issue by the Board of Directors.
Consideration of climate change
In preparing the financial statements, management have considered the impact of climate change, particularly in the context of the
risks identified in the Non-Financial and Sustainability Information Statement on pages 46 to 51. In particular, management
considered the impact of climate change in respect of the following areas of accounting judgement or estimate:
•
the assessment of goodwill, other intangibles and tangible fixed assets;
•
the assessment of impairment of financial assets;
•
our consideration of going concern and viability;
•
the useful economic lives of assets; and
•
the preparation of budgets and forecasts.
As a result of these considerations, no material climate change related impact was identified. Management are however aware of the
changing nature of the risks associated with climate change and will regularly reassess these against the judgements and estimates
made in preparing the Group’s financial statements.
Critical accounting estimates and judgements
The Group makes estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on
historical experience and other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
In the future, actual experience may deviate from these estimates and assumptions. The estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are
discussed in detail below. Climate-related risks did not have a material impact on the financial statements.
Key sources of estimation uncertainty
Management have assessed that there are no key sources of estimation uncertainty.
Critical accounting judgements
Segmental Reporting
IFRS8 “Operating Segments” requires the segment information presented in the financial statements to be that which is used
internally by the Chief Operating Decision Maker (CODM) to evaluate the performance of the business and to decide how to allocate
resources, therefore a judgement is required on how to segment the financial information presented within the financial statements.
The Group has identified the Chief Executive as its Chief Operating Decision Maker.
The fundamental principle of the GlobalData business model is to provide our clients with subscription access to our proprietary
data, analytics and insights platform, with the offering of ancillary services such as consulting, single copy reports and events.
FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements
The Group has previously reported one operating segment, being Data, Analytics and Insights, however during H1 2024 there were
a number restructuring and organisational changes within the Group associated with the transaction to sell 40% of the Group’s
Healthcare business to Inflexion. These changes resulted in the ring-fencing of the Healthcare business and the production of
discrete financial information at a Healthcare level. As such, Management have concluded that the Group now operates under two
segments: ‘Data, Analytics and Insights: Healthcare’ and ‘Data, Analytics and Insights: Non-Healthcare’. The results of the two
segments are reported to the Group Chief Executive on a monthly basis.
There is no difference between the Group’s operating segments and the Group’s reportable segments.
Identification of Cash-Generating Units
IAS36 ‘Impairment of Assets’ requires that assets be carried on the statement of financial position at no more than their recoverable
amount. An asset or cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash inflows and is
impaired when its carrying amount exceeds its recoverable amount. As at the date of the impairment review (31 December 2024),
Management made the judgement that the Group had three CGUs, being DA&I Healthcare; DA&I Non-Healthcare and MBI. In the
prior year Management assessed that the Group had two CGUs, being DA&I and MBI.
During H1 2024, the Group undertook a restructuring exercise to carve out the Healthcare business into separate legal entities.
On this basis the Group is now able to directly identify the cash inflows of the Healthcare operations. The Non-Healthcare DA&I
assets and liabilities continue to be co-mingled within the remaining legal entities of the Group and as such are considered to be a
single CGU. The previously named Data, Analytics and Insights (DA&I) CGU has therefore been split into two CGUs, DA&I:
Healthcare and DA&I: Non-Healthcare.
There has been no change to Management’s assessment that MBI is its own CGU, on the basis that there have been no significant
changes made to the operation of this business within the financial year. Management previously concluded that MBI was its own
CGU as the product is inherently different to the Groups’ main offering, and the brand, strategy and management of the business is
separate from the rest of the Group.
Management have assessed the new acquisitions in the year and have concluded that the acquisitions form part of the DA&I:
Healthcare CGU (Deallus) and DA&I: Non-Healthcare CGU (BTMI, Celent, LinkUp). No other CGU is required to be created as a result
of the acquisitions.
As a result of these conclusions, as at the reporting date (31 December 2024), the Group had three CGUs. Full disclosure is provided
in note 13.
Going concern
The Group meets its day-to-day working capital requirements through free cash flow. The Group has closing cash of £50.5m as at
31 December 2024 and net cash/(bank debt) of £10.1m (31 December 2023: cash of £19.8m and net bank debt of £243.9m),
being cash and cash equivalents less short and long-term borrowings, excluding lease liabilities. On 28 June 2024, the Group fully
repaid the outstanding term loan and drawn RCF following the completion of the investment agreement with Inflexion. During
December 2024, the Group secured new debt financing facilities of £340m which mature in December 2027 (with an option to
extend further by a year). The facilities comprise of a £176.6m facility for the Healthcare business as well as a separate £163.4m
facility for the rest of the Group. As at 31 December 2024, the Group had drawn £37.0m from the Healthcare facility and £7.5m
from the rest of the Group facility. Further details of the Group’s loan facilities are provided in note 20.
The finance facilities were issued with debt covenants which are measured on a quarterly basis. There have been no breaches of
covenants in the year ended 31 December 2024. Management has reviewed forecast cash flows and there is no indication that there
will be any breach in the next 12 months.
The Directors have a reasonable expectation that there are no material uncertainties that cast significant doubt about the Group’s
ability to continue in operation and meet its liabilities as they fall due for the foreseeable future, being a period of at least 12 months
from the date of approval of the financial statements. To complete the going concern assessment the Directors have modelled for
each of the two Group segments (aligned with the two separate facilities) a base case, applied sensitivities to the base case and
modelled a reverse stress test for the period to September 2026. The base case models assumes that the Group’s financial
performance is consistent with the budget for 2025 followed by similar growth rates in 2026. Under the two base case models, the
Group maintains a significant level of positive liquidity headroom. The Directors have applied reasonable downside sensitivities to
each base case model, acknowledging that such risks and uncertainties exist. The downside scenarios modelled were as follows:
(i)
sales in 2025 being 17% lower than expectation for the Healthcare segment;
(ii)
sales in 2025 being 14% lower than expectation for the non-Healthcare segment;
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FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
(iii)
2025 costs being 2% higher than expectation for each segment; and
(iv)
sales and costs scenarios combined for each of the two segments.
The Group maintains liquidity and there remains headroom on the covenants under each scenario modelled across the two
segments.
In addition to performing scenario planning, the Directors have also conducted a reverse stress which shows that the Group can
afford to lose 51% of its sales across the Healthcare segment and 29% of its sales across the Non-Healthcare segment (37% across
the overall Group) to the end of September 2026 and maintain positive liquidity headroom, this extremely remote scenario assumes
no cost mitigation actions are taken.
Through our normal business practices, we are in regular communication with our lenders and are satisfied they will be in a position
to continue supporting us for the foreseeable future.
The Directors therefore consider the strong balance sheet, with good cash reserves and working capital along with financing
arrangements, provide ample liquidity. Accordingly, the Directors have prepared the financial statements on a going concern basis.
2. Accounting policies
a) Basis of consolidation
The consolidated financial statements include the accounts of the Company and all of its subsidiary undertakings.
•
Subsidiaries are those entities controlled by the Group. Control exists when the Group is exposed, or has rights, to variable returns from
its involvement with the investee and has the ability to affect those returns through its power over the investee. The financial
statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date
that control ceases.
•
Intra-group transactions, balances and unrealised gains on transactions between Group companies are eliminated. Where necessary,
accounting policies of subsidiaries have been changed to ensure consistency with the Group’s accounting policies.
•
The results and cash flows relating to a business are included in the consolidated income statement and the consolidated statement of
cash flows from the date of acquisition or are excluded from the date of disposal as appropriate.
b) Business combinations
The Group applies the acquisition method in accounting for business combinations. The consideration transferred by the Group to
obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and
the equity interests issued by the Group, which includes the fair value of any asset or liability arising from a contingent consideration
arrangement. Acquisition costs are expensed as incurred. Assets acquired and liabilities assumed are generally measured at their
acquisition-date fair values. Contingent consideration which has been determined to be a remuneration cost is expensed to the
income statement, and cash payments are classified within cash flows from operations in the Statement of Cash Flows. In cases
where the Group acquires a business with pre-existing financial indebtedness which is settled at the date of acquisition by the
Group, these payments are reflected within cash flows used in financing activities within the Consolidated Statement of Cash Flows.
c) Revenue recognition
Revenue is measured at the fair value of consideration received or receivable and comprises amounts derived from services
performed by the Group during the year in the normal course of business net of discounts, VAT and sales taxes, and provisions for
cancellations/credit notes.
•
Subscription income for online services, data and analytics is normally invoiced at the beginning of the services and is therefore
recognised as a contract liability, “deferred revenue”, in the statement of financial position. Revenue is recognised evenly over the
period of the contractual term as the performance obligations are satisfied evenly over the term of subscription.
•
Revenue from single copy reports is recognised upon delivery. The client pays for a single static report and the company meets its
contract obligation at the point in time the report is delivered to the client.
•
Revenue from the provision of bespoke research services is recognised once contractual performance obligations have been delivered.
Bespoke projects can have a single or series of different deliverables from reports, presentations or delivery of data workbooks.
Revenue is recognised as each different contractual obligation within the series is satisfied.
•
Event revenue is recognised when the event is held in line with the contract obligations.
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•
Other revenue is recognised in reference to performance obligations as contracted.
•
In instances where the Group enters into transactions involving a range of the Group’s services, for example a subscription and custom
research, the total transaction price for a contract is allocated amongst the various performance obligations based on their relative
stand-alone selling prices.
Where amounts have been invoiced in advance of services performed and the amounts are due, this is included within deferred
revenue as a contract liability. Similarly, if the Group satisfies a performance obligation before it receives the consideration or is
contractually due, the Group recognises a contract asset within accrued income in the statement of financial position.
The Group has recognised the incremental costs (for example commission) of obtaining sales contracts as an expense when
incurred.
d) Property, plant and equipment
Property, plant and equipment is stated at historic cost, including any directly attributable costs of bringing the asset to the location
and condition necessary for it to be capable of operating in the manner intended by management, less accumulated depreciation
and impairment losses.
Depreciation is calculated on a straight-line basis over the estimated useful life of an asset and is applied to the cost less any
residual value. The asset classes are depreciated over the following periods:
•
Right-of-use assets: shorter of lease term and useful life;
•
Freehold buildings: over 50 years;
•
Fixtures, fittings and equipment: over 3 to 5 years; and
•
Leasehold improvements: over 3 to 10 years.
The useful life, the residual value and the depreciation method are reassessed at each reporting date.
Where there is an indication of impairment, the carrying value of the property, plant and equipment is compared to the higher of
value in use and the fair value less costs to sell. If the carrying value exceeds the higher of the value in use and fair value less the
costs to sell the asset then the asset is impaired and its value reduced.
e) Intangible assets
Goodwill
Goodwill is recognised to the extent that it arises through a business combination and represents the difference between the
consideration transferred and the fair value of net identifiable assets acquired.
Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to appropriate cash-generating units (those
expected to benefit from the business combination) and is tested annually for impairment. In testing for impairment, the recoverable
amount of a CGU based on value-in-use calculations is compared to the carrying value of goodwill. These calculations use post-tax
cash flow projections based on five-year financial forecasts; year one being based upon Board approved budgets, with growth
assumptions applied for years two to five. Cash flows beyond the five-year period are extrapolated using estimated long-term
growth rates. Any impairment losses in respect of goodwill are not reversed.
Acquired intangible assets
Acquired intangible assets include software, customer relationships, brands and intellectual property (IP) rights and databases.
Intangible assets acquired in material business combinations are capitalised at their fair value. The Board has a policy of engaging
professional advisers on acquisitions with a purchase price greater than £10m to advise and assist in calculating intangible asset
values. The Group consistently applies the following methodologies when determining the fair value at the date of acquisition for
each class of identified intangible:
•
Customer relationships: net present value of future cash flows;
•
Intellectual property and databases: cost to recreate the asset; and
•
Brands: royalty relief method.
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FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
Intangible assets are amortised on a straight-line basis over their estimated useful lives of 3 to 20 years for brands, customer
relationships and IP rights. Amortisation and impairment charges are accounted for within the administrative costs category within
the income statement. Within note 7, the Group separates out amortisation of acquired intangibles from other group amortisation
charges.
Computer software and websites
Non-integral computer software purchases are capitalised at cost as intangible assets. The Group also capitalises development
costs associated with new products in accordance with the development criteria prescribed within IAS38 “Intangible Assets”. These
costs are amortised on a straight-line basis over their estimated useful lives of 3 years. Amortisation and impairment charges are
accounted for within the administrative costs category within the income statement. Costs associated with implementing or
maintaining computer software programs are recognised as an expense. Software as a Service (SaaS) costs, in which the Group only
receives the right to access the supplier’s application software in the future is a recognised as a service contract rather than a
software lease or intangible asset. As such, these arrangements are expensed to the income statement rather than shown as an
intangible asset
Impairment of intangible assets
Goodwill is not subject to amortisation but is reviewed for impairment annually or whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. Intangible assets that are subject to amortisation are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment
loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is
the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at
the lowest levels for which there are separately identifiable cash flows (cash-generating units).
f) Investments in associates
Associates are those entities in which the Group has significant influence, but not control over the financial and operating policies.
Interest in associates is accounted for under the equity method. Associates are initially recognised at cost, which includes
transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group’s share of the profit or
loss and other comprehensive income of the investee, until the date on which significant influence ceases.
g) Taxation
Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the
reporting date in the countries where the Group operates and generates taxable income. Current income tax relating to items
recognised directly in equity is recognised in equity and not in the statement of profit or loss. Management periodically evaluates
positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and
establishes provisions where appropriate.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
•
When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss and does not give rise to
equal taxable and deductible temporary differences.
•
In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements,
when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not
reverse in the foreseeable future.
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Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused
tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:
•
When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit
or loss and does not give rise to equal taxable and deductible temporary differences.
•
In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint
arrangements, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the
foreseeable future and taxable profit will be available against which the temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax
assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable
profits will allow the deferred tax asset to be recovered.
In assessing the recoverability of deferred tax assets, the Group relies on the same forecast assumptions used elsewhere in the
financial statements and in other management reports. Deferred tax assets and liabilities are measured at the tax rates that are
expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised
in correlation to the underlying transaction either in OCI or directly in equity. Specifically, and in line with the application of IAS12 to
share based payments, tax deductions up to the IFRS2 cumulative remuneration expense are recognised in the income statement
as the tax is viewed as linked to the remuneration event. However, tax deductions in excess of the IFRS2 cumulative remuneration
expense are recognised in equity as the tax is viewed as linked to an equity item.
Tax benefits acquired as part of a business combination, but not satisfying the criteria for separate recognition at that date, are
recognised subsequently if new information about facts and circumstances change. The adjustment is either treated as a reduction
in goodwill (as long as it does not exceed goodwill) if it was incurred during the measurement period or recognised in profit or loss.
The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax
assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same
taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities
and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant
amounts of deferred tax liabilities or assets are expected to be settled or recovered.
h) Foreign currencies
The results are presented in Pounds Sterling (£) which is the presentation currency of the Company and Group.
Foreign currency transactions are translated into the functional currency of the entity at the rates of exchange ruling at the date of
the transaction, and if still in existence at the year end the balance is retranslated at the rates of exchange ruling at the reporting
date. Differences arising from changes in exchange rates during the year are taken to the income statement.
For the purpose of presenting consolidated financial statements, the assets and liabilities of entities with a functional currency other
than Sterling are retranslated to Sterling using exchange rates prevailing on the reporting date. Income and expense items and cash
flows are translated at the average exchange rates for the period and exchange differences arising are recognised in other
comprehensive income. Such translation differences are recognised in the income statement in the period in which a foreign
operation is disposed of.
i) Pensions
The Group contributes to defined contribution pension schemes. Contributions to these schemes are charged to the income
statement as incurred.
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FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
j) Provisions
A provision is recognised in the statement of financial position when the Group has a legal obligation or constructive obligation as a
result of a past event, it is more likely than not that an outflow of resources will be required to settle that obligation, and a reliable
estimate of the amount can be made. Provisions are discounted if the time value of money is material. A contingent liability is
disclosed when there is a present obligation but payment is not probable or the amount cannot be measured reliably.
k) Leases
The Group leases offices around the world, plus a small number of motor vehicles. Rental contracts are typically made for fixed
periods but may have termination options. Lease terms are negotiated on an individual basis and contain a wide range of different
terms and conditions. The lease arrangements do not impose any covenants, but leased assets may not be used as security for
borrowing purposes.
For any new contracts entered into, the Group considers whether a contract is, or contains a lease. A lease is defined as ‘a contract,
or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration’.
To apply this definition the Group assesses whether the contract meets the following criteria:
•
The contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified by being identified at
the time the asset is made available to the Group;
•
The Group has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of use,
considering its rights within the defined scope of the contract; and
•
The Group has the right to direct the use of the identified asset throughout the period of use.
At the lease commencement date, the Group recognises the lease as a right-of-use asset and a corresponding liability on the
statement of financial position. The right-of-use assets have been included in property, plant and equipment.
The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs
incurred by the Group, an estimate of any costs to dismantle and remove the asset at the end of the lease and any lease payments
made in advance of the lease commencement date (net of any incentives received).
The Group depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end
of the useful life of the right-of-use asset or the end of the lease term. The Group also assesses the right-of-use asset for impairment
when such indicators exist.
At the commencement date, the Group measures the lease liability at the present value of the lease payments unpaid at that date,
discounted using the interest rate implicit in the lease if that rate is readily available, or the lease specific incremental borrowing
rate. Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. Each lease
payment is allocated between the liability and finance cost. The finance cost is charged to the income statement over the lease
period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The liability is
remeasured to reflect any reassessment or modification, or if there are changes in in-substance fixed payments. When the liability is
remeasured, the corresponding adjustment is reflected in the right-of-use asset, or the income statement if the right-of-use asset is
already reduced to zero.
Termination options are included in a number of property leases across the Group. These options are used to maximise operational
flexibility in terms of managing contracts. In determining the lease term, management considers all facts and circumstances that
create an economic incentive to exercise a termination option. Periods after termination options are only included in the lease term
if the termination option is reasonably certain not to be exercised.
The Group has elected to account for short-term leases and leases of low-value assets using the practical expedients. Payments
associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in the income
statement. Short-term leases are leases with a term of 12 months or less. Low-value assets comprise IT and copying equipment
with a value of less than £5,000.
The Group sub-leases a number of properties in the UK. However, all of the risks and rewards of ownership have not been
transferred to the lessee and therefore the Group recognises the head lease asset as a right-of-use asset and recognises the rental
income on the sub-lease operating lease contracts as other income.
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l) Financial instruments
The Group has derivative and non-derivative financial instruments which comprise foreign currency contracts, interest rate swaps,
put and call options, receivables, cash, loans and borrowings and trade payables.
Recognition and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial
instrument. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when
the financial asset and substantially all the risks and rewards are transferred. A financial liability is derecognised when it is
extinguished, discharged, cancelled or expires.
Classification and initial measurement of financial assets
Except for those trade receivables that do not contain a significant financing component and are measured at the transaction price in
accordance with IFRS15, all financial assets are initially measured at fair value adjusted for transaction costs (where applicable).
In the periods presented, all of the Group’s non-derivative financial assets are classified as at amortised cost. Financial assets are
measured at amortised cost if the assets meet the following conditions:
•
they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows; and
•
the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal
amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted where the
effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and other receivables fall into this category of
financial instruments.
Classification and initial measurement of financial liabilities
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the Group
designated a financial liability at fair value through profit or loss.
Cash
Cash comprises cash balances and highly liquid call deposits, together with other short-term highly liquid investments that are
readily convertible to known amounts of cash, which are subject to an insignificant risk of changes in value. Bank overdrafts that
form an integral part of the Group’s cash management are included as a component of cash for the purpose of the statement of cash
flows.
Derivative financial instruments
The Group uses derivative financial instruments to reduce its exposure to fluctuations in interest rates and foreign currency
exchange rates.
Interest rate swaps are measured at fair values and any movement in fair value is recognised directly in other comprehensive
income, to the extent that they are effective, with the ineffective portion being recognised in the income statement.
In order to qualify for hedge accounting, the Group is required to document prospectively the economic relationship between the
item being hedged and the hedging instrument. The Group is also required to demonstrate an assessment of the economic
relationship between the hedged item and the hedging instrument, which shows that the hedge will be highly effective on an
ongoing basis. This effectiveness testing is re-performed periodically to ensure that the hedge has remained, and is expected to
remain, highly effective. Hedge accounting is discontinued when a hedging instrument is derecognised (e.g. through expiry or
disposal), or no longer qualifies for hedge accounting.
Foreign currency forward contract derivatives are measured at fair values and any movement in fair value is recognised in the
income statement.
Put and call option derivatives are measured at fair values and any movement in fair value is recognised in the income statement.
Impairment of trade receivables
The Group recognises lifetime expected credit losses (ECL) for trade receivables. The ECLs on these financial assets are estimated
using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the
receivables, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the
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FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
reporting date. The carrying amount is reduced by the ECL through the use of a provision account. When a trade receivable is
considered uncollectable, it is written off against the provision account. Subsequent recoveries of amounts previously written off are
credited against the provision account. Changes in the carrying amount of the provision are recognised in the consolidated income
statement.
Trade and other payables
Trade and other payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective
interest method.
m) Borrowings and borrowing costs
Borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently at amortised cost. Any difference
between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the period of
the borrowings using the effective interest method.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at
least 12 months from the reporting date.
Borrowing costs, being interest, and other costs incurred in connection with the servicing of borrowings, are recognised as an
expense when incurred.
n) Share-based payments
The Group operates share-based compensation plans under which the entity receives services from employees as consideration for
equity instruments (options) of the Group. The fair value of the employee services received in exchange for the grant of the options
and awards is recognised as an expense in the income statement. The total amount to be expensed is determined by reference to
the fair value of the options granted. For both schemes 2 and 4, the original fair value on grant date is charged to the income
statement based upon the Monte-Carlo method. Following modification on 30 November 2022, an additional charge for the
beneficial modification was determined by the Black-Scholes method. The fair values calculated exclude the impact of any non-
market service and performance vesting conditions (for example, profitability, sales growth targets and remaining an employee of
the entity over a specified time period). Non-market vesting conditions are included in assumptions about the number of options and
awards that are expected to vest. The total amount expensed is recognised over the vesting period, which is the period over which
all of the specified existing conditions are to be satisfied. At each reporting date, the entity revises its estimates of the number of
options and awards that are expected to vest based on the non-market vesting conditions. It recognises the impact of the revision to
original estimates, if any, in the income statement, with a corresponding adjustment to the share-based payments reserve within
equity.
o) Dividends
Dividends on the Group’s ordinary shares are recognised as a liability in the Group’s financial statements, and as a deduction from
equity, in the period in which the dividends are declared. Where such dividends are proposed subject to the approval of the Group’s
shareholders, the dividends are only declared once shareholder approval has been obtained.
p) Equity
Share capital is determined using the nominal value of shares that have been issued. Premiums received on the initial issuing of
share capital are credited to share premium account. Any transaction costs associated with the issuing of shares are deducted from
share premium, net of any related income tax benefits.
Retained earnings includes all current and prior period results as disclosed in the income statement.
Non-controlling interest in subsidiaries are identified separately from the group’s equity which represent the portion of a company's
net assets that are owned by shareholders who don't have controlling power. These shareholders are entitled to a proportionate
share of the acquiree’s identifiable net assets. The carrying amount of non-controlling interest is the amount of the interests at initial
recognition plus the non-controlling interests’ share of subsequent changes in equity. Profit or loss and each component of other
comprehensive income are attributed to the owners of the parent company and to the non-controlling interest.
Changes in the group’s interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions.
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q) Employee Benefit Trust
The assets and liabilities of the Employee Benefit Trust have been included in the Group’s financial statements because the
Employee Benefit Trust is controlled by the Group.
The cost of purchasing own shares held by the Employee Benefit Trust is shown as a deduction in arriving at total shareholders’
equity.
r) Other Income
Other income represents rental income on sub-lease property contracts and research & development tax credits.
s) Presentation of non-statutory alternative performance measures
The Directors believe that Adjusted EBITDA, Adjusted EBITDA margin, Adjusted profit before tax, Adjusted profit after tax and
Adjusted earnings per share provide additional useful information on the operational performance of the Group to shareholders, and
we review the results of the Group using these measures internally. The term ‘adjusted’ is not a defined term under IFRS and may
not therefore be comparable with similarly titled profit measures reported by other companies. It is not intended to be a substitute
for, or superior to, IFRS measures of profit.
Adjustments are made in respect of:
Share-based payments and associated costs
Share-based payment expenses are excluded from Adjusted EBITDA as they
are a non-cash charge and the awards are equity-settled.
Restructuring and refinancing costs
The Group excludes these costs from Adjusted EBITDA where the nature of the
item, or its size, is not related to the operational performance of the Group and
allows for comparability of underlying results.
Acquisition and integration costs (including
contingent consideration)
The Group excludes these costs from Adjusted EBITDA where the nature of the
item, or its size, is not related to the operational performance of the Group and
allows for comparability of underlying results.
Amortisation and impairment of acquired
intangible assets
The amortisation charge for those intangible assets recognised on business
combinations is excluded from Adjusted EBITDA since they are non-cash
charges arising from historical investment activities. Any impairment charges
recognised in relation to these intangible assets are also excluded from
Adjusted EBITDA. This is a common adjustment made by acquisitive
information service businesses and is therefore consistent with peers. Revenues
associated with acquisitions, in the year of acquisition, are excluded from the
calculation of underlying revenue.
Revaluation of short- and long-term derivatives
Unrealised operating foreign exchange
gain/loss
Gains and losses are recognised within Adjusted EBITDA when they are realised
in cash terms and therefore we exclude non-cash movements arising from
fluctuations in exchange rates which better aligns Adjusted EBITDA with the
cash performance of the business.
Revaluation of interest rate swap
Gains and losses on the revaluation of the interest rate swap are excluded from
Adjusted profit before tax which better aligns with the cash performance of the
business.
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FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
3. New or revised standards or interpretations
This report has been prepared based on the accounting policies detailed in the Group’s financial statements for the year ended
31 December 2024 and is consistent with the policies applied in the previous year, except for the following new standards which
were effective for an accounting period that begins on or after 1 January 2024. The new standards which are effective during the
year (and have not had any material impact on the disclosures or on the amounts reported in these financial statements) are:
•
Amendments to IAS 7: Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures titled Supplier Finance
Arrangements;
•
Amendments to IAS 1: Classification of liabilities as current or non-current;
•
Amendments to IAS 1: Non-current liabilities with covenants; and
•
Amendments to IFRS 16: Lease liability in a sale and leaseback.
International Financial Reporting Standards (“standards”) in issue but not yet effective
The Group has not applied the following new and revised IFRSs that have been issued but are not yet effective:
•
Amendments to IAS 21: Lack of exchangeability (effective date: 1 January 2025);
•
IFRS 18: Presentation and disclosures in financial statements (effective date: 1 January 2027); and
•
IFRS 19: Subsidiaries without public accountability: disclosures (effective date: 1 January 2027).
The above standards are not yet effective and therefore have not been applied in the financial statements.
IFRS 18: Presentation and disclosures in financial statements
The IASB (International Accounting Standards Board) issued a new Standard, IFRS 18: Presentation and disclosure in financial
statements, that will replace IAS 1: Presentation of financial statements. The purpose of the new standard is to provide more
consistent presentation of financial information across preparers as it is acknowledged that existing standards have given flexibility
to present information in different ways. IFRS 18 will not impact the recognition or measurement of items in the financial
statements. Many of the existing presentation principles in IAS 1 are retained, but there are some more specific requirements that
will require the Group to make some changes in its future Annual Report and Accounts and Interim Financial Statements.
The new standard is not yet endorsed by the UK Endorsement Board ‘UKEB’ but is expected to be applicable for reporting periods
beginning on or after 1 January 2027.
The Group has started an initial review of the standard and expects changes to the presentation of the Consolidated Income
Statement as a result of income and expenses being categorised into three newly defined categories, and increased disclosure
around management-defined performance measures. The process of assessing the financial impact on the Annual Report and
Accounts and Interim Financial Statements will continue during 2025.
The Directors do not expect that the adoption of the remaining Standards listed above will have a material impact on the financial
statements of the Group in future periods.
4. Segmental analysis
The principal activity of GlobalData Plc and its subsidiaries (together ‘the Group’), a data, insight, and technology group, is to provide
decision-makers across the world’s most successful companies with the intelligence to act with conviction. Our connected platform
uniquely integrates proprietary data, expert insight, and purpose-built AI into a unified operating system that powers the next
generation of intelligence solutions.
IFRS8 “Operating Segments” requires the segment information presented in the financial statements to be that which is used
internally by the Chief Operating Decision Maker (CODM) to evaluate the performance of the business and to decide how to allocate
resources. The Group has identified the Chief Executive as its Chief Operating Decision Maker.
The fundamental principle of the GlobalData business model is to provide our clients with subscription access to our proprietary
data, analytics and insights platform, with the offering of ancillary services such as consulting, single copy reports and events.
The Group has previously reported one operating segment, being Data, Analytics and Insights, however during H1 2024 there were
a number restructuring and organisational changes within the Group associated with the transaction to sell 40% of the Group’s
Healthcare business to Inflexion. These changes resulted in the ring-fencing of the Healthcare business and the production of
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discrete financial information at a Healthcare level. As such, Management have concluded that the Group now operates under two
segments: ‘Data, Analytics and Insights: Healthcare’ and ‘Data, Analytics and Insights: Non-Healthcare’. The results of the two
segments are reported to the Group Chief Executive on a monthly basis.
There is no difference between the Group’s operating segments and the Group’s reportable segments.
Each segment generates revenue from services provided over a period of time such as recurring subscriptions and other services
which are deliverable at a point in time such as reports, events and custom research. The services differ by subject matter which
have been grouped into the categories of; Healthcare and Non-Healthcare. There is no material trade between segments.
The Group profit or loss along with Adjusted EBITDA by segment is reported to the Chief Executive on a monthly basis, the Chief
Executive also monitors revenue within the operating segments.
The Group considers the use of two operating segments to be appropriate due to:
•
The Chief Executive reviewing Adjusted EBITDA at the Group level and segment level on a monthly basis;
•
Each segment engages in business activities from which it earns revenues and incurs expenses;
•
Discrete financial information is available for each segment.
Each operating segment is assessed by the Board on an Adjusted EBITDA basis. Group adjusting items, depreciation, amortisation,
finance income and costs are not allocated to segments. Reportable segment Adjusted EBITDA is used to measure performance as
management believes that such information is most relevant in evaluating the results of the reportable segments.
The Group has restated previously reported segment information to align with the information that is now regularly reported to the
CODM.
A reconciliation of revenue to Adjusted EBITDA on a reportable segment and at a Group level to Profit before Tax is set out below:
Year ended 31 December 2024
DA&I: DA&I:
Healthcare Non-Healthcare Corporate Total
£m £m £m £m
Revenue 109.4 176.1 – 285.5
Operating costs (48.5) (117.9) (2.3) (168.7)
Adjusted EBITDA 60.9 58.2 (2.3) 116.8
Share-based payments charge (24.1)
Restructuring and refinancing costs (5.3)
Acquisition and integration costs (4.0)
Costs relating to share-based payment schemes (0.3)
Revaluation loss on short- and long-term derivatives (1.7)
Unrealised operating foreign exchange gain 0.3
Amortisation of acquired intangibles (8.9)
Amortisation (excluding amortisation of acquired
intangible assets) (1.9)
Depreciation (5.8)
Finance costs (10.2)
Profit before tax 54.9
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FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
Year ended 31 December 2023 (restated*)
DA&I: DA&I:
Healthcare Non-Healthcare Corporate Total
£m £m £m £m
Revenue 102.6 170.5 – 273.1
Operating costs (45.7) (114.6) (2.0) (162.3)
Adjusted EBITDA 56.9 55.9 (2.0) 110.8
Share-based payments charge (19.4)
Restructuring and refinancing costs (1.7)
Acquisition and integration costs (1.3)
Costs relating to share-based payment schemes (0.2)
Revaluation gain on short- and long-term derivatives 0.8
Unrealised operating foreign exchange gain 1.5
Amortisation of acquired intangibles (9.0)
Amortisation (excluding amortisation of acquired
intangible assets) (1.6)
Depreciation (6.2)
Finance costs (32.2)
Profit before tax 41.5
* Comparative information has been restated, as required by IFRS 8: Operating Segments, to provide segmental disclosures in line
with year ended 31 December 2024.
Segment assets and liabilities are not presented as these are not reported to the CODM.
Geographical analysis
Our primary geographical markets are serviced by our global sales teams which are organised as Europe, US and Asia Pacific by
virtue of the team location. The below disaggregated revenue is derived from the geographical location of our customers rather than
the team structure the Group is organised by. The geographical analysis is calculated based on sales order data apportioned over the
Group’s revenue for each financial period.
From continuing operations
Year ended 31 December 2024
Asia Rest of
UK Europe Americas1 Pacific MENA2 World Total
£m £m £m £m £m £m £m
Revenue from external customers 44.3 78.2 104.0 27.7 22.2 9.1 285.5
Year ended 31 December 2023
Asia Rest of
UK Europe Americas1 Pacific MENA2 World Total
£m £m £m £m £m £m £m
Revenue from external customers 43.4 73.9 99.1 27.9 20.4 8.4 273.1
1 Americas includes revenue from the United States of America of £98.9m (2023: £95.8m)
2 Middle East & North Africa
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Intangible assets held in the US and Canada were £67.6m (2023: £35.1m), of which £46.7m related to goodwill (2023: £31.6m).
Intangible assets held in the UAE were £11.4m (2023: £12.1m) of which £11.4m related to goodwill (2023: £11.4m). All other
non-current assets are held in the UK. The largest customer represented less than 2% of the Group’s consolidated revenue.
5. Revenue
The Group generates revenue from services provided over a period of time such as recurring subscriptions and other services which
are deliverable at a point in time such as reports, events and custom research.
Subscription income for online services, data and analytics (typically 12 months) is normally invoiced at the beginning of the services
and is therefore recognised as a contract liability, “deferred revenue”, in the statement of financial position. Revenue is recognised
evenly over the period of the contractual term as the performance obligations are satisfied evenly over the term of subscription.
The revenue on services delivered at a point in time is recognised when our contractual obligation is satisfied, such as delivery of a
static report or delivery of an event. The obligation on these types of contracts is a discrete obligation, which once met satisfies the
Group performance obligation under the terms of the contract.
Any invoiced contracted amounts which are still subject to performance obligations and where the payment has been received or is
contractually due are recognised within deferred revenue at the statement of financial position date. Typically, the Group receives
settlement of cash at the start of each contract and standard terms are zero days. Similarly, if the Group satisfies a performance
obligation before it receives the consideration or is contractually due the Group recognises a contract asset within accrued income in
the statement of financial position.
Deferred Revenue recognised within
Revenue recognised in the the Consolidated Statement of
Consolidated Income Statement Financial Position
Year ended Year ended As at As at
31 December 2024 31 December 2023 31 December 2024 31 December 2023
Restated*
£m £m £m £m
Services transferred:
Over a period of time 215.2 210.7 101.6 89.5
At a point in time 70.3 62.4 13.0 15.1
Total 285.5 273.1 114.6 104.6
* Management have identified that £4.6m of revenue previously classified as services transferred over a period of time, should have
been reported as services transferred at a point in time, as such the prior year comparatives have been restated to reflect this change.
As subscriptions are typically for periods of 12 months the majority of deferred revenue held at 31 December will be recognised in
the income statement in the following year. As at 31 December 2024, £1.7m (2023: £2.0m) of the deferred revenue balance will be
recognised beyond the next 12 months and therefore has been presented within non-current liabilities within the Consolidated
Statement of Financial Position as at 31 December 2024. In the year ended 31 December 2024 the Group recognised revenue of
£102.6m (2023: £102.9m) that was included in the deferred revenue balance at the beginning of the period. The opening deferred
revenue balance as at 1 January 2023 was £104.0m.
As at 31 December 2024, the total non-cancellable obligations within deferred revenue to fulfil revenue amounted to £114.6m
(2023: £104.6m). As at the same date, the total non-cancellable obligations within Invoiced Forward Revenue to fulfil revenue
amounted to £145.3m (2023: £135.2m).
In instances where the Group enters into transactions involving a range of the Group’s services, for example a subscription and
custom research, the total transaction price for a contract is allocated amongst the various performance obligations based on their
relative stand-alone selling prices.
126
FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
6. Operating profit
Operating profit is stated after the following expenses relating to continuing operations:
Year ended Year ended
31 December 2024 31 December 2023
£m £m
Cost of sales 136.6 132.0
Administrative costs 83.4 65.7
220.0 197.7
Losses on trade receivables 1.0 2.3
Total operating expenses 221.0 200.0
Cost of sales includes all directly attributable costs of sale including product, consulting and sales costs. Administrative costs
includes all other costs of operations.
Included within other administrative costs are the following expenses:
Year ended Year ended
31 December 2024 31 December 2023
£m £m
Depreciation of property, plant and equipment 5.8 6.2
Amortisation of intangible assets 10.8 10.6
Gain (including realised and unrealised) on foreign exchange (1.0) (1.0)
Auditor’s remuneration 1.8 1.3
Auditor’s remuneration:
Year ended Year ended
31 December 2024 31 December 2023
£m £m
Audit of the Company’s and the consolidated financial statements 0.8 0.6
Audit of the subsidiary companies’ financial statements 0.9 0.6
All other services (including half year review) 0.1 0.1
Total auditor’s remuneration 1.8 1.3
7. Adjusting items
Year ended Year ended
31 December 2024 31 December 2023
£m £m
Share-based payment charge 24.1 19.4
Amortisation of acquired intangibles 8.9 9.0
Restructuring and refinancing costs 5.3 1.7
Acquisition and integration costs 4.0 1.3
Costs relating to share-based payments scheme 0.3 0.2
Revaluation loss/(gain) on short and long-term derivatives 1.7 (0.8)
Unrealised operating foreign exchange gain (0.3) (1.5)
Total adjusting items 44.0 29.3
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The adjustments made are as follows:
•
The share-based payments charge is in relation to the share-based compensation plans (detailed in note 25) under which the entity
receives services from employees as consideration for equity instruments (options) of the Group. The fair value of the employee
services received in exchange for the grant of the options and awards is recognised as an expense in the income statement. The total
amount to be expensed is determined by reference to the fair value of the options granted. The original fair value on grant date is
charged to the income statement based upon the Monte-Carlo method. Following modification on 30 November 2022, an additional
charge for the beneficial modification was determined by the Black-Scholes method.
•
The amortisation charge for those intangible assets recognised on business combinations.
•
Restructuring costs totalling £4.5m have been recognised within the Group, which have principally arisen as a result of the pre-
completion steps required to restructure the Group ahead of the Inflexion investment in the Healthcare business. The Group has also
incurred £0.8m of legal fees in relation to the arrangement of the new loan facilities which were drawn down upon during December
2024.
•
Acquisition and integration costs includes legal and professional fees and integration related expenses incurred in relation to
acquisitions made by the Group during the year (see note 27). Included within this category are contingent consideration amounts
relating to payments due to the previous owners of MBI, TS Lombard and LinkUp between 2024 and 2025. These have been treated as
remuneration costs due to their being contingent upon the former owners remaining as employees of the Group at the time of payment.
•
Costs relating to share-based payments scheme consist of employer taxes borne as a result of the vesting of options during the year,
and professional fees incurred in advice obtained relating to the consolidation and subdivision of share capital.
•
The revaluation of short and long-term derivatives relates to movement in the fair value of the short and long-term derivatives detailed
in note 16.
•
Unrealised operating foreign exchange gains and losses relate to non-cash exchange losses and gains made on operating items.
8. Particulars of employees
Employee benefit expense
Year ended Year ended
31 December 2024 31 December 2023
£m £m
Wages and salaries 121.9 116.5
Social security costs 9.8 8.8
Pension costs 1.8 1.8
Share-based payments charge (note 25) 24.1 19.4
157.6 146.5
Termination costs incurred during the year amounted to £0.2m (2023: £0.2m).
Pension costs represents payments made into defined contribution schemes.
Number of employees
The average monthly number of persons, including Executive Directors, employed by the Group during the year was as follows:
Year ended Year ended
31 December 2024 31 December 2023
No. No.
Researchers and analysts 2,783 2,859
Sales and admin 774 701
3,557 3,560
There were no persons employed by the Company during the year (2023: nil).
128
FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
9. Key management compensation
Key management is defined as Directors plus all members of the Group’s Senior Management Team. In the year ended
31 December 2024, key management consisted of 18 employees (2023: 25 employees).
Year ended Year ended
31 December 2024 31 December 2023
£m £m
Short-term employee benefits 3.7 5.1
Post-employment benefits 0.1 0.1
Share-based payments 8.7 11.8
12.5 17.0
Post-employment benefits are comprised of payments made into the employees’ defined contribution pension schemes.
Information regarding Directors’ remuneration, share options and bonuses are set out in the Directors’ Remuneration Report on
pages 77 to 88.
10. Net finance costs
Year ended Year ended
31 December 2024 31 December 2023
£m £m
Loan interest cost 13.6 28.6
Lease interest cost 1.1 1.1
Revaluation of interest rate swap (2.8) 2.8
Other interest cost – 0.1
Other interest income (1.7) (0.4)
10.2 32.2
Loan interest cost includes non-cash interest relating to financial liabilities measured at amortised cost of £1.4m (2023: 5.1m). The
higher charge in the prior year reflected the change in anticipated cash flows on the previously held term loan. The Group fully repaid
the loan upon completion of the investment agreement with Inflexion in June 2024. As a result of the change in anticipated cash
flows as at 31 December 2023, the Group recognised a non-cash interest expense of £3.4m in the year ended 31 December 2023
in accordance with IFRS 9, which requires that any revisions to the estimate of payments, should be adjusted against the amortised
cost of a financial liability by recalculating the present value of the estimated future cash flows, discounted at the financial
instrument’s original effective interest rate.
The Group discontinued hedge accounting for the interest rate swap during the year ended 31 December 2023 as the hedged items
(future interest repayments) were no longer probable or expected to occur, therefore all gains and losses in relation to the swap have
been recognised within the income statement during the year ended 31 December 2024.
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11. Income tax
Year ended Year ended
31 December 2024 31 December 2023
£m £m
Income statement
Current income tax:
Current income tax (43.3) (17.2)
Adjustments in respect of prior years 0.3 1.3
(43.0) (15.9)
Deferred income tax:
Relating to origination and reversal of temporary differences 25.1 4.4
Effect of change in tax rates (0.1) 0.4
Adjustments in respect of deferred tax of previous years (0.8) 0.1
Movement in unrecognised deferred tax 0.4 0.3
24.6 5.2
Total income tax expense in income statement (18.4) (10.7)
Year ended Year ended
31 December 2024 31 December 2023
£m £m
Recognised in statement of changes in equity
Corporation tax income on share options exercised 0.4 1.7
Deferred tax expense on share-based payments – (0.9)
Total tax income recognised directly in equity 0.4 0.8
The tax charge is reconciled to the standard corporation tax rate applicable in the UK (which increased from 19% to 25% on 1 April
2023) as follows:
Year ended Year ended
31 December 2024 31 December 2023
£m £m
Profit before tax 54.9 41.5
Tax at the UK corporation tax rate of 25.0% (2023: 23.5%) (13.7) (9.8)
Effects of:
Non-taxable income for tax purposes 0.1 0.1
Non-deductible expenses for tax purposes (1.9) (1.3)
Fixed asset disposals (0.1) –
Movement in share-based payments (0.5) (0.1)
Effect of tax rates in overseas jurisdictions 0.7 0.2
Overseas tax (2.8) (1.9)
Effect of change in tax rates (0.1) 0.4
Adjustments in respect of current income tax of previous years (0.5) 1.4
Movement in unrecognised deferred tax 0.4 0.3
(18.4) (10.7)
130
FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
The 2024 current tax charge is substantially higher than prior year due to liabilities arising from the reorganisation steps required to
facilitate the separation of the Healthcare business and subsequent investment by Inflexion. Income taxes paid during 2024 include
£25m payments on account in relation to tax liabilities forecast to arise as a result of the transaction (and which will be formally self-
assessed to the relevant tax authorities during 2025).
The reorganisation steps provide an uplift in the tax base cost of the transferring assets (not recognised on a consolidated basis for
accounting purposes) and are therefore expected to provide the Group with future tax benefits. Deferred tax assets have therefore
been recognised to reflect this, which will be unwound as and when such benefits are realised, resulting in a large deferred tax credit
to the Consolidated Income Statement during the period.
12. Earnings per share
The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders of the parent company
divided by the weighted average number of shares in issue during the period. The Group also has a share options scheme in place
and therefore the Group has calculated the dilutive effect of these options.
The earnings per share presented below is based upon the post-reorganisation share structure:
Year ended Year ended
31 December 2024 31 December 2023
Earnings per share attributable to equity holders from continuing operations:
Basic
Profit for the period attributable to equity shareholders (£m) 36.5 30.8
Less: non-controlling interest (£m) (6.9) –
Profit for the period attributable to ordinary shareholders of the parent company (£m) 29.6 30.8
Weighted average number of shares (no’ m) 789.1 807.1
Basic earnings per share (pence) 3.8 3.8
Diluted
Profit for the period attributable to equity shareholders (£m) 36.5 30.8
Less: non-controlling interest (£m) (6.9) –
Profit for the period attributable to ordinary shareholders of the parent company (£m) 29.6 30.8
Weighted average number of shares (no’ m) 799.4 818.2
Diluted earnings per share (pence) 3.7 3.8
Reconciliation of basic weighted average number of shares to the diluted weighted average number of shares:
Year ended Year ended
31 December 2024 31 December 2023
No’ m No’ m
Basic weighted average number of shares, net of shares held in treasury reserve 789.1 807.1
Dilutive share options in issue – scheme 1 1.2 4.5
Dilutive share options in issue – scheme 2 6.5 6.6
Dilutive share options in issue – scheme 4 2.6 –
Diluted weighted average number of shares 799.4 818.2
The diluted earnings per share calculation does not include performance-related share options where the performance criteria had
not been met in the period, in accordance with IAS 33. The table below shows the number of share options which could become
dilutive should future performance criteria be met. It excludes 9,101,504 options which are anticipated to vest in the year ended
31 December 2025 as these are included in the diluted weighted average number of shares calculation above given the
performance criteria for these options has been met.
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Potentially dilutive shares 2026 2027 Total
Schedule No. No. No.
Scheme 2 6,250,000 6,250,000 12,500,000
Scheme 4 5,023,015 17,580,553 22,603,568
Total 11,273,015 23,830,553 35,103,568
13. Intangible assets
IP rights
Customer and
AUC* Software relationships Brands database Goodwill Total
£m £m £m £m £m £m £m
Cost
As at 1 January 2023 – 15.4 65.3 26.2 77.9 322.0 506.8
Additions: Internally developed 0.2 2.3 – – – – 2.5
Additions: Separately acquired – 0.7 – 0.1 – – 0.8
As at 31 December 2023 0.2 18.4 65.3 26.3 77.9 322.0 510.1
Additions: Business combinations – 1.7 26.3 9.4 8.9 46.1 92.4
Additions: Internally developed 4.9 – – – – – 4.9
Additions: Separately acquired – 0.4 – 0.2 – – 0.6
Transfer AUC to software (0.5) 0.5 – – – – –
Foreign currency retranslation – 0.1 – – – – 0.1
Disposals – (0.1) – – – – (0.1)
As at 31 December 2024 4.6 21.0 91.6 35.9 86.8 368.1 608.0
Amortisation
As at 1 January 2023 – (12.9) (37.8) (12.2) (52.9) (10.9) (126.7)
Charge for the year – (1.6) (4.7) (1.2) (3.1) – (10.6)
As at 31 December 2023 – (14.5) (42.5) (13.4) (56.0) (10.9) (137.3)
Additions: Business combinations – (1.1) – – – – (1.1)
Charge for the year – (1.9) (4.4) (1.3) (3.2) – (10.8)
Disposals – 0.1 – – – – 0.1
As at 31 December 2024 – (17.4) (46.9) (14.7) (59.2) (10.9) (149.1)
Net book value
As at 31 December 2024 4.6 3.6 44.7 21.2 27.6 357.2 458.9
As at 31 December 2023 0.2 3.9 22.8 12.9 21.9 311.1 372.8
* AUC: Assets under construction which will be transferred to software post development.
As at 31 December 2024, the net book value of internally generated intangible assets is £6.3m (2023: £4.0m).
132
FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
As at 31 December 2024, the carrying value and remaining amortisation period of the significant customer relationships, brands and
IP rights and database assets were as follows:
Customer relationships Brands IP rights and database
Carrying Remaining Carrying Remaining Carrying Remaining
value amortisation value amortisation value amortisation
£m period £m period £m period
Infinata 0.3 1 year – – – –
AROQ 0.4 4 years – – – –
Research Views 2.7 1-6 years – – – –
GlobalData – – 2.5 6 years – –
Verdict – – 0.7 3 years – –
Progressive Content 0.2 3 years – – 0.1 1 year
Life Sciences 2.9 7 years – – 7.2 8 years
LMC 5.1 3-9 years – – 10.5 7 years
MBI 4.0 3-8 years 8.2 17 years 0.2 3 years
TS Lombard 3.1 8-11 years 0.5 18 years 0.8 3 years
BTMI 1.8 4 years 1.8 10 years 0.4 5 years
LinkUp 9.5 12 years 0.7 10 years 3.1 15 years
Celent 4.6 6 years 1.2 10 years 5.3 10 years
Deallus 10.1 19 years 5.6 15 years – –
Total carrying value 44.7 21.2 27.6
Impairment tests for goodwill and intangible assets
Goodwill and intangibles are allocated to the cash-generating unit (CGU) that is expected to benefit from the use of the asset.
The Group tests goodwill and intangible assets as at 31 December each year for impairment and whenever events or changes in
circumstances indicate that the carrying value may not be recoverable. The recoverable amount of a CGU is determined based on value in
use calculations. These calculations use post-tax cash flow projections based on the next financial year’s budget with growth rates applied
to generate a five-year forecast. Cash flows beyond the five-year period are extrapolated using estimated long-term growth rates.
IAS36 ‘Impairment of Assets’ requires that assets be carried on the statement of financial position at no more than their recoverable
amount. An asset or cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash inflows and is
impaired when its carrying amount exceeds its recoverable amount. As at the date of the impairment review (31 December 2024),
Management made the judgement that the Group had three CGUs, being DA&I Healthcare; DA&I Non-Healthcare and MBI. In the
prior year Management assessed that the Group had two CGUs, being DA&I and MBI.
During H1 2024, the Group undertook a restructuring exercise to carve out the Healthcare business into separate legal entities. On this basis
the Group is now able to directly identify the cash inflows of the Healthcare operations. The Non-Healthcare DA&I assets and liabilities
continue to be co-mingled within the remaining legal entities of the Group and as such are considered to be a single CGU. The previously
named Data, Analytics and Insights (DA&I) CGU has therefore been split into two CGUs, DA&I: Healthcare and DA&I: Non-Healthcare.
There has been no change to Management’s assessment that MBI is its own CGU, on the basis that there have been no significant
changes made to the operation of this business within the financial year. Management previously concluded that MBI was its own
CGU as the product is inherently different to the Groups’ main offering, and the brand, strategy and management of the business is
separate from the rest of the Group.
Management have assessed the new acquisitions in the year and have concluded that the acquisitions form part of the DA&I:
Healthcare CGU (Deallus) and DA&I: Non-Healthcare CGU (BTMI, Celent, LinkUp). No other CGU is required to be created as a result
of the acquisitions.
As a result of these conclusions, as at the date of the impairment review (31 December 2024), the Group had three CGUs.
Management recognises that this approach is different to the conclusion reached regarding the segmental reporting rationale of the
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Group; however, this is appropriate because the IFRS criteria for identifying segments and CGUs differ. Management has considered
whether events should be classified as a separate CGU but have concluded that this is a route to market with the same underlying
Data, Analytics and Insights product.
Overall, within the impairment review performed as at 31 December 2024, the Group had sufficient headroom on the carrying value
of goodwill and intangible assets, with the CGUs having the following headroom: DA&I: Healthcare: £839.0m, DA&I: Non-
Healthcare: £450.0m and MBI: £12.7m.
The goodwill allocated to each CGU as at the date of impairment review (31 December 2024) was: DA&I: Healthcare: £112.7m,
DA&I: Non-Healthcare £235.1m and MBI: £9.4m.
Assumptions
The recoverable amounts of the CGUs are determined from value in use calculations, which are based on the cash flow projections
for each CGU. Value in use projections are based on Board approved revenue and cost budgets for 2025, with revenue and cost
increases to cover the period 2026-2029. Revenue growth rates applied from 2026 onwards are based on forecast growth rates
which are based upon Management’s expectation of performance over this period. Cost increases from 2026 onwards are based
upon the Bank of England long-term inflation forecast.
The value in use calculations use a post-tax discount rate against post-tax cash flows. The post-tax discount rate is derived by
calculating weighted average costs of equity and debt. The rate reflects appropriate adjustments relating to market risk and risk
factors of each CGU. In order to calculate a pre-tax discount rate, which is disclosed below for each CGU, tax cash flows are removed
from the calculations and goalseek methodology is applied to calculate the pre-tax discount rate which results in the same
headroom for each CGU as the post-tax calculation.
Across both CGUs, a terminal value calculation has been determined post 2029 using a growth rate of 2.0% in accordance with
long-term inflation forecasts.
The key assumptions are set out below:
Increase in revenue Increase in costs Pre-tax Terminal growth
(for years 1 to 5) (for years 1 to 5) discount rate rate
2024 2023 2024 2023 2024 2023 2024 2023
DA&I: Healthcare 10.1% – 2.0% – 13.1% – 2.0% –
DA&I: Non-Healthcare 5.3% – 2.0% – 12.9% – 2.0% –
MBI 3.8% 3.0% 2.0% 2.0% 12.8% 13.6% 2.0% 2.0%
In the prior year, the following assumptions were used for the DA&I CGU:
Increase in revenue Increase in costs Pre-tax Terminal growth
(for years 1 to 5) (for years 1 to 5) discount rate rate
2023 2023 2023 2023
DA&I 7.7% 2.0% 13.6% 2.0%
Management has undertaken sensitivity analysis taking into consideration the impact of key impairment test assumptions arising
from a range of possible future trading and economic scenarios on each CGU. The following individual scenarios would need to occur
before impairment is triggered within the Group:
Revenue growth Discount rate
Cash-generating unit falls by* rises by*
DA&I: Healthcare (24.7%) 44.9%
DA&I: Non-Healthcare (8.6%) 13.6%
MBI (2.8%) 4.1%
* percentage points
134
FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
No indication of impairment was noted from Management’s review; there is headroom in each CGU. Management acknowledges the
sensitivity of the revenue growth and discount rate assumptions applied to the MBI CGU; however, Management is comfortable with
these assumptions and will continue to monitor performance regularly for any indicators of future impairment loss.
Management recognises that the 2% cost growth assumption is slightly lower than the current rate of inflation; however, the Group
operates a focused approach to cost management, including mitigating the impact of inflation through advancements in technology and
efficiency savings and has a strong track record of achieving this. Therefore, Management considers the assumption to be reasonable.
Management have modelled a reasonably possible scenario in which revenue growth in each CGU is 3.0% lower than the assumptions
used within the impairment review. In this scenario there continues to be no indication of impairment within the DA&I: Healthcare and
DA&I: Non-Healthcare CGUs. Within the MBI CGU, given the assumed revenue growth rate within the impairment review was 3.8%, this
results in a 0.8% growth rate within the modelled scenario. In this scenario, an impairment of £1.3m would be recognised. Management
recognises that whilst this scenario is plausible, it is highly unlikely. Additionally, in a scenario in which revenue growth is lower than
expectation, cost mitigations could be implemented to limit the income statement impact of the revenue decline.
Amortisation
Amortisation and impairment charges are accounted for within the administrative costs category within the income statement.
Within note 7, the Group separates out amortisation of acquired intangibles from other group amortisation charges.
14. Property, plant and equipment
Fixtures, fittings & Leasehold
Buildings equipment improvements Total
£m £m £m £m
Cost
As at 1 January 2023 44.2 8.7 2.1 55.0
Additions: Separately acquired 1.5 0.6 0.3 2.4
Foreign currency retranslation (0.7) (0.2) – (0.9)
Disposals (1.5) (0.4) – (1.9)
As at 31 December 2023 43.5 8.7 2.4 54.6
Additions: Business combinations 1.4 0.8 0.2 2.4
Additions: Separately acquired 4.2 1.6 0.1 5.9
Foreign currency retranslation (0.1) (0.1) – (0.2)
Disposals (6.4) (0.2) – (6.6)
As at 31 December 2024 42.6 10.8 2.7 56.1
Depreciation
As at 1 January 2023 (16.2) (7.1) (0.7) (24.0)
Charge for the year (5.1) (0.9) (0.2) (6.2)
Foreign currency retranslation 0.5 0.2 – 0.7
Disposals 1.1 0.4 – 1.5
As at 31 December 2023 (19.7) (7.4) (0.9) (28.0)
Additions: Business combinations – (0.5) – (0.5)
Charge for the year (4.6) (0.9) (0.3) (5.8)
Foreign currency retranslation – 0.1 – 0.1
Disposals 6.0 0.2 – 6.2
As at 31 December 2024 (18.3) (8.5) (1.2) (28.0)
Net book value
As at 31 December 2024 24.3 2.3 1.5 28.1
As at 31 December 2023 23.8 1.3 1.5 26.6
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Included in the net carrying amount of property, plant and equipment as at 31 December 2024 are right-of-use assets as follows:
Buildings
£m
Cost
As at 1 January 2023 44.2
Additions: Separately acquired 1.5
Foreign currency retranslation (0.7)
Disposals (1.5)
As at 31 December 2023 43.5
Additions: Business combinations 1.4
Additions: Separately acquired 4.2
Foreign currency retranslation (0.1)
Disposals (6.4)
As at 31 December 2024 42.6
Depreciation
As at 1 January 2023 (16.2)
Charge for the year (5.1)
Foreign currency retranslation 0.5
Disposals 1.1
As at 31 December 2023 (19.7)
Charge for the year (4.6)
Disposals 6.0
As at 31 December 2024 (18.3)
Net book value
As at 31 December 2024 24.3
As at 31 December 2023 23.8
15. Leases
The Group has leases for office buildings and motor vehicles. With the exception of short-term leases and leases of low-value
underlying assets, each lease is reflected in the statement of financial position as a right-of-use asset and a lease liability. The Group
classifies its right-of-use assets in a consistent manner to its property, plant and equipment (see note 14).
Lease liabilities are presented in the statement of financial position as follows:
31 December 31 December
2024 2023
£m £m
Current lease liabilities 4.0 4.3
Non-current lease liabilities 22.1 21.4
26.1 25.7
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FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
The table below describes the nature of the Group’s leasing activities by type of right-of-use asset recognised in the statement of
financial position:
No. of
No. of right-of- Range of Average No. of leases leases with
use assets remaining remaining with extension termination
leased term lease term options options
Office buildings 23 0-9 years 3 years 0 1
The lease liabilities are secured by the related underlying assets. Future minimum lease payments at 31 December 2024 were as
follows:
Within one One to After
year five years five years Total
As at 31 December 2024 £m £m £m £m
Lease payments 5.1 15.5 10.0 30.6
Finance charges (1.1) (2.7) (0.7) (4.5)
Net present values 4.0 12.8 9.3 26.1
Within one One to After
year five years five years Total
As at 31 December 2023 £m £m £m £m
Lease payments 5.2 12.7 12.2 30.1
Finance charges (0.9) (2.4) (1.1) (4.4)
Net present values 4.3 10.3 11.1 25.7
Lease payments not recognised as a liability
The Group has elected not to recognise a lease liability for short-term leases (leases with an expected term of 12 months or less) or
for leases of low-value assets. Payments made under such leases are expensed on a straight-line basis. The expense relating to
payments not included in the measurement of the lease liability was £nil (2023: £nil).
At 31 December 2024 the Group was committed to short-term leases and the total commitment at that date was £0.3m (2023:
£0.1m).
At 31 December 2024 the Group had not committed to any leases which had not yet commenced, excluding those recognised as a
lease liability.
16. Derivative assets and liabilities
31 December 2024 31 December 2023
Assets Liabilities Assets Liabilities
£m £m £m £m
Held-for-trading*:
– Interest rate swaps – – – (2.8)
– Forward foreign currency contracts – (1.3) 0.5 (0.1)
Total – (1.3) 0.5 (2.9)
Current: – (1.3) 0.5 (0.1)
Non-current: – – – (2.8)
* Derivatives which do not meet the tests for hedge accounting under IFRS9 or which are not designated as hedging instruments are
referred to as ‘held-for-trading’.
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The Group uses derivative financial instruments to reduce its exposure to fluctuations in both interest rates and foreign currency
exchange rates. The Group does not use derivatives for speculative purposes. All derivatives are undertaken for risk management
purposes. Classification is based on when the derivatives mature.
The Group entered into an interest rate swap in October 2022, which hedged interest payments in relation to the previously held
term loan of £290.0m. On 3 April 2023, the Group voluntarily repaid £25.0m of the term loan. On the same date, the swap terms
were amended to match the remaining notional term loan amount of £265.0m. No other amendments to the terms were made. The
agreement was to swap, on a quarterly basis, a floating rate of interest (GBP SONIA) for a fixed rate of 4.9125%. The fixed interest
was payable quarterly on the last business day of each of March, June, September and December through to 5 August 2025. The
Group discontinued hedge accounting for the interest rate swap during the year ended 31 December 2023 as the hedged items
(future interest repayments) were no longer probable or expected to occur upon exchange of the transaction to sell 40% of the
Group’s Healthcare business, therefore all gains and losses in relation to the swap have been recognised within the income
statement during the year ended 31 December 2024. On 28 June 2024, the term loan was repaid in full upon completion of the sale
of 40% of the Group’s Healthcare business, and on the same date the interest rate swap was discontinued.
Change in fair value
of the hedging
instrument used as the
Financial basis for recognising
statement hedge ineffectiveness Nominal amount of
Hedging instrument Carrying value line item for the period hedging instrument
Interest rate swap 2024: £nil 2024: N/A 2024: N/A 2024: £nil
2023: £2.8m liability 2023: Long-term 2023: N/A – hedge 2023: £265.0m
derivative liabilities 100% effective
Given the same interest rate benchmark (GBP SONIA) was used in the hedging instrument (the swap) and the hedged item (the term
loan), and the payments were settled at the same date each quarter, there was an effective economic relationship between the
hedging instrument and the hedged item. Up until the date of settlement of the term loan during June 2024, the total £265.0m
swap was designated as a hedge of the total £265.0m term loan, therefore, a 1:1 hedge ratio was established on a current notional
basis.
The following potential sources of hedge ineffectiveness had been identified:
•
Credit risk – A change in the credit risk of the Group or the counterparty to the interest rate swap; and
•
Critical terms – The possibility of changes to the critical terms of the hedged item such that they no longer match those of the hedging
instrument.
The interest rate swap met the definition of a derivative in accordance with IFRS9. Changes in fair value of derivative financial
instruments that are designated, and effective, cash flow hedges of forecast transactions are recognised in other comprehensive
income and accumulated under the heading of cash flow hedge reserve, limited to the cumulative change in fair value of the hedged
item from inception of the hedge. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. The
cumulative amount recognised in other comprehensive income and accumulated in equity is reclassified into the consolidated
income statement out of other comprehensive income in the same period when the hedged item is recognised in profit or loss. The
hedge remained effective until the date of settlement of the term loan during June 2024. Since 21 December 2023, upon exchange
of the transaction to sell 40% of the Group’s Healthcare business, it became the Group’s intention to fully repay the loan upon
completion of the transaction. Given the hedged items (future interest repayments) were no longer probable or expected to occur,
hedge accounting was discontinued during December 2023. The cumulative loss balance held in the cash flow hedge reserve of
£2.8m at that date was transferred to the income statement. During the year ended 31 December 2024 a total credit of £2.8m was
recognised in the consolidated income statement in relation to the interest rate swap.
138
FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
In accordance with the requirements of IFRS 7, certain additional information about hedge accounting is disaggregated by risk type
and hedge designation type in the table below:
31 December 2024 31 December 2023
Cash Flow Hedge Reserve – Interest Rate Risk £m £m
Cash Flow Hedge Reserve balance brought forward – (3.9)
Change in fair value of hedging instrument upon loan repayment –
reclassification from OCI to profit or loss – 0.4
Change in fair value of hedging instrument recognised in OCI – 0.7
Change in fair value of hedging instrument – reversal of cumulative
reserve held in OCI upon discontinuation of hedge accounting – 2.8
Cash Flow Hedge Reserve balance carried forward – –
Forward foreign currency contracts are not designated as hedges, therefore changes in fair value are recognised in the income
statement. The movement in relation to forward foreign currency contracts in the year was a £1.7m loss to the income statement
(2023: credit of £0.8m).
Forward foreign currency contracts have been entered into, which has committed the amount of currency below to be paid in
exchange for Sterling:
Euro US Dollar
€m $m
Expiring in the year ending:
31 December 2025 2.7 15.2
Forward exchange contracts have been entered into, which has committed the amount of currency below to be paid in exchange for
Indian Rupees:
US Dollar
$m
Expiring in the year ending:
31 December 2025 10.0
17. Trade and other receivables
31 December 2024 31 December 2023
£m £m
Trade receivables 74.0 54.8
Prepayments 11.0 11.0
Other receivables 2.7 0.8
Accrued income 2.2 2.6
89.9 69.2
Included within prepayments as at 31 December 2023 was £2.9m of legal and professional fees relating to the investment
agreement with Inflexion. The fees represented incremental costs that were related directly to a probable future equity transaction.
The costs were transferred to equity during the year ended 31 December 2024, when the equity transaction was recognised
(creation of the non-controlling interest in accordance with IFRS 10).
The contractual value of trade receivables is £78.0m (2023: £59.1m). Their carrying value is assessed to be £74.0m (2023:
£54.8m) after assessing recoverability. The contractual value and the carrying value of other receivables are considered to be the
same. The opening trade receivables balance as at 1 January 2023 was £54.4m.
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The ageing analysis of net trade receivables is as follows:
31 December 2024 31 December 2023
£m £m
Not overdue 44.7 28.6
Overdue by up to one month 13.2 14.3
More than one month but not more than three months overdue 10.4 8.2
More than three months but not more than one year overdue 5.7 3.7
74.0 54.8
The ageing analysis of trade receivables which have been impaired is as follows:
31 December 2024 31 December 2023
£m £m
Not overdue – –
Overdue by up to one month – –
More than one month but not more than three months overdue 0.4 0.4
More than three months overdue 3.6 3.9
4.0 4.3
The impaired receivables of £4.0m (2023: £4.3m) comprises an expected credit loss provision of £4.0m (2023: £4.3m) and credit
note provision of £nil (2023: £nil).
The contractual amounts of the Group’s trade receivables are denominated in the following currencies:
31 December 2024 31 December 2023
£m £m
Pounds Sterling 24.8 21.8
US Dollar 41.9 30.0
Euro 7.7 4.6
Australian Dollar 0.6 0.5
Other 3.0 2.2
78.0 59.1
Movement on the Group’s loss allowances for trade receivables are as follows:
31 December 2024 31 December 2023
£m £m
Opening expected credit loss allowance 4.3 3.4
Increase in loss allowance 1.0 2.3
Receivables written off during the year as uncollectable (1.3) (1.4)
Closing expected credit loss allowance 4.0 4.3
31 December 2024 31 December 2023
£m £m
Opening credit note provision – 0.1
Credit notes raised during the year – (0.1)
Closing credit note provision – –
140
FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
The Group recognises lifetime expected credit losses (within the ECL provision) which are estimated using a provision matrix based
on the Group’s historical credit loss experience, adjusted for factors that are specific to the receivables, general economic conditions
and an assessment of both the current as well as the forecast direction of conditions at the reporting date. The other classes within
trade and other receivables do not contain impaired assets.
The ECL rate calculated overall was 1.68% (2023: 1.88%). If the ECL rate was increased to 5%, this would have had an impact on
the ECL provision of £1.8m (2023: £1.1m).
Details of the provision matrix are presented below:
31 December 2024
Days 0-30 31-60 61-90 91-120 121-150 151-365 365+ Total
Net exposure (£m) 13.6 3.3 1.4 1.7 1.3 3.1 1.0 25.4
ECL rate 2.2% 4.7% 7.7% 18.0% 23.7% 58.2% 100.0%
Provision (£m) 0.3 0.2 0.1 0.3 0.3 1.8 1.0 4.0
31 December 2023
Days 0-30 31-60 61-90 91-120 121-150 151-365 365+ Total
Net exposure (£m) 9.5 2.2 1.4 1.0 1.5 3.3 0.8 19.7
ECL rate 2.5% 3.9% 12.2% 15.4% 36.1% 70.7% 100.0%
Provision (£m) 0.2 0.1 0.2 0.2 0.5 2.3 0.8 4.3
Net exposure presented in the above tables consists of gross debtors, net of unreleased deferred revenue.
The maximum exposure to credit risk at 31 December 2024 is the carrying value of each class of receivable mentioned above. The
Group does not hold any collateral as security. Before accepting any new customer, the Group uses a credit-scoring system to assess
the potential customer's credit quality. The trade receivables outstanding at year end have acceptable credit scores. The largest
customer represented less than 2% of the Group’s consolidated revenue. Further details on credit risk have been disclosed within
note 21.
18. Deferred income tax
31 December 2024 31 December 2023
£m £m
Balance brought forward 2.5 (1.8)
Tax income during the period recognised in profit or loss 24.6 5.2
Tax expense during the period recognised directly in equity – (0.9)
Deferred taxes acquired in business combinations (5.1) –
Balance carried forward 22.0 2.5
The provision for deferred taxation consists of the tax effect of temporary differences in respect of:
Accelerated depreciation for tax purposes (0.4) (1.0)
Losses available for offsetting against future taxable income 4.8 1.6
Share-based payments 9.7 8.2
Business combinations – revaluations of intangible assets to fair value
(deferred tax asset) 24.2 –
Business combinations – revaluations of intangible assets to fair value
(deferred tax liability) (22.4) (11.7)
Restricted interest carried forward 3.4 4.5
Other temporary differences 2.7 0.9
Balance carried forward 22.0 2.5
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31 December 2024 31 December 2023
£m £m
Deferred tax asset 22.0 3.4
Deferred tax liability – (0.9)
Net position 22.0 2.5
The Group's deferred tax assets and liabilities have been recognised at the tax rates that are expected to apply to the period when
the asset is realised or the liability is settled.
Deferred tax assets have not been recognised in respect of tax losses as they may not be used to offset taxable profits elsewhere in
the Group, they have arisen in subsidiaries that have been loss-making for some time, and there are no other tax planning
opportunities or other evidence of recoverability in the near future. If the Group were able to recognise all unrecognised deferred tax
assets at each relevant jurisdiction’s enacted statutory income tax rate, the profit would increase by £2.9m (2023: £0.9m).
The temporary differences associated with investments in the Group's overseas subsidiaries for which a deferred tax liability has not
been recognised in the period presented aggregate to £63.7m (2023: £16.7m). The Group is in a position to control the timing of the
reversal of these temporary differences and determined it is probable that they will not reverse in the foreseeable future.
There are no income tax consequences attached to the payment of dividends in either 2024 or 2023 by the Group to its
shareholders.
19. Trade and other payables
31 December 2024 31 December 2023
£m £m
Trade payables 15.1 10.8
Amounts due to related parties 1.0 –
Other taxation and social security 4.6 2.0
Accruals 22.5 19.6
Current liabilities 43.2 32.4
31 December 2024 31 December 2023
£m £m
Accruals 2.7 –
Non-current liabilities 2.7 –
The carrying values are considered to be a reasonable approximation of fair value.
20. Borrowings
31 December 2024 31 December 2023
£m £m
Short-term lease liabilities 4.0 4.3
Current liabilities 4.0 4.3
Long-term lease liabilities 22.1 21.4
Long-term borrowings 40.4 263.7
Non-current liabilities 62.5 285.1
142
FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
The changes in the Group’s borrowings can be classified as follows:
Short-term Long-term
Short-term Long-term lease lease
borrowings borrowings liabilities1 liabilities1 Total
£m £m £m £m £m
As at 1 January 2023 – 283.6 5.4 24.6 313.6
Cash flows:
– Repayment – (25.0) (5.4) – (30.4)
Non-cash:
– Interest expense – 5.1 – – 5.1
– Lease additions – – 1.4 – 1.4
– Lease liabilities2 – – 0.1 (0.4) (0.3)
– Reclassification – – 2.8 (2.8) –
As at 31 December 2023 – 263.7 4.3 21.4 289.4
Cash flows:
– Repayment – – (5.6) – (5.6)
– Drawdown of RCF (previously held facility) – 40.0 – – 40.0
– Settlement of loan – (305.0) – – (305.0)
– Drawdown of RCF (new facility) – 42.7 – – 42.7
– Loan fees paid – (2.4) – – (2.4)
Non-cash:
– Interest expense – 1.4 – – 1.4
– Lease additions – – 5.5 – 5.5
– Lease liabilities2 – – 0.5 – 0.5
– Reclassification – – (0.7) 0.7 –
As at 31 December 2024 – 40.4 4.0 22.1 66.5
1 Amounts are net of rental prepayments and accruals
2 Represents lease interest, dilapidations and movement on lease liability accruals and prepayments
Term loan and Revolving Capital Facility (‘RCF’)
During August 2022, the Group completed a three-year debt financing facility comprising of a £290.0m term loan and a RCF of
£120.0m. There were no fixed periodic capital repayments, with the full balance being due for settlement when the facilities were
due to expire in August 2025. The term loan was syndicated between 12 lenders and the RCF was syndicated between 13 lenders.
On 3 April 2023, the Group voluntarily repaid £25.0m of the term loan, resulting in a term loan drawdown of £265.0m. As at
31 December 2023, the Group was yet to draw down the available RCF facility of £120.0m. During January 2024, £20.0m of the
RCF was drawn down to support a share buyback and during April 2024 a further £20.0m of the RCF was drawn down, resulting in a
total RCF drawdown of £40.0m. This total indebtedness of £305.0m was fully repaid on 28 June 2024 as part of the completion of
the sale of 40% of the Group’s Healthcare business. During the period ended 30 June 2024, the Group recognised a non-cash
interest expense of £1.3m in accordance with IFRS 9. As a result of the extinguishment of the financial liability, as at 30 June 2024,
the Group had short and long-term external borrowings of £nil.
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During the period ended 30 June 2024, interest was charged on the term loan and RCF at a rate of 3.0% over the Sterling Overnight
Index Average rate (SONIA) and was payable at the end of each calendar quarter. The Group entered into an interest rate swap
during October 2022, with an effective date of 30 September 2022, initially based on a notional amount of £290.0m, which
matched against the initial term loan drawdown. The notional amount of the swap was amended to £265.0m on 3 April 2023 (the
same date as the voluntary repayment noted above), which aligned to the term loan draw down at the time of settlement. The
agreement was to swap, on a calendar quarter basis, SONIA for a fixed rate of 4.9125%. The swap arrangement was terminated on
24 June 2024 to coincide with the full repayment of the term loan.
RCF and Acquisition and Capex Facility (‘ACF’)
On 18 December 2024, the Group completed on two new three-year debt financing facilities to give the Group additional funding to
support the long-term growth of the business, including M&A. The details of the facilities are as follows:
Healthcare Facility
Non-Healthcare Facility
Date of agreement
18 December 2024
Term of agreement
3 years with 1 year extension option.
Type of facility
Multi-currency RCF and ACF.
Lenders in syndicate
8 lenders.
Fixed repayments
None, full drawn down balance repayable at date of termination of agreement.
Available facility
£130.0m RCF and £70.0m ACF. As at
31 December 2024, one member of the
syndicate was outstanding to commit to
the facility, resulting in the total
available from the committed 7 lenders
as at 31 December 2024 being
£114.8m RCF and £61.8m ACF, totalling
£176.6m. The final syndicate member
joined the facility on 31 January 2025
therefore the full facility of £130.0m
RCF and £70.0m ACF became available
to draw down upon on this date.
£135.0m RCF and £50.0m ACF. As at
31 December 2024, one member of the
syndicate was outstanding to commit to
the facility, with the total available from
the committed 7 lenders as at
31 December 2024 being £119.2m RCF
and £44.2m ACF, totalling £163.4m.
The final syndicate member joined the
facility on 31 January 2025 therefore
the full facility of £135.0m RCF and
£50.0m ACF became available to draw
down upon on this date.
Interest payable on drawn element
Agreed margin based upon covenant test result (currently 2.25%) plus Sterling
Overnight Index Average rate (SONIA) to be paid at the end of each calendar quarter
(beginning 31 March 2025).
Interest payable on undrawn element
0.35% of margin on drawn element.
Total drawdown at 31 December 2024
£37.0m, drawn down on 19 December
2024.
£7.5m, drawn down on 30 December
2024.
144
FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
21. Financial assets and liabilities
The Group is exposed to foreign currency, interest rate, liquidity, credit and equity risks. Each of these risks, the associated financial
instruments and the management of those risks are detailed below.
The Group’s financial instruments are classified under IFRS, at amortised cost, as follows:
31 December 2024 31 December 2023
£m £m
Current assets
Cash 50.5 19.8
Trade receivables 74.0 54.8
Other receivables 2.7 0.8
Accrued income 2.2 2.6
129.4 78.0
Current liabilities
Trade payables (15.1) (10.8)
Amounts due to related parties (1.0) –
Accruals (22.5) (19.6)
(38.6) (30.4)
Non-current liabilities
Long-term accruals (2.7) –
Long-term borrowings (40.4) (263.7)
(43.1) (263.7)
The Group’s financial instruments classified under IFRS, at fair value, are as follows:
31 December 2024 31 December 2023
£m £m
Current assets
Short-term derivative assets – 0.5
– 0.5
Current liabilities
Short-term derivative liabilities (1.3) (0.1)
(1.3) (0.1)
Non-current liabilities
Long-term derivative liabilities – (2.8)
– (2.8)
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Maturity analysis
Less than One to Three months One to
one month three months to one year five years Total
31 December 2024 £m £m £m £m £m
Current assets
Cash 50.5 – – – 50.5
Trade receivables 18.3 36.7 19.0 – 74.0
Other receivables – 2.7 – – 2.7
Accrued income 2.2 – – – 2.2
Current liabilities
Short-term derivative liabilities – (0.6) (0.7) – (1.3)
Trade payables (12.9) (2.2) – – (15.1)
Accruals – (22.5) – – (22.5)
Non-current liabilities
Long-term accruals – – – (2.7) (2.7)
Long-term borrowings – – – (45.8) (45.8)
58.1 14.1 18.3 (48.5) 42.0
Less than One to Three months One to
one month three months to one year five years Total
31 December 2023 £m £m £m £m £m
Current assets
Cash 19.8 – – – 19.8
Short-term derivative assets – 0.3 0.2 – 0.5
Trade receivables 11.8 27.9 15.1 – 54.8
Other receivables – 0.8 – – 0.8
Accrued income 2.6 – – – 2.6
Current liabilities
Short-term derivative liabilities – (0.1) – – (0.1)
Trade payables (8.8) (2.0) – – (10.8)
Accruals – (19.6) – – (19.6)
Non-current liabilities
Long-term derivative liabilities – 0.2 (0.8) (2.2) (2.8)
Long-term borrowings – – – (294.1) (294.1)
25.4 7.5 14.5 (296.3) (248.9)
The long-term borrowing’s contractual features are detailed in note 20. The debt shown in the table above is inclusive of the
projected interest payments in accordance with IFRS7 (interest on short and long-term borrowings of £5.4m (2023: £30.4m)).
Reclassifications
There have been no reclassifications between financial instrument categories during the years ended 31 December 2024 and
31 December 2023.
Fair value of financial instruments
Financial instruments are either carried at amortised cost, less any provision for impairment, or fair value.
146
FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
•
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;
•
Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or
indirectly; and
•
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market
data.
As at 31 December 2024, the only financial instruments measured at fair value were derivative financial assets/liabilities (forward
foreign currency contracts) and these are classified as Level 2.
Type of financial
instrument at Level 2 Measurement technique Main assumptions Main inputs used
Derivative assets and liabilities Present-value method
There are no amounts of collateral held as security in respect of the derivative financial instruments.
Cash, trade receivables, trade accounts payable and borrowings
The carrying amounts of cash, trade receivables and trade payables are approximately equivalent to their fair value because of the
short term to maturity. In the case of borrowings, the floating rate of interest (SONIA plus margin) allows the carrying value to
approximate to fair value.
Market risk
The Group is exposed to market risk primarily from changes in foreign currency exchange rates and interest rates.
Currency risk
The Group’s primary objective in managing foreign currency risk is to protect against the risk that the eventual Sterling net cash
flows will be adversely affected by changes in foreign currency exchange rates. Due to the Group’s operations in India, the Group has
entered into foreign exchange contracts that limit the risk from movements in US Dollars with the Indian Rupee exchange rate. The
Group additionally enters into foreign exchange contracts that limit the risk from movements in US Dollars and Euros with Pounds
Sterling.
The Group’s exposure to foreign currencies arising from financial instruments is:
US Dollar Euro Other Total
31 December 2024 £m £m £m £m
Exposures
Cash 27.3 1.1 16.5 44.9
Short- and long-term derivative assets/(liabilities) (0.8) – – (0.8)
Trade receivables 41.9 7.7 3.6 53.2
Trade accounts payable (1.3) – (0.6) (1.9)
Net exposure 67.1 8.8 19.5 95.4
Observable market exchange
rates
Determining the present value of
financial instruments as the current
value of future cash flows, taking
into account current market
exchange rates
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ANNUAL REPORT AND ACCOUNTS 2024
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US Dollar Euro Other Total
31 December 2023 £m £m £m £m
Exposures
Cash 7.2 1.2 6.1 14.5
Short- and long-term derivative assets/(liabilities) 0.4 – – 0.4
Trade receivables 30.0 4.6 2.7 37.3
Trade accounts payable (1.0) – (0.2) (1.2)
Net exposure 36.6 5.8 8.6 51.0
Forecast sales and purchases in foreign currencies have not been included in the table above as they are not financial instruments.
As at 31 December, a movement of 10% in Sterling (reflecting a significant but reasonably plausible scenario) would impact the
income statement as detailed in the table below:
10% decrease 10% increase
2024 2023 2024 2023
£m £m £m £m
Impact on profit before income tax:
US Dollar 7.5 4.1 (6.1) (3.3)
Euro 0.9 0.6 (0.8) (0.5)
8.4 4.7 (6.9) (3.8)
This analysis assumes a movement in Sterling across all currencies and only includes the effect of foreign exchange movements on
financial instruments. All other variables remain constant.
Interest rate risk
The Group is exposed to interest rate risk on its overdraft and the outstanding syndicated loans. No other liabilities accrue interest.
The table below shows how a movement in interest rates of 100 basis points (reflecting a significant but reasonably plausible
scenario) would impact the income statement based on the additional interest expense for the year then ended:
100 basis point decrease 100 basis point increase
2024 2023 2024 2023
£m £m £m £m
Impact on:
Net earnings before income tax (0.4) – 0.4 –
This analysis assumes all other variables remain constant.
The balance of £nil in both years in 2023 reflects that the Group had entered into an interest rate swap in relation to the previously
held loan facilities on 21 October 2022; further details are disclosed in note 16. If the Group had not entered into the swap and was
still exposed to interest rate risk an increase in interest rates of 100 basis points would have given rise to an additional interest
expense of £2.6m, likewise a reduction in interest rates of 100 basis points would have reduced interest expense by £2.6m for the
year ended 31 December 2023.
Liquidity risk
Liquidity risk represents the Group’s ability to meet its contractual obligations. The Group evaluates its liquidity requirements on an
ongoing basis. In general, the Group generates sufficient cash flows from its operating activities to meet its financial liabilities.
The Group’s main source of financing for its working capital requirements is free cash flow.
The Group’s exposure to liquidity risk arises from trade accounts payable and syndicated loans. All contractual cash flows from trade
accounts payable are the same as the carrying value of the liability due to their short-term nature.
At 31 December 2024, the Group had a total RCF drawdown of £44.5m and an available but undrawn RCF of £295.5m. See note 20
for further details.
148
FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
Credit risk
In the normal course of its business, the Group is exposed to credit risk from cash and trade and other receivables. Credit risk refers
to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. Trade receivables
consist of a large number of customers, spread across diverse industries and geographic markets, and the Group’s exposure to
credit risk is influenced mainly by the individual characteristics of each customer. The Group has adopted an approach of assessing
factors such as counterparty size, location and payment history as a means of mitigating the risk of financial loss from defaults. The
Group defines default as the debt being deemed completely unrecoverable, at this point the receivable is written off.
A total of £129.4m of the Group’s assets are subject to credit risk (31 December 2023: £78.0m). The Group does not hold any
collateral over these amounts. See note 17 for further details of the Group’s receivables.
The Group recognises lifetime expected credit losses (within the ECL provision) which are estimated using a provision matrix based
on the Group’s historical credit loss experience, as shown below, adjusted for factors that are specific to the debtors, general
economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date. The
other classes within trade and other receivables do not contain impaired assets.
The write-off history, including 2024, is shown as below:
2024 2023 2022 2021 2020 2019 2018
Revenue (£m) 285.5 273.1 243.2 189.3 178.4 178.2 157.6
Provision added for bad debt (£m) 1.0 2.3 1.1 1.4 1.7 2.9 2.4
% of revenue 0.4% 0.8% 0.5% 0.7% 1.0% 1.6% 1.5%
The Group considers the current level of its allowance for doubtful debts to be adequate to cover expected credit losses on trade
receivables. Bad debt expenses are reported in the income statement.
Equity risk
It is the Group’s policy to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain the
development of the business. See note 24 for further details of the Group’s equity. The impact of the sensitivity analysis noted in the
various risk categories above would impact the income statement for the year.
22. Cash flow from movement in working capital
The following table reconciles the movement in statement of financial position balances (including current and non-current
balances) to the movement presented in the consolidated statement of cash flows for receivables and payables.
Trade and other
Trade and other payables (note 19),
receivables including deferred
(note 17) revenue
2024 £m £m
At 31 December 2024 89.9 (160.5)
At 31 December 2023 69.2 (137.0)
Consolidated Statement of Financial Position movement (20.7) 23.5
Transaction costs relating to sale of 40% of Healthcare business to
non-controlling interest (2.8) 2.8
Contingent consideration paid – 0.5
Tax related adjustments – (0.9)
Movement as a result of business combinations 9.5 (21.2)
Movement as shown in Consolidated Statement of Cash Flows (14.0) 4.7
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Trade and other
Trade and other payables (note 19),
receivables including deferred
(note 17) revenue
2023 £m £m
At 31 December 2023 69.2 (137.0)
At 31 December 2022 62.7 (137.3)
Consolidated Statement of Financial Position movement (6.5) (0.3)
Contingent consideration paid – 0.2
Lease accounting related adjustments – (0.6)
Tax related adjustments – (0.4)
Movement as shown in Consolidated Statement of Cash Flows (6.5) (1.1)
23. Provisions
The movement in the provisions is as follows:
Dilapidations
Right-of-use Dilapidations
assets Other Total
£m £m £m
At 1 January 2023 0.5 0.9 1.4
Increase in provision 0.1 – 0.1
At 31 December 2023 0.6 0.9 1.5
Increase in provision 0.1 0.1 0.2
At 31 December 2024 0.7 1.0 1.7
Current: 0.2 – 0.2
Non-current: 0.5 1.0 1.5
Dilapidations
Provision has been made for the net present value of future dilapidations that are owed due to legal or constructive obligations
under the Group’s leases of office premises. The provision is expected to be utilised over the period to the end of each specific lease,
over a period of less than one year to 9 years. Due to the nature of the obligations, there is a good degree of certainty over the
amount and timing of the expected cash flows. There is no expectation of reimbursement in relation to these obligations.
24. Equity
Share capital
Authorised, allotted, called up and fully paid:
31 December 2024 31 December 2023
Percentage Percentage
of Total of Total
No’000s Shares £000s No’000s Shares £000s
Ordinary shares at 1 January (£0.0001) 845,028 84 845,028 84
Cancellation of shares: share buyback programme (14,133) (1) – –
Ordinary shares at 31 December (£0.0001) 830,895 99.99 83 845,028 99.99 84
Deferred shares of £1.00 each 100 0.01 100 100 0.01 100
Total authorised, allotted, called up and fully paid 830,995 100 183 845,128 100.00 184
150
FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
Share Purchases
During the year the Group’s Employee Benefit Trust purchased an aggregate amount of 24,689,068 shares (representing 3.0% of
the total share capital), each with a nominal value of 1/100th pence, at a total market value of £52.5m. The purchased shares will be
held for the purpose of satisfying the exercise of share options under the Company’s Employee Share Option Plan.
During the year, a total of 9,692,168 shares (representing 1.2% of the total share capital), each with a nominal value of 1/100th
pence, which were held by the Group’s Employee Benefit Trust were utilised as a result of the vesting of the final tranche of Scheme
1 share options (at a total market value of £18.1m), as disclosed in note 25.
The maximum number of shares (each with a nominal value of 1/100th pence) held by the Employee Benefit Trust (at any time
during the year ended 31 December 2024) was 52,882,459 (representing 6.4% of the total share capital). The purchase of shares
by the trust is to limit the eventual dilution to existing shareholders. As at 31 December 2024, no dilution is currently forecast.
Vesting Schedule 2025 No. 2026 No. 2027 No. Total No.
Scheme 1* 603,625 603,625 – 1,207,250
Scheme 2** 6,500,711 6,250,000 6,250,000 19,000,711
Scheme 4 2,600,793 5,023,015 17,580,554 25,204,362
Total 9,705,129 11,876,640 23,830,554 45,412,323
Shares held in trust (9,705,129) (11,876,640) (23,830,554) (45,412,323)
Net dilution 0 0 0 0
* The remaining share options in Scheme 1 can be exercised anytime until August 2033 and therefore for the purposes of this analysis
we have assumed they will be exercised within the next two years.
** It has been assumed that 250,711 unexercised share options that vested on 7 March 2024 with respect to the Scheme 2 2023
performance period will be exercised during 2025.
Share Purchases for Cancellation
On 31 July 2024, the Group announced a return of surplus capital of £10.0m to shareholders, implemented through a share
buyback programme of the Group's ordinary shares, which was completed on 5 September 2024. On 23 September 2024, the
Group announced an additional return of surplus capital of £20.0m to shareholders, which was implemented in the same way as the
initial £10m. As at 31 December 2024, the total value of shares bought back and cancelled was £29.3m. The final £0.7m was
purchased and cancelled in January 2025, thereby completing the second tranche of the buyback programmes.
The purpose of the share buyback programmes was to return surplus capital to shareholders and reduce the Group's share capital.
As such, all ordinary shares repurchased by the Group under the share buyback programmes were cancelled.
Capital management
The Group’s capital management objectives are:
•
To ensure the Group’s ability to continue as a going concern; and
•
To fund future growth and provide an adequate return to shareholders and, when appropriate, distribute dividends.
The capital structure of the Group consists of net bank debt, which includes borrowings (note 20) and cash and cash equivalents,
and equity.
The Company has two classes of shares. The ordinary shares carry no right to fixed income and each share carries the right to one
vote at general meetings of the Company.
The deferred shares do not confer upon the holders the right to receive any dividend, distribution or other participation in the profits
of the Company. The deferred shares do not entitle the holders to receive notice of or to attend and speak or vote at any general
meeting of the Company. On distribution of assets on liquidation or otherwise, the surplus assets of the Company remaining after
payments of its liabilities shall be applied first in repaying to holders of the deferred shares the nominal amounts and any premiums
paid up or credited as paid up on such shares, and second the balance of such assets shall belong to and be distributed among the
holders of the ordinary shares in proportion to the nominal amounts paid up on the ordinary shares held by them respectively.
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There are no specific restrictions on the size of a holding nor on the transfer of shares, which are both governed by the general
provisions of the Articles of Association and prevailing legislation. The Directors are not aware of any agreements between holders of
the Company’s shares that may result in restrictions on the transfer of securities or on voting rights.
No person has any special rights of control over the Company’s share capital and all its issued shares are fully paid.
With regard to the appointment and replacement of Directors, the Company is governed by its Articles of Association, the Companies
Act and related legislation. The Articles themselves may be amended by special resolution of the shareholders. The powers of
Directors are described in the Board Terms of Reference, copies of which are available on request.
Dividends
The final dividend for 2023 was 3.2 pence per share and was paid in April 2024. The total dividend for the current year is 2.5 pence
per share, with an interim dividend of 1.5 pence per share paid on 4 October 2024 to shareholders on the register at the close of
business on 6 September 2024, and a final dividend of 1.0 pence per share will be paid on 2 May 2025 to shareholders on the
register at the close of business on 21 March 2025. The ex-dividend date will be on 20 March 2025.
Treasury reserve
The treasury reserve represents the cost of shares held in the Group’s Employee Benefit Trust for the purpose of satisfying the
exercise of share options under the Company’s Employee Share Option Plan.
Cash flow hedge reserve
The cash flow hedge reserve contains the fair valuation movements arising from revaluation of interest rate swaps. Changes in fair
value of derivative financial instruments that are designated, and effective, cash flow hedges of forecast transactions are recognised
in other comprehensive income and accumulated under the heading of cash flow hedge reserve, limited to the cumulative change in
fair value of the hedged item from inception of the hedge. The gain or loss relating to the ineffective portion is recognised
immediately in profit or loss. The cumulative amount recognised in other comprehensive income and accumulated in equity is
reclassified into the consolidated income statement out of other comprehensive income in the same period when the hedged item is
recognised in profit or loss.
The disclosures above are for both the Group and the Company.
Non-controlling interest
The put option in relation to the sale of 40% of the Group’s Healthcare business was exercised on 4 June 2024. At this point the sale
had been committed to, and legal completion followed shortly afterwards on 28 June 2024, with the Group receiving gross cash
proceeds of £451.4m, of which £8.0m was recognised as a related party loan due to Monument Bidco Limited (an Inflexion
investment company) at the point of completion which was capitalised during December 2024. As a result of this sale, in line with
the provisions of IFRS10: Consolidated Financial Statements, the Group has recognised non-controlling interest (NCI) within equity
which represents 40% of the Healthcare business sub-group’s statement of financial position as at the date of recognition of NCI
which has been determined as 4 June 2024, being the date the put option was exercised.
Since initial recognition of NCI on 4 June 2024, the following has been allocated to NCI:
•
40% of the Healthcare business sub-group’s profit after tax;
•
40% of the Healthcare business sub-group’s tax entries which have been recognised directly in reserves;
•
40% of the movement on the Healthcare sub-group’s share-based payment reserve; and
•
40% of the movement on the Healthcare sub-group’s foreign currency translation reserve.
Legal and professional transaction fees incurred by the Group in relation to this sale of NCI have been recognised directly in equity
within the Group’s Statement of Changes in Equity given they are linked to an equity transaction. For the year ended 31 December
2024 these fees totalled £30.6m.
152
FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
Summarised financial information in respect of the Group’s non-controlling interest is set out below, as at 31 December 2024 the
non-controlling interest represents 40% non-controlling interest in the Group’s Healthcare business:
31 December 2024
£m
Statement of Financial Position Summary:
Non-current assets 76.1
Current assets 62.7
Current liabilities (59.9)
Non-current liabilities (36.1)
Equity attributable to owners of the Company 42.8
Non-controlling interest 17.1
Year ended
31 December 2024
£m
Income Statement Summary:
Revenue 63.3
Profit after tax 17.3
Other comprehensive income 2.0
Total comprehensive income 19.3
Total comprehensive income – non-controlling interest 7.7
Statement of Cash Flows Summary:
Cash flows used in operating activities (10.5)
Cash flows used in investing activities (18.7)
Cash flows from financing activities 27.3
Total cash flows (1.9)
Other reserve
Other reserve consists of a reserve created upon the reverse acquisition of TMN Group Plc in 2009.
Foreign currency translation reserve
The foreign currency translation reserve contains the translation differences that arise upon translating the results of subsidiaries
with a functional currency other than Sterling. Such exchange differences are recognised in the income statement in the period in
which a foreign operation is disposed of.
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25. Share-based payments
Scheme 1 – fully vested and closed to new participants
The Group created a share option scheme during the year ended 31 December 2010 and granted the first options under the scheme
on 1 January 2011 to certain senior employees. Each option granted converts to one ordinary share on exercise. A participant may
exercise their options subject to employment conditions and Adjusted EBITDA targets being met. For these options to be exercised
the Group’s earnings before interest, taxation, depreciation and amortisation, as adjusted by the Remuneration Committee for
significant or one-off occurrences, must exceed certain targets. The fair values of options granted were determined using the Black-
Scholes model. The inputs used in the model were:
•
share price at date of grant;
•
exercise price;
•
time to maturity;
•
annual risk-free interest rate; and
•
annualised volatility.
Each of the awards were subject to vesting criteria set by the Remuneration Committee. As disclosed in the 2021 Annual Report and
Accounts, the final vesting target of £52m Adjusted EBITDA (excluding the impact of IFRS16) was met in the financial year ending
31 December 2021 and therefore the final tranche of Scheme 1 options vested during 2022. Scheme 1 is now therefore closed.
The total charge recognised for the scheme during the 12 months to 31 December 2024 was £nil (2023: £nil).
The Remuneration Committee approved the vesting of the final tranche of Scheme 1 on 11 August 2022. The awards of the scheme
were settled with ordinary shares of the Company. Whilst the majority of participants chose to exercise their options during the year
ended 31 December 2022, holders of the remaining 14.3m options (post share reorganisation) chose to defer their exercise, as
allowable under the scheme rules. During the year ended 31 December 2023, 9.8m of these options were exercised, resulting in
4.5m deferred options as at 31 December 2023. During the year ended 31 December 2024, 3.3m of the deferred options were
exercised.
Reconciliation of movement in the number of options is provided below. No new grants were awarded during 2024.
Option
exercise Remaining
price life Number of
(pence) (years) options
31 December 2023 1/100th 0.0 4,461,611
Exercised 1/100th N/A (3,254,361)
31 December 2024 1/100th 0.0 1,207,250
The options carried forward as at 31 December 2024 are both outstanding and exercisable. The maximum term of the remaining
options outstanding is 9 years, ending in August 2033.
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FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
Scheme 2 – 2019 scheme
The following assumptions were used in the valuation:
Award tranche Award 1 Award 2 Award 3 Award 5 Award 7 Award 8 Award 9
Grant date 31/10/19 07/05/20 25/05/20 22/09/20 23/03/21 31/01/23 22/01/24
Expected dividend yield 3.06% 3.06% 3.06% 3.06% 3.06% 3.57% Note 1
Volatility 26.87% 26.87% 26.87% 26.87% 26.87% 28.62% Note 1
Initial share price (pre capital
reorganisation) £12.25 £12.25 £12.25 £12.25 £12.25 £12.55 Note 1
Initial share price (post capital
reorganisation) £1.72 £1.72 £1.72 £1.72 £1.72 £1.76 Note 1
Group achieves £100m EBITDA
by 1 March 2024 25% vest 25% vest 25% vest 25% vest 25% vest 25% vest 100% vest
Fair value (pre capital
reorganisation) £11.79 £11.79 £11.79 £11.79 £11.79 £12.07 £14.00
Fair value (post capital
reorganisation) £1.65 £1.65 £1.65 £1.65 £1.65 £1.69 £1.96
Risk-free interest rate 3.17% 3.17% 3.17% 3.17% 3.17% 3.24% Note 1
Estimated forfeiture rate 0% 0% 0% 0% 0% 0% 0%
Remaining contractual life N/A N/A N/A N/A N/A N/A N/A
Group achieves £110m EBITDA
by 1 March 2025 25% vest 25% vest 25% vest 25% vest 25% vest 25% vest N/A
Fair value (pre capital
reorganisation) £11.43 £11.43 £11.43 £11.43 £11.43 £11.65 N/A
Fair value (post capital
reorganisation) £1.60 £1.60 £1.60 £1.60 £1.60 £1.63 N/A
Risk-free interest rate 3.24% 3.24% 3.24% 3.24% 3.24% 3.32% N/A
Estimated forfeiture rate 0% 0% 0% 0% 0% 0% N/A
Remaining contractual life 0.17 0.17 0.17 0.17 0.17 0.17 N/A
Group achieves £125m EBITDA
by 1 March 2026 25% vest 25% vest 25% vest 25% vest 25% vest 25% vest N/A
Fair value (pre capital
reorganisation) £11.09 £11.09 £11.09 £11.09 £11.09 £11.24 N/A
Fair value (post capital
reorganisation) £1.55 £1.55 £1.55 £1.55 £1.55 £1.57 N/A
Risk-free interest rate 3.20% 3.20% 3.20% 3.20% 3.20% 3.12% N/A
Estimated forfeiture rate 5% 5% 5% 5% 5% 4% N/A
Remaining contractual life 1.17 1.17 1.17 1.17 1.17 1.17 N/A
Group achieves £145m EBITDA
by 1 March 2027 25% vest 25% vest 25% vest 25% vest 25% vest 25% vest N/A
Fair value (pre capital
reorganisation) £10.76 £10.76 £10.76 £10.76 £10.76 £10.85 N/A
Fair value (post capital
reorganisation) £1.51 £1.51 £1.51 £1.51 £1.51 £1.52 N/A
Risk-free interest rate 3.24% 3.24% 3.24% 3.24% 3.24% 3.21% N/A
Estimated forfeiture rate 9% 9% 9% 9% 9% 4% N/A
Remaining contractual life 2.17 2.17 2.17 2.17 2.17 2.17 N/A
Note 1: Award 9 was granted and exercised almost immediately therefore the fair value at grant date was calculated as being equal
to the share price at the date of award.
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Awards 4 and 6 have been fully forfeited. Award 9 was granted with 100% of the options vesting in 2024. For all options noted
within the table above, the exercise price per option is £0.0001 (equivalent to 1/100th pence) and the expected dividend yield has
been assumed to be paid throughout the performance period. The volatility used within the calculations was determined by
calculating the Group’s observed historical volatility over a period equal to the time until the end of the assumed maturity date.
The estimated forfeiture rate assumption is based upon Management’s expectation of the number of options that will lapse over the
vesting period and are reviewed annually. Management believes the current assumptions to be reasonable.
The total charge recognised for the scheme during the 12 months to 31 December 2024 was £12.6m (2023: £13.6m). The awards
of the scheme will be settled with ordinary shares of the Company.
Reconciliation of movement in the number of options in Scheme 2 is provided below.
Option
exercise Remaining
price life Number of
(pence) (years) options
31 December 2023 1/100th 1.7 26,499,998
Granted 1/100th N/A 63,529
Exercised 1/100th N/A (6,437,816)
Forfeited 1/100th N/A (1,125,000)
31 December 2024 1/100th 1.2 19,000,711
The options carried forward as at 31 December 2024 are both outstanding and exercisable.
Scheme 4 – 2021 scheme
The following assumptions were used in the valuation:
Award tranche Award 1 Award 2 Award 3 Award 4 Award 5
Grant date 07/03/22 31/01/23 23/05/23 22/01/2024 21/05/2024
Expected dividend yield 3.06% 3.57% 3.34% 1.60% 1.04%
Volatility 26.87% 28.62% 29.40% 28.25% 29.14%
Initial share price (pre capital reorganisation) £12.25 £12.55 £13.10 £13.93 £16.14
Initial share price (post capital reorganisation) £1.72 £1.76 £1.83 £1.95 £2.26
Group achieves £110m EBITDA by 1 March 2025 10% vest 10% vest 10% vest 10% vest 10% vest
Fair value (pre capital reorganisation) £11.43 £11.65 £12.35 £13.68 £16.01
Fair value (post capital reorganisation) £1.60 £1.63 £1.73 £1.92 £2.24
Risk-free interest rate 3.24% 3.32% 4.10% 4.72% 4.74%
Estimated forfeiture rate 0% 0% 0% 0% 0%
Remaining contractual life 0.17 0.17 0.17 0.17 0.17
Group achieves £125m EBITDA by 1 March 2026 20% vest 20% vest 20% vest 20% vest 20% vest
Fair value (pre capital reorganisation) £11.09 £11.24 £11.94 £11.94 £11.94
Fair value (post capital reorganisation) £1.55 £1.57 £1.67 £1.67 £1.67
Risk-free interest rate 3.20% 3.12% 4.02% 4.17% 4.27%
Estimated forfeiture rate 9% 8% 8% 8% 0%
Remaining contractual life 1.17 1.17 1.17 1.17 1.17
Group achieves £145m EBITDA by 1 March 2027 70% vest 70% vest 70% vest 70% vest 70% vest
Fair value (pre capital reorganisation) £10.76 £10.85 £11.55 £11.55 £11.55
Fair value (post capital reorganisation) £1.51 £1.52 £1.62 £1.62 £1.62
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FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
Award tranche Award 1 Award 2 Award 3 Award 4 Award 5
Risk-free interest rate 3.24% 3.21% 3.97% 3.87% 4.07%
Estimated forfeiture rate 16% 8% 8% 8% 0%
Remaining contractual life 2.17 2.17 2.17 2.17 2.17
For all options noted within the table above, the exercise price per option is £0.0001 (equivalent to 1/100th pence) and the
expected dividend yield has been assumed to be paid throughout the performance period. The volatility used within the calculations
was determined by calculating the Group’s observed historical volatility over a period equal to the time until the end of the assumed
maturity date.
The estimated forfeiture rate assumption is based upon management’s expectation of the number of options that will lapse over the
vesting period and are reviewed annually. Management believes the current assumptions to be reasonable.
The total charge recognised for the scheme during the 12 months to 31 December 2024 was £11.5m (2023: £5.8m). The awards of
the scheme will be settled with ordinary shares of the Company.
Reconciliation of movement in the number of options in Scheme 4 is provided below.
Option
exercise Remaining
price life Number of
(pence) (years) options
31 December 2023 1/100th 2.8 19,642,763
Granted 1/100th N/A 6,829,456
Forfeited 1/100th N/A (1,267,857)
31 December 2024 1/100th 1.8 25,204,362
The options carried forward as at 31 December 2024 are both outstanding and exercisable.
Vesting of options
As a result of options from Schemes 1 and 2 vesting during the year, £17.3m was transferred from the Group’s treasury reserve to
retained earnings of which £18.1m is distributable. The weighted average price of the exercised options at the date of exercise was
£1.86 per share.
26. Contingent liabilities and capital commitments
There were no contingent liabilities as at 31 December 2024.
As at 31 December 2023, the Group had a contingent liability in relation to professional fees incurred which became payable upon
completion of the investment agreement. The total potential fee payable amounted to £6.6m, of which £5.5m was paid during the
year ended 31 December 2024.
Contingent tax liabilities as at 31 December 2024 were £nil (2023: £20.7m). As a 31 December 2023 taxation charges were
expected to crystallise within the Group as a result of entering into the investment agreement, based on the steps required to re-
organise the Healthcare business into its own corporate perimeter. The ultimate cash tax payable was estimated to total £20.7m,
with the final tax charge in relation to the transaction now being reflected in Consolidated Income Statement for the year ended
31 December 2024.
There were no capital commitments as at 31 December 2024 or 31 December 2023.
27. Acquisitions
Business Trade Media International Limited
On 31 July 2024 the Group acquired 100% of the share capital of Business Trade Media International Limited (“BTMI”) for cash
consideration of £6.3m. The bolt-on acquisition adds a number of established digital media and industry news brands, which align
to our sector coverage, and brings an additional annual digital audience of 4m business leaders and decision-makers and will help
accelerate the GlobalData ‘Curve’ Strategy.
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The amounts recognised for each class of assets and liabilities at the acquisition date were as follows:
Carrying Fair value
value adjustments Fair value
£m £m £m
Intangible assets consisting of:
Customer relationships – 2.0 2.0
Trade names – 1.9 1.9
Database – 0.4 0.4
Net assets acquired consisting of:
Goodwill 1.1 (1.1) –
Trade and other receivables 1.3 – 1.3
Trade and other payables (3.6) 0.6 (3.0)
Borrowings (3.7) – (3.7)
Deferred tax – (0.2) (0.2)
Fair value of net (liabilities)/assets acquired (4.9) 3.6 (1.3)
The goodwill recognised in relation to the acquisition is as follows:
Fair value
£m
Consideration 6.3
Less working capital adjustment (0.1)
Plus net liabilities acquired 1.3
Goodwill 7.5
At the date of acquisition, the Group settled £3.7m of the acquiree’s pre-existing borrowings, which has become an inter-company
payable due back to the Group within the statement of financial position of the acquiree. This payment has not been treated as part
of the acquisition consideration.
In line with the provision of IFRS3, fair value adjustments may be made within the 12-month period from the date of acquisition
which would result in an adjustment to the goodwill balance reported above. The goodwill that arose on the combination can be
attributed to the assembled workforce, know-how and research methodology. The fair values of the identified intangible assets were
calculated in line with the policies detailed on page 116. The amount of goodwill which is expected to be deductible for tax purposes
is £nil.
The Group incurred legal and professional expenses of £0.3m and a lease termination fee of £0.6m in relation to the acquisition,
both of which were recognised in adjusting items in the income statement. In the period from the date of acquisition to 31
December 2024, the trade of BTMI generated revenues of £3.7m and Adjusted EBITDA of £0.8m.
JobDig, Inc (doing business as LinkUp)
On 27 October 2024 the Group acquired 100% of the share capital of JobDig Inc (doing business as LinkUp, “LinkUp”), for cash
consideration of £18.4m. LinkUp is a leading provider of global job market data. Founded in 2007, LinkUp delivers labour
intelligence of the highest accuracy, timeliness, and quality to leading hedge funds, financial services firms, and human capital
management organisations. This addition represents further execution against our bolt-on acquisition strategy, adding to the
Group's growing strategic intelligence offering as well as strengthening its presence within the financial markets audience.
A financial liability in relation to a number of contingent consideration payments due for settlement during 2025 and 2026 to a
maximum amount of $4.0m (GBP equivalent at the date of acquisition being £3.1m) has been recognised, and forms part of the
acquisition consideration due to not being conditional on employment. This represents the total potential payout in full based on the
agreed terms. Payment is contingent on certain volume renewal rates and integration milestones being achieved during 2025.
Future amendments to the financial liability based upon updated assessments of fair value will be recognised within the income
statement.
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FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
In addition, there are a number of contingent consideration payments due for settlement during 2025 and 2026 to a maximum
amount of $1.0m, which are being recognised as remuneration expenses within the income statement due to being conditional on
employment and are disclosed as an adjusting item in the income statement.
The amounts recognised for each class of assets and liabilities at the acquisition date were as follows:
Carrying Fair value
value adjustments Fair value
£m £m £m
Intangible assets consisting of:
Customer relationships – 9.6 9.6
Database – 3.2 3.2
Trade names – 0.7 0.7
Net assets acquired consisting of:
Property, plant and equipment 1.5 – 1.5
Intangible assets 0.7 – 0.7
Cash and cash equivalents 1.6 – 1.6
Trade and other receivables 0.8 – 0.8
Trade and other payables (6.5) 0.4 (6.1)
Short and long-term lease liabilities (1.0) – (1.0)
Deferred tax – (0.7) (0.7)
Fair value of net (liabilities)/assets acquired (2.9) 13.2 10.3
The goodwill recognised in relation to the acquisition is as follows:
Fair value
£m
Consideration 18.4
Contingent consideration, not conditional on employment 3.1
Less net assets acquired (10.3)
Goodwill 11.2
At the date of acquisition, the Group settled £3.8m of the acquiree’s accrued transaction costs, which has become an inter-company
payable due back to the Group within the statement of financial position of the acquiree. This payment has not been treated as part
of the acquisition consideration.
In line with the provision of IFRS3, fair value adjustments may be made within the 12-month period from the date of acquisition
which would result in an adjustment to the goodwill balance reported above. The goodwill that arose on the combination can be
attributed to the assembled workforce, know-how and research methodology. The fair values of the identified intangible assets were
calculated in line with the policies detailed on page 116. The amount of goodwill which is expected to be deductible for tax purposes
is £nil.
The Group incurred legal and professional expenses of £1.1m in relation to the acquisition, which were recognised in adjusting items
in the income statement. In the period from the date of acquisition to 31 December 2024, the trade of LinkUp generated revenues of
£1.2m and Adjusted EBITDA of £0.1m.
Celent
On 31 December 2024 the Group acquired 100% of the trade and assets of Celent, for cash consideration of £19.2m. Celent is a
leading research and advisory firm focused on helping technology and strategy leaders in the Financial Services market globally.
Their expert research & consulting for tech leaders, which is deeply focused across several sub-segments within Financial Services,
creates an excellent strategic fit for the Group.
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The amounts recognised for each class of assets and liabilities at the acquisition date were as follows:
Carrying Fair value
value adjustments Fair value
£m £m £m
Intangible assets consisting of:
Customer relationships – 4.6 4.6
Database – 5.4 5.4
Trade names – 1.1 1.1
Net assets acquired consisting of:
Trade and other receivables 3.6 – 3.6
Trade and other payables (5.4) 0.2 (5.2)
Deferred tax – (0.4) (0.4)
Fair value of net (liabilities)/assets acquired (1.8) 10.9 9.1
The goodwill recognised in relation to the acquisition is as follows:
Fair value
£m
Consideration 19.2
Less net assets acquired (9.1)
Goodwill 10.1
In line with the provision of IFRS3, fair value adjustments may be made within the 12-month period from the date of acquisition
which would result in an adjustment to the goodwill balance reported above. The goodwill that arose on the combination can be
attributed to the assembled workforce, know-how and research methodology. The fair values of the identified intangible assets were
calculated in line with the policies detailed on page 116. The amount of goodwill which is expected to be deductible for tax purposes
is £3.9m.
The Group incurred legal and professional expenses of £0.5m in relation to the acquisition, which were recognised in adjusting items
in the income statement. In the period from the date of acquisition to 31 December 2024, the trade of Celent generated revenues of
£nil and Adjusted EBITDA of £nil.
Deallus
On 31 December 2024 the Group acquired 100% of the share capital of Galahad TopCo Limited, which owns the Deallus group of
companies, for cash consideration of £20.8m plus issuance of a loan note of £1.0m which has been classified as an amount owed to
related parties within the Consolidated Statement of Financial Position. The loan note is repayable on 30 June 2025 and accrues
interest at an annual rate of 12%. Deallus is a market-leading competitive intelligence solutions provider focused on the global life
sciences sector. During its 20 years in business, Deallus has built deep sector expertise through supporting clients in key therapy
areas, including Oncology, Neuroscience, Vaccines, Rare Diseases, Cell & Gene, and Immunology. The combination creates the
opportunity for the Group to build deeper, more embedded relationships with major brands within the pharmaceutical sector and
creates the potential for GlobalData to deliver more value to our clients.
160
FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
The amounts recognised for each class of assets and liabilities at the acquisition date were as follows:
Carrying Fair value
value adjustments Fair value
£m £m £m
Intangible assets consisting of:
Customer relationships – 10.1 10.1
Trade names – 5.6 5.6
Net assets acquired consisting of:
Property, plant and equipment 0.4 – 0.4
Cash and cash equivalents 7.3 – 7.3
Trade and other receivables 3.9 – 3.9
Corporation tax 0.2 – 0.2
Trade and other payables (11.9) – (11.9)
Short and long-term lease liabilities (0.4) – (0.4)
Borrowings (7.0) – (7.0)
Deferred tax 0.2 (4.0) (3.8)
Fair value of net (liabilities)/assets acquired (7.3) 11.7 4.4
The goodwill recognised in relation to the acquisition is as follows:
Fair value
£m
Consideration paid in cash 20.8
Consideration settled via issuance of related party loan note 1.0
Less net assets acquired (4.4)
Goodwill 17.4
At the date of acquisition, the Group settled £7.0m of the acquiree’s pre-existing borrowings and £5.2m of the acquiree’s accrued
transaction costs, the total of £12.2m has become an inter-company payable due back to the Group within the statement of financial
position of the acquiree. These payments have not been treated as part of the acquisition consideration.
In line with the provision of IFRS3, fair value adjustments may be made within the 12-month period from the date of acquisition
which would result in an adjustment to the goodwill balance reported above. The goodwill that arose on the combination can be
attributed to the assembled workforce, know-how and research methodology. The fair values of the identified intangible assets were
calculated in line with the policies detailed on page 116. The amount of goodwill which is expected to be deductible for tax purposes
is £nil.
The Group incurred legal and professional expenses of £1.2m in relation to the acquisition, which were recognised in adjusting items
in the income statement. In the period from the date of acquisition to 31 December 2024, the trade of Deallus generated revenues
of £nil and Adjusted EBITDA of £nil.
Impact of Acquisitions
If all four of the Group’s acquisitions made during the year ended 31 December 2024 had occurred on 1 January 2024, Group
revenue would have been £321.8m and Group Adjusted EBITDA would have been at £118.6m.
SiA – Strategy in Action
On 4 June 2024, one of the Group’s 100% owned subsidiaries, GlobalData Investments Limited, made an investment of 16.95% in
the share capital of SIA – Strategy in Action Limited (“SiA”) for cash consideration of £4.0m. SiA is based in the United Kingdom and
is an innovative solution designed to empower organisations to formulate and execute successful business strategies, underpinned
by a cutting-edge strategy workflow product, which is a complimentary product offering for the Group. Management have assessed
that the Group will exercise significant influence over SiA, therefore the investment is accounted for under the equity method. The
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carrying amount of the investment has been adjusted for the Group’s share of the post-acquisition profits or losses of SiA (totalling
£0.04m profit for the year ended 31 December 2024, which has been recognised in the Group’s profit or loss) plus the Group’s share
of the post-acquisition change in other comprehensive income of SiA (totalling £nil for the year ended 31 December 2024, which
has been recognised within other comprehensive income of the Group).
Cash Cost of Acquisitions
The cash cost of acquisitions in 2024 comprises:
31 December 2024
£m
Presented within Operating Activities
Acquisition of TS Lombard:
Contingent consideration 0.5
0.5
31 December 2024
£m
Presented within Investing Activities
Acquisition of BTMI:
Cash consideration 6.3
Working capital adjustment (0.1)
Acquisition of Jobdig, Inc:
Cash consideration 18.4
Cash acquired (1.6)
Settlement of transaction costs (not included within consideration) 3.8
Acquisition of Celent:
Cash consideration 19.2
Acquisition of Deallus:
Cash consideration 20.8
Cash acquired (7.3)
Settlement of transaction costs (not included within consideration) 5.2
SIA – Strategy in Action Limited
Cash consideration 4.0
68.7
31 December 2024
£m
Presented within Financing Activities
Acquisition of BTMI: Settlement of borrowings (not included within consideration) 3.7
Acquisition of Deallus: Settlement of borrowings (not included within consideration) 7.0
10.7
During the year ended 31 December 2023, the Group did not make any acquisitions, however a contingent consideration payment of
£0.2m in relation to the MBI acquisition (acquired during the year ended 31 December 2022) was made.
162
FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
Post year end acquisition of AI Palette
On 7 March 2025, the Group acquired the entire share capital of AI Palette Pte. Ltd and its wholly owned subsidiary for a purchase
price of $11.5m. AI Palette is an AI Powered consumer insights platform offering an Innovation Intelligence solution to the
Consumer-packaged goods sector. In accordance with IFRS3.B66, Management has not been able to estimate the fair value of
goodwill and intangible assets acquired as the acquisition occurred in close proximity to the issuance of these financial statements.
No revenues or profits are included in the Group’s results for the year ended 31 December 2024.
28. Related party transactions
The Board has put in place an additional control framework to ensure related party transactions are well controlled and managed.
Related party transactions are overseen by a subcommittee of the Board. The Related Party Transactions Committee, consisting of
4 Non-Executive Directors and chaired by Murray Legg meets to:
–
Oversee all related party transactions;
–
Ensure transactions are in the best interests of GlobalData and its wider stakeholders; and
–
Ensure all transactions are recorded and disclosed on an arm’s length basis.
The Group has taken advantage of the exemptions contained within IAS24: Related Party Disclosures from the requirement to
disclose transactions between Group companies as these have been eliminated on consolidation.
Related Party Transactions: Ultimate Controlling Party
Mike Danson, GlobalData’s Chief Executive, owned 57.5% of the Company’s ordinary shares as at 31 December 2024 and 57.6% as
at 10 March 2025 and is therefore the Company’s ultimate controlling party. Mike Danson owns a number of other businesses, a
small number of which interact with GlobalData Plc.
During the year, the following related party transactions were entered into by the Group:
Acquisition of Business Trade Media International Limited
On 31 July 2024 we entered into a conditional agreement to acquire the entire issued share capital of Business Trade Media
International Limited reflecting an enterprise value of £10m subject to adjustment via a customary completion accounts mechanism.
The transaction was conditional on shareholder approval as Business Trade Media International Limited was a related party (by virtue
of being indirectly owned by Mike Danson) so had to be approved pursuant to s.190 of the Companies Act 2006. The acquisition was
not a related party transaction for the purposes of the AIM Rules due to its size. A general meeting for the purposes of obtaining
shareholder approval for the acquisition was held during August 2024. The bolt-on acquisition adds a number of established digital
media and industry news brands, which align to our sector coverage, and brings an additional annual digital audience of 4m business
leaders and decision-makers and will help accelerate the GlobalData ‘Curve’ Strategy. The deal completed on 30 August 2024. Since
acquisition, total recharges from NSMGL in relation to Business Trade Media International Limited were £0.3m.
The transaction was overseen by the independent Related Party Committee, who oversaw diligence and valuation work to ensure
that the transaction price reflected an arms-length valuation. The committee concluded, with the aid of a discounted cash flow and
review of comparable market transaction valuation metrics, that the price was fair and reflected a market arms-length transaction.
Accommodation
During the year ended 31 December 2024, related party charges to the Group in respect of accommodation totalled £0.1m
(2023: £0.03m).
Corporate support services
In 2024 net corporate support charges of £0.1m were charged from NS Media Group Limited (“NSMGL”) and net corporate support
charges of £0.1 were charged to Estel Property Investments No.3 Limited (“Estel”), both companies are related parties by virtue of
common ownership (2023: £0.1m charge from NSMGL and £0.1m charge to Estel). In both 2024 and 2023 the corporate support
charges consisted of a share of the India management team cost, shared software costs and recharged salary costs.
Sales distribution
NSMGL acted as a sales distributor for some GlobalData products. On these transactions they charged agent fees of £0.02m
(2023: £0.2m).
Charity donations
During the year the Group paid donations of £nil (2023: £0.04m) to charities in India which were funded by a related party entity,
The Danson Foundation (charity reference 1121928). This was a pass-through transaction, with the Group facilitating payment to
charities in India.
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Balances Outstanding
As at 31 December 2024, the total balance receivable from NSMGL was £0.002m (2023: £nil). There is no specific credit loss
provision in place in relation to this receivable and the total expense recognised during the period in respect of bad or doubtful debts
was £nil.
Related Party Transactions: Directors and Key Management Personnel
Investment in SIA – Strategy In Action Limited
On 4 June 2024, the Group made an investment of 16.95% in the share capital of SIA – Strategy in Action Limited (“SiA”) for cash
consideration of £4.0m, as discussed further in note 27. The Group has representation on the Board and Julien Decot is a common
Non-Executive Director across both the Group and SiA. Management have assessed that the Group will exercise significant influence
over SiA, therefore the investment is accounted for using the equity method. The carrying amount of the investment has been
adjusted for the Group’s share of the post-acquisition profits or losses of SiA (totalling £0.04m profit for the year ended
31 December 2024, which has been recognised in the Group’s profit or loss) plus the Group’s share of the post-acquisition change in
other comprehensive income of SiA (totalling £nil for the year ended 31 December 2024, which has been recognised within other
comprehensive income of the Group).
Directors and Key Management Personnel Remuneration
The remuneration of Directors is disclosed within the Directors’ Remuneration Report on page 87.
Balances Outstanding
There were no balances outstanding in relation to Directors and Key Management Personnel as at 31 December 2024 (2023: £nil).
Related Party Transactions: Inflexion Private Equity Partners LLP
Sale of 40% of Healthcare Business
Completion of the sale of 40% of the Group’s Healthcare business resulted in the Group receiving gross cash proceeds of £451.4m,
of which £8.0m was recognised as a related party loan due to Monument Bidco Limited (an Inflexion investment company) at the
point of completion which was then capitalised during December 2024. As such, as at 31 December 2024, there were no
outstanding balances due to Monument Bidco Limited.
In relation to completion of the transaction, the Group settled fees to the Inflexion group of companies totalling £11.4m, these have
been included within the transaction costs recognised directly in equity within the Group’s Consolidated Statement of Changes in Equity.
For the period post-completion of the transaction and ending 31 December 2024, management fees charged from the Inflexion
group of companies to the Group totalled £0.2m (2023: £nil).
Balances Outstanding
There were no balances outstanding in relation to the Inflexion group of companies as at 31 December 2024 (2023: £nil).
Related Party Transactions: Other Related Parties
Balances Outstanding
As at 31 December 2024, there was an outstanding loan note due to the pre-existing management of the Deallus group of
companies amounting to £1.0m, generated as a result of the Deallus acquisition which completed on 31 December 2024 (as
discussed in note 27), this is repayable on 30 June 2025 and accrues interest at an annual rate of 12%.
29. Subsequent events
On 18 December 2024, the Group completed on two debt financing facilities (Healthcare and Non-Healthcare), which both
comprised of 8 syndicate members, however as at 31 December 2024, one member was outstanding to commit to the facilities.
The final syndicate member joined the facility on 31 January 2025, bringing the total available Group facility to £385.0m.
On 6 February 2025, the Group announced its proposed move to the Main Market of the London Stock Exchange, as discussed
further within the Chief Executive’s Report on page 16.
On 6 February 2025, the Group also announced an additional share buyback programme totalling £50.0m.
On 7 March 2025, the Group acquired the entire share capital of AI Palette Pte. Ltd for a purchase price of $11.5m. AI Palette is an
AI Powered consumer insights platform offering an Innovation Intelligence solution to the Consumer-packaged goods sector.
Further detail is given in note 27.
164
FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
Subsidiary undertakings
The Group has a large number of subsidiaries due to the M&A activities in recent years. The Group is continuing to go through a
corporate simplification process to reduce the number of its subsidiaries and focus operations through its main subsidiaries in its
main territories.
The Group owns 100% of the ordinary shares of all subsidiary undertakings listed below with the exception of:
•
Washington Topco Limited, which is 60% owned and is the parent of the dedicated Healthcare subsidiary undertakings. As
previously disclosed, the results of the Washington Topco Limited subgroup are being fully consolidated into the Group results,
with 40% of the subgroups profits and losses being allocated to non-controlling interest within equity; and
•
LMC Automotive (Thailand) Company Limited, which is 49% owned. This entity is being fully consolidated into the Group on the
basis that the Group holds majority voting rights for the entity and has exposure to variable returns, therefore Management has
assessed that the Group has control over the entity.
The listing below shows the subsidiary undertakings as at 31 December 2024:
Subsidiary undertaking
Principal activity
Country of registration
Registered address
GlobalData Australia Pty Limited
GD Healthcare Australia Pty Limited**
Data and analytics
Data and analytics
Australia
c/o Brown Hamilton Partners, Unit 1,
31-39 Norcal Road, Nunawading,
Victoria 3131, Australia
GlobalData Brasil, serviços e
informações empresariais Ltda.*
Data and analytics
Brazil
Rua Tuiuti, 436 Conj 31 – Tatuapé,
São Paulo – SP, 03081-003, Brazil
Adfinitum Networks Inc*
GD Healthcare Canada Inc** (formerly
GlobalData Canada Inc)
Data and analytics
Data and analytics
Canada
77 King Street West, Suite 400, Toronto,
Ontario, M5K 0A1, Canada
Deallus Consulting China Limited**
Data and analytics
China
Room 1201, Block 1, No. 258 Zhijiang
Road, Fengxian District, Shanghai, China
GlobalData Trading (Shanghai) Co
Limited**
Data and analytics
China
Room 368, Area 302, No.211, North Fute
Road, Pilot Free Trade Zone, Shanghai,
China
GlobalData Information Services
(Shanghai) Co. Ltd* (formerly LMC
Automotive Consulting (Shanghai)
Co. Ltd)
Data and analytics
China
Suite 1016J, 10th Floor, Building 1,
No. 1728-1746 West Nanjing Road,
Jing’an District, Shanghai, China
Langbo Economic Research and
Consulting (Shenzhen) Co Ltd*
Data and analytics
China
Unit 35, 13/f Gem Tower, 1306A,
Xizhilang Building, No.2022, Community
Center Road, Yuehai St, Nanshan District,
Shenzhen, China
Lombard Street Research (Asia)
Limited*
TS Lombard (Asia) Limited*
Data and analytics
Non-trading
China
Unit 4, 16/F, Bonham Trade Centre,
50 Bonham Strand, Sheung Wan,
Hong Kong
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Subsidiary undertaking
Principal activity
Country of registration
Registered address
ALF Insight Limited*(1)
Business Trade Media International
Limited*(1)
Canadean Limited(1)
GD UK Healthcare Limited**(1)
GD Healthcare Holding Limited**(1)
GlobalData Holding Limited(1)
GlobalData Investments Limited*(1)
GlobalData UK Limited*
GlobalData EBT Trustees Limited*(1)
Internet Business Group Limited(1)
LMC Automotive Limited*(1)
LMC International Limited*(1)
Lombard Street Research Limited*(1)
Lombard Street Research Financial
Services Limited*
Media Business Insight Limited*(1)
Media Business Insight Holdings
Limited*(1)
Progressive Content Limited*(1)
Progressive Digital Media (Holdings)
Limited(1)
Progressive Digital Media Limited(1)
Research Views Limited*(1)
Trusted Sources Limited*(1)
Trusted Sources UK Limited*(1)
TSL Research Group Limited*(1)
Washington Topco Limited
Washington Midco Limited**(1)
Washington Bidco Limited**(1)
Data and analytics
Data and analytics
Data and analytics
Data and analytics
Holding company
Holding company
Non-trading
Data and analytics
Non-trading
Performance
advertising
Data and analytics
Data and analytics
Data and analytics
Data and analytics
Data and analytics
Holding company
Data and analytics
Holding company
Data and analytics
Holding company
Non-trading
Data and analytics
Holding company
Holding company
Holding company
Holding company
England & Wales
John Carpenter House,
John Carpenter Street,
London, EC4Y 0AN,
United Kingdom
Deallus Consulting Limited**
Deallus Holdings Limited**
Galahad Bidco Limited**
Galahad Midco Limited**
Galahad Topco Limited**
Data and analytics
Data and analytics
Holding company
Holding company
Holding company
England & Wales
1 Poultry,
London, ED2R 8EJ,
United Kingdom
GlobalData France SAS*
Data and analytics
France
133 bis Rue de l’Universite, 75007,
Paris, France
Deallus Consulting India Private
Limited**
Data and analytics
India
Unit No. 705-708, 7th Floor, JMD Regent
Square. MG Road, Gurugram, DLF QE,
Gurgaon, Haryana, 122002, India
166
FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
Subsidiary undertaking
Principal activity
Country of registration
Registered address
GD Research Centre Private Limited*
Vatrix Healthcare Data India Private
Limited**
Data and analytics
Data and analytics
India
3rd Floor, Jyothi Pinnacle Building, SY
No.11, Kondapur Village, Serilingampally
Mandal, Ranga Reddy Dist, Hyderabad,
Telangana- 500081, India
Deallus Consulting Japan K.K**
Data and analytics
Japan
15F Toranomon Hills Business Tower,
1-17-1 Toranomon, Minato-ku, Tokyo,
105 6415, Japan
GD Healthcare Japan KK** (formerly
GlobalData Japan KK)
GlobalData Japan KK*
Data and analytics
Data and analytics
Japan
Tokyo Club Building 11F, 3-2-6
Kasumigaseki, Chiyoda-ku, Tokyo, Japan
Canadean Mexico Y Centro America,
F. De R.L. De C.V*
Data and analytics
Mexico
Avenida Ejército Nacional 769 Piso 2.
Colonia Granada. Alcaldía Miguel Hidalgo.
CP 11520. Ciudad de México
GlobalData Poland sp. z o.o*
Data and analytics
Poland
ul. Grzybowska 2/29, 00-131, Warsaw,
Poland
Deallus Consulting (Singapore)
PTE Ltd**
Data and analytics
Singapore
3791 Jalan Bukit Merah, 03-03 E-Centre,
Redhill, Singapore 159471
GlobalData Pte Limited*
Data and analytics
Singapore
The Executive Centre Singapore, Capital
Square, Level 7 Capital Square,
23 Church Street, Singapore 049481
Progressive Media Korea Limited*
Data and analytics
South Korea
Samsung-dong, ASEM tower, 37th Floor,
517 Yeongdong-daero, Gangnam Gu,
Seoul, Republic of Korea
GD Healthcare Korea Limited**
Data and analytics
South Korea
Dogok-dong, Tower Palace, Rm. 2005,
20th Floor, Je Di-dong,
56 Eonju-ro 30-gil, Gangnam-gu, Seoul,
Republic of Korea
Deallus AB**
Data and analytics
Sweden
Massingsgatan 5 42671, Vastra, Frolun,
Sweden
GlobalData Switzerland GmbH*
Data and analytics
Switzerland
Route de Divonne 44, 1260 Nyon,
Switzerland
LMC Automotive (Thailand) Company
Limited*
Data and analytics
Thailand
66 Q. House Asoke Building, Room
no.1106, 11th floor, Sukhumvit 21 Road,
Klongtoeynua, Watthana, Bangkok 10110,
Thailand
MEED Media FZ LLC*
Data and analytics
United Arab Emirates
GBS Building, 6th Floor, Dubai Media City,
Dubai, United Arab Emirates
Deallus Consulting Inc**
Data and analytics
United States of America
11500 West Olympic Boulevard,
Los Angeles, CA 90064,
United States of America
GlobalData US, Inc
Global Data Publications, Inc**
Data and analytics
Data and analytics
United States of America
441 Lexington Avenue, 2nd Floor,
New York, NY, 10017,
United States of America
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* indirectly held, 100% ownership
** indirectly held, via 60% ownership of Washington Topco Limited
(1) For the year ended 31 December 2024, GlobalData Plc has provided a guarantee in respect of the outstanding liabilities of the
subsidiary undertaking in accordance with sections 479A – 479C of the Companies Act 2006, as these UK subsidiary companies of
the Group are exempt from the requirements of the Companies Act 2006 relating to the audit of financial statements by virtue of
section 479A of this Act.
In addition to the above, the Group owns the below minority shareholdings:
Legal Entity Principal activity Country of registration Ownership Percentage Registered address
Subsidiary undertaking
Principal activity
Country of registration
Registered address
JobDig, Inc*
Data and analytics
United States of America
430 First Avenue North, Suite 790,
Minneapolis, MN 55401,
United States of America
LMC Automotive US, Inc*
Data and analytics
United States of America
2285 South Michigan Road, Eaton Rapids,
Michigan 48827, United States of America
Lombard Street Research (US), Inc*
Data and analytics
United States of America 15 E. North St. Dover, Delaware 19901,
United States of America
Media Business Insight, Inc*
Data and analytics
United States of America
6671, Sunset Blvd, Suite 1525,
Los Angeles, CA 90028,
United States of America
Maple Building,
39/51 Highgate Road,
London, NW5 1RT,
United Kingdom
17%
England & Wales
Data and analytics
SIA – Strategy in Action
Limited
168
FINANCIAL STATEMENTS
Notes to the Consolidated
Financial Statements (continued)
31 December 2024 31 December 2023
Notes £m £m
Non-current assets
Property, plant and equipment 5 18.0 20.6
Intangible assets 4 3.8 3.3
Investments 7 983.2 225.1
Deferred tax assets 12 3.4 4.1
Trade and other receivables 8 187.2 190.2
1,195.6 443.3
Current assets
Trade and other receivables 8 1.2 3.4
Corporation tax receivable 11.4 10.9
Cash and cash equivalents 2.8 –
15.4 14.3
Total assets 1,211.0 457.6
Current liabilities
Trade and other payables 9 (23.6) (39.1)
Short-term lease liabilities 6 (2.0) (2.0)
(25.6) (41.1)
Non-current liabilities
Long-term derivative liability 11 – (2.8)
Long-term provisions 10 (1.1) (1.0)
Long-term lease liabilities 6 (17.2) (19.5)
Long-term borrowings 11 – (263.7)
(18.3) (287.0)
Total liabilities (43.9) (328.1)
Net assets 1,167.1 129.5
Equity
Share capital 0.2 0.2
Treasury reserve (100.6) (65.4)
Retained earnings 1,267.5 194.7
Equity attributable to equity holders 1,167.1 129.5
These financial statements were approved by the Board of Directors on 10 March 2025 and signed on its behalf by:
Murray Legg Mike Danson
Chair Chief Executive
The accompanying notes form an integral part of these financial statements.
Company profit for the year: £1,132.8m (2023: profit of £14.2m).
Company number: 03925319
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FINANCIAL STATEMENTS
Company Statement of
Financial Position
Treasury Cash flow Retained
Share capital reserve hedge reserve earnings Total equity
£m £m £m £m £m
Balance at 1 January 2023 0.2 (70.8) (3.9) 210.6 136.1
Total comprehensive income – – – 14.2 14.2
Other comprehensive income:
Cash flow hedge – reclassification to profit or
loss upon loan repayment – – 0.4 – 0.4
Cash flow hedge – effective portion of changes
in fair value – – 0.7 – 0.7
Cash flow hedge – reclassification to profit or
loss upon discontinuation of hedge accounting – – 2.8 – 2.8
Transactions with owners:
Dividends – – – (32.2) (32.2)
Share buyback – (11.9) – – (11.9)
Vesting of share options – 17.3 – (17.3) –
Share-based payments charge – – – 19.4 19.4
Balance at 31 December 2023 0.2 (65.4) – 194.7 129.5
Total comprehensive income – – – 1,132.8 1,132.8
Transactions with owners:
Dividends – – – (37.5) (37.5)
Share buyback – (52.5) – – (52.5)
Vesting of share options – 17.3 – (17.3) –
Share buyback and cancellation scheme – – – (29.3) (29.3)
Share-based payments charge – – – 24.1 24.1
Balance at 31 December 2024 0.2 (100.6) – 1,267.5 1,167.1
The accompanying notes form an integral part of these financial statements.
Total net comprehensive income of £1,132.8m (2023: £14.2m) was recognised during the year, of which income of £1,136.2m
relates to intra-group activity in connection with the sale of 40% of the Group’s Healthcare business to Inflexion, of which £401.4m
has been classified as a distributable gain.
The Company distributable retained earnings as at 31 December 2024 was £330.8m (2023: £52.9m), comprising £1,267.5m
retained earnings and £100.6m treasury reserves which net to £1,166.9m, of which non-distributable elements are £740.7m of
non-distributable profits and £95.4m share-based payment reserve. The non-distributable profits comprise of:
•
£734.8m of gains relating to intra-group activity in connection with the sale of 40% of the Group’s Healthcare business to Inflexion, in
which the consideration received is not currently classified as qualifying; and
•
£5.9m of non-distributable profits relating to share vesting activity.
Note 24 within the Group Accounts provides an explanation of the transactions with owners movements in equity and reserves
above for both the Group and the Company.
170
FINANCIAL STATEMENTS
Company Statement of
Changes in Equity
1. General information
Nature of operations
The principal activity of GlobalData Plc is as a holding company of a data, insight, and technology group of subsidiary entities which
are engaged in providing decision-makers across the world’s most successful companies with the intelligence to act with conviction.
The Group’s connected platform uniquely integrates proprietary data, expert insight, and purpose-built AI into a unified operating
system that powers the next generation of intelligence solutions.
GlobalData Plc (‘the Company’) is a company incorporated in the United Kingdom (England & Wales) and listed on the Alternative
Investment Market, therefore is publicly owned and limited by shares. The registered office of the Company is John Carpenter
House, John Carpenter Street, London, EC4Y 0AN. The registered number of the Company is 03925319.
Going concern
The Company meets its day-to-day working capital requirements through free cash flow of the Group. Based on cash flow
projections the Company considers the existing financing facilities (held by indirect subsidiaries of the Company) to be adequate to
meet short-term commitments.
The existing finance facilities were issued with debt covenants, which are measured on a quarterly basis. Management has reviewed
forecast cash flows of the Group and there is no indication that there will be any breach in the next 12 months.
The Directors have a reasonable expectation that there are no material uncertainties that cast significant doubt about the
Company’s ability to continue in operation and meet its liabilities as they fall due for the foreseeable future, being a period of at least
12 months from the date of approval of the financial statements. Accordingly, the Company has prepared the annual report and
financial statements on a going concern basis.
Critical accounting estimates and judgements
The Company makes estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based
on historical experience and other factors, including expectations of future events that are believed to be reasonable under the
circumstances. In the future, actual experience may deviate from these estimates and assumptions. Management has assessed that
there are no critical accounting judgements or key estimates in relation to this Company.
2. Accounting policies
a) Basis of preparation
The parent Company meets the definition of a qualifying entity under FRS 100 ‘Application of Financial Reporting Requirements’
issued by the Financial Reporting Council; accordingly, the Company financial statements have been prepared under FRS 101
‘Reduced Disclosure Framework’.
As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available under that standard in relation
to share-based payment, financial instruments, capital management, presentation of comparative information in respect of certain
assets, presentation of a cash flow statement, standards not yet effective, impairment of assets, certain related party transactions,
and certain disclosure requirements in respect of leases.
As permitted by s408 of the Companies Act 2006, no separate statement of comprehensive income is presented in respect of the
parent Company. The profit attributable to the Company is disclosed in the footnote to the Company’s balance sheet.
b) Basis of accounting policies
This report has been prepared based on the accounting policies detailed in the Group’s financial statements for the year ended 31
December 2024 and the additional policies described below.
c) Investments
Investments in subsidiaries are stated at cost less any provision for impairment.
d) Share-based payments
The Company does not directly employ those participating in the share-based payments scheme as they are employed by other
Group companies. The issue of share incentives by the Company to employees of its subsidiaries represents additional capital
contributions. An addition to the Company’s investment in Group undertakings is reported with a corresponding increase in
shareholders’ funds.
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FINANCIAL STATEMENTS
Notes to the Company
Financial Statements
3. Dividends
The final dividend for 2023 was 3.2 pence per share and was paid in April 2024. The total dividend for the current year is 2.5 pence
per share, with an interim dividend of 1.5 pence per share paid on 4 October 2024 to shareholders on the register at the close of
business on 6 September 2024, and a final dividend of 1.0 pence per share which will be paid on 2 May 2025 to shareholders on the
register at the close of business on 21 March 2025. The ex-dividend date will be 20 March 2025.
4. Intangible assets
Assets under Computer
construction software Brand Total
£m £m £m £m
Cost
As at 1 January 2024 0.2 9.8 0.1 10.1
Additions 2.0 – – 2.0
Transfer AUC to software (0.4) 0.4 – –
As at 31 December 2024 1.8 10.2 0.1 12.1
Amortisation
As at 1 January 2024 – (6.7) (0.1) (6.8)
Charge for the year – (1.5) – (1.5)
As at 31 December 2024 – (8.2) (0.1) (8.3)
Net book value
As at 31 December 2024 1.8 2.0 – 3.8
As at 31 December 2023 0.2 3.1 – 3.3
Assets under construction will be transferred to software post development.
5. Property, plant and equipment
Leasehold Computer
Buildings improvements equipment Total
£m £m £m £m
Cost
As at 1 January 2024 30.4 1.3 3.2 34.9
Disposals (0.5) – – (0.5)
As at 31 December 2024 29.9 1.3 3.2 34.4
Depreciation
As at 1 January 2024 (10.6) (0.6) (3.1) (14.3)
Charge for the year (2.1) (0.2) (0.1) (2.4)
Disposals 0.3 – – 0.3
As at 31 December 2024 (12.4) (0.8) (3.2) (16.4)
Net book value
As at 31 December 2024 17.5 0.5 – 18.0
As at 31 December 2023 19.8 0.7 0.1 20.6
The buildings category all relates to right-of-use assets.
172
FINANCIAL STATEMENTS
Notes to the Company
Financial Statements (continued)
6. Leases
The Company has leases for office buildings and motor vehicles. With the exception of short-term leases and leases of low-value
underlying assets, each lease is reflected on the statement of financial position as a right-of-use asset and a lease liability. The
Company classifies its right-of-use assets in a consistent manner to its property, plant and equipment (see note 5).
Lease liabilities are presented in the statement of financial position as follows:
31 December 2024 31 December 2023
£m £m
Current lease liabilities 2.0 2.0
Non-current lease liabilities 17.2 19.5
19.2 21.5
The table below describes the nature of the Company’s leasing activities by type of right-of-use asset recognised on the statement
of financial position:
Average No. of No. of leases
No. of right-of-use Range of remaining leases with with termination
assets leased remaining term lease term extension options options
Office buildings 6 1-11 years 5 years 0 1
The lease liabilities are secured by the related underlying assets. Future minimum lease payments at 31 December 2024 were as
follows:
As at 31 December 2024
Within one year One to five years After five years Total
£m £m £m £m
Lease payments 2.7 10.2 9.7 22.6
Finance charges (0.7) (2.0) (0.7) (3.4)
Net present values 2.0 8.2 9.0 19.2
As at 31 December 2023
Within one year One to five years After five years Total
£m £m £m £m
Lease payments 2.8 10.6 12.3 25.7
Finance charges (0.8) (2.3) (1.1) (4.2)
Net present values 2.0 8.3 11.2 21.5
At 31 December 2024 the Company had not committed to any leases which had not yet commenced, excluding those recognised as
a lease liability.
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7. Investments
Group undertakings
£m
Cost
As at 1 January 2023 218.1
Share-based payments to employees of subsidiaries – Scheme 2 13.6
Share-based payments to employees of subsidiaries – Scheme 4 5.8
As at 31 December 2023 237.5
Share-based payments to employees of subsidiaries – Scheme 2 12.6
Share-based payments to employees of subsidiaries – Scheme 4 11.5
Investment in Washington Topco Limited 688.2
Investment in GlobalData US, Inc 67.2
Transfer of investment in GlobalData Publications, Inc to fellow group company (21.4)
As at 31 December 2024 995.6
Impairment
As at 31 December 2023 and 31 December 2024 (12.4)
Net book value
As at 31 December 2024 983.2
As at 31 December 2023 225.1
Share-based payments to employees of subsidiaries
The issue of share incentives by the Company to employees of its subsidiaries represents additional capital contributions. An
addition to the Company’s investment in Group undertakings is reported with a corresponding increase in shareholders’ funds.
Impairment review
Management has performed an impairment review which includes making judgements for the expected rate of growth of sales,
margins expected to be achieved and the appropriate discount rate to apply when valuing future dividend income from subsidiaries.
The dividend projections for each statutory entity are based on each statutory entity’s 2024 profit before tax, with growth factors
applied to cover the period 2025-2029. The discount rate is derived by the cost of equity. The rate reflects appropriate adjustments
relating to market risk and risk factors of each entity. A terminal value calculation has been determined post-2029 using a growth
rate of 2% in accordance with long-term inflation forecasts. As part of the impairment review, in some cases Management also
perform fair value assessments of the underlying subsidiaries.
Impairment indicators
In addition to the review described above, Management has performed an assessment to identify whether there are any indicators of
impairment to the investment balances. As the Company’s net assets exceeded the Group net assets there is an indication of
possible impairment; however, sufficient evidence has been obtained to support that there is no impairment as the value in use
forecasts have sufficient headroom over the carrying amount of the investments. The assumptions applied within the value in use
forecasts (revenue, cost and terminal value growth rates and discount rate) are in line with the assumptions disclosed within the
intangible asset impairment review in note 13 of the Group accounts.
174
FINANCIAL STATEMENTS
Notes to the Company
Financial Statements (continued)
8. Trade and other receivables
31 December 2024 31 December 2023
£m £m
Non-current
Amounts owed by group undertakings 187.2 190.2
187.2 190.2
Current
Prepayments 0.2 3.1
Amounts owed by group undertakings 0.6 –
Other taxation and social security 0.4 0.3
1.2 3.4
The carrying values are considered to be a reasonable approximation of fair value. The effect of discounting other receivables has
been assessed and is deemed to be immaterial to the results. The total ECL provision recognised in relation to these receivables is
£nil (2023: £nil).
The Company has impaired balances totalling £nil during the year in relation to balances owed by group undertakings (2023:
reversal of impairment provisions of £0.8m).
Amounts owed by group undertakings are repayable upon demand and outstanding balances contain transactions including the
following:
•
Loans to group undertakings;
•
Inter-company interest receivable;
•
Recharge of costs; and
•
Cash pooling.
None of the transactions with group undertakings incorporate special terms and conditions and no guarantees were given or
received. Outstanding balances are usually settled in cash.
9. Trade and other payables
31 December 2024 31 December 2023
£m £m
Trade payables 1.0 0.3
Accruals 4.2 6.0
Amounts owed to group undertakings 18.4 32.8
23.6 39.1
The Directors consider that the carrying amount of trade payables approximates to their fair value. The effect of discounting trade
and other payables has been assessed and is deemed to be immaterial to the Company’s results. Amounts owed to related parties
are repayable on demand and non-interest bearing.
175
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
10. Provisions
Dilapidations Dilapidations
Right-of-use assets Other Total
£m £m £m
As at 1 January 2024 0.1 0.9 1.0
Increase in provision – 0.1 0.1
As at 31 December 2024 0.1 1.0 1.1
Current: – – –
Non-current: 0.1 1.0 1.1
11. Borrowings
31 December 2024 31 December 2023
£m £m
Short-term lease liabilities 2.0 2.0
Current liabilities 2.0 2.0
Long-term lease liabilities 17.2 19.5
Long-term borrowings – 263.7
Non-current liabilities 17.2 283.2
Term loan and RCF
During August 2022, the Company completed a three-year debt financing facility comprising of a £290.0m term loan and a RCF of
£120.0m. There were no fixed periodic capital repayments, with the full balance being due for settlement when the facilities were
due to expire in August 2025. The term loan was syndicated between 12 lenders and the RCF was syndicated between 13 lenders.
On 3 April 2023, the Company voluntarily repaid £25.0m of the term loan, resulting in a term loan drawdown of £265.0m. As at
31 December 2023, the Company was yet to draw down the available RCF facility of £120.0m. During January 2024, £20.0m of the
RCF was drawn down to support a share buyback and during April 2024 a further £20.0m of the RCF was drawn down, resulting in a
total RCF drawdown of £40.0m. This total indebtedness of £305.0m was fully repaid on 28 June 2024 as part of the completion of
the sale of 40% of the Group’s Healthcare business. During the period ended 30 June 2024, the Company recognised a non-cash
interest expense of £1.3m in accordance with IFRS 9. As a result of the extinguishment of the financial liability, as at 30 June 2024,
the Company had short and long-term external borrowings of £nil.
During the period ended 30 June 2024, interest was charged on the term loan and RCF at a rate of 3.0% over the Sterling Overnight
Index Average rate (SONIA) and was payable at the end of each calendar quarter. As disclosed within note 16 to the Group accounts,
the Company entered into an interest rate swap during October 2022, with an effective date of 30 September 2022, initially based
on a notional amount of £290.0m, which matched against the initial term loan drawdown. The notional amount of the swap was
amended to £265.0m on 3 April 2023 (the same date as the voluntary repayment noted above), which aligned to the term loan draw
down at the time of settlement. The agreement was to swap, on a calendar quarter basis, SONIA for a fixed rate of 4.9125%. The
swap arrangement was terminated on 24 June 2024 to coincide with the full repayment of the term loan.
As disclosed in note 20 to the Group accounts, new debt financing facilities have been agreed and drawn down upon during
December 2024, however the borrowers of these facilities are indirect subsidiaries of the Company, therefore short and long-term
borrowings of the Company as at 31 December 2024 totals £nil (31 December 2023: £263.7m).
176
FINANCIAL STATEMENTS
Notes to the Company
Financial Statements (continued)
12. Deferred income tax
31 December 2024 31 December 2023
£m £m
Balance brought forward 4.1 1.5
Tax income during the period recognised in profit or loss (0.7) 2.6
Balance carried forward 3.4 4.1
The provision for deferred taxation consists of the tax effect of
temporary differences in respect of:
Accelerated depreciation for tax purposes (0.1) (0.2)
Restricted interest carried forward 3.5 4.5
Other temporary differences – (0.2)
Balance carried forward 3.4 4.1
31 December 2024 31 December 2023
£m £m
Deferred tax asset 3.4 4.1
3.4 4.1
The Company’s deferred tax assets and liabilities have been recognised at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled.
13. Related party transactions
Directors
The remuneration of the Directors of the Group and Company is set out on page 87 in the consolidated accounts of the Group within
the Directors Remuneration Report.
Corporate support services
In 2024 net corporate support charges of £nil were charged to Estel Property Investments No.3 Limited, (“Estel”) a related party by
virtue of common ownership (2023: £0.01m charge to Estel). The corporate support charges in 2023 consisted of shared software
development and recharged salary costs.
14. Contingent liabilities
There were no contingent liabilities as at 31 December 2024.
As at 31 December 2023, the Company had a contingent liability in relation to professional fees incurred which became payable
upon completion of the investment agreement. The total potential fee payable amounted to £6.6m, of which £5.5m was paid during
the year ended 31 December 2024.
There were no capital commitments as at 31 December 2024 or 31 December 2023.
177
ANNUAL REPORT AND ACCOUNTS 2024
Strategic Report / Directors’ Report / Auditor’s Report / Financial Statements
Company Secretary
Bob Hooper
Head Office and Registered Office
John Carpenter House
John Carpenter Street
London
EC4Y 0AN
Tel: + 44 (0) 20 7936 6400
Nominated Adviser and Joint Broker
J.P. Morgan Cazenove
25 Bank Street
Canary Wharf
London
E14 5JP
Joint Broker
Panmure Gordon
One New Change
London
EC4M 9AF
Joint Broker
Numis Securities
45 Gresham Street
London
EC2V 7BF
Financial PR LLP
FTI Consulting
200 Aldersgate
Aldersgate Street
London
EC1A 4HD
Lawyers
Reed Smith
20 Primrose Street
London
EC2A 2RS
Auditor
Deloitte LLP
2 New St Square
London
EC4A 3BZ
Registrars
MUFG Corporate Markets
Central Square
29 Wellington Street
Leeds
LS1 4DL
Bankers
NatWest Group
280 Bishopsgate
London
EC2M 4RB
Bankers
HSBC UK Bank Plc
1 Centenary Square
Birmingham
B1 1HQ
Registered number
Company No. 03925319
178
Advisers
Head Office and Registered Office
John Carpenter House
John Carpenter Street
London
EC4Y 0AN
Tel: + 44 (0) 20 7936 6400
www.globaldata.com
Company No. 03925319