5 LSE-AIM Technology Stocks to Look For in 2021

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Summary

• Technology stocks had been on a surge in 2020 and are continuing the momentum in 2021
• There are a plenty of exciting technology stocks in the mid-cap and small-cap areas of the AIM segment of the UK stock market

The year 2020-21 was crucial for the initial public offerings (IPOs), especially for the technology sector companies. Many of the IPO stocks have risen by more than 50 per cent, making a smashing debut on the bourses. Though the benchmark index of the UK, the FTSE 100 has very little exposure to technology stocks, however, there are a plenty of exciting technology stocks in the mid-cap and small-cap bracket of the AIM segment of the UK stock market that can offer enormous gains for investors in recent years.

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Let’s have a glance at 5 of the top performing tech stocks listed on the AIM market:

Frontier Developments PLC (LON:FDEV)

Established in 1994, Frontier Developments is an independent developer and publisher of videogames, through its proprietary COBRA game development technology.

The company has continued to perform across all the four titles -- Elite Dangerous, Jurassic World Evolution, Planet Coaster and Planet Zoo, resulting in a 15 per cent increase in the total revenue to £36.9 million YoY (H1 FY20: £32.0 million), for the first half of FY 2021 ended 30 November 2020.

Also Read: Quick Insights on Two FTSE Stocks Trending on the LSE – Frontier Developments & Tribal Group

A surge was also recorded in gross profit, wherein the company got £26.2 million in the period as compared to the same time in the previous year (H1 FY20: £21.4 million), because of an increased proportion of revenue from own IP sales.

The shares of FDEV were at GBX 2,540.00 on 11 March (10:15 GMT+1), delivering 109.70 per cent return in one-year period.

Cerillion PLC (LON:CER)

London -based software company Cerillion provides mission-critical software for billing, charging, and customer relationship management for the last two decades.

The company witnessed an 11 per cent surge in the revenue to £20.8 million YoY (2019: £18.8 million), derived from software licence, support, and maintenance, Software-as-a-Service (SaaS) and third-party sales for the full year ended 30 September 2020. The increase in revenue led to an increase in the adjusted EBITDA by 27 per cent to £5.8 million YoY (2019: £4.6 million). A total dividend of 5.5 pence per share (2019: 4.9 pence), which was up by 12 per cent YoY, was announced by the Board in FY 2020.

The shares of CER were at GBX 430.00 on 11 March (10:12 GMT+1), delivering 100.00 per cent return in one-year period.

MTI Wireless Edge Ltd (LON:MWE)

The FTSE AIM All-share constituent is focused on comprehensive communication and radio frequency solutions. The technology company has its headquarters in Israel.

The group has been successful in recording a 2 per cent increase in the revenue to US$40.9 million for the FY 2020 (2019: US$40.0 million), despite being affected due to the coronavirus pandemic. The increasing scale of the group and reduced expenses of travel and marketing costs led to a 19 per cent growth in profit before tax, US$4.1 million (2019: US$3.5 million). The Board of the Group also declared a final dividend of US$0.025 per share, which was 25 per cent higher YoY (2019: US$0.02). 

The shares of MWE were at GBX 86.50 on 11 March (10:10 GMT+1), delivering 138.48 per cent return in one-year period.

Amino Technologies PLC (LON:AMO)

Incorporated in 1997, Amino Technologies is a software-led, global Media Technology company that aims at delivering modern TV experiences to its viewers.

The results published by the company for the financial year ended 30 November 2020, revealed an increase in the revenue of around 7 per cent to $82.70 million YoY (2019: $77.23 million), proving the resilience of the company’s business model. The company also observed a rise in gross profit.

The shares of AMO were at GBX 167.50 on 11 March (10:08 GMT+1), delivering 28.18 per cent return in one-year period.

Cohort PLC (LON:CHRT)

Headquartered in Reading, Berkshire, Cohort is the parent company of five businesses -- Chess Dynamics, EID, MASS, MCL, SEA. The company operates across Germany, Portugal, and the UK, and is involved in providing a wide range of services and products for customers in defence, security, and related markets.

In the six months ended 31 October 2020, the Group posted revenue of £54.4 million (2019: £60.2 million). Despite lower revenue, Cohort delivered a growth of 8 per cent in the adjusted operating profit to £4.3 million (2019: £4.0 million), because of the improved performance at MASS and resumption of profit at SEA.

The shares of CHRT were at GBX 615.00 on 11 March (10:08 GMT+1), delivering 3.54 per cent return in one-year period.