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Summary
- Technology stocks have shown resilient performance throughout the pandemic.
- The sector has reported an above-average growth in revenue for the first quarter of 2021.
- Marketing automation market size showed growth of 13% CAGR during the period of last five years.
UK technology sector has been at the forefront to minimise the wrath of the pandemic. Showing immunity against COVID-19, the sector reported an above-average annual growth of 26.7% in its revenue on a year-on-year basis in the first quarter of 2021, as per CSI Market Analysis. An important segment of the technology sector, Marketing Automation, which is used to reduce human efforts in performing repetitive tasks, has shown remarkable performance and reported a growth of 13% CAGR from 2015-2020, as per the latest report by IMARC Group.
Another field of technology, the education technology market, is also growing globally at a faster pace. Its market size was $74.64 billion in 2019 and is likely to reach $318.8 billion by 2027, at a CAGR of 19.9% as expected by Market Study Report, LLC.
In view of the unprecedented circumstances and the role of technology has to play in future, any investor’s portfolio must have the technology and related field stocks. Here we will discuss 5 technology stocks that can be kept an eye on.
Seeing Machines Ltd (LON:SEE)
Seeing Machine is an industry leader in artificial intelligence (AI) technology and a world leader in human machine interaction. OEM and Aftermarket are the two key operating segments of this company.
In half-yearly results for the period ended 31 December 2020, the company’s revenue from its total sales for H1 FY2021 increased by 14.6% to A$18.1 million, excluding gains from foreign exchange and finance income. Total OEM revenue increased 5% to A$3.1 million compared to A$3 million for H1 FY2020. Seeing Machine has a market capitalisation of £373 million.
On 25 May 2021, the company’s stocks ended at GBX 9.60. The stock delivered over 286% return in the last one year.
Triad Group PLC (LON:TRD)
An IT-based Group provides consultancy and development services to the private and public sectors, starting from travel, banking, finance to Pharmaceutical. The Group reported revenue of £19.4 million for the year ended 31 March 2020 compared to £22.7 million a year ago. On a like for like basis, the Group reported a loss of £0.8 million after-tax compared to a profit of £0.9 million in 2019.
On 25 May 2021, company’s stock closed at GBX 120.00 and has delivered over 259% return in the last one year.
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Kin and Carta PLC (LON:KCT)
Kin and Carta PLC is a technology and data-led management consultancy with its headquarters in London and Chicago. The market capitalisation of the Group’s share is around £326 million.
In its half-yearly result ending 31 January 2021, Net revenue posted by the company from continuing operation fell 10% on a year-on-year basis, to £64.1 million. The company has recently acquired Oregon-based data transformation consultancy Cascade Data Labs for consideration of around £5.0 million and continue to focus on M&A opportunities in future.
On 25 May 2021, the company’s stocks closed at GBX 190.00. The stock has delivered around 270% return in the last one year.
For More Insights Watch: Investing in Technology Stocks UK
Cerillion PLC (LON:CER)
Founded in 1999, Cerillion PLC is a UK based company that provides comprehensive billing, charging and customer management software with a focus on a wide range of industries such as telecom, finance, and transportation.
On 17 May 2021, the company declared its half-yearly results for the six months ended 31 March 2021. Revenue was up by 26% to £12.8 million (2020: £10.2 million), backed by new contract wins. Despite the continuing COVID-19 crisis, the company is on track to deliver its yearly targets.
Also Read: Performance Review of Two Tech Players - Blue Prism Group & Cerillion PLC
An AIM-listed company has a market capitalisation of £218 million. On 25 May 2021, the stock closed at GBX 740.00 and has delivered over 167% return in the last one year.
Netcall PLC (LON: NET)
Netcall PLC provides all one platform for low code and contact centre solution to enhance customer experience. An AIM-listed company has a client base of over 600 organisations.
In its interim results for the six months ended 31 December 2020, revenue was up by 9% to £13.4 million as compared to H1 FY20. The annual revenue run rate from Intelligent Automation (AI) was 40% more than the Group revenue. Adjusted EBITDA was up by 39% to £2.95 million (H1-FY20: £2.12 million), and boards expect full-year EBITDA will be ahead of its previous expectation.
The stock has a market capitalisation of £102 million. On 25 May 2021, the stock last traded at GBX 68.50 and has delivered over 120% return in the last one year.
