- Technology solutions have proven their worth by facilitating businesses to continue operations in the pandemic.
- Technology employment accounts for a share of 7.6% of the UK’s total workforce, is slated for growth in 2021, as per Computing Technology Industry Association.
- The government also announced the roll out of £375 million Future Fund Breakthrough to invest in select R&D intensive companies look for quick growth opportunities.
In the health crisis, technology has proven its worth time and again in enabling businesses to continue operations facilitated by automation and emerging technology solutions that have streamlined working environments. COVID pandemic has been key in gauging the mettle of tech players and their ability to leverage advanced technologies to keep operations and businesses up and running.
According to a report by the Computing Technology Industry Association (CompTIA), technology employment that accounts for a share of 7.6% of the UK’s total workforce is slated for growth in 2021 as companies continue their post-pandemic recoveries. This is anticipated to boost tech employment as employers address high demand.
The UK government is also strategising to offer growth incentives to promising tech start-ups in the country in order to support the tech sector, which includes overhauling competition rules and issuance of new tech visas aimed at attracting talent. The government also announced the roll out of the Future Fund Breakthrough, a £375 million fund aimed at investing in select R&D intensive companies seeking to grow quickly.
Here are 5 game-changing tech stocks to look out for -
Aveva Group Plc (LON: AVV)
Technology companies form service agreements that contribute its growth. Recently, Aveva partnered with Wood, a global consulting and engineering company, to speed up the pace of digital transformation of energy, power, chemicals and mining industries with the roll out of a new solution Connected Build, a key component of the company’s Digital Twin offering.
For the year ended 31 March 2021, Aveva Group’s revenues stood £820.4 million, down slightly by 1.6% as compared to the previous year’s figures of £833.8 million.
Sage Group Plc (LON: SGE)
Shares of England-based enterprise software multinational giant have a year-to-date return of 17.39% per cent and a market capitalisation of £7,316.76 million.
Sage Group simplified its business model by completing the sale of its Poland-based business and announced the disposal of its business in Switzerland, Australia and Asia. Sage continues to develop and invest in on-premises, cloud connected solutions that would enable cloud-connected customers to shift to a cloud-native solution. Furthermore, the company continues to invest in artificial intelligence-based solutions for the digital transformation of various industrial sectors.
For the half year ended 31 March 2021, Sage registered organic recurring revenue growth of around 4.4% to reach £890 million, while its Organic operating margin remained in line with expectations at of 20.2%.
Auto Trader Group Plc (LON: AUTO)
The company’s shares have a one-year return of 21.38 per cent and a market capitalisation of £6,313.90 million.
Auto Traders Group Plc is consistently focused on accelerating the digital retailing experience. In this direction, it partnered with Cox Automotive for risk-free disposal route for any unwanted part-exchange. In July 2020, it also snapped up AutoConvert, a finance, insurance and compliance software platform integrated with customer relationship management (CRM) systems, to help customers improve finance penetration and lower costs by automating full customer journeys in the automotive sector.
For the year ended 31 March 2021, Auto Trader Group’s revenues stood £262.8 million, a year-on-year decline of 29% from the previous year’s figures of £368.9 million, primarily due to company’s decision to offer free advertising for retailer customers.
Avast Plc (LON: AVST)
FTSE 100 listed Avast plc, an LSE listed antivirus and cybersecurity company is in discussion the US-based NortonLifeLock Inc for its acquisition. The acquisition is pegged at a huge $8 billion. The deal may get completed by the end of this month, offering value return to long-term shareholder and innovative products for customers. The company’s shares have a year-to-date return of 11.29 per cent. They have a market capitalisation of £6,236.49 million.
The shift to remote working during COVID-19 pandemic spurred demand for Avast’s desktop products such as antivirus software, and it recorded annual revenues of $892.9 million in 2020.
Deliveroo Plc (LON: ROO)
Deliveroo’s stocks, a new entrant to the LSE main market, holds a market capitalisation of £5,143.00 million.
Much of the buzz around the company’s bolstering market performance has been due to its debut on the IPO early this year. As part of its IPO, the company included a community share offer, allowing customers to participate in the deal.
Deliveroo expects transactions value in 2021 to be about 50% to 60% higher than the previous year. In April 2020, Deliveroo reported significant fall in revenues due to the UK government’s imposition of national lockdowns. Transaction value via Deliveroo’s platform reached £1.7bn in Q2 2021, up by 76% as compared to the same period in 2020, and an increase of £100 million as compared with the January to March period in 2021.