7 technology stocks to buy and hold for the long term

Highlights

• The pandemic played an important role in accelerating the transition to advanced digital transformation solutions.
• Technology solutions have enabled organisations in various sectors to continue operations despite lockdowns and COVID-19 imposed restrictions.
• The global tech regulatory climate is expected to have an impact on the tech sector in the UK as well.

As organisations across all sectors rush to integrate advanced technology solutions to accelerate the digital transformation of business processes, technology solution providers are witnessing robust growth. The pandemic and the global healthcare crisis played an important in catalysing the transition to advanced digital transformation solutions.

Changes in tech regulations across major global economies have been impacting the technology sector and the stocks within. For instance, the recent regulatory clampdowns by the Chinese government on edtech, online food delivery and streaming segments are expected to impact UK tech markets as well. New regulatory requirements may slow down the pace of capital investments, decrease valuations and lower global investor interest in startups.

Here we take a look at seven technology stocks to buy and hold for the long term.

Golden Saint Technologies Ltd. (LON:GST)

Golden Saint Technologies offers electronic wired, wireless, and security solutions to infrastructure development companies. In May 2021, the company collaborated with Wise Mpay, a Singapore-based blockchain payment solution provider. As per the deal, Wise Mpay would be engaged in offering software and services to help GST expand in the blockchain technology field. In February 2021, the company established GS Fintech Ltd and GS Fintech Pte Ltd to facilitate its planned expansion in blockchain technologies and related services segments.

Golden Saint Technologies’ total income for the year ended 31 March 2021 stood at US$3.41 million, a decline of 25.1 per cent year-on-year compared to US$4.55 million in 2020. The company’s total comprehensive loss for the year decreased to US$0.33 million from US$0.46 million in 2020.

The shares of Golden Saint Technologies have given a return of 513 per cent to the shareholders, and its market cap stands at £19.39 million as of 18 August 2021.

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Triad Group Plc (LON:TRD)

Triad Group provides IT consultancy services to private, public, and not-for-profit sectors in the United Kingdom. The company’s revenues for the year ended 31 March 2021 were at £17.8 million, a decline from £19.4 million in 2020, whereas the profit before tax reached £0.6 million in 2021 compared to £0.6 million loss in 2020. The company’s cash reserves for 2021 increased to £4.9 million from £3.8 million in 2020.

Triad announced a final dividend payout of 2.0 pence per share for the year ended 31 March 2021.

The shares of Triad Group have given a return of 336.02 per cent to the shareholders in one-year, and its market cap stands at £17.40 million as of 18 August 2021.

Dev Clever Holdings Plc (LON: DEV)

Dev Clever Holdings is a software development firm based in the UK. On 27 July 2021, it acquired, The Inspirational Learning Group Limited, a UK-based educational business, for a cash consideration of £129,200.

Dev Clever’s revenue rose by 531 per cent to reach £2.4 million for H1 2021 compared to £383k in H1 2020, driven by significant contract wins in the company’s Educate division.

The shares of Dev Clever Holdings have given a return of 281.36 per cent in one-year to the shareholders, and its market cap stands at £193.32 million as of 18 August 2021.

Cerillion Plc (LON: CER)

Cerillion is a provider of billing and customer relationship management (CRM) software in the UK. It secured its largest-ever contract to date in March 2021. The company entered into a 10-year long agreement worth $18.4 million with a Latin America based full-service network operator.

Cerillion registered a record performance in new order volume in H1 2021 (ended 31 March 2021) to £23.6 million, a 148 per cent increase year-on-year to £9.5 million in H1 2020. Its revenue for the period increased by 26 per cent to £12.8 million in H1 2021 from £10.2 million in H1 2020. Up by 124 per cent year-on-year, the company’s profit before tax reached £3.8 million in H1 2021 compared to £1.7 million in H1 2020.

Cerillion announced an interim dividend payout of 2.10 pence per share for H1 2021, an increase of 20 per cent compared to 1.75 pence per share in H1 2020.

The shares of Cerillion have given a return of 179.70 per cent to the shareholders in one-year, and its market cap stands at £249.39 million as of 18 August 2021.

SmartSpace Software Plc (LON:SMRT)

SmartSpace Software is a provider of software solutions for commercial spaces and smart buildings. In July 2021, SmartSpace Software inked distribution agreements with XMA, Insight Direct, Elevate, AVMI and Beyond Networks to resell the company’s workspace management Space Connect solution.

SmartSpace Software’s annual recurring revenue grew by 28 per cent in the six months (ended 31 July 2021) to £3.8 million.

The shares of SmartSpace Software have given a return of 96.62 per cent to the shareholders in one-year, and its market cap stands at £43.41 million as of 18 August 2021.

Darktrace Plc (LON: DARK)

Darktrace is a provider of AI-based cybersecurity solutions for enterprises. The company’s total number of customers stood at 5,600 in FY 2021 (ended 30 June 2021), an increase of 42 per cent year-on-year. The company is witnessing high demand for self-learning AI solutions due to an increase in the number of advanced cyber-attacks.

Darktrace expects year-on-year growth in annualised recurring revenue (ARR) in the range of 32 per cent and 34 per cent in FY 2022 (previously 26.5 per cent-29.5 per cent).

A new entrant to the LSE, the company has a market cap of £3,976.53 million as of 18 August 2021.

Xaar Plc (LON:XAR)

Xaar is a manufacturer of advanced inkjet printing technologies. In July 2021, Xaar completed the takeover of FFEI Limited, a manufacturer and integrator of digital inkjet systems, to strengthen Xaar’s existing capabilities.

Xaar’s net cash as of 30 June 2021, excluding 3D business, stood at £17.1 million, a decline of £1.0 million compared to 31 December 2020.

The shares of Xaar have given a return of 158.24 per cent to the shareholders in one-year, and its market cap stands at £182.37 million as of 18 August 2021.

Conclusion:

Rising remote working trends and an increasing number of online payments for purchases made over the internet drove the need for secure payment solutions and advanced technology such as AI-based cybersecurity and cyber defence solutions. The education sector also witnessed a transition to disruptive online learning platforms powered by new and advanced technologies.

Across sectors, enterprises have been leveraging advanced IT solutions and services to underpin growth despite a gloomy macroeconomic outlook. It would thus be safe to say that the hi-tech technology solutions have been pivotal in guiding sectors to continue operations despite challenging conditions. These tech solutions are also expected to play an important role in driving growth even beyond the pandemic.