AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- UK recorded a sharp rise in the number of tech start-ups this year, with over £13.5 billion raised in venture capital in H1 2021.
- Currently, the FTSE 100 and FTSE 250 listings comprise 26 technology and internet firms.
- Six new tech companies have entered the FTSE 350 this year.
Some of the highest return providers on the London Stock Exchange (LSE) belong to the technology sector, driven by the internet boom and the rising need for digital transformation across enterprises. Currently, the FTSE 100 and FTSE 250 listings comprise 26 technology and internet firms. The country has recorded a sharp rise in the number of tech start-ups this year, with over £13.5 billion raised in venture capital in H1 2021. Six new tech companies have entered the FTSE 350, including Darktrace. Rishi Sunak, the Chancellor, is also encouraging more tech firms to list on the LSE.
Here we review in detail 5 tech stocks and explore the investment prospect in them for the month of October.
Darktrace Plc (LON: DARK)
Darktrace is a leading AI-powered cybersecurity company. For the year ended 30 June 2021, revenues of the company grew 41.3% year-on-year to $281.34 million compared to $199.07 million in 2020. Darktrace for FY 2022 estimates about 45% to 46% of its revenue and net constant currency ARR to be reached in the first half of the year.
The market cap of the company as of 27 September 2021 stood at £6,362.47 million. In the last one year, Darktrace’s shares gave a return of 175.5% to shareholders.
Kainos Group Plc (LON: KNOS)
Kainos Group is a provider of information technology solutions for healthcare, financial services and public organisations. It operates through two specialist business divisions – digital services and Workday Practice. Recently, the company acquired South America-based UNE Consulting as a part of its global expansion strategy.
Kainos Group’s FY 2021 revenues rose by 31% year-on-year to £234.7 million, and its bookings were up by 6% year-on-year to £258.8 million. The company’s global customer base grew by 17% in FY 2021 to 546.
The market cap of the company as of 27 September 2021 stood at £2,478.31 million. In the last one year, Kainos Group’s shares gave a return of 96.2% to shareholders.
Softcat Plc (LON: SCT)
Softcat is a leading IT infrastructure and services provider to the public and corporate sectors. Softcat’s revenue for six months ended 31 January 2021, stood at £577.0 million, representing a year-on-year increase of 10.1% from £524.1 million in 2020.
For H1 2021 ended 31 January 2021, Softcat declared an interim dividend of 6.4 pence per share to shareholders.
The company’s market cap as of 27 September 2021 stood at £4,339.13 million. In the last one year, Softcat’s shares gave a return of 86.0% to shareholders.
Learning Technologies Group Plc (LON:LTG)
Learning Technologies Group offers talent management and digital learning solutions.
The Group’s revenues grew by 29% year-on-year to £82.6 million in H1 2021 compared to £64.1 million in H1 2020. Its net cash stood at £24.9 million in H1 2021 compared to £70.2 million in H1 2020.
Learning Technologies Group’s board declared an interim dividend of 0.30 pence per share for H1 2021, up by 20% year-on-year compared to 0.25 pence per share in H1 2020.
The market cap of the company as of 27 September 2021 stood at £1,782.50 million. In the last one year, Learning Technologies Group’s shares gave a return of 73.7% to shareholders.
Micro Focus International Plc (LON: MCRO)
Micro Focus International is a provider of software and information technology solutions.
For six months ended 30 April 2021, Micro Focus International’s revenues stood at $1.4 billion. Its cash generated from operating activities was $468.1 million for H1 2021 compared to $560.4 million in H1 2020.
Micro Focus International announced an interim dividend of US 8.80 cents or 6.42 pence per ordinary share for H1 2021.
The company’s market cap as of 27 September 2021 stood at £1,342.03 million. In the last one-year, Micro Focus International’s shares gave a return of 67.4% to shareholders.
