– 11 May 2016 – Megabuyte just
released its annual Quoted Company Scorecard Rankings Report, sponsored by Silicon Valley Bank (SVB), the bank of the world's most innovative businesses
and their investors.
- The UK's
top 50 performing quoted technology businesses, according to Megabuyte
- Companies ranked using the Megabuyte Scorecard methodology, which uses seven
growth KPIs to score companies' performance out of 100 relative to peers
- Second year rankings
published, with Silicon Valley Bank as the ongoing report sponsor
The ranking provides an independent measure of
companies' financial performance other than by share price. Quartix, an AIM-listed vehicle tracking
supplier, was number one in the Megabuyte rankings. In March 2016, Quartix
doubled its annual payout to investors, and continues to grow in the UK, France
and the US.
Ian Spence, Founder and CEO at Megabuyte, said: "The Megabuyte Scorecard was
developed to identify what a ‘good' tech company looks like, pooling over 50
years' collective analyst experience. As an example, and highlighted in this
report, the application of the Scorecard KPIs would seem to provide a useful
guide to identifying companies that are either under or over-valued. It's our
view that once companies' formative years have passed, high growth, high
margin, cash generative businesses will always provide better long term results
for investors, whether in public or private markets."
Paul Jackson, Head of Corporate Banking at Silicon Valley
Bank, added: "For Silicon
Valley Bank, Megabuyte continues to be an invaluable partner providing leading
independent research showcasing the achievements of UK technology companies. We
are delighted to sponsor this report for the second year, given the strong
alignment with our public company client base. We congratulate all the
businesses that made it into the Top 50."
Highlights from the report:
FDM Group and GB Group are the top three ranked companies.
has been a fair bit of movement in the top 20 companies since the 2015 ranking,
with a total of six new entrants.
these six new top 20 companies, three are recent IPOs – Kainos (5th),
Sophos (7th) and Softcat (13th) – all of which featured
in the Megabuyte50 private company rankings in 2015.
company performance has closed the gap versus private company performance in
2015. However, privately owned software
companies continue to out-perform their public company counterparts.
- The share prices of companies
with a higher Scorecard rating have substantially outperformed those with a
lower rating across all time frames.
tech company share prices have remained strong on average, and substantially
outperformed the wider market again in 2015 and into 2016, there continues to
be a net drain of tech companies from the stockmarket.
companies marginally out-perform ICT Services companies but ICT Services
companies enjoy significantly stronger organic growth.
Read the full report
Follow the conversation on
Twitter at @SVB_UK and @RealMegabuyte with #QuotedCompanyShowcase.
Silicon Valley Bank
For more than 30 years, Silicon Valley Bank (SVB) has helped innovative
businesses and their investors move bold ideas forward, fast. SVB provides a
range of targeted financial services and expertise through its office in the
UK. With commercial and international banking services, SVB helps address the
unique needs of innovators. The UK's leading technology and life science
businesses, in all stages of development, look to SVB's niche expertise,
experience and unparalleled network, as they grow at home and tackle new
markets abroad. Learn more at svb.com/uk.
Silicon Valley Bank is registered in England
and Wales at Alphabeta, 14-18 Finsbury Square, London EC2A 1BR under No.
FC029579. Silicon Valley Bank is authorised and regulated by the California
Department of Business Oversight and the United States Federal Reserve Bank;
authorised by the Prudential Regulation Authority with number 577295; and
subject to regulation by the Financial Conduct Authority and limited regulation
by the Prudential Regulation Authority. Details about the extent of our
regulation by the Prudential Regulation Authority are available from us on
Silicon Valley Bank – UK Branch
+44 (0)20 7367 8131
was founded in 2007 to fill a gap in the market between the stockmarket-focused
research of the investment banks on the one hand and the industry research of
the likes of Gartner and IDC on the other.
Today, Megabuyte is a
highly-respected independent research provider tracking the corporate and
financial affairs of some 1,500 of Europe's key public and private companies in
the ICT Services and Software sectors. Megabuyte's
founder and CEO, Ian Spence, is one of the technology sector's most established
and respected financial analysts and is regularly recognized by Debrett's and
The Sunday Times as one of the 20 most influential people in the UK technology
sector. www.megabuyte.com @RealMegabuyte.
The Megabuyte Scorecard
The Megabuyte Scorecard is a proprietary
methodology for assessing the financial performance of technology
companies. It uses a combination of
seven key measures incorporating growth, margins, cashflow and overall
size. Its application includes public
and private companies, including comparisons between the two.