UK Tech Quoted Companies Scorecard, a Megabuyte Report sponsored by Silicon Valley Bank
Company news | May 12, 2016
- 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
LONDON – 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 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:
- Quartix, FDM Group and GB Group are the top three ranked companies.
- There has been a fair bit of movement in the top 20 companies since the 2015 ranking, with a total of six new entrants.
- Of 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.
- Quoted 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.
- While 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.
- Software companies marginally out-perform ICT Services companies but ICT Services companies enjoy significantly stronger organic growth.
Follow the conversation on Twitter at @SVB_UK and @RealMegabuyte with #QuotedCompanyShowcase.
About 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 UK Limited is registered in England and Wales at Alphabeta, 14-18 Finsbury Square, London EC2A 1BR, UK (Company Number 12546585). Silicon Valley Bank UK Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (Firm Reference Number 543146).
Silicon Valley Bank – UK Branch
+44 (0)20 7367 8131
Megabuyte 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.
About 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.