Half Year Results

GlobalData PLC

31 July 2023

GlobalData Plc

Half Year Results

30 June 2023

GlobalData Plc (AIM: DATA), a leading data, analytics, and insights platform, today publishes its results for the half year ended 30 June 2023 (HY 2023).

· Outperforming our Growth Optimisation Plan objectives to date, driven by high growth and high margin

· Strong trading performance during HY 2023 with revenue growth of 21% and underlying growth¹ of 8%

· Adjusted EBITDA¹ growth of 37% and further margin expansion to 39% (HY 2022: 35%)

· Statutory profit before tax grew by 59% to £23.9m (HY 2022: £15.0m)

· On track to deliver our goal of being a 'Rule of 50'² company

· Expect to deliver results in line with increased market expectations³ for FY 2023

Highlights

Financial results for the six months ended 30 June 2023.

Key performance metrics	HY 2023	HY 2022	Growth	Underlying growth¹
Revenue	£135.9m	£111.9m	+21%	+8%
Operating profit	£36.9m	£24.1m	+53%
Adj. EBITDA	£53.5m	£39.0m	+37%	+18%
Adj. EBITDA margin¹	39%	35%	+4pts
Statutory profit before tax (PBT)	£23.9m	£15.0m	+59%
Earnings per share (EPS)	2.2p	1.3p⁴	+69%
Adj. EPS¹	3.4p	2.9p⁴	+17%
Interim dividend	1.4p	1.1p⁴	+27%
Invoiced Forward Revenue¹	£122.9m	£114.6m	+7%	+9%
Net bank debt¹	£230.8m	£190.5m	+21%
Net bank debt leverage¹	2.3x	2.6x	-0.3x

Mike Danson, Chief Executive Officer of GlobalData Plc, commented:

"GlobalData has delivered another period of strong revenue, profit and margin performance during the first half and we are outperforming our Growth Optimisation Plan objectives to date. Comparing to HY 2020, we have effectively doubled our Adjusted EBITDA and increased margin by 8pts demonstrating significant progress in that time.

We continue to leverage our proven One Platform and invest in our proprietary data and technology, and we are particularly excited by the opportunities we see to leverage our proprietary datasets and domain expertise with new AI technology. We have a clear roadmap focused on improving platform usability, driving greater automation, developing new products, and enhancing our internal processes.

We have clear visibility on full year revenues and a strong business model that is delivering sustained growth. We enter the second half with continued momentum and remain focused on executing our long-term compounding Growth Optimisation Plan."

Financial Highlights

· Strong growth in both revenue and Adjusted EBITDA nearing our 'rule of 50' goal

· Total revenue growth of 21%, supported by acquisitions and currency tailwinds as well as underlying revenue growth of 8%

· Invoiced Forward Revenue of £122.9m at 30 June 2023 increased by 7% (HY 2022: £114.6m) which reflected underlying growth of 9%, providing confidence for H2

· Adjusted EBITDA up 37% to £53.5m (HY 2022: £39.0m)

· Adjusted EBITDA margin improvement of 4 percentage points to 39% reflecting the operating leverage and fixed cost base inherent in GlobalData's business model

· Statutory PBT grew by 59% to £23.9m (HY 2022: £15.0m) reflecting strong trading performance

· Operating cash flow grew by 12% to £63.0m (HY 2022: £56.1m) which was 118% of Adjusted EBITDA (HY 2022: 144%)

· Strong free cash flow¹ generation of £43.9m (HY 2022: £42.8m)

· Reduction in net bank debt leverage to 2.3x (FY 2022: 2.9x) and total net bank debt of £230.8m at 30 June 2023 which reflects a reduction of £18.8m in the six months since 31 December 2022

· Interim dividend of 1.4p, up 27% (HY 2022: 1.1p), based upon number of shares post-reorganisation share structure which completed after the balance sheet date on 25 July 2023 (see note 15)

Operational Highlights

· Continued strong execution of our Growth Optimisation Plan outperforming our objectives to date. Our four key pillars are:

o Customer Obsession, World-Class Product, Sales Excellence, Operational Agility

· Average Client Value (>£20k) increased by 4% to £75,800 (HY 2022: £73,100) reflecting a combination of more seats and products taken by clients as well as price increases

· M&A - Integration and performance of Media Business Insight (MBI) and TS Lombard on track; maintaining disciplined approach to acquisition opportunities

· Clear AI roadmap - continued investment in AI-related technologies to improve platform usability, drive greater automation, develop new product and enhance internal processes including customer insights and sales

Outlook

· Set to deliver strong and resilient growth as uncertainty continues to drive demand for our 'gold standard' data, delivered through our One Platform

· Following a strong first half performance and continued momentum into H2 we remain on track to deliver results in line with increased market expectations for FY 2023. We maintain our ambition of double-digit underlying revenue growth.

-ENDS-

Note 1: Defined in the explanation of non-IFRS measures on page 13

Note 2: 'Rule of 50': Investment concept which scores businesses by adding their underlying revenue growth to their Adjusted EBITDA margin

Note 3: Market expectations: Based upon company compiled consensus estimates for revenue (range £275.8m-£279.3m) and Adjusted EBITDA (range £109.6m - £114.7m). More detail https://investors.globaldata.com/shareholder-centre/analyst-consensus

Note 4: The prior period comparatives for reported EPS, adjusted EPS and dividends have been restated to reflect the impact of the share-split, which completed after the balance sheet date on 25 July 2023 (see note 15).

ENQUIRIES

GlobalData Plc
Mike Danson, Chief Executive Officer	+44(0)207 936 6400
Graham Lilley, Chief Financial Officer Christian Cowley, Head of Investor Relations	+44(0)7795451635

J.P. Morgan Cazenove (Nomad and Joint Broker)	+44(0)207 742 4000
Bill Hutchings / Mose Adigun

Panmure Gordon (Joint Broker)	+44(0)207 886 2500
Rupert Dearden / Dougie McLeod

Numis Securities (Joint Broker) Nick Westlake / Iqra Amin	+44(0)207 260 1000
FTI Consulting LLP (Financial PR)	+44(0)203 727 1000
Edward Bridges / Dwight Burden / Emma Hall	GlobalData@fticonsulting.com

Notes to Editors

About GlobalData Plc

GlobalData Plc (AIM: DATA) is a leading data, analytics, and insights platform for the world's largest industries. Our mission is to help our clients decode the future, make better decisions, and reach more customers.

One Platform Model

GlobalData's One Platform model is the foundation of our business and is the result of years of continuous investment, targeted acquisitions, and organic development. This model governs everything we do, from how we develop and manage our products, to our approach to sales and customer success, and supporting business operations. At its core, this approach integrates our unique data, expert analysis, and innovative solutions into an integrated suite of client solutions and digital community platforms, designed to serve a broad range of industry markets and customer needs on a global basis. The operational leverage this provides means we can respond rapidly to changing customer needs and market opportunities, and continuously manage and develop products quickly, at scale, with limited capital investment as well as providing unique integration opportunities for M&A.

Strategic Priorities

GlobalData's four strategic priorities are: Customer Obsession, World-Class Product, Sales Excellence and Operational Agility.

Growth Optimisation Plan

GlobalData's Growth Optimisation Plan is a set of initiatives designed to drive revenue growth and profitability. The Plan's initiatives operate across all of GlobalData's operations but are organised around the strategic priorities noted above.

INTRODUCTION

At GlobalData we are on a mission to help our clients to decode the future, make better decisions, and reach more customers. We provide services across a wide breadth of industries and functions, on a global scale via our One Platform. We have a clear philosophy of owning our own data and intellectual property, as well as seeking to be a long-term strategic partner to our clients, by serving their critical activities with our differentiated 'gold standard' product.

Our mission critical data is a 'must-have' rather than 'nice to have' for a wide range of blue-chip corporates, and once embedded, provides all the insight our clients need to navigate a challenging macro backdrop. We create our intelligence from a deep pool of experts across the globe, including 2,000 analysts and researchers, 250 data scientists and 100 journalists.

The data and solutions we provide are highly proprietary and embedded into our customers' workflows, which drives high customer retention. The Group benefits from significant operating leverage due to a "build once, sell multiple times" business model, which drives significant margin expansion.

Our clients typically subscribe for at least 12 months access. The visible and recurring revenue base creates a resilient business model, with subscriptions making close to 80% of revenue. The balance of our revenue is made up of ancillary services such as bespoke consulting, single copy reports and events, which all harness our core data and insights.

GlobalData's client base is globally diversified, which reflects our globally relevant data assets and gives the Group significant market opportunity.

Growth Optimisation Plan

The Growth Optimisation Plan, launched in 2020, is our framework to invest for growth with the aim to be the leading data, analytics, and insights platform. With multiple levers for growth, supplemented with M&A activity, we are over-delivering on the Plan via four key pillars:

1. Customer Obsession

2. World-Class Product

3. Sales Excellence

4. Operational Agility

As a responsible business, sustainability sits at the heart of our plan and, as a team, GlobalData is a firm believer that our Company can drive positive change and be a force for good through our critical information and technology innovations.

The Group assesses potential M&A targets and looks for the same business model characteristics in its targets, such as high quality product/ services and high volume renewal rates, which enables greater alignment and integration opportunities. Our scalable platform is ideally positioned to integrate new datasets and content into our existing vertical offering or expand our breadth into new vertical markets.

Our objective is to achieve long-term compounding growth and maximise shareholder returns. We use an investment concept which scores the business by adding its underlying revenue growth to its Adjusted EBITDA margin. Our ambition as set out in our FY 2022 Results is to exceed 50, i.e. 'rule of 50'.

HALF YEAR REVIEW TO 30 JUNE 2023

During the first half we delivered another period of profitable growth while continuing to invest in a number of initiatives to secure future growth. Strong organic growth was complemented by the impact of last year's acquisitions of MBI and TS Lombard, and we delivered a significant uplift in our margin.

The Group reported revenue of £135.9m (HY 2022: £111.9m), up 21% of which 8% was underlying growth. Operating profit grew by 53% to £36.9m (HY 2022: £24.1m) and Adjusted EBITDA increased by 37% to £53.5m (HY 2022: £39.0m). The growth in Adjusted EBITDA was driven by profitable revenue growth, delivering a high incremental margin as a result of our relatively fixed cost base. Adjusted EBITDA margin of 39%, reflected a 4 percentage points gain versus the previous year (HY 2022: 35%). Combining our underlying revenue growth rate of 8% and the Adjusted EBITDA margin of 39% we are nearing our goal of achieving the 'rule of 50'.

We maintained our focus on price during the half to better reflect the increasing value of our data, analytics and insights to our customers. During the half, Average Client Value of our larger clients (>£20k) increased by 4% to £75,800 (HY 2022: £73,100) reflecting a combination of selling additional seats and products to existing clients, as well as price increases. We see further opportunities ahead to align our pricing structure to the increased value we are delivering, especially for our more recently acquired businesses.

We continue to see strong customer demand for our data, analytics, and insights as clients navigate both an uncertain macro environment and disruptive themes such as artificial intelligence, climate change, regulatory and geo-political change, which is also reflected in strong new business pipeline.

Our customer proposition is strong and as we continue to embrace emerging AI-related technologies we are excited about the opportunity to improve usability and drive even greater customer engagement.

Our growth was also supported by recent acquisitions, MBI and TS Lombard, which were acquired in June and August of 2022 respectively. MBI has been fully integrated and TS Lombard is nearing full integration. Both businesses are trading in line with our plans.

We continue to pursue strategic M&A for new gold standard data assets to integrate into our One Platform model. During the first half no further acquisitions were made but we continue to assess a pipeline of acquisition opportunities and remain disciplined in our approach to M&A.

Well positioned to leverage new AI technologies

We have a track record of embracing emerging technology and we have been consistently investing in Machine Learning and AI technologies since 2017. Today we have approximately 250 data scientists globally supporting our 2,000 researchers and analysts and 100 journalists.

The AI landscape is moving quickly and we are excited about the opportunities that Generative AI brings when we combine our proprietary datasets with increasingly powerful technology. By harnessing the latest AI technologies we are improving usability for customers, increasing automation and creating efficiencies, developing new products faster and improving our internal processes. In particular, by making it easier for customers to use our proprietary data and insights we expect stronger customer engagement. Our One Platform model means we are uniquely positioned to leverage the benefits of Generative AI across all of our industry coverage. We are using AI to improve our internal processes through, for example, real-time customer health insights and more personalised sales processes.

Our deep proprietary data, with rich history and heritage remains the key barrier to entry for new entrants and cannot be replicated with just the use of generative AI. Controlling access to our proprietary data is key and therefore managing the risks around data management, client usage and cyber security remain a key priority.

We have a clear AI roadmap focused on the four areas of usability, automation, new products and internal processes all of which support our Growth Optimisation Plan.

Delivering our Growth Optimisation Plan

Our Growth Optimisation Plan, launched in 2020, is our framework to invest for growth with the aim to be the leading data, analytics, and insights platform for the world's largest industries. Since we launched our plan we have made excellent progress and are outperforming our objectives to date. The following section provides an update on each of the four pillars.

1) Customer Obsession

Customer Obsession remains our number one priority and is central to our strategy. It runs through everything we do, and we continue to focus on client needs and on providing unique and innovative solutions. We strive to maintain strong customer relationships and endeavour to build even deeper relationships.

We are committed to ensuring the stages of our customer lifecycle are seamless and have recently conducted a review of this key process to further enhance collaboration, onboarding, retention and growth. We continue to optimise our processes through a mix of AI, multidisciplinary teams and a consistent framework. Our customer engagement intelligence is providing us with increasingly specific recommendations for clients so we can be more targeted with support and service and strengthen customer loyalty.

2) World-Class Product

We continue to invest in World-Class Product enabling us to offer our clients 'gold standard' data. Our proprietary data and insights are generated by more than 800 analysts, 1,200 researchers and 100 journalists, supported by 250 data scientists across 20 different industries. Our One Platform empowers the world's largest 20 industries and is highly scalable.

During the half we continued to invest in product development including the use of AI software, workflow enhancements, user tools, platform development and new content. Enhancements to our Intelligence Center included:

· Launch of new Themes proposition across all Intelligence Centers, including significantly improved macro themes coverage provided by TS Lombard

· New global market datasets including energy transition, Foreign Direct Investments (FDI), ESG and ecommerce marketplaces

· Significant expansion of AI coverage

We also launched new tools including Generative AI search functionality on our Intelligence Center allowing users to ask natural language questions. In addition, we have also launched a new Sales Intelligence product to help clients plan, target, create and engage their customers, as well as a new Competitive Intelligence tool to better track and compare competitor activity.

As well as our commitment to continuous organic investment in our product, the recent acquisitions of Life Sciences, LMC, MBI and TS Lombard have all added high value data and insights to our platform.

We continue to expand our routes to market via our multiple media sites. Our media assets provide limited free-to-access insight through to high value, paywalled custom products and continues to prove a powerful go-to-market proposition, driving new customers up the value curve over time.

3) Sales Excellence

Our sales teams have a clear focus on the key levers for growth. Linked to our Customer Obsession initiatives, our ambitious target is to take our volume renewal rate in our larger clients (>£20k) from 83% to over 90%, through increasing client engagement and enhancing client and user experience.

During the first half, in addition to selling more seats and product to existing customers, we had a net increase in the number of larger clients (>£20k) to 2,700 (HY 2022: 2,473), a year on year increase of 9%. We remain focused on pricing amongst our smaller clients, as a result the overall number of clients is broadly consistent with HY 2022, but importantly our value renewal rate continues to be close to 100%. Our Invoiced Forward Revenue position and new business pipeline remain healthy, and we are investing in new sales roles in the second half of the year.

We are increasingly using AI-driven tools across a number of areas to retain existing clients and grow our partnerships as well as win new clients. We use AI tools to monitor the health of our client relationships, to help coach our sales teams, to personalise the selling process and to increase co-ordination across our teams.

We continue to see a significant opportunity to add greater value to our existing clients, including via sales synergies in acquired businesses. Our addressable market is substantial. We believe there are 125,000 client opportunities (versus our 4,700 existing customers), with significant latent growth potential in the US and professional services markets.

4) Operational Agility

Maintaining our entrepreneurial culture and operational agility is key to achieving our growth potential. While maintaining a disciplined approach to cost we continue to invest for growth in areas such as product development and technology.

From an M&A perspective we continue to assess a healthy pipeline of acquisition opportunities and remain disciplined in our approach to M&A. GlobalData has a three-year £410.0m debt financing facility (secured in August 2022) which provides the Group with additional firepower to execute its M&A growth strategy. This facility matures on 5 August 2025, with an option to extend further by a year. The debt facility comprises a £290.0m term loan however on 3 April 2023 the Group voluntarily repaid £25.0m resulting in the current term loan drawdown of £265.0m. The term loan was used in part to repay existing indebtedness of £229.2m. The facility also comprises a Revolving Credit Facility ("RCF") of £120.0m which is currently undrawn, but will be used to support long-term growth of the business, including M&A.

Operational Key Performance Indicators

The operational key performance indicators ("KPIs") below are used by the Directors to monitor the quality of revenue growth and understand underlying performance. Operational KPIs reference sales orders rather than revenue and therefore impact both revenue recognised in the year as well as Invoiced Forward Revenue. As at 30 June 2023, the total number of clients (>£5,000 spend) was 4,739 (HY 2022: 4,814). Clients spending more than £20,000 represented 2,700 clients (HY 2022: 2,473) and ~77% of Group revenues.

Clients >£20,000	Value renewal rate	Volume renewal rate	Average client value
HY 2023	99%	83%	£75,800
HY 2022	100%	84%	£73,100
Movement	-1pt	-1pt	+4%

Robust performance in underlying operational KPIs helped deliver 8% underlying revenue growth and 9% growth in underlying Invoiced Forward Revenue. Volume renewal rates for clients spending over £20,000 was broadly consistent with HY 2022. The Group continued to demonstrate strong pricing power, as well as selling more licences and product to its existing client base. This resulted in a value renewal rate for clients spending over £20,000 of nearly 100%.

The operational KPIs are defined and calculated as:

· Value renewal rate - this is calculated by dividing the total subscription sales value closed in the year compared with subscription value available for renewal (based upon prior year value).

· Volume renewal rate - this is calculated by dividing the total volume of subscription sales closed in the year compared with subscription volume available for renewal.

· Average client value - this is calculated using the total value of sales across our clients and showing an average value.

Outlook

We are well positioned to maintain strong and resilient growth, as uncertainty continues to drive demand for our 'gold standard' data. Following a strong first half performance and continued momentum into H2, we remain on track to deliver results in line with increased market expectations for FY 2023. We maintain our ambition of double-digit underlying revenue growth.

FINANCIAL REVIEW

£m	Unaudited 6 months to June 2023	Unaudited 6 months to June 2022
Revenue	135.9	111.9
Operating profit	36.9	24.1
Adjusting items
Depreciation	3.2	3.3
Amortisation of acquired intangible assets	4.7	4.1
Amortisation of software	0.7	0.5
Share-based payments charge	9.7	1.4
Costs relating to share-based payments scheme	0.1	-
Restructuring and refinancing costs	0.3	1.0
Revaluation (gain)/loss on short- and long-term derivatives	(1.7)	2.1
Unrealised operating foreign exchange (gain)/loss	(1.7)	0.9
M&A and contingent consideration costs	1.3	1.6
Adjusted EBITDA	53.5	39.0
Adjusted EBITDA margin¹	39%	35%

Statutory profit before tax	23.9	15.0
Amortisation of acquired intangible assets	4.7	4.1
Share-based payments charge	9.7	1.4
Costs relating to share-based payments scheme	0.1	-
Restructuring and refinancing costs	0.3	1.0
Revaluation (gain)/loss on short- and long-term derivatives	(1.7)	2.1
Unrealised operating foreign exchange (gain)/loss	(1.7)	0.9
M&A and contingent consideration costs	1.3	1.6
Borrowings non-cash interest expense	-	4.0
Adjusted profit before tax	36.6	30.1
Adjusted income tax expense¹	(8.7)	(6.9)
Adjusted profit after tax	27.9	23.2

Cash flow generated from operations	63.0	56.1
Interest paid	(12.1)	(4.4)
Income taxes paid	(2.7)	(4.8)
Principal elements of lease payments	(2.4)	(2.9)
Purchase of intangible and tangible assets	(1.9)	(1.2)
Free cash flow¹	43.9	42.8
Operating cash flow conversion %¹	118%	144%
Free cash flow conversion %¹	120%	142%

Earnings attributable to equity holders (restated)²:
Basic earnings per share (pence)	2.2	1.3
Diluted earnings per share (pence)	2.2	1.2
Adjusted basic earnings per share (pence)	3.4	2.9
Adjusted diluted earnings per share (pence)	3.4	2.6

¹ Defined in the explanation of non-IFRS measures on page 13.

² The prior period comparatives on basic and diluted earnings per share on both a reported and an adjusted basis have been restated to reflect the impact of the share-split, which completed after the balance sheet date on 25 July 2023 (see note 15).

The financial position and performance of the business are reflective of the core financial elements of our business model: visible and recurring revenues, high incremental margins, scalable opportunity and strong cash flows.

The Directors believe that Adjusted EBITDA, Adjusted EBITDA margin, Adjusted profit before tax, Adjusted profit after tax and Adjusted earnings per share provide additional useful information on the operational performance of the Group to shareholders, and internally we review the results of the Group using these measures. The term 'adjusted' is not a defined term under IFRS and may not therefore be comparable with similarly titled profit measures reported by other companies. It is not intended to be a substitute for, or superior to, IFRS measures of profit.

Revenue

Revenue grew by 21% to £135.9m driven from underlying growth of 8% and aided by revenue from recent M&A and the benefit of currency gains (HY 2022: £111.9m). On an underlying basis, subscriptions (representing 78% of revenue) grew by 8% underpinned by consistent renewal rates, strong pricing and client contract growth as well as new business wins.

£m	HY 2023	HY 2022	Growth
Revenue	135.9	111.9	+21%
PY results of acquired businesses (MBI & TSL)	-	9.0
Impact of currency	(5.1)	-
Underlying Revenue	130.8	120.9	+8%

Invoiced Forward Revenue

Invoiced Forward Revenue grew from £114.6m as at 30 June 2022 to £122.9m as at 30 June 2023. Invoiced Forward Revenue is a major component of our significant revenue visibility for the forthcoming period.

£m	30 June 2023	30 June 2022
Deferred revenue	117.5	110.9
Amounts not due/subscription not started at 30 June	5.4	3.7
Invoiced Forward Revenue	122.9	114.6

Foreign exchange impact on results

The Group derives around 60% of revenues in currencies other than Sterling, compared with around 40% of its cost base. The impact of currency movements in the period increased revenue by £5.1m, which mainly reflected Sterling weakness against US Dollar (average rate: HY 2023: 1.22, HY 2022: 1.31).

As at the balance sheet date 30 June, Sterling strengthened versus US Dollar versus its position in the previous year and therefore its impact reduced Invoiced Forward Revenue by £1.9m. Cost inflation as a result of currency movements offset the gain in the year and impacted the results by £1.4m. The full impact of currency on Adjusted EBITDA was an increase of £3.7m.

£m	Revenue	Net operating costs¹	Adjusted EBITDA	Adjusted EBITDA Margin	Invoiced Forward Revenue
Reported	135.9	(82.4)	53.5	39%	122.9
Add back currency movements
US Dollar	(4.8)	1.7	(3.1)		1.6
Euro	(0.3)	-	(0.3)		-
Other	0.0	(0.3)	(0.3)		0.3
Constant currency	130.8	(81.0)	49.8	38%	124.8
2022 Proforma	120.7	(78.4)	42.3	35%	116.8
Constant currency growth²	+8%	+3%	+18%	+3pts	+7³

¹ Net operating costs is defined as operating expenses, losses on trade receivables and other income excluding depreciation, amortisation of software and adjusting items (see note 6).

² Defined in the explanation of non-IFRS measures on page 13.

³ The underlying growth of Invoiced Forward Revenue was 9%. Due to timing differences of ~£4m invoicing after the balance sheet date, the calculated constant currency is 7%.

Profit before tax

Profit before tax for the year grew by £8.9m to £23.9m (HY 2022: £15.0m), which reflects the operating leverage which has driven an increase in Adjusted EBITDA of £14.5m to £53.5m (HY 2022: £39.0m), partly offset with increases in finance and other operating costs.

Adjusted EBITDA

Adjusted EBITDA increased by 37% to £53.5m (HY 2022: £39.0m). The growth in Adjusted EBITDA was driven by our strong revenue growth and our ability to control our relatively fixed cost base. We have an established operating cost base and given the economics of our platform business, which sees limited incremental cost of sale, our overall adjusted EBITDA margin increased by 4 percentage points to 39% (HY 2022: 35%).

Finance costs

Net finance costs have increased by £3.9m to £13.0m (HY 2022: £9.1m), including IFRS16 leases interest cost of £0.6m (HY 2022: £0.7m). The cash paid in interest in HY 2023 was £12.1m (HY 2022: £4.4m).

This reflects the increase in average drawn debt in 2023 compared with 2022, which funded the M&A activity and purchase of own shares in 2022, in addition to the increase in interest rates.

Finance costs are calculated on drawn debt based upon on a margin range of 275-375bps, dependent on Group net leverage, plus SONIA (Sterling Overnight Index Average rate). The Group recognises the impact that fluctuations in market interest rates can have on the value of the Group's interest-bearing assets and liabilities and on the interest charge recognised in the income statement. On 21 October 2022, GlobalData Plc (the parent company) entered into an interest rate swap arrangement, to fix the floating element of the interest rate (based upon SONIA) to a fixed rate of 4.9125%.

The Group has applied hedge accounting in accordance with IFRS9 (Financial Instruments); as such any gains or losses on the interest rate swap, to the extent that they are effective, are recognised directly within other comprehensive income of both the Group and the parent company. Undrawn debt carries interest at one third of the prevailing margin.

Adjusting items

Adjusting items (detailed in note 6) increased by £1.6m in total. Significant individual movements include:

· The share-based payment charge has increased from £1.4m to £9.7m, which mainly reflects the increased charge as a result of the modification of the scheme targets from Total Shareholder Returns ("TSR") to Adjusted EBITDA on 30 November 2022. Details of this modification can be found in the Annual Report and Accounts for the year ended 31 December 2022.

· There were also 12.6m new options granted (based upon post-reorganisation share structure which completed after the balance sheet date on 25 July 2023 (see note 15)) in the first half across both schemes 2 and 4, which increased the H1 charge by £2.2m.

· Revaluation gain on short- and long-term derivatives and unrealised operating foreign exchange contributed a total gain in the first half of £3.4m (HY 2022 £3.0m loss). This is a result of fluctuations in currency exchange rates, mainly driven by US Dollar.

· Contingent consideration costs of £1.0m were incurred in relation to the acquisition of MBI (HY 2022: £nil).

Leases

Within our operating costs, depreciation in relation to right-of-use assets was £2.5m (HY 2022: £2.5m). Other income, in relation to sub-let income on right-of-use assets was £nil (HY 2022: £0.1m). Our net finance costs include interest of £0.6m in relation to lease liabilities (HY 2022: £0.7m).

Taxation

The interim period income tax expense has been calculated using the forecast effective tax rate that would be applicable to expected total annual earnings, i.e. the estimated average annual effective income tax rate applied to the pre-tax income of the interim period. To the extent practicable, where different income tax rates apply to different categories of income, a separate rate has been used for each individual category of interim period pre-tax income.

Using this approach, the overall annual effective income tax rate is currently forecast to be 26.5% (HY 2022: 22.2%). This broadly represents the blended corporation tax rate for FY 2023 in the UK of 23.5% adjusted for the higher rates of overseas tax in the jurisdictions where the Group operates (1%) and expenses which are not deductible for tax purposes (2%).

Post balance sheet event

Pursuant to a capital reorganisation exercise undertaken on 25 July 2023, the Company issued nine ordinary shares to increase the number of ordinary shares in issue to 118,303,878 (nominal value £0.000714 per share). All existing ordinary shares were then consolidated, based on 1 consolidated share for every 14 existing ordinary shares, and subdivided, based on 100 new ordinary shares for every 1 consolidated share. Post-reorganisation, there were 845,027,700 ordinary shares in issue (nominal value £0.0001 per share) which were admitted to AIM and commenced dealing on 26 July 2023.

Earnings per share

Basic EPS was 2.2 pence per share (HY 2022: 1.3 pence per share). Diluted EPS was 2.2 pence per share (HY 2022 restated: 1.2 pence per share).

Adjusted EPS grew from 2.9 pence per share to 3.4 pence per share, representing 17% growth. Adjusted diluted EPS grew from 2.6 pence (restated) per share to 3.4 pence per share, representing 31% growth.

The prior period comparatives on basic and diluted earnings per share on both a reported and an adjusted basis have been restated to reflect the impact of the share-split.

The earnings per share results based upon the post-reorganisation share structure have been compared against earnings per share results based on the share structure existing as at 30 June 2023 below:

	Post-reorganisation share structure		Share structure as at 30 June 2023
	6 months to 30 June 2023 Unaudited	6 months to 30 June 2022 Unaudited	6 months to 30 June 2023 Unaudited	6 months to 30 June 2022 Unaudited
Earnings per share attributable to equity holders from continuing operations:
Basic
Profit for the period attributable to ordinary shareholders of the parent company (£m)	17.8	10.6	17.8	10.6
Weighted average number of shares (no' m)	812.9	801.4	113.8	112.2
Basic earnings per share (pence)	2.2	1.3	15.6	9.4
Diluted
Profit for the period attributable to ordinary shareholders of the parent company (£m)	17.8	10.6	17.8	10.6
Weighted average number of shares (no' m)	817.8	879.3	114.5	123.1
Diluted earnings per share (pence)	2.2	1.2	15.5	8.6

Dividends

We are pleased to declare an interim dividend of 1.4 pence per share (HY 2022 restated: 1.1 pence), an increase of 27%, consistent with our progressive dividend policy. The interim dividend will be paid on 6 October 2023 to shareholders on the register at the close of business on 8 September 2023. The ex-dividend date will be on 7 September 2023.

The dividends per share based upon the post-reorganisation share structure have been compared against dividends per share based on the share structure existing as at 30 June 2023 below:

Post-reorganisation share structure

Share structure as at 30 June 2023

6 months to

30 June 2023

Unaudited

6 months to

30 June 2022

Unaudited

6 months to

30 June 2023

Unaudited

6 months to

30 June 2022

Unaudited

Dividend per share

1.4

1.1

10.0

7.7

Reconciliation of net bank debt

The Group defines net bank debt as short- and long-term borrowings less cash and cash equivalents. The amount excludes items related to leases.

£m	30 June 2023	30 June 2022
Short- and long-term borrowings	258.9	232.0
Cash	(28.1)	(41.5)
Net bank debt	230.8	190.5

A reconciliation of cash generated from operations, free cash flow and opening and closing net bank debt is set out below.

£m	Period ended 30 June 2023	Period ended 30 June 2022	Growth
Cash flow generated from operations	63.0	56.1	+12%
Interest paid	(12.1)	(4.4)	+175%
Income taxes paid	(2.7)	(4.8)	-44%
Principal elements of lease payments	(2.4)	(2.9)	-17%
Purchase of intangible and tangible assets	(1.9)	(1.2)	+58%
Free cash flow	43.9	42.8	+3%
Dividends paid	(20.8)	(14.8)	+41%
Net M&A	(0.2)	(20.1)	-99%
Acquisition of own shares	(2.6)	(17.7)	-85%
Cash received from repayment of loans	-	0.9	-100%
Net cash flow	20.3	(8.9)	-328%
Opening net bank debt	(249.6)	(177.6)	+41%
Non-cash movement in borrowings	(0.3)	(4.0)	-93%
Currency translation	(1.2)	-	+100%
Closing net bank debt	(230.8)	(190.5)	+21%
Last 12 months Adjusted EBITDA¹	100.9	72.7	+39%
Net bank debt leverage	2.3x	2.6x	-0.3x

¹Reflects 12 month rolling Adjusted EBITDA results. £100.9m reconciles as H2 2022 (£47.4m) and H1 2023 (£53.5m), £72.7m reconciles as H2 2021 (£33.7m) and H1 2022 (£39.0m).

Cash generated from operations grew by 12% to £63.0m (HY 2022: £56.1m), representing 118% of Adjusted EBITDA (HY 2022: 144%). We typically expect operating cash flow to be in excess of 100% of Adjusted EBITDA over the full financial year.

Capital expenditure was £1.9m during the period (HY 2022: £1.2m). Capital expenditure represented 1.4% of revenue (HY 2022: 1.1%).

After increased interest paid of £12.1m (HY 2022: £4.4m), offset by reduced taxes paid in the period, Free Cash Flow increased by 3% to £43.9m which represented 120% of Adjusted Profit Before Tax (HY 2022: 142%).

Year on year, net bank debt increased to £230.8m as at 30 June 2023 (30 June 2022: £190.5m). Net bank debt to Adjusted EBITDA leverage at 30 June 2023 was 2.3x, down from 2.6x last year and down from 2.9x as at 31 December 2022, demonstrating the Group's ability to de-lever in the absence of M&A and share buy-backs. We have a clear capital allocation policy to operate within 2-3x net bank debt leverage, in relation to Adjusted EBITDA. The Group reviews leverage on a look forward basis and the high degree of visibility it has on its revenue and free cash generation gives the Group comfort in its ability to de-lever reasonably quickly.

Explanation of non-IFRS Measures

Financial measure	How we define it	Why we use it
Adjusted diluted EPS	Adjusted profit after tax per diluted share (reconciliation between statutory profit and adjusted profit shown on page 8). Diluted share defined as total of basic weighted average number of shares (net of shares held in treasury reserve) and share options in issue at end of period (reconciliation between basic weighted average number of shares and diluted weighted average number of shares in note 15).	Provides a useful basis to assess the year on year operational business performance.
Adjusted EBITDA	Earnings before interest, tax, depreciation and amortisation, adjusted to exclude costs associated with acquisitions, restructuring of the Group, share-based payments, impairment, unrealised operating exchange rate movements and the impact of foreign exchange contracts. This is reconciled to the statutory operating profit on page 8.
Last 12 months Adjusted EBITDA	Earnings before interest, tax, depreciation and amortisation, adjusted to exclude costs associated with acquisitions, restructuring of the Group, share-based payments, impairment, unrealised operating exchange rate movements and the impact of foreign exchange contracts in the 12 months preceding the period end date
Adjusted EBITDA margin	Adjusted EBITDA as a percentage of revenue.
Adjusted EPS	Adjusted profit after tax per share (reconciliation between statutory profit and adjusted profit shown on page 8).
Adjusted income tax expense	Represents the statutory income tax expense adjusted for the tax effect on adjusting items. In addition, the adjusted income tax expense includes the effect of any tax rate changes.
Adjusted profit before tax	Statutory profit before tax adjusted to exclude amortisation of acquired intangible assets, costs associated with acquisitions, restructuring of the Group, share-based payments, impairment, unrealised operating exchange rate movements and the impact of foreign exchange contracts. This is reconciled to the statutory profit before tax on page 8.
Constant currency growth	Underlying growth is calculated by excluding the impact of movement in exchange rates	To give the reader an idea of the growth of the business without the impact of foreign exchange fluctuations, which may add to the transparency and understanding of the results.
Free cash flow	Cash flow generated from operations less interest paid, income taxes paid, principal elements of lease payments and purchase of intangible and tangible assets. This is calculated on page 8.	Indicates the extent to which the Group generates cash from Adjusted profits.
Free cash flow conversion	Free cash flow divided by Adjusted profit before tax. This is calculated on page 8.
Invoiced Forward Revenue	Invoiced Forward Revenue relates to amounts that are invoiced to clients at the statement of financial position date, which relate to future revenue to be recognised. This is reconciled to deferred revenue on page 9.	Acts as an indication of revenue visibility for the forthcoming period.
Net bank debt	Short and long-term borrowings (excluding lease liabilities) less cash and cash equivalents. This is reconciled on page 12.	Provides an insight into the debt position of the Group, taking into account current cash resources.
Net bank debt leverage	Net bank debt calculated as a multiple of the last 12 months Adjusted EBITDA. Detailed calculation is provided on page 12.
Net cash flow	Free cash flow less dividends paid, net M&A costs, acquisition of own shares and cash received from repayment of loans. This is calculated on page 8.	Indicates the extent to which the Group generates cash from Adjusted profits.
Operating cash flow conversion	Cash flow generated from operations divided by Adjusted EBITDA. This is calculated on page 8.	Indicates the extent to which the Group generates cash from Adjusted EBITDA.
Underlying growth	Underlying growth is calculated by excluding the impact of movement in exchange rates and the results of acquired businesses, based upon the comparative period prior to acquisition. Underlying revenue is reconciled to reported revenue on page 9.	The reason we use underlying growth as a metric is to give the reader an idea of the growth of the business without the impact of acquisitions and foreign exchange fluctuations, which may add to the transparency and understanding of the results.

Responsibility Statement

We confirm that to the best of our knowledge:

a) the consolidated interim financial statements have been prepared in accordance with the United Kingdom adopted International Accounting Standard 34, "Interim Financial Reporting";

b) the consolidated interim financial statements, which have been prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the issuer, or the undertakings included in the consolidation as a whole as required by DTR 4.2.4R;

c) the interim management report includes a fair review of the information required by DTR 4.2.7R, namely;

i. an indication of important events that have occurred during the first six months of the financial year and their impact on the consolidated interim financial statements; and

ii. a description of the principal risks and uncertainties for the remaining six months of the financial year.

d) the interim management report includes, as required by DTR 4.2.8R, a fair review of material related party transactions that have taken place in the first six months of the financial year and any material changes in the related-party transactions described in the Annual Report and Accounts for the year ended 31 December 2022 that could have a material effect on the financial position or performance of the enterprise in the first six months of the current financial year.

Approved by the Board on 31 July 2023 and signed on its behalf by:

Mike Danson

Chief Executive

Independent review report to GlobalData Plc

Conclusion

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2023 which comprises the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of financial position, the consolidated statement of changes in equity, the consolidated statement of cash flows and related notes 1 to 15.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2023 is not prepared, in all material respects, in accordance with United Kingdom adopted International Accounting Standard 34 and the AIM Rules of the London Stock Exchange.

Basis for Conclusion

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Financial Reporting Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

As disclosed in note 1, the annual financial statements of the group will be prepared in accordance with United Kingdom adopted international accounting standards. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with United Kingdom adopted International Accounting Standard 34, "Interim Financial Reporting".

Conclusion Relating to Going Concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for Conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed.

This conclusion is based on the review procedures performed in accordance with this ISRE (UK) 2410, however future events or conditions may cause the entity to cease to continue as a going concern.

Responsibilities of the directors

The directors are responsible for preparing the half-yearly financial report in accordance with the AIM rules of the London Stock Exchange.

In preparing the half-yearly financial report, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the review of the financial information

In reviewing the half-yearly financial report, we are responsible for expressing to the group a conclusion on the condensed set of financial statement in the half-yearly financial report. Our conclusion, including our Conclusions Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.

Use of our report

This report is made solely to the company in accordance with ISRE (UK) 2410. Our work has been undertaken so that we might state to the company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have formed.

Deloitte LLP

Statutory Auditor

London, England

31 July 2023

Consolidated Income Statement

	Notes	6 months to 30 June 2023 Unaudited	6 months to 30 June 2022 Unaudited
Continuing operations		£m	£m
Revenue	4	135.9	111.9
Operating expenses	5	(98.2)	(87.8)
Losses on trade receivables	5	(1.3)	(0.1)
Other income		0.5	0.1
Operating profit		36.9	24.1
Net finance costs	7	(13.0)	(9.1)
Profit before tax		23.9	15.0
Income tax expense		(6.1)	(4.4)
Profit for the period		17.8	10.6

Attributable to:
Equity holders of the parent		17.8	10.6

Earnings per share attributable to equity holders (restated):
Basic earnings per share (pence)	8	2.2	1.3
Diluted earnings per share (pence)	8	2.2	1.2

Reconciliation to Adjusted EBITDA:
Operating profit		36.9	24.1
Depreciation		3.2	3.3
Amortisation of software		0.7	0.5
Adjusting items	6	12.7	11.1
Adjusted EBITDA		53.5	39.0

The accompanying notes form an integral part of this financial report.

The earnings per share prior period comparatives have been restated to reflect the impact of the share-split, which completed after the balance sheet date on 25 July 2023 (see note 15) on basic and diluted earnings per share.

Consolidated Statement of Comprehensive Income

	6 months to 30 June 2023 Unaudited	6 months to 30 June 2022 Unaudited
	£m	£m
Profit for the period	17.8	10.6
Other comprehensive income
Items that will be classified subsequently to profit or loss when specific conditions are met:
Cash flow hedge - effective portion of changes in fair value	8.0	-
Cash flow hedge - reclassification to profit or loss	0.4	-
Net exchange losses on translation of foreign entities	(1.2)	(0.1)
Other comprehensive gains/(losses), net of tax	7.2	(0.1)
Total comprehensive income for the period	25.0	10.5

Attributable to:
Equity holders of the parent	25.0	10.5

The accompanying notes form an integral part of this financial report.

Consolidated Statement of Financial Position

	Notes	30 June 2023 Unaudited	31 December 2022 Audited
		£m	£m
Non-current assets
Property, plant and equipment		28.6	31.0
Intangible assets	9	376.3	380.1
Long-term derivative asset	10	4.5	-
Deferred tax assets		2.2	2.3
		411.6	413.4
Current assets
Trade and other receivables		59.4	62.7
Current tax receivable		-	0.6
Short-term derivative assets	10	1.4	0.9
Cash and cash equivalents		28.1	34.0
		88.9	98.2
Total assets		500.5	511.6
Current liabilities
Trade and other payables		(144.6)	(137.3)
Short-term lease liabilities	11	(4.9)	(5.4)
Current tax payable		(4.0)	(1.7)
Short-term derivative liabilities	10	(0.1)	(1.3)
Short-term provisions		(0.1)	(0.1)
		(153.7)	(145.8)
Net current liabilities		(64.8)	(47.6)
Non-current liabilities
Long-term provisions		(1.2)	(1.3)
Deferred tax liabilities		(4.5)	(4.1)
Long-term derivative liabilities	10	-	(3.9)
Long-term lease liabilities	11	(23.0)	(24.6)
Long-term borrowings	11	(258.9)	(283.6)
		(287.6)	(317.5)
Total liabilities		(441.3)	(463.3)
Net assets		59.2	48.3
Equity
Share capital	12	0.2	0.2
Treasury reserve	12	(56.9)	(70.8)
Other reserve	12	(44.3)	(44.3)
Foreign currency translation reserve	12	(1.9)	(0.7)
Cash flow hedge reserve	12	4.5	(3.9)
Retained profit	12	157.6	167.8
Equity attributable to equity holders of the parent		59.2	48.3

The accompanying notes form an integral part of this financial report.

Consolidated Statement of Changes in Equity

	Share capital	Treasury reserve	Other reserve	Foreign currency translation reserve	Cash flow hedge reserve	Retained profit	Equity attributable to equity holders of the parent
	£m	£m	£m	£m	£m	£m	£m
Balance at 1 January 2022	0.2	(66.6)	(44.3)	(0.3)	-	217.3	106.3
Profit for the six-month period ended 30 June 2022	-	-	-	-	-	10.6	10.6
Other comprehensive income:
Net exchange loss on translation of foreign entities	-	-	-	(0.1)	-	-	(0.1)
Total comprehensive income for the period	-	-	-	(0.1)	-	10.6	10.5
Transactions with owners:
Share buy-back	-	(17.7)	-	-	-	-	(17.7)
Dividend	-	-	-	-	-	(14.8)	(14.8)
Share-based payments charge	-	-	-	-	-	1.4	1.4
Tax on share-based payments	-	-	-	-	-	(2.1)	(2.1)
Balance at 30 June 2022	0.2	(84.3)	(44.3)	(0.4)	-	212.4	83.6
Profit for the six-month period ended 31 December 2022	-	-	-	-	-	19.9	19.9
Other comprehensive income:
Cash flow hedge - effective portion of changes in fair value	-	-	-	-	(3.9)	-	(3.9)
Net exchange loss on translation of foreign entities	-	-	-	(0.3)	-	-	(0.3)
Total comprehensive income for the period	-	-	-	(0.3)	(3.9)	19.9	15.7
Transactions with owners:
Share buy-back	-	(48.9)	-	-	-	-	(48.9)
Dividend	-	-	-	-	-	(8.8)	(8.8)
Vesting of share options	-	62.4	-	-	-	(62.4)	-
Share-based payments charge	-	-	-	-	-	2.7	2.7
Tax on share-based payments	-	-	-	-	-	4.0	4.0
Balance at 31 December 2022	0.2	(70.8)	(44.3)	(0.7)	(3.9)	167.8	48.3
Profit for the six-month period ended 30 June 2023	-	-	-	-	-	17.8	17.8
Other comprehensive income:
Cash flow hedge - effective portion of changes in fair value	-	-	-	-	8.0	-	8.0
Cash flow hedge - reclassification to profit or loss	-	-	-	-	0.4	-	0.4
Net exchange loss on translation of foreign entities	-	-	-	(1.2)	-	-	(1.2)
Total comprehensive income for the period	-	-	-	(1.2)	8.4	17.8	25.0
Transactions with owners:
Share buy-back	-	(2.6)	-	-	-	-	(2.6)
Dividend	-	-	-	-	-	(20.8)	(20.8)
Vesting of share options	-	16.5	-	-	-	(16.5)	-
Share-based payments charge	-	-	-	-	-	9.7	9.7
Tax on share-based payments	-	-	-	-	-	(0.4)	(0.4)
Balance at 30 June 2023	0.2	(56.9)	(44.3)	(1.9)	4.5	157.6	59.2

The accompanying notes form an integral part of this financial report.

Consolidated Statement of Cash Flows

Continuing operations	6 months to 30 June 2023 Unaudited	6 months to 30 June 2022 Unaudited
Cash flows from operating activities	£m	£m
Profit for the period	17.8	10.6
Adjustments for:
Depreciation	3.2	3.3
Amortisation	5.4	4.6
Net finance costs	13.0	9.1
Other (gains) and losses	(0.5)	-
Taxation recognised in profit or loss	6.1	4.4
Share-based payments charge	9.7	1.4
Decrease/(increase) in trade and other receivables	3.2	(2.0)
Increase in trade and other payables	6.8	22.9
Revaluation of short- and long-term derivatives	(1.7)	2.1
Movement in provisions	-	(0.3)
Cash generated from continuing operations	63.0	56.1
Interest paid	(12.1)	(4.4)
Income taxes paid	(2.7)	(4.8)
Total cash flows from operating activities	48.2	46.9
Cash flows from investing activities
Acquisitions, net of cash acquired	(0.2)	(20.1)
Cash received from repayment of loans	-	0.9
Purchase of property, plant and equipment	(0.3)	(0.6)
Purchase of intangible assets	(1.6)	(0.6)
Total cash flows used in investing activities	(2.1)	(20.4)
Cash flows from financing activities
Repayment of borrowings	(25.0)	(2.5)
Proceeds from borrowings	-	31.0
Loan refinancing fee	-	(0.7)
Acquisition of own shares	(2.6)	(17.7)
Principal elements of lease payments	(2.4)	(2.9)
Dividends paid	(20.8)	(14.8)
Total cash flows used in financing activities	(50.8)	(7.6)
Net (decrease)/increase in cash and cash equivalents	(4.7)	18.9
Cash and cash equivalents at beginning of period	34.0	22.6
Effects of currency translation on cash and cash equivalents	(1.2)	-
Cash and cash equivalents at end of period	28.1	41.5

The accompanying notes form an integral part of this financial report.

Notes to the Interim Financial Statements

1. General information

Nature of operations

The principal activity of GlobalData Plc and its subsidiaries (together 'the Group') is to provide business information in the form of high quality proprietary data, analytics, and insights to clients in multiple sectors.

GlobalData Plc ('the Company') is a company incorporated in the United Kingdom (England & Wales) and listed on the Alternative Investment Market (AIM), therefore is publicly owned and limited by shares. The registered office of the Company is John Carpenter House, John Carpenter Street, London, EC4Y 0AN. The registered number of the Company is 03925319.

Basis of preparation

These interim financial statements are for the six months ended 30 June 2023. They have been prepared in accordance with United Kingdom adopted International Accounting Standard 34, "Interim Financial Reporting". They do not include all of the information required for full annual financial statements and should be read in conjunction with GlobalData Plc's audited financial statements for the year ended 31 December 2022.

The financial information for the year ended 31 December 2022 set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2022 have been filed with the Registrar of Companies and can be found on the Group's website www.globaldata.com. The independent auditors' report on the full financial statements for the year ended 31 December 2022 was unqualified and did not contain an emphasis of matter paragraph or any statement under section 498 of the Companies Act 2006.

These interim financial statements have been prepared on the historical cost basis, except for derivative financial instruments, which are measured at fair value.

The interim financial statements are presented in Pounds Sterling (£), which is also the functional currency of the Company. These interim financial statements have been approved for issue by the Board of Directors.

Critical accounting estimates and judgements

When preparing the Interim Financial Statements, the Group makes a number of estimates, judgements and assumptions regarding the future. Estimates, judgements and assumptions are frequently evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may deviate from these estimates and assumptions.

The judgements, estimates and assumptions applied in the Interim Financial Statements, including the key sources of estimation uncertainty, were the same as those applied in the Group's last annual financial statements for the year ended 31 December 2022.

Principal and emerging risks and uncertainties

The Directors consider that the principal and emerging risks and uncertainties facing the Group as at 30 June 2023, and looking forwards into H2 2023, are consistent with those reported within the Strategic Report of the annual financial statements for the year ended 31 December 2022. The key risks identified were as follows:

· Business and strategic risks: Product; People and Succession; Competition and Clients; Economic and Global Political Changes; Acquisition and Disposal Risk

· Operational risks: Financial; Loss, Misuse or Theft of Proprietary, Employee or Client Data; IT, Cyber and Systems Failure; Regulatory Compliance

We are a data, analytics, and insights company in which our products are created and distributed digitally. Our carbon footprint is considerably smaller than those of many other companies of our size. Therefore, we have concluded that environmental factors do not represent a principal risk to our business.

Going concern

The Group has closing cash of £28.1m as at 30 June 2023 (31 December 2022: £34.0m) and net bank debt of £230.8m (31 December 2022: £249.6m), being cash and cash equivalents less short- and long-term borrowings, excluding lease liabilities. The Group has an outstanding term loan of £265.0m which is syndicated with 12 lenders. As at 30 June 2023, the Group had an undrawn RCF of £120.0m which is syndicated with 13 lenders. The Group's banking facilities are in place until August 2025, at which point the Group will be required to renew or extend its financing arrangements. The Group has generated £63.0m in cash from operations during the period ended 30 June 2023 (30 June 2022: £56.1m). Based on cash flow projections the Group considers the existing financing facilities to be adequate to meet short-term commitments.

The finance facilities were issued with debt covenants which are measured on a quarterly basis. There have been no breaches of covenants in the period ended 30 June 2023. Management has reviewed forecast cash flows and there is no indication that there will be any breach in the next 12 months.

The Directors have a reasonable expectation that there are no material uncertainties that cast significant doubt about the Group's ability to continue in operation and meet its liabilities as they fall due for the foreseeable future, being a period of at least 12 months from the date of announcement of the interim financial statements. The Group has ample headroom in relation to the financial covenants in place and no breach is forecast. The Directors have modelled a number of worst-case scenarios to consider their potential impact on the Group's results, cash flow and loan covenant forecast. Key assumptions built into the scenarios focus on revenue growth. In addition to performing scenario planning, the Directors have also conducted stress testing of the Group's forecasts and, taking into account reasonable downside sensitivities (acknowledging that such risks and uncertainties exist), the Directors are satisfied that the business is expected to operate within its facilities. The plausible downside scenarios modelled were as follows: (i) new business subscription sales being lower than expectation (ii) consulting revenues being lower than expectation and (iii) both scenarios combined. There remains headroom on the covenants under each scenario and cash remained in excess of £20.0m in all months.

Through our normal business practices, we are in regular communication with our lenders and are satisfied they will be in a position to continue supporting us for the foreseeable future.

The Directors therefore consider the strong balance sheet, with good cash reserves and working capital along with group financing arrangements, provide ample liquidity. Accordingly, the Directors have prepared the interim financial statements on a going concern basis.

2. Accounting policies

This interim report has been prepared based on the accounting policies detailed in the Group's financial statements for the year ended 31 December 2022, which have been applied consistently. The annual financial statements of the Group are prepared in accordance with United Kingdom adopted international accounting standards. The financial statements also comply with International Financial Reporting Standards (IFRSs) as issued by the IASB.

Presentation of non-statutory alternative performance measures

The Directors believe that Adjusted EBITDA, Adjusted EBITDA margin, Adjusted profit before tax, Adjusted profit after tax and Adjusted earnings per share provide additional useful information on the operational performance of the Group to shareholders, and we review the results of the Group using these measures internally. The term 'adjusted' is not a defined term under IFRS and may not therefore be comparable with similarly titled profit measures reported by other companies. It is not intended to be a substitute for, or superior to, IFRS measures of profit.

Adjustments are made in respect of:

Share-based payments and associated costs	Share-based payment expenses are excluded from Adjusted EBITDA as they are a non-cash charge and the awards are equity-settled.
Restructuring, M&A (including contingent consideration) and refinancing costs	The Group excludes these costs from Adjusted EBITDA where the nature of the item, or its size, is not related to the operational performance of the Group and allows for comparability of underlying results.
Amortisation and impairment of acquired intangible assets	The amortisation charge for those intangible assets recognised on business combinations is excluded from Adjusted EBITDA since they are non-cash charges arising from historical investment activities. Any impairment charges recognised in relation to these intangible assets are also excluded from Adjusted EBITDA. This is a common adjustment made by acquisitive information service businesses and is therefore consistent with peers.
Revaluation of short- and long-term derivatives	Gains and losses are recognised within Adjusted EBITDA when they are realised in cash terms and therefore we exclude non-cash movements arising from fluctuations in exchange rates which better aligns Adjusted EBITDA with the cash performance of the business.
Unrealised operating foreign exchange gain/loss

3. Taxation

Income tax on the profit or loss for the period comprises current and deferred tax.

Current tax is the expected tax payable on the taxable income for the period, using rates substantively enacted at the reporting date, and any quantifiable adjustments to the tax payable in respect of previous years.

Deferred taxation is provided in full on temporary differences between the carrying amount of the assets and liabilities in the financial statements and the tax base. Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised. Deferred tax is determined using the tax rates that have been enacted or substantively enacted by the reporting date and are expected to apply when the deferred tax liability is settled or the deferred tax asset is realised.

Tax is recognised in the income statement for interim reporting purposes using the tax rate that would be applicable to expected total annual earnings, being the estimated average annual effective income tax rate applied to the pre-tax income of the interim period. To the extent practicable, a separate estimated average annual effective income tax rate is determined for each tax jurisdiction and applied individually to the interim period pre-tax income of each jurisdiction. Similarly, if different income tax rates apply to different categories of income (such as capital gains), to the extent practicable, a separate rate is applied to each individual category of interim period pre-tax income.

4. Segment analysis

IFRS8 "Operating Segments" requires the segment information presented in the financial statements to be that which is used internally by the chief operating decision maker to evaluate the performance of the business and to decide how to allocate resources. The Group has identified the Chief Executive as its chief operating decision maker.

The Group maintains a centralised operating model and single product platform (One Platform), which is underpinned by a common taxonomy, shared development resource, and new data science technologies. The fundamental principle of the GlobalData business model is to provide our clients with subscription access to our proprietary data, analytics, and insights platform, with the offering of ancillary services such as consulting, single copy reports and events. The vast majority of data sold by the Group is produced by a central research team which produces data for the Group as a whole. The central research team reports to one central individual, the Managing Director of the India operation, who reports to the Group Chief Executive. 'Data, Analytics, and Insights' is therefore considered to be the operating segment of the Group.

The Group profit or loss is reported to the Chief Executive on a monthly basis and consists of earnings before interest, tax, depreciation, amortisation, central overheads and other adjusting items. The Chief Executive also monitors revenue within the operating segment.

The Group considers the use of a single operating segment to be appropriate due to:

· The Chief Executive reviewing profit or loss at the Group level;

· Utilising a centralised operating model;

· Being an integrated solutions based business, rather than a portfolio business; and

· The M&A strategy of the Group being to fully integrate within the One Platform.

A reconciliation of Adjusted EBITDA to profit before tax from continuing operations is set out below:

	6 months to 30 June 2023 Unaudited £m	6 months to 30 June 2022 Unaudited £m
Adjusted EBITDA	53.5	39.0
Restructuring costs	(0.3)	(0.8)
M&A costs	(0.3)	(1.6)
Contingent consideration	(1.0)	-
Refinancing costs	-	(0.2)
Share-based payments charge	(9.7)	(1.4)
Costs relating to share-based payment schemes	(0.1)	-
Revaluation gain/(loss) on short- and long-term derivatives	1.7	(2.1)
Unrealised operating foreign exchange gain/(loss)	1.7	(0.9)
Amortisation of acquired intangibles	(4.7)	(4.1)
Depreciation	(3.2)	(3.3)
Amortisation (excluding amortisation of acquired intangible assets)	(0.7)	(0.5)
Finance costs	(13.0)	(9.1)
Profit before tax	23.9	15.0

The Group generates revenue from services provided over a period of time such as recurring subscriptions and other services which are deliverable at a point in time such as reports, events and custom research.

Subscription income for online services, data and analytics (typically 12 months) is normally invoiced at the beginning of the services and is therefore recognised as a contract liability, "deferred revenue", in the statement of financial position. Revenue is recognised evenly over the period of the contractual term as the performance obligations are satisfied evenly over the term of subscription.

The revenue on services delivered at a point in time is recognised when our contractual obligation is satisfied, such as delivery of a static report or delivery of an event. The obligation on these types of contracts is a discrete obligation, which once met satisfies the Group performance obligation under the terms of the contract.

Any invoiced contracted amounts which are still subject to performance obligations and where the payment has been received or is contractually due are recognised within deferred revenue at the statement of financial position date. Typically, the Group receives settlement of cash at the start of each contract and standard terms are zero days. Similarly, if the Group satisfies a performance obligation before it receives the consideration or is contractually due the Group recognises a contract asset within accrued income in the statement of financial position.

	Revenue recognised in the Consolidated Income Statement		Deferred Revenue recognised within the Consolidated Statement of Financial Position
	Period ended 30 June 2023 Unaudited	Period ended 30 June 2022 Unaudited	As at 30 June 2023 Unaudited	As at 31 December 2022 Audited
	£m	£m	£m	£m
Services transferred:
Over a period of time	105.4	92.4	103.6	91.6
Immediately on delivery	30.5	19.5	13.9	12.4
Total	135.9	111.9	117.5	104.0

As subscriptions are typically for periods of 12 months the majority of deferred revenue held at the balance sheet date will be recognised in the income statement in the following 12 months. As at 30 June 2023, £1.0m (31 December 2022: £1.1m) of the deferred revenue balance will be recognised beyond the next 12 months.

In instances where the Group enters into transactions involving a range of the Group's services, for example a subscription and custom research, the total transaction price for a contract is allocated amongst the various performance obligations based on their relative stand-alone selling prices.

Geographical analysis

Our primary geographical markets are serviced by our global sales teams which are organised as Europe, US and Asia Pacific by virtue of the team location. The below disaggregated revenue is derived from the geographical location of our customers rather than the team structure the Group is organised by.

From continuing operations

6 months to 30 June 2023

Unaudited

Europe

Americas

Asia Pacific

MENA¹

Rest of World

Total

£m

Revenue from external customers

25.7

34.3

43.6

16.4

11.8

4.1

135.9

6 months to 30 June 2022

Unaudited

Europe

Americas

Asia Pacific

MENA¹

Rest of World

Total

£m

Revenue from external customers

18.2

29.8

36.6

13.9

8.9

4.5

111.9

1. Middle East & North Africa

5. Operating profit

Operating profit is stated after the following expenses relating to continuing operations:

	6 months to 30 June 2023 Unaudited	6 months to 30 June 2022 Unaudited
	£m	£m
Cost of sales	67.3	59.9
Administrative costs	30.9	27.9
	98.2	87.8
Losses on trade receivables	1.3	0.1
Total operating expenses	99.5	87.9

6. Adjusting items

	6 months to 30 June 2023 Unaudited	6 months to 30 June 2022 Unaudited
	£m	£m
Share-based payments charge	9.7	1.4
Amortisation of acquired intangibles	4.7	4.1
Revaluation (gain)/loss on short- and long-term derivatives	(1.7)	2.1
Unrealised operating foreign exchange (gain)/loss	(1.7)	0.9
Contingent consideration	1.0	-
M&A costs	0.3	1.6
Restructuring costs	0.3	0.8
Costs relating to share-based payments scheme	0.1	-
Refinancing costs	-	0.2
Total adjusting items	12.7	11.1

The adjustments made are as follows:

· The share-based payments charge is in relation to the share-based compensation plans under which the entity receives services from employees as consideration for equity instruments (options) of the Group. The fair value of the employee services received in exchange for the grant of the options and awards is recognised as an expense in the income statement. The total amount to be expensed is determined by reference to the fair value of the options granted. The original fair value on grant date is charged to the income statement based upon the Monte-Carlo method. Following modification on 30 November 2022, an additional charge for the beneficial modification is determined by the Black-Scholes method.

· The revaluation of short- and long-term derivatives relates to movement in the fair value of the short- and long-term derivatives.

· Unrealised operating foreign exchange losses and gains relate to non-cash exchange losses and gains made on operating items.

· The contingent consideration amounts relate to payments due to the previous owners of MBI and TS Lombard between 2023 and 2025. These have been treated as remuneration costs due to their being contingent upon the former owners remaining as employees of the Group at the time of payment.

· The M&A costs incurred during the period consist of integration costs in relation to recent acquisitions, including redundancy costs and system migration costs.

· Restructuring relates to professional fees incurred in relation to group reorganisation projects.

· Costs relating to share-based payments scheme consist of employer taxes borne as a result of the vesting of the final tranche of Scheme 1 during the period, and professional fees incurred in advice obtained relating to the restructure of existing schemes.

· Refinancing costs during H1 2022 consisted of legal fees incurred in relation to the extension of the previously held term loan and RCF by one year (completed during June 2022).

7. Net finance costs

	6 months to 30 June 2023 Unaudited	6 months to 30 June 2022 Unaudited
	£m	£m
Loan interest cost	12.6	8.4
Lease interest cost	0.6	0.7
Other interest income	(0.2)	-
	13.0	9.1

8. Earnings per share

The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders of the parent company divided by the weighted average number of shares in issue during the period. The Group also has a share options scheme in place and therefore the Group has calculated the dilutive effect of these options.

Pursuant to a capital reorganisation exercise undertaken on 25 July 2023, the Company's existing 118,303,869 ordinary shares in issue (nominal value £0.000714 per share) were consolidated, based on 1 consolidated share for every 14 existing ordinary shares, and then subdivided, based on 100 new ordinary shares for every 1 consolidated share. Post-reorganisation, there were 845,027,700 ordinary shares in issue (nominal value £0.0001 per share) which were admitted to AIM and commenced dealing on 26 July 2023.

The prior period comparatives have been restated to reflect the impact of the share-split on basic and diluted earnings per share.

The earnings per share results based upon the post-reorganisation share structure have been compared against earnings per share results based on the share structure existing as at 30 June 2023 within note 15. The earnings per share presented below is based upon the post-reorganisation share structure:

	6 months to 30 June 2023 Unaudited	6 months to 30 June 2022 Unaudited
Earnings per share attributable to equity holders from continuing operations:
Basic
Profit for the period attributable to ordinary shareholders of the parent company (£m)	17.8	10.6
Weighted average number of shares (no' m)	812.9	801.4
Basic earnings per share (pence)	2.2	1.3
Diluted
Profit for the period attributable to ordinary shareholders of the parent company (£m)	17.8	10.6
Weighted average number of shares (no' m)	817.8	879.3
Diluted earnings per share (pence)	2.2	1.2

Reconciliation of basic weighted average number of shares to the diluted weighted average number of shares:

	6 months to 30 June 2023 Unaudited No' m	6 months to 30 June 2022 Unaudited No' m
Basic weighted average number of shares, net of shares held in Treasury reserve	812.9	801.4
Dilutive share options in issue	4.9	77.9
Diluted weighted average number of shares	817.8	879.3

The diluted earnings per share calculation does not include performance-related share options where the performance criteria had not been met in the period, in accordance with IAS 33. The table below shows the number of share options which could become dilutive should future performance criteria be met (all in new money):

Vesting	2023	2024	2025	2026	2027	Total
Schedule	No.	No.	No.	No.	No.	No.
Scheme 2	-	6,535,714	6,535,714	6,535,714	6,535,714	26,142,856
Scheme 4	-	-	2,132,857	4,265,714	14,930,000	21,328,571
Total	-	6,535,714	8,668,571	10,801,428	21,465,714	47,471,427

9. Intangible assets

	Software	Customer relationships	Brands	IP rights and database	Goodwill	Total
	£m	£m	£m	£m	£m	£m
Cost
As at 1 January 2023	15.4	65.3	26.2	77.9	322.0	506.8
Additions: Separately acquired	1.6	-	-	-	-	1.6
Foreign currency retranslation	0.1	-	-	-	-	0.1
As at 30 June 2023	17.1	65.3	26.2	77.9	322.0	508.5

Amortisation
As at 1 January 2023	(12.9)	(37.8)	(12.2)	(52.9)	(10.9)	(126.7)
Charge for the period	(0.7)	(2.4)	(0.6)	(1.7)	-	(5.4)
Foreign currency retranslation	(0.1)	-	-	-	-	(0.1)
As at 30 June 2023	(13.7)	(40.2)	(12.8)	(54.6)	(10.9)	(132.2)

Net book value
As at 30 June 2023	3.4	25.1	13.4	23.3	311.1	376.3
As at 31 December 2022	2.5	27.5	14.0	25.0	311.1	380.1

10. Derivative assets and liabilities

	30 June 2023 Unaudited		31 December 2022 Audited
	Assets	Liabilities	Assets	Liabilities
	£m	£m	£m	£m
Cash flow hedges:
- Interest rate swaps	4.5	-	-	(3.9)
Held-for-trading*:
- Forward foreign currency contracts	1.4	(0.1)	0.9	(1.3)
Total	5.9	(0.1)	0.9	(5.2)
Current:	1.4	(0.1)	0.9	(1.3)
Non-current:	4.5	-	-	(3.9)

*Derivatives which do not meet the tests for hedge accounting under IFRS9 or which are not designated as hedging instruments are referred to as 'held-for-trading'.

As at 30 June 2023, the only financial instruments measured at fair value were derivative financial assets/liabilities (both interest rate swaps and forward foreign currency contracts) and these are classified as Level 2.

The Group uses derivative financial instruments to reduce its exposure to fluctuations in both interest rates and foreign currency exchange rates. The Group does not use derivatives for speculative purposes. All derivatives are undertaken for risk management purposes. Classification is based on when the derivatives mature.

The Group entered into an interest rate swap on 21 October 2022, with an effective date of 30 September 2022 based on a notional amount of £290.0m, which aligned to the initial term loan draw down. On 3 April 2023, the Group voluntarily repaid £25.0m of the term loan (note 11). On the same date, the swap terms were amended to match the remaining notional term loan amount of £265.0m. No other amendments to the terms were made. The agreement is to swap, on a quarterly basis, a floating rate of interest (GBP SONIA) for a fixed rate of 4.9125%. The fixed interest is payable quarterly on the last business day of each of March, June, September and December through to 5 August 2025.

Hedging instrument

Carrying value

Financial statement line item

Change in fair value of the hedging instrument used as the basis for recognising hedge ineffectiveness for the period

Nominal amount of hedging instrument

Interest rate swap

£4.5m asset

(31 December 2022: £3.9m liability)

Long-term derivative asset

N/A - hedge 100% effective

£265.0m

Given the same interest rate benchmark (GBP SONIA) is used in the hedging instrument (the swap) and the hedged item (the term loan), and the payments are settled at the same date each quarter, there is an effective economic relationship between the hedging instrument and the hedged item. The total £265.0m swap is designated as a hedge of the total £265.0m term loan, therefore, a 1:1 hedge ratio has been established on a current notional basis.

The following potential sources of hedge ineffectiveness have been identified:

· Credit risk - A change in the credit risk of the Group or the counterparty to the interest rate swap; and

· Critical terms - The possibility of changes to the critical terms of the hedged item such that they no longer match those of the hedging instrument.

The interest rate swap meets the definition of a derivative in accordance with IFRS9. Changes in fair value of derivative financial instruments that are designated, and effective, cash flow hedges of forecast transactions are recognised in other comprehensive income and accumulated under the heading of cash flow hedge reserve, limited to the cumulative change in fair value of the hedged item from inception of the hedge. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. The cumulative amount recognised in other comprehensive income and accumulated in equity is reclassified into the consolidated income statement out of other comprehensive income in the same period when the hedged item is recognised in profit or loss. In accordance with IFRS 9, hedge accounting for the £25m element was discontinued prospectively from 3 April 2023 (the date on which the nominal amount of the hedging instrument was reduced from £290.0m to £265.0m). As this is a cashflow hedge and the future cashflows were no longer expected to occur, the associated amount accumulated in the cash flow hedge reserve of £0.4m was immediately re-classified to profit or loss, presented within other comprehensive income. The £265.0m hedge has remained effective for the full period, therefore the Group has recognised the full fair value movement of £8.0m within the statement of other comprehensive income during the period (30 June 2022: £nil).

In accordance with the requirements of IFRS 7, certain additional information about hedge accounting is disaggregated by risk type and hedge designation type in the table below:

	Cash Flow Hedge Reserve - Interest Rate Risk	30 June 2023 Unaudited £m	31 December 2022 Audited £m

Balance brought forward		(3.9)	-
Change in fair value of hedging instrument recognised in OCI		8.0	(3.9)
Change in fair value of hedging instrument reclassified to profit or loss		0.4	-
Balance carried forward		4.5	(3.9)

Forward foreign currency contracts are not designated as hedges, therefore changes in fair value are recognised in the income statement. The movement in relation to forward foreign currency contracts in the period was a gain of £1.7m to the income statement (30 June 2022: expense of £2.1m).

Forward foreign currency contracts have been entered into, which has committed the amount of currency below to be paid in exchange for Sterling:

Expiring in the 12 months ending:

Euro

€m

US Dollar

30 June 2024

10.4

41.9

Forward exchange contracts have been entered into, which has committed the amount of currency below to be paid in exchange for Indian Rupees:

Expiring in the 12 months ending:

US Dollar

30 June 2024

13.0

11. Borrowings and Lease Liabilities

30 June 2023

Unaudited

£m

31 December 2022 Audited

£m

Short-term lease liabilities

4.9

5.4

Current liabilities

4.9

5.4

	30 June 2023 Unaudited £m	31 December 2022 Audited £m
Long-term lease liabilities	23.0	24.6
Long-term borrowings	258.9	283.6
Non-current liabilities	281.9	308.2

Term loan and RCF

During August 2022, the Group completed a new three-year debt financing facility to give the Group additional funding to support the long-term growth of the business, including M&A. The debt facility comprises a £290.0m term loan and a RCF of £120.0m. The new facilities were arranged to cover a period of three years. There are no fixed periodic capital repayments, with the full balance being due for settlement when the facilities expire in August 2025. The term loan is syndicated between 12 lenders and the RCF is syndicated between 13 lenders.

As at 31 December 2022, the Group had fully drawn down the term loan of £290.0m. On 3 April 2023, the Group voluntarily repaid £25.0m of the term loan, resulting in the current term loan drawdown on 30 June 2023 of £265.0m. The Group is yet to draw down the available RCF facility of £120.0m. In accordance with the provisions of IFRS9 (including offsetting of loan fees paid as part of the refinancing process), the term loan is held on the statement of financial position with a value of £258.9m (31 December 2022: £283.6m).

Interest is currently charged on the term loan at a rate of 3.0% over the Sterling Overnight Index Average rate (SONIA) and is payable at the end of each calendar quarter. As disclosed within note 10, the Group entered into an interest rate swap during October 2022, with an effective date of 30 September 2022, initially based on a notional amount of £290.0m, which matched against the initial term loan drawdown. The notional amount of the swap was amended to £265.0m on 3 April 2023 (the same date as the voluntary repayment noted above), which aligns to the current term loan draw down. The agreement is to swap, on a calendar quarter basis, SONIA for a fixed rate of 4.9125%.

Lease payments not recognised as a liability

The Group has elected not to recognise a lease liability for short term leases (leases with an expected term of 12 months or less) or for leases of low value assets. Payments made under such leases are expensed on a straight-line basis. In addition, certain variable lease payments are not permitted to be recognised as lease liabilities and are expensed as incurred. The expense relating to payments not included in the measurement of a lease liability is £nil for the period ended 30 June 2023 (30 June 2022: £nil).

The changes in the Group's borrowings can be classified as follows:

	Long-term borrowings	Short-term lease liabilities	Long-term lease liabilities	Total
	£m	£m	£m	£m
As at 1 January 2023	283.6	5.4	24.6	313.6
Cash-flows:
- Repayment	(25.0)	(2.4)	-	(27.4)
Non-cash:
- Interest expense	0.3	-	-	0.3
- Lease additions	-	0.8	-	0.8
- Lease liabilities	-	(0.3)	(0.2)	(0.5)
- Reclassification	-	1.4	(1.4)	-
As at 30 June 2023	258.9	4.9	23.0	286.8

12. Equity

Share capital

Allotted, called up and fully paid:

	30 June 2023 Unaudited		31 December 2022 Audited
	No'000s¹	£000s	No'000s¹ Restated	£000s
Ordinary shares (£0.0001)	845,028	84	845,028	84
Deferred shares of £1.00 each	100	100	100	100
Total allotted, called up and fully paid	845,128	184	845,128	184

¹Reflects post-reorganisation position as detailed below.

Share Purchases

During the period the Group's Employee Benefit Trust purchased an aggregate amount of 203,500 shares (which represents 1,453,571 equivalent post restructure shares representing 0.2% of the total share capital), each with a nominal value of 1/14^th pence (nominal value £0.0001 equivalent post restructure per share), at a total market value of £2.6m. The purchased shares will be held for the purpose of satisfying the exercise of share options under the Company's Employee Share Option Plan.

During the period, a total of 1,303,276 shares (which represents 9,309,114 equivalent post restructure shares representing 1.1% of the total share capital), each with a nominal value of 1/14^th pence (nominal value £0.0001 equivalent post restructure per share), which were held by the Group's Employee Benefit Trust were utilised as a result of the vesting of the final tranche of Scheme 1 share options (at a total market value of £16.6m).

The maximum number of shares held by the Employee Benefit Trust (at any time during the period ended 30 June 2023) was 5,589,025 (which represents 39,921607 equivalent post restructure shares representing 4.7% of the total share capital).

The purchase of shares by the trust is to limit the eventual dilution to existing shareholders. As at 30 June 2023, based upon the restructured vesting schedules, no dilution is forecast until 2027.

The vesting schedules represents outstanding options, which have been updated to reflect the capital reorganisation undertaken on 25 July 2023 (see note 15).

Vesting Schedule	2023 No.	2024 No.	2025 No.	2026 No.	2027 No.	Total No.
Scheme 1*	4,936,979	-	-	-	-	4,936,979
Scheme 2	-	6,535,714	6,535,714	6,535,714	6,535,714	26,142,856
Scheme 4	-	-	2,132,857	4,265,714	14,930,000	21,328,571
Total	4,936,979	6,535,714	8,668,571	10,801,428	21,465,714	52,408,406
Shares held in trust	(4,936,979)	(6,535,714)	(8,668,571)	(10,801,428)	(1,007,308)	(31,950,000)
Net dilution	-	-	-	-	20,458,406	20,458,406

*The remaining share options in Scheme 1 can be exercised anytime until August 2033 and therefore for the purposes of this analysis we have assumed they will be exercised within the next year.

Capital management

The Group's capital management objectives are:

· To ensure the Group's ability to continue as a going concern; and

· To fund future growth and provide an adequate return to shareholders and, when appropriate, distribute dividends.

The capital structure of the Group consists of net bank debt, which includes borrowings (note 11) and cash and cash equivalents, and equity.

The Company has two classes of shares. The ordinary shares carry no right to fixed income and each share carries the right to one vote at general meetings of the Company.

The deferred shares do not confer upon the holders the right to receive any dividend, distribution or other participation in the profits of the Company. The deferred shares do not entitle the holders to receive notice of or to attend and speak or vote at any general meeting of the Company. On distribution of assets on liquidation or otherwise, the surplus assets of the Company remaining after payments of its liabilities shall be applied first in repaying to holders of the deferred shares the nominal amounts and any premiums paid up or credited as paid up on such shares, and second the balance of such assets shall belong to and be distributed among the holders of the ordinary shares in proportion to the nominal amounts paid up on the ordinary shares held by them respectively.

There are no specific restrictions on the size of a holding nor on the transfer of shares, which are both governed by the general provisions of the Articles of Association and prevailing legislation. The Directors are not aware of any agreements between holders of the Company's shares that may result in restrictions on the transfer of securities or on voting rights.

No person has any special rights of control over the Company's share capital and all its issued shares are fully paid.

With regard to the appointment and replacement of Directors, the Company is governed by its Articles of Association, the Companies Act and related legislation. The Articles themselves may be amended by special resolution of the shareholders. The powers of Directors are described in the Board Terms of Reference, copies of which are available on request.

Dividends

The final dividend for 2022 was 18.3 pence per ordinary share and was paid in April 2023. The Board has announced an interim dividend of 1.4 pence per ordinary share based on the number of shares post reorganisation share structure (see note 15). The interim dividend will be paid on 6 October 2023 to shareholders on the register at the close of business on 8 September 2023. The ex-dividend date will be on 7 September 2023.

Treasury reserve

The treasury reserve represents the cost of shares held in the Group's Employee Benefit Trust for the purpose of satisfying the exercise of share options under the Company's Employee Share Option Plan.

Cash flow hedge reserve

The cash flow hedge reserve contains the fair valuation movements arising from revaluation of interest rate swaps. Changes in fair value of derivative financial instruments that are designated, and effective, cash flow hedges of forecast transactions are recognised in other comprehensive income and accumulated under the heading of cash flow hedge reserve, limited to the cumulative change in fair value of the hedged item from inception of the hedge. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. The cumulative amount recognised in other comprehensive income and accumulated in equity is reclassified into the consolidated income statement out of other comprehensive income in the same period when the hedged item is recognised in profit or loss.

Other reserve

Other reserve consists of a reserve created upon the reverse acquisition of TMN Group Plc in 2009.

Foreign currency translation reserve

The foreign currency translation reserve contains the translation differences that arise upon translating the results of subsidiaries with a functional currency other than Sterling. Such exchange differences are recognised in the income statement in the period in which a foreign operation is disposed of.

Share-based payments

Scheme 1

The Group created a share option scheme during the year ended 31 December 2010 and granted the first options under the scheme on 1 January 2011 to certain senior employees. Each option granted converts to one ordinary share on exercise. A participant may exercise their options (subject to employment conditions) at any time during a prescribed period from the vesting date to the date the option lapses. For these options to be exercised the Group's earnings before interest, taxation, depreciation and amortisation, as adjusted by the Remuneration Committee for significant or one-off occurrences, needed to exceed certain targets. The final financial target for the colleague share option scheme (scheme 1) was met with the 2021 results. During the year ended 31 December 2022, the majority of participants chose to exercise their options (4.5m options), whilst holders of the remaining 2.0m options chose to defer their exercise, as allowable under the scheme rules. During the period ended 30 June 2023, 1.3m of the deferred options were exercised. The remaining 0.7m options can be exercised by participants at any point before August 2033, subject to compliance with the Company's Share Dealing Code. LTIP Scheme 1 is now closed.

Scheme 2

In October 2019 the Group created and announced a new share option scheme and granted the first options under the scheme on 31 October 2019 to certain senior employees. Each option granted converts to one ordinary share on exercise. A participant may exercise their options subject to employment conditions and performance targets being met. For these options to be exercised the Group's earnings before interest, taxation, depreciation and amortisation, as adjusted by the Remuneration Committee for significant or one-off occurrences, needs to exceed certain targets between 2023 to 2026.

Scheme 4

In October 2021 the Group created the 2021 share option scheme (scheme 4). Scheme 4 is targeted at management and senior colleagues below the Executive Management Committee level. The EBITDA targets for Scheme 4 are aligned to Scheme 2, however different proportions of granted options will vest once each target is reached.

The total charge recognised for these schemes during the six months to 30 June 2023 was £9.7m (30 June 2022: £1.4m). The awards of the schemes are settled with ordinary shares of the Company.

13. Related party transactions

Mike Danson, GlobalData's Chief Executive Officer, owned 59.94% of the Company's ordinary shares as at 30 June 2023 and 59.94% as at 31 July 2023 and is therefore the Company's ultimate controlling party. Mike Danson owns a number of businesses that interact with GlobalData Plc, largely in part as a result of past M&A transactions (GlobalData Holding Limited in 2016 and Research Views Limited in 2018).

The Board has in place a control framework to ensure related party transactions are well controlled and managed. Related party transactions are overseen by a subcommittee of the Board. The Related Party Transactions Committee, consisting of 4 Non-Executive Directors and chaired by Murray Legg meets to:

· Oversee all related party transactions;

· Ensure transactions are in the best interests of GlobalData and its wider stakeholders; and

· Ensure all transactions are recorded and disclosed on an arm's length basis.

As noted in the Annual Report and Accounts for the year ended 31 December 2022, it is the intention of the Board and management to reduce and eventually eliminate related party transactions and wind down the service agreements that are currently in place. During the first half of 2023, we have continued the progress made in previous years and we continue to works towards eliminating all transactions with related parties.

During the six months to 30 June 2023, the following related party transactions were entered into by the Group:

Corporate support services

In the six months ending 30 June 2023, net corporate support charges of £0.01m were charged to the Group from NS Media Group Limited ("NSMGL"), a related party by virtue of common ownership. The corporate support charges principally consist of shared management and admin support determined by headcount. In the six months ending 30 June 2022, the Group charged NSMGL £0.12m IT support and software development costs which included a benchmarked mark-up.

Accommodation

During 2022 we eliminated all related party sub-let office space arrangements following the exit of a related party tenant as at 31 December 2022, hence there have been no related party property transactions in the six months to 30 June 2023. The total sub-lease income for the six months ended 30 June 2023 was £nil (30 June 2022: £0.1m). During the six months to 30 June 2023, the Group utilised a private yacht (owned by Mike Danson) to host a commercial event. The Group paid disbursements for food, drinks and staff wages whilst hosting the event, which amounted to £34,000 (30 June 2022: £nil).

Loan to Progressive Trade Media Limited

The previous outstanding loan was fully repaid on 31 January 2022 and generated interest income in the year ended 31 December 2022 of £5,000. Interest was charged throughout the term of the loan at a rate of 2.25% above LIBOR. The balance at 30 June 2023 is £nil (31 December 2022: £nil). The loan was specifically entered into in relation to the divestment of non-core print and advertising businesses in 2016 and no further loan relationships are expected.

Revenue contract containing IP sharing clause

The Group entered into a five-year data services agreement with NSMGL in June 2020. The agreed suite of data services provided to NSMGL have been contracted on terms equivalent to those that prevail in arm's length transactions. The Group mutually agreed with NSMGL to terminate this agreement on 1 July 2022 in order to reduce the amount of related party transactions as well as a different strategic direction in NSMGL. In the six months ending 30 June 2023, the total revenue generated from this contract was therefore £nil (30 June 2022: £0.5m) and the net contribution generated was £nil (2022: £0.4m). The cancellation was in accordance with the contracted terms.

Charity Donations

During the six months ending 30 June 2023 the Group paid donations of £0.04m (30 June 2022: £nil) to charities in India which were funded by a related party entity, The Danson Foundation (charity reference 1121928). This was a pass-through transaction, with the Group facilitating payment to our charity partners in India.

Balances Outstanding

As at 30 June 2023, the total balance receivable from NSMGL was £nil. There is no specific credit loss provision in place in relation to this receivable and the total expense recognised during the period in respect of bad or doubtful debts was £nil.

The Group has taken advantage of the exemptions contained within IAS24: Related Party Disclosures from the requirement to disclose transactions between Group companies as these have been eliminated on consolidation. The amounts outstanding for other related parties were £nil (31 December 2022: £nil). There were no other balances owing to or from related parties.

14. Acquisitions

Cash Cost of Acquisitions

The cash cost of acquisitions comprises:

	Period to 30 June 2023 Unaudited	Period to 30 June 2022 Unaudited
	£m	£m
Acquisition of MBI:
Contingent consideration paid	0.2	-
Cash consideration	-	22.9
Cash acquired	-	(3.5)
Acquisition of LMC: Working capital adjustment	-	0.7
	0.2	20.1

15. Post Balance Sheet Events

The prior period comparatives have been restated to reflect the impact of the share-split on basic and diluted earnings per share.

The earnings per share results based upon the post-reorganisation share structure have been compared against earnings per share results based on the share structure existing as at 30 June 2023 below:

	Post-reorganisation share structure		Share structure as at 30 June 2023
	6 months to 30 June 2023 Unaudited	6 months to 30 June 2022 Unaudited	6 months to 30 June 2023 Unaudited	6 months to 30 June 2022 Unaudited
Earnings per share attributable to equity holders from continuing operations:
Basic
Profit for the period attributable to ordinary shareholders of the parent company (£m)	17.8	10.6	17.8	10.6
Weighted average number of shares (no' m)	812.9	801.4	113.8	112.2
Basic earnings per share (pence)	2.2	1.3	15.6	9.4
Diluted
Profit for the period attributable to ordinary shareholders of the parent company (£m)	17.8	10.6	17.8	10.6
Weighted average number of shares (no' m)	817.8	879.3	114.5	123.1
Diluted earnings per share (pence)	2.2	1.2	15.5	8.6

	Post-reorganisation share structure		Share structure as at 30 June 2023
	6 months to 30 June 2023 Unaudited No' m	6 months to 30 June 2022 Unaudited No' m	6 months to 30 June 2023 Unaudited No' m	6 months to 30 June 2022 Unaudited No' m

Basic weighted average number of shares, net of shares held in Treasury reserve	812.9	801.4	113.8	112.2
Dilutive share options in issue	4.9	77.9	0.7	10.9
Diluted weighted average number of shares	817.8	879.3	114.5	123.1

The dividends per share based upon the post-reorganisation share structure have been compared against dividends per share based on the share structure existing as at 30 June 2023 below:

Post-reorganisation share structure

Share structure as at 30 June 2023

6 months to

30 June 2023

Unaudited

6 months to

30 June 2022

Unaudited

6 months to

30 June 2023

Unaudited

6 months to

30 June 2022

Unaudited

Dividend per share

1.4

1.1

10.0

7.7

Advisers

Company Secretary

Bob Hooper

Head Office and Registered Office

John Carpenter House

John Carpenter Street

London

EC4Y 0AN

Tel: + 44 (0) 20 7936 6400

Nominated Adviser and Joint Broker

J.P. Morgan Cazenove

25 Bank Street

Canary Wharf

London

E14 5JP

Joint Broker

Panmure Gordon

One New Change

London

EC4M 9AF

Joint Broker

Numis Securities

45 Gresham Street

London

EC2V 7BF

Financial PR LLP

FTI Consulting

200 Aldersgate

Aldersgate Street

London

EC1A 4HD

Lawyers

Reed Smith

20 Primrose Street

London

EC2A 2RS

Auditor

Deloitte LLP

2 New St Square

London

EC4A 3BZ

Registrars

Link Group

Central Square

29 Wellington Street

Leeds

LS1 4DL

Bankers

NatWest Group

280 Bishopsgate

London

EC2M 4RB

Bankers

HSBC UK Bank Plc

1 Centenary Square

Birmingham

B1 1HQ

Registered number

Company No. 03925319

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Tuesday, 19th November 2024

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