There is no denying the fact that the UK is the undisputed champion of the tech revolution in Europe. Many technology Loanpalace companies started small during the internet era are now big enough that their shares are publicly traded on the stock exchanges. This blog will introduce you to a few of these tech stocks listed on London Stock Exchanges and features in FTSE 100, AIM, and FTSE 250 indices.
Companies are using modern technologies in the likes of Artificial Intelligence, Machine Learning, Internet of Things, Blockchain etc. They are coming out with enhanced products and innovative solutions which are being used globally. Many companies are coming up in the FinTech space, and thus, one can see changes in lending products as online bad credit loans from a direct lender. These FinTech companies are becoming an alternative to commercial banks in lending on guaranteed approval to borrowers with substandard credit profile and no guarantor.
Let’s now look at some of the tech stocks from the UK that made news in the past year after they rallied to make new highs.
- Ocado Group:
This tech company is in the retail sector and owns an online grocery store of its own apart from its in-house technology for the automation of their warehouses. They also sell the license of this technology to hypermarkets and retail stores across the globe.
Some of the prominent names from their clientele are Krogers, Coles, Sobeys, Aeon, Groupe Casino, ICA etc. Ocado Group now works in a Joint Venture with Marks & Spencer, who acquired most of its supermarket business.
Their stock price in September 2019 was 1312 GBX which is now 2859 GBX as of 22 September 2020, a whopping 118% return in one year.
Rather than being a technology company per se, Halma Group is a diversified company who acquires promising tech companies as a part of its business. The companies they acquire, they make massive investments in them to help them meet their working capital requirements and grow.
The good part is they don’t replace the promoters and management of the company after the acquisition. Instead, they provide financial assistance to them, along with technical guidance and strategy mapping. They have 40+ technology companies in their portfolio; these companies are quite eclectic in their business operations.
The stock has rallied 41% from its March lows and has been a darling stock for investors, as it is diversified and used to pay regular dividends.
- Kainos Group:
This Company is known in the UK to offer software services and domain consulting to his clients who are small businesses, healthcare companies and even Government.
The range of services they offer includes modern technological solutions based on AI, ML, Cybersecurity, Cloud Computing etc. Their clientele has some stalwart names like Netflix, Primark, Diageo, GSK etc. taking the total tally of customers to 350 all across the globe.
Kainos Group has worked on many digital transformation projects of the Government of the UK in the National Health Service, Home Office, and Ministry of Justice Departments. Their share price in September last year was 440 GBX which is 1008 GBX now as of 22nd September 2020. , a 130% return in one year.
- Play Tech:
They are into gaming, manufactures, and supply software to many online gaming companies in the world.
If you can play poker, do betting, and play bingo online today, it is all because of Play Tech. They have an online portal of their own with the name “Play Tech One” for CRM and e-wallets. They also own gambling and sports betting company Snai Tech of Italy which offers a range of services to their customers in financial space.
This stock is fundamentally strong with substantial growth in its sales year after year, but due to the Covid pandemic has given a blip to their business this year. Their share price was 110 GBX at the start of 2020 and is now 362 GBX as on 22nd September 2020, a 229% jump in just 9 months.
They are software infrastructure providers in a variety of domains from Cybersecurity to the digital workspace and from IT intelligence to hybrid cloud computing.
Due to a plethora of IT services it provides, they have stalwart clients in the likes of Cisco, Citrix, Adobe, Dell, AWS etc. Be it providing tools to make remote working possible or offering in-house data centres, Softcat does it all.
This is one of the primary reasons behind year on year rise in both their top line and bottom line. They are a cash-rich company and give increased dividends every year. Their stock price in March 2020 was 900 GBX which is now 1300 GBX in September 2020.
If you are a millennial, then you must have heard of this company every time you searched for an anti-virus solution for your computer. They are giants in the cybersecurity space in the world, let alone the UK with 430 million customers globally.
The company claims that they safeguard close to 50 million gadgets monthly from getting hacked. Their business model is such that they offer both a free version of their product and a paid version as well.
Avast is planning to diversify its product portfolio to start developing more internet-friendly products for their customers. Their share price