£1073.7m market cap
555p last close
GBG specialises in identity data intelligence. Its products/services enable customers to understand and verify clients and employees in fraud, risk management, compliance and customer on-boarding services. With headquarters in the UK, it operates across 16 countries.
Investment summary
GB Group’s Identity capital markets day explored the group’s largest business (36% of FY19 revenues). The identity business helps establish trust between clients and their end customers when undertaking online transactions such as e-commerce, banking, gambling and accessing government services. With electronic identity verification a structural growth market, GBG has invested heavily in the business over the last four years, expanding geographically and adding new capabilities and data sets. In its AGM statement, GBG noted that Q1 revenues and adjusted operating profits traded in line with management’s expectations, showing organic growth, and that solid cash conversion has enabled it to pay down £10m of debt.
Y/E Mar |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2018A | 119.7 | 28.7 | 25.8 | 13.5 | 41.1 | 26.4 |
| 2019A | 143.5 | 34.1 | 31.3 | 15.4 | 36.0 | 31.6 |
| 2020E | 192.6 | 46.2 | 40.7 | 16.4 | 33.8 | 24.4 |
| 2021E | 213.9 | 50.7 | 45.5 | 18.4 | 30.2 | 22.2 |
| Last updated on 16/09/2019 | ||||||
Industry outlook
Globalisation and the growth in internet trading have also resulted in the need for higher compliance standards in light of the rising scope and financial impact of cybercrime. This, in turn, is driving the demand for more complex and comprehensive solutions for the verification of personal data.
Last updated on 16/09/2019
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Share price graph
Balance sheet |
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| Forecast net debt (£m) | 37.7 |
| Forecast gearing ratio (%) | 11 |
Price performance
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Key management |
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| David Rasche | Chairman |
| Chris Clark | CEO |
| Dave Wilson | FD |
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