GB Group

LN: GBG

£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
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) 37.7
Forecast gearing ratio (%) 11
Price performance
%
1m
3m
12m
Actual (1.4) 2.0 (5.5)
Relative* (4.7) 1.6 (5.2)
52-week high/low 631.0p/410.5p
*% relative to local index
Key management
David Rasche Chairman
Chris Clark CEO
Dave Wilson FD

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