GB Group

LN: GBG

Market Cap£1672.9m

Last Close 666p

GB Group 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 18 countries.

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Investment summary

GB Group (GBG) has announced a conditional agreement to acquire Acuant, a leading player in the US identity verification (IDV) market. Acuant’s product range complements GBG’s existing solutions, adding depth in document verification, new verticals for IDV and a SaaS-based fraud prevention solution. At an enterprise value of £547m, it marks GBG’s largest acquisition to date. The deal strengthens GBG’s position in the US, broadens its product offering and accelerates its technology roadmap. We have revised our forecasts to reflect the placing and the acquisition and our normalised EPS forecasts decline 3% in FY22, are flat in FY23 and increase 3% in FY24.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2020A 199.1 51.7 45.7 18.2 36.6 N/A
2021A 217.7 61.4 56.7 22.8 29.2 N/A
2022E 234.0 58.8 53.5 19.9 33.5 N/A
2023E 295.7 74.7 67.6 20.3 32.8 N/A
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 21/01/2022
Content on GB Group
GB Group – Strong organic growth in H122
TMT | Update | 1 December 2021
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Share price graph
Balance sheet
Forecast net debt (£m) 106.6
Forecast gearing ratio (%) 14
Price performance
%
1m
3m
12m
Actual (6.6) (27.7) (25.0)
Relative* (8.2) (29.7) (32.4)
52-week high/low 952.5p/666.0p
*% relative to local index
Key management
David Rasche Chairman
Chris Clark CEO
David Ward CFO
Richard Foster IR