£1157.1m market cap
600p 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. Based in the UK, it operates in 24 countries.
Investment summary
GB Group’s year-end trading update confirmed that the business saw strong trading in H219 to finish the year ahead of our and consensus expectations for revenue and adjusted operating profit. Net debt was also better than forecast, closing the year at £66.3m versus our £71.6m estimate. The recent acquisitions have integrated and performed well, providing much of the upside to forecasts. We have upgraded our FY19 normalised EPS forecast by 15.8% to reflect the better trading performance in H2 and reduced our net debt forecasts for FY20 and FY21.
Y/E Mar |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (fd) (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2017A | 87.5 | 18.7 | 16.5 | 9.9 | 60.6 | 48.4 |
| 2018A | 119.7 | 28.7 | 25.8 | 13.5 | 44.4 | 28.6 |
| 2019E | 143.3 | 34.4 | 30.8 | 15.1 | 39.7 | 39.2 |
| 2020E | 192.8 | 46.9 | 40.3 | 16.1 | 37.3 | 27.3 |
| Last updated on 25/04/2019 | ||||||
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 25/04/2019
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Share price graph
Balance sheet |
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| Forecast net debt (£m) | 66.3 |
| Forecast gearing ratio (%) | 20 |
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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