GB Group

LN: GBG

£1043.5m market cap

541p 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 in 24 countries.

Investment summary

GB Group (GBG) reported FY19 results in line with recently upgraded estimates. It continues to deliver on its strategy to grow organic revenues at double-digit rates while delivering operating margins in excess of 20%. Recent acquisitions are performing well and helped drive the 56% growth in international revenues over the year. We make minor changes to our forecasts, resulting in small upgrades to normalised EPS estimates.

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 40.1 25.8
2019A 143.5 34.1 31.3 15.4 35.1 30.8
2020E 192.6 46.2 40.7 16.4 33.0 23.8
2021E 213.9 50.7 45.5 18.4 29.4 21.7
Last updated on 17/06/2019
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 17/06/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) 37.7
Forecast gearing ratio (%) 11
Price performance
%
1m
3m
12m
Actual (9.1) 11.3 (3.2)
Relative* (8.9) 10.0 1.4
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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