GB Group

LN: GBG

£1353.5m market cap

694p 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

At its recent AGM, GBG confirmed that the company had traded better than expected in Q121, with revenue growth y-o-y helped by a one-off project in the US. Underlying performance has been as expected. Certain figures in Q1 are still at pre-COVID-19 levels: customer churn, solvency and bad debt. GBG has also continued to win business from new customers, albeit at a slower pace. The company remains focused on effective cash management, with a recent $3m minority investment in a Singaporean bank-grade digital scorecard company, CredoLab, being undertaken via equity.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2019A 143.5 34.1 31.3 15.4 45.1 39.5
2020A 199.1 51.7 45.7 17.9 38.8 27.7
2021E 176.5 34.8 28.7 11.1 62.5 38.2
2022E 189.3 43.0 37.0 14.3 48.5 33.2
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 24/09/2020
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Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) 13.2
Forecast gearing ratio (%) 4
Price performance
%
1m
3m
12m
Actual (4.1) (2.8) 24.6
Relative* 0.5 1.6 54.0
52-week high/low 800.0p/474.0p
*% relative to local index
Key management
David Rasche Chairman
Chris Clark CEO
Dave Wilson FD

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