GB Group

LN: GBG

£1271.7m market cap

656p 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 (GBG) expects to report strong revenue and profit growth for H120, with exceptional organic growth boosted by recent acquisitions. Constant currency organic growth of 18% is ahead of the company’s double-digit target, boosted to a large extent by the signing of contracts in the Fraud division that had been expected in H2. Management noted that GBG achieved organic growth in each of its three core products and across all target geographies. Management expects to meet FY20 consensus estimates, implying a stronger weighting to H1 revenues and profits than in previous years. We maintain our forecasts.

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 48.6 31.2
2019A 143.5 34.1 31.3 15.4 42.6 37.3
2020E 192.6 46.2 40.7 16.4 40.0 28.9
2021E 213.9 50.7 45.5 18.4 35.7 26.3
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 21/11/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) 37.7
Forecast gearing ratio (%) 11
Price performance
%
1m
3m
12m
Actual 21.5 14.9 47.1
Relative* 20.4 13.3 41.8
52-week high/low 665.0p/410.5p
*% relative to local index
Key management
David Rasche Chairman
Chris Clark CEO
Dave Wilson FD

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