GB Group — Good start to the year

GB Group (AIM: GBG)

Last close As at 20/06/2024


9.80 (3.11%)

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Research: TMT

GB Group — Good start to the year

In today’s AGM trading update, management confirmed that it had seen a good start to FY22. All divisions are benefiting from the consumer shift to transacting online. Cryptocurrency trading has boosted Identity volumes in the quarter, while Location continues to see good demand and recent licence extensions point to a recovery in the Fraud business. The strong trading in Q122 provides management with confidence for the year ahead; we maintain our forecasts.

Katherine Thompson

Written by

Katherine Thompson



GB Group

Good start to the year

AGM update

Software & comp services

29 July 2021



Market cap


Net cash at 30 June 2021


Shares in issue


Free float




Primary exchange


Secondary exchange


Share price performance

Business description

GB Group is a specialist in identity data intelligence. Its products and services enable its customers to better understand and verify their customers and employees and are used across a range of fraud, risk management, compliance and customer on-boarding services. With headquarters in the UK, GB operates across 16 countries, has customers in more than 70 countries and generates more than 64% of revenues internationally.


Katherine Thompson

+44 (0)20 3077 5730

GB Group is a research client of Edison Investment Research Limited

In today’s AGM trading update, management confirmed that it had seen a good start to FY22. All divisions are benefiting from the consumer shift to transacting online. Cryptocurrency trading has boosted Identity volumes in the quarter, while Location continues to see good demand and recent licence extensions point to a recovery in the Fraud business. The strong trading in Q122 provides management with confidence for the year ahead; we maintain our forecasts.

Year end

Revenue (£m)

Adj. operating profit* (£m)


Diluted EPS*






































Note: *Adjusted operating profit, PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

GB Group provided an update on trading for today’s AGM. The company last updated the market on 15 June when FY21 results were reported. Management reported that the company has made a good start to the year. In Identity, active cryptocurrency trading in April and May helped maintain consumption volumes in Q122, despite challenging comparatives due to the US financial stimulus programme in Q121. The Location business has seen good demand across a range of sectors, as more consumers shift to transacting online. Since the company last reported, the Fraud business has signed two term licence extensions with large multinational financial services companies, indicating the start of a recovery after a weaker year in FY21. The group closed Q122 with a net cash position of £37.7m, up from £21.1m at the end of FY21 but before the payment of the final dividend (c £6.7m). The group also has access to a £110m revolving credit facility (currently unutilised). We maintain our forecasts. The company expects to provide a H122 trading update in October.

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