GB Group (GBG)

Business description

GBG is a specialist in identity data intelligence. Its products/services allow customers to better understand and verify their clients and employees, and are used across a range of fraud, risk management, compliance and client onboarding services. Based in the UK, it operates in 17 countries, generating 30% of revenues internationally.

Stock data

Market cap.£610.6m
Last close400.00p
High / Low (52 weeks)455.0p / 277.5p
Stock market listingLN
Forecast net debt (£m)2.8
Forecast gearing ratio (%)2
TeamTechnology
SectorTechnology

Price performance

%1m3m12m
Actual(3.2)5.332.8
Relative *3.06.932.1

* % Relative to local index

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Company news

Investment summary

H1 results were as preannounced in October’s trading update. Revenues increased 40% y-o-y and EBITA of £10.4m doubled. Backing out a perpetual licence, underlying organic growth was steady at 12% and margins similar to last year. Growth was particularly strong in fraud and risk management, as well as in the enlarged location intelligence segment. H2 has started well and with 70% of revenues recurring in nature and a 53% increase in the deferred revenue balance, our forecasts appear comfortably underpinned. CEO Chris Clark is continuing to focus on driving the globalised nature of both the data sets and customer base. EBITA margins will be held at the 20% level as management steps up investment to integrate the product offerings and expand capabilities in the faster-growing segments. A strong recurring revenue profile, robust organic growth prospects and an accretive acquisition strategy all justify the premium rating.

Last updated on 02/02/2018

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2016A 73.4 14.8 13.2 8.2 48.8 36.6
2017A 87.5 18.7 16.5 9.9 40.4 32.3
2018E 117.1 25.3 22.7 11.8 33.9 29.3
2019E 133.4 29.3 26.5 13.5 29.6 22.7

Last updated on 23/01/2018

Latest video

Executive interview - GB Group

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 02/02/2018

Key management

David Rasche, Chairman
Chris Clark, CEO
Dave Wilson, FD

Company address

GB House, Kingsfield Court, Chester Business Park
Chester
CH4 9GB
United Kingdom
+44 (0) 1244 657 333
View website