GB Group PLC

GB Group is engaged in the provision of identity data intelligence services. Co. has two operating segments: Identity Proofing, which provides electronic ID Verification services for combating ID fraud, money laundering and under-age gambling, ID Employ & Comply services for employee authentication and screening, and ID Fraud & Risk Management services; as well as Identity Solutions, which provides ID Registration, ID Engage and ID Trace & Investigate software and services that provide consumer information and facilitate understanding, targeting and retention of profitable consumers. Between them, the segments have six complementary lines of business including ID Verification and ID Engage.
  • TickerGBG
  • ISINGB0006870611
  • ExchangeLondon Stock Exchange
  • SectorSoftware & Computer Services
  • CountryUnited Kingdom

Analysts

Katherine Thompson

GB Group - FY19 growth on track

GB Group’s H119 update confirmed that the business is trading in line with expectations, with underlying organic revenue growth of 11% and underlying operating profit growth of 7% compared to H118. While our underlying forecasts are unchanged, we have upgraded our estimates to reflect the recent Vix Verify Global acquisition, which results in a 2.7% increase in our normalised FY20 EPS forecast.

Katherine Thompson

GB Group - Scaling up down under

GB Group has taken another step forward in its international expansion with the acquisition of Vix Verify Global, a business specialising in ID verification and location intelligence software in Australia and New Zealand. Complementing GBG’s IDV and Loqate solutions, the acquisition will widen the datasets available to both GBG and VVG customers. The deal cost of A$38.3m/c £21.2m is being funded from existing facilities. GBG expects the deal to be earnings accretive in the first 12 months once synergies are taken into account.

Exciting new channel partner

Founded in 1995 and floated at 57p/share in July’14 (raising £8.8m gross), ClearStar (CLSU) is a pioneering technology provider to the c. $4 billion global job screening (60% of H1 sales) and drug/medical testing (40%) markets. Often the best ideas are the simplest. Take the humble employee ID and/or visitor card. There are probably 10s if not 100s of millions of these dished out globally each year to new recruits, temporary workers, contractors, visitors, etc. Not only costing a small fortune to produce, but also needlessly sucking in vital resource, slowing up the on-boarding process and dam...

Exciting times ahead

Blancco is the world’s leading developer of ‘data erasure’ software, used to protect governments and corporates from ID/data theft, ransomware and cyber-crime, along with being a pioneer in mobile device diagnostics. Despite the stock being rated at a modest 2.2x CY EV/turnover (adjusted for JVs) vs 6.0x for the cyber-security sector, we are encouraged by this morning’s upbeat prelims, improving momentum (H2’18 sales +5.3% vs -1.4% H1), “strong” start to FY19 and the Board’s well balanced ’Growth Strategy.’ There was a slightly better than expected FY18 out-turn, where adjusted EBIT came in ...

Valuation raised due to accelerating growth

Founded in 1995 and floated at 57p/share in July’14 (raising £8.8m gross), ClearStar (CLSU) is a pioneering technology provider to the c. $4 billion global job screening (60% of H1 sales) and drug/medical testing (40%) markets. Today’s H1’18 results appear very encouraging: sales climbed 10.8% to $9.9m ($8.9m LY) - representing their highest level ever for a 6 month period, with LFL growth being significantly faster than the broader market. Here, the standout performers were MIS (up +27% to $4m) and Direct (+22% to $2.8m: incl 15% of MIS). Together, these two divisions now account for 62% (or...

Katherine Thompson

GB Group - FY19 growth on track

GB Group’s H119 update confirmed that the business is trading in line with expectations, with underlying organic revenue growth of 11% and underlying operating profit growth of 7% compared to H118. While our underlying forecasts are unchanged, we have upgraded our estimates to reflect the recent Vix Verify Global acquisition, which results in a 2.7% increase in our normalised FY20 EPS forecast.

Katherine Thompson

GB Group - Scaling up down under

GB Group has taken another step forward in its international expansion with the acquisition of Vix Verify Global, a business specialising in ID verification and location intelligence software in Australia and New Zealand. Complementing GBG’s IDV and Loqate solutions, the acquisition will widen the datasets available to both GBG and VVG customers. The deal cost of A$38.3m/c £21.2m is being funded from existing facilities. GBG expects the deal to be earnings accretive in the first 12 months once synergies are taken into account.

Exciting new channel partner

Founded in 1995 and floated at 57p/share in July’14 (raising £8.8m gross), ClearStar (CLSU) is a pioneering technology provider to the c. $4 billion global job screening (60% of H1 sales) and drug/medical testing (40%) markets. Often the best ideas are the simplest. Take the humble employee ID and/or visitor card. There are probably 10s if not 100s of millions of these dished out globally each year to new recruits, temporary workers, contractors, visitors, etc. Not only costing a small fortune to produce, but also needlessly sucking in vital resource, slowing up the on-boarding process and dam...

Exciting times ahead

Blancco is the world’s leading developer of ‘data erasure’ software, used to protect governments and corporates from ID/data theft, ransomware and cyber-crime, along with being a pioneer in mobile device diagnostics. Despite the stock being rated at a modest 2.2x CY EV/turnover (adjusted for JVs) vs 6.0x for the cyber-security sector, we are encouraged by this morning’s upbeat prelims, improving momentum (H2’18 sales +5.3% vs -1.4% H1), “strong” start to FY19 and the Board’s well balanced ’Growth Strategy.’ There was a slightly better than expected FY18 out-turn, where adjusted EBIT came in ...

Valuation raised due to accelerating growth

Founded in 1995 and floated at 57p/share in July’14 (raising £8.8m gross), ClearStar (CLSU) is a pioneering technology provider to the c. $4 billion global job screening (60% of H1 sales) and drug/medical testing (40%) markets. Today’s H1’18 results appear very encouraging: sales climbed 10.8% to $9.9m ($8.9m LY) - representing their highest level ever for a 6 month period, with LFL growth being significantly faster than the broader market. Here, the standout performers were MIS (up +27% to $4m) and Direct (+22% to $2.8m: incl 15% of MIS). Together, these two divisions now account for 62% (or...

A director sold 138,560 shares at 417p and

A director at GB Group sold 138,560 shares at 417p and the significance rating of the trade was 71/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of board members a...

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

Expert Corporate Governance Service (ECGS)

GB Group PLC- Proxy report - 26/07/2018

Contrary to UK market practice, the Company does not have annual elections of directors. Elections are staggered and only two directors are standing in the current year. There are concerns over the composition of the Board. The Chairman, Mr. Rasche, undertakes some general and operational consultancy for the business through his consultancy business Rasche Consulting Ltd, for which he is given expenses by the Company. Furthermore, 50% of the Board are executives and only 33% are independent. There is insufficient independent representation on the Board. Item 6: Re-appoint the auditors Ernst...

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