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GB Group - Identity segment returns to growth

June 2024

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • GBG
  • Price:
  • 343p
The shares have been zooming higher ever since GB indicated that the Q4 exit run rate had accelerated to c5% from 1.8% at the end of H1 and said full year revenues would be c£277.3m, with adj EBIT of c£61.2m. GB’s forward-looking guidance is that FY25 should deliver “mid-single digit” revenue growth and it is starting to see a better-than-expected mix, with the all-important Identity division (58% of sales) returning to growth. It’s exactly what you should be expecting as ecommerce volumes, mortgage approvals and credit conditions all improve. Location (28%) remained ‘solid’ and Fraud (14%) stabilised after two years of headlong growth. Interesting to note a comment from Jefferies that a notable corporate transaction was the acqui ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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