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GB Group - Good visibility over FY25 forecasts

November 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:
  • 310p
GB reported an excellent H1 update. Organic growth continues to improve with a strong margin performance providing good visibility on FY25 profit forecasts. Sales are guided to c£147m, up 4.5% yoy organically, a further improvement on the +3.5% growth delivered in H2 24. In terms of segments, the company is flagging continued momentum in the Identity segment, mostly due to healthy upsell/improving net revenue retention, as well as solid growth in Location. Its more lumpy Fraud segment is 9% down but this partly relates to year-on-year timing differences in its customer renewal cycles. H1 operating profit is guided to be £29m, +21% year on year and representing a margin of 21.2%, up from last year's 18%. As Canaccord notes, “This gives us ...

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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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