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GB’s quality shines
GB GROUP (GBG:AIM) 341.75p
Gain to date: 35.1%
Original entry point: Buy at 253p, 27 October 2016
The most important point of GB’s (GBG:AIM) year end update is the profit beat, adjusted operating profit of £17m versus £16.4m consensus. That’s a 19.5% operating profit margin, a full percentage point ahead of analyst hopes for the 12 months to 31 March 2017 and easily on track for 20% targets by 2019.
Sentiment had been unfairly dogged by a slow GOV.UK verify programme, and our call to take advantage has paid-off impressively, the share price 35.1% up in exactly six months.
A quality business; we remain happy to continue backing even on a forward price to earnings (PE) multiple of 31.9. (SF)