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magazineGB Group is rattling alone nicely as one of our top picks for 2019
GB GROUP (GBG:AIM) 606p
Gain to date: 43.4%
Original entry point: Buy at 422.5p, 20 December 2018
A relatively short but sweet trading update from identity data intelligence supplier GB Group (GBG:AIM) gave investors everything they need to read before getting their teeth into the actual results, scheduled for 3 June.
News of 20%-odd growth in headline revenue and adjusted operating profit was better than expected while organic growth was 11% for the year to 31 March 2019.
The switch from a £13.5m cash-rich position a year ago to net debt of £66.3m also illustrates what a whirlwind year for the company it has been, including its biggest acquisition to date, the $300m Idology buy in February.
This hints at GB’s technology edge over competitors where it increasingly taps into capital markets to cherry pick niche solution suppliers to build out its own product set, with the US particularly interesting to management.
Most analysts are leaving 2020 forecasts and beyond alone for now, but the gun feels loaded for when those detailed figures emerge in just over a month’s time.
SHARES SAYS: With the market opportunity getting bigger by the day as more retail spend moves online, GB remains a unique technology play. It is one of our top picks of the year and we’re really happy with the performance so far.
KEEP BUYING
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