ID technology expert remains a unique UK and international story


Gain to date: 44.1%

Original entry point: Buy at 422.5p, 20 December 2018

Back in June we explained why it was not very surprisingly that GB Group’s (GBG:AIM) share price had paused for breath, having rallied roughly 28% since being selected as one of our top picks for 2019.

A 24 October half year trading update saw the identity data intelligence expert get its sprint back, jumping nearly 16% to 609p, just a fraction below the stock’s 631p all-time high.

The update spelled out that the company expects revenue to jump 64% to £93.7m on a combination of solid 18% organic growth and contributions from the acquisitions of Australian firm Vix Verify and, particularly, the IDology deal in the US, its biggest acquisition so far.

Adjusted operating profit is expected to increase 138% to £20.9m on organic growth and acquisition synergies, whilst net debt reduced from £66.3m in March to £53.8m.

Importantly, organic growth is still holding strong despite what must have been significant distractions to management from February’s £160m fundraising, the acquisitions and integration process.

This brilliantly illustrates GB’s technology-led strategy and the advantage this gives it over more credit-focused competition, such as Experian (EXPN).

SHARES SAYS: GB remains a stand-out UK technology growth story.

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