Identity intelligence software specialist GB Group (GBG) delivered a robust performance for the year to March. A string of acquisitions complemented decent organic growth, as more and more businesses use online intelligence services to combat fraud and to find out more about their customers. Adjusted operating profits jumped by half to £5.5m and, having increased its coverage to 20 countries, GB can apply its verification processes to over 2bn people.
The operations have been streamlined into two divisions: Identity Proofing (formerly DataAuthentication) and Identity Solutions (formerly DataSolutions). Identity Proofing, which guards against online fraud, pushed turnover ahead by 20 per cent to £15.4m, of which 6 percentage points came from the acquisition of TMG.tv. Divisional operating profits jumped 78 per cent to £1.6m. And the group continues to make progress towards building an electronic identity verification service capable of verifying anyone, anywhere in the world.
On the identity solutions side, where a bulk of the revenue is generated through annual licence renewal for software that allows clients such as Tesco, J Sainsbury and Barclays to gain greater knowledge of customer habits, revenues and profits increased by over a quarter to £24m and £3.6m respectively, buoyed by the first full-year benefit from the Capscan and Data Discoveries acquisitions the previous year.
Analysts at Peel Hunt forecast current year adjusted pre-tax profits of £6.6m and EPS of 4.8p (from £5.4m and 5p in 2013).
| GB GROUP (GBG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 98p | MARKET VALUE: | £107m | |
| TOUCH: | 97-98p | 12-MONTH HIGH: | 102p | LOW: 65p |
| DIVIDEND YIELD: | 1.5% | PE RATIO: | 25 | |
| NET ASSET VALUE: | 25p* | NET CASH: | £6.3m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 23.8 | 1.39 | 1.80 | 1.15 |
| 2010 | 22.2 | 1.26 | 1.80 | 1.20 |
| 2011 | 24.2 | 1.54 | 2.20 | 1.28 |
| 2012 | 31.8 | 2.51 | 3.80 | 1.38 |
| 2013 | 39.4 | 3.51 | 4.00 | 1.50 |
| % change | +24 | +40 | +5 | +9 |
Ex-div: 10 Jul Payment: 9 Aug *Includes intangible assets of £22.7m, or 21p a share | ||||
