GB’s (GBG) half-year results to September expanded on the picture outlined in October’s trading update. Reported revenues rose 9 per cent to £57.3m, although, as we already knew, the prior year’s first half benefited from the £3.5m sale of a perpetual licence to a European bank. Adjusting for this, underlying growth came in at a more impressive 14 per cent – or 11 per cent on an organic basis.
International revenues for the identity data intelligence group rose from 30 per cent to 36 per cent of total sales, reflecting continued geographical diversification. And the post-period-end acquisition of Vix Verify Global, a provider of identity verification and location intelligence services to the Australian and New Zealand markets, has expanded GBG’s global footprint even further. This deal, worth A$38.3m (£21.7m), is expected to be earnings enhancing in the first year of ownership.
As previously communicated, adjusted operating profits were dampened by investments in technology, and sales and marketing costs. Statutory pre-tax profits fell 28 per cent to £2.5m, after amortisation, share-based payments and exceptional items.
Broker Investec expects adjusted pre-tax profits of £26.8m and EPS of 15.2p for FY2019 (from £25.8m and 15p in FY2018).
| GB GROUP (GBG) | ||||
| ORD PRICE: | 457p | MARKET VALUE: | £699m | |
| TOUCH: | 457-460p | 12-MONTH HIGH: | 636p | LOW: 381p |
| DIVIDEND YIELD: | 0.6% | PE RATIO: | 67 | |
| NET ASSET VALUE: | 103p* | NET CASH: | £18.6m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 | 52.6 | 3.5 | 1.6 | nil |
| 2018 | 57.3 | 2.5 | 1.3 | nil |
| % change | +9 | -28 | -19 | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of £158m, or 103p a share | ||||
