Gb Share Discussion Threads

[lomax99] 22/6/2021 06:42

Questor: stick with this cyber security firm as it cashes in on the online fraud epidemicQuestor share tip: there's no shortage of demand for GB Group's services, but at 50 times earnings it is only a holdIn a world where transactions and data are going online at a phenomenal rate, the need for security and safety when it comes to personal financial details is growing every bit as fast. This is where cybersecurity specialist GB Group comes into its own, and the firm's latest set of full-year results is testament to that.Sales rose by 12pc on a like-for-like basis in the 12 months to March 2021 and underlying operating profits rose by a fifth as strength in end-market segments such as fintech, e-commerce and cryptocurrencies more than compensated for weakness in areas that were affected by the pandemic, such as travel and leisure. New customer wins were maintained and existing clients continued to take on extra services across GB Group's identity, fraud and location offerings. Perhaps best of all, cash flow was robust and cash conversion strong. As a result, GB Group turned a net debt position into a net cash one, even allowing for £3.9m in lease liabilities and £3.7m in contingent liabilities that relate to the price paid for past acquisitions.As ever with this high-growth stock, the trickiest issue is valuation. A yield of 0.4pc will hardly appeal to income seekers, and a forecast price-to-earnings ratio of almost 50 may not call loudly to bargain hunters either. Yet GB Group has every chance of generating the sort of long-term earnings growth that will bring that multiple down, all else being equal – indeed our initial analysis of the company in 2016 wrestled with the same problem, and the shares have gained 245pc since then thanks primarily to strong earnings growth.The past few years suggest that chasing the stock is not the best plan, however, again thanks to that valuation. Any pullbacks could give long-term growth-oriented investors a chance to top up holdings or build an initial position; otherwise GB Group remains a hold.Questor says: holdTicker: GBGShare price at close: 822pGB Group key factsMarket value: £1.6bnTurnover (March 2022 estimate): £210mPre-tax profits (March 2022 est): £45mYield (March 2022 est): 0.4pcMost recent year's divi: 6.4pNet debt (March 2021): £13.8m net cashReturn on capital (March 2021): 9.7pcCash conv ratio (March 2021): 123pcp/e ratio (Mar 2022 est): 48.9

[hotfinance14] 20/6/2021 10:31

The webcast for the FY21 full year results is a good listen: hxxps://webcasting.brrmedia.co.uk/broadcast/609a9df9576c9638976d5e87/60cf096246c145096009d1c6 Our new FD joins Chris and Dave. We have £140m to £200m available in cash for acquisitions. I expect some announcements in the next few months,

[hotfinance14] 20/6/2021 10:28

We have the AGM on 29th July which will give an update in trading.I am expecting this to be better than the concensus.

[hotfinance14] 20/6/2021 10:20

I agree Wol. Our new FD has confidence. Last week he purchased 7,656 shares at £8.86 giving s total of £68k.

[wolansm] 17/6/2021 09:07

Looks like a nice opportunity to take on a few then a whoosh to £9 or so

[nigeldoug1] 16/6/2021 20:33

It may be to do with the consensus of analysts estimates for the future....undercooked in my view.

[nigeldoug1] 16/6/2021 15:47

Another set of brilliant results and once again the share price gets marked down!

[marktime1231] 15/6/2021 14:02

Well aren't investors a tough crowd sometimes, good results and everything close to what was expected, and similarly good performance to look forward to. Aha! GBG is valued as an exponential growth business and for once it has not described an outlook which will see us enjoying the same rapid expansion, just printing more cash. Let's give them credit, they have an already good net cash position rising fast and a track record of growing the business with clever expansions and acquisitions. They haven't pointed to anything specific or strategic in the pipeline, but that doesn't mean there aren't plans. Ignore the dividend it is a trivial irrelevance. It is all about how they are going to employ the cash and what return they can get from doing so.

[wolansm] 15/6/2021 10:27

PE in ADVFN showing over 100 actual is closer to 36 still a high number but better than what's there now

[hotfinance14] 15/6/2021 08:53

In relation to the disposals during the year : In January 2021, the Group disposed of its Marketing Services business to HH Global Interactive Limited and in March 2021 the Employ and Comply business was sold to First Advantage Europe Limited. The net cash proceeds from the disposals was £5.3 million.

[hotfinance14] 15/6/2021 07:24

Excellent results again by GBG. Revenue £217.7m and profit £57.9m. Dividend increased to 3.4p from 3p. I did like this bit : New business came from initiatives in new sectors and by expanding geographically. In the USA we grew identity revenues in the financial services and online gaming markets, as well as winning new customers in insurance and healthcare sectors. EMEA saw good growth for Loqate in the online retail and food distribution sectors. In APAC, despite challenges with onsite deployments, we have won new business and achieved significant upsells across the region, including a major project in the Philippines and new Loqate sales in China, positioning us well for future sales in the territory

[hotfinance14] 14/6/2021 19:06

Full Year results tomorrow.Est Revenue £217m Profit £58m

[wolansm] 10/6/2021 12:22

Well done stig about cgt I was there but rules changed and for me had to many to move so stuck it out on normal market. Think I starting accumulating around 1997. Think your wording about MM games is spot on. If this goes a bit lower might buy back.

[stig2] 10/6/2021 11:42

wolansm No I don’t remember that one, must have been a bit before my entrance I’m glad to say. Looks like gbg is doing the same again at present though I’m not that worried as the management have always been straight up to now, so unless there’s something official stated by them I tend to disregard the MM,s roller coaster tactics. As to the CGT I managed to squeeze mine under an ISA banner early on with an instant sell and buy back move in tranches over a few years, so unless the rules change I hope to escape that one.

[wolansm] 07/6/2021 15:46

Do you recall the drop to 5p it was fast, I thought I had been cleared out financially but had to stay with it for donkeys, I see your point about trading but selling relatively a few bought at 25p at a high price even at £3 is a massive profit. Taking your capital gains allowance plays into it. Luckily I've had all my money back and still own a few here. I think it was 2015 Gbg halved I got a real fright and saw a huge drop in my portfolio.

[stig2] 07/6/2021 15:01

wolansm As you say thats trading and I wish had the guts with GBG so predictably unpredictable, but I remember buying at 11p selling at 12p and having to pay 35p to get back on board, so I've played safe ever since apart from adding on a large drop.

[wolansm] 07/6/2021 13:37

Think you misunderstood.... I've actually sold at 971 and bought back lower then resold higher hence obtained over a tenner, when it reaches a new high I take the risk. The last three months have been pretty volatile with a massive range 800p to current 950p, risky but paid off for me.

[hotfinance14] 07/6/2021 11:36

The buy or sell price has never been over £10 per share and if it was at £9.71 it was very briefly. We could see our £10 next week if the results outlook is very positive.

[wolansm] 07/6/2021 11:14

Does anyone recall when it slipped to 5p I was really worried that day

[wolansm] 07/6/2021 11:12

It's actually been higher, for example 971 is a sell price that I obtained therefore assuming you guys talking about end of day price close I've pocketed more than a tenner a share a few times because bought back on slippage. I've also pocketed as little a lot less on the way up, that's trading best of luck to all and lots of whoooshes to come, happy to sell into any new highs

[hotfinance14] 03/6/2021 07:44

Yes the highest share price was £9.54. I am expectong an increasee in the dividend to around 3.25p and possibly news of an acquisition.

[countryboy1] 02/6/2021 16:56

My pleasure. Slowly edging up to our highest closing price which I think was £9.54. Fingers crossed for a detailed positive and forward looking statement.

[hotfinance14] 02/6/2021 08:09

Excellent. Tbanks for the info.

[countryboy1] 01/6/2021 22:44

The key dates page of the investors section of th GBG website has the results date as 15th June with a rider that all dates may be subject to change.