Gb Share Discussion Threads

[hotfinance14] 05/6/2019 12:50

Barn..the auction final price will be interesting.

[wolansm] 05/6/2019 12:49

I just take my chances as they come hot

[hotfinance14] 05/6/2019 12:35

Good to see you are still here Wol. I expected a significant increase in the share price today but this has not come to fruition.

[barnesian] 05/6/2019 12:34

Very interesting WebCast including Q&A. My notes: 1. Customer synergies already coming through 2. 12 acquisitions already made. Priority now is paying down debt and investing in sales, marketing and technology before further acquisitions. 3. This is an early stage market. Anticipate 10-12% organic growth plus impact of acquisitions. 4. Growth comes 2/3rds from existing customers, 1/3rd from new customers. However strategic focus is on new customers. This is a "land grab". 5. Location, Identitiy and fraud segments will gradually merge over time into a comprehensive solution. 6. Little seasonality 7. Two main types of competition. a) Big credit driven companies who are multi-domestic. b) Smaller point solution companies. GBG can beat either with their reach and integration. Overall very impressive. They seem to be on top of their game in a fast growing high margin business. Sooner or later there will be an auction for them.

[wolansm] 05/6/2019 12:08

Still here hot but slowly slowly a few k at a time out, there is value elsewhere for example Hurricane from around 30p to current 59p, all eggs in one basket etc etc, whoooshs are getting smaller and smaller..... don't get me wrong I still luv these

[eaglebeagle] 05/6/2019 11:59

So true Barnesian. Someone should tell VISA, Mastercard, PayPal that they should buy these guys today. There whole business models are based on authentication and GBG can enable new payment rivals , or set existing payment schemes up for the next 20 years. All depends if they are independent or owned.

[barnesian] 05/6/2019 11:38

The £23m FCF is growing at a rate of at least 10% pa. With a discount rate of say 12% that leads to a value of 50xFCF. Change the assumptions a bit and you can justify any value you choose. The real value is what people are prepared to pay, including an acquirer.

[pj0077] 05/6/2019 10:51

Sorry to rain on your parade, but the re-rating has already occurred. The next change in rating will be a de-rating. Check out the valuation - it's well ahead of the fundamentals.

[pj0077] 05/6/2019 10:48

Net cash flow of £23million. What's the right valuation for that? A generous 20x multiple would be £460million. Yet the company appears to be valued at £1200million (!) A clear case of asymmetric downside risk.

[barnesian] 05/6/2019 10:33

GBG have a very healthy widely based free cash flow. It is very CAPEX light, so even after CAPEX and tax, the net cash flow is over £23m compared with dividend payout of just over £4m. It will be able to rapidly pay down debt, or finance more acquisitions and also finance a growing dividend policy. It is in a good place.

[hotfinance14] 05/6/2019 10:01

I expect we will have a re-rating soon which should move the share price further north.

[togglebrush] 05/6/2019 09:52

Market reaction to Results, so far, looks promising

[chasbas] 05/6/2019 08:20

PJ0077 Suggest you look at page 10 of the announcement stating GBG's KPIs with definitions on previous page. You pays your money...I like the jump in Deferred income to £28.3m which may underpin management's confidence in future organic revenue growth

[barnesian] 05/6/2019 08:06

"PBT up only £1.3million (+10%). Confusing" No not really. This is after depreciation of acquired intangibles and one-off acquisition costs. Adjusted profit gives a more useful picture.

[hotfinance14] 05/6/2019 08:03

The GBG webcast regarding the results will be available at midday today.

[hotfinance14] 05/6/2019 07:47

Fantastic results. We now have EBay as a customer which will be huge. I like the statement that they are confident to deliver double digit organic growth.

[pj0077] 05/6/2019 07:43

Revenue up by £23.8million (+20%), but PBT up only £1.3million (+10%). Confusing. Where is the operational gearing?

[barnesian] 05/6/2019 07:39

Expect to "continue to deliver double-digit organic growth." Looks like a solid performance. Integrating acquisitions well.

[sweenoid] 05/6/2019 07:23

What a super read! Confident, bullish, acquisitions settled in nicely, good new customer wins, I particularly like Revolut a dynamic and very interesting company that I have been watching closely. The market likes good dividend growth and that’s what we got. It’s also obvious that new acquisitions are onthe way, that’s ok as long as management are not distracted A tremendous growth story, I look forward to seeing the presentation and listening to the audio later A keeper The reaction today is likely affected by the geopolitical situation , but given the markets this company supply are global, and growing, given the exponential rise in the digital world and the opportunities for fraud that enables combined with the need for security and ID verification I expect very strong growth to continue Off for a dog walk :-) S

[gswredland] 05/6/2019 07:20

Yep! Been a long term holder here and will add on weakness from now

[nigeldoug1] 05/6/2019 07:19

Couldn't have asked for more. Fabulous.

[togglebrush] 05/6/2019 07:14

Results on first reading look good ' Strong performances, underpinned by solid underlying organic revenue growth of 11.5% ' Dividend of 2.99 pence (2018: 2.65 pence), paid 23 August 2019, XD 18 July 2019.

[hotfinance14] 03/6/2019 19:52

Surprisingly the sellers won todsy.

[hotfinance14] 01/6/2019 08:36

I don't think they win next week.

[sweenoid] 31/5/2019 17:22

The sellers win today