Gb Share Discussion Threads

[sweenoid] 07/7/2020 15:39

As expected

735p looks to be a really juicy price to break through , the chart would of course look awesome if the share price could then surpass 765p , there is blue sky above that resistance point, but 735p may be a tough nut to crack, hopefully we will see that ‘go’ soon.

The key statement for me from the earnings call was that Q1 had been better than internal expectations given at the trading statement. GBG like multiple other companies are quite rightly refusing to give forward forecasts due to lack of visibility related to Covid-19, but they are as ‘insulated’ from major ‘issues’ as they can be, due to their business model

Presently the share price has some momentum and sentiment appears good.

GBG continue to be the BIGGEST holding in Katie Potts Herald Investment Trust and have been for some time. I expect that to remain the same when Herald issue their next monthly statement ( for end June) in a few days time.



S

[hotfinance14] 30/6/2020 19:36

I think we will soon be over 700p and head towards 800p.

[barnesian] 30/6/2020 17:38

I meant a buying opportunity for us before the analysts got their positive reports out later today. But I think that opportunity at around 650 has gone, probably for good.

[hotfinance14] 30/6/2020 16:08

Barnstein...I would expect analysts to recommend this as a buy as trading is
better than expected.

[barnesian] 30/6/2020 15:42

So now the analysts will do their analysis and inform their clients overnight. This is a buying opportunity isn't it?

[sweenoid] 30/6/2020 14:54

Agree Webinar was very good
Stand- out comment when asked how Q1 was shaping up ( the analyst was asking for fiGurus which were never going to be forthcoming !), the CEO commented that the current quarter ( ends today) had been BETTER than the expectations when they issued the trading statement in April

That’s good
S

[hotfinance14] 30/6/2020 14:41

The webinar presenation was excellent.The drop in the share price could be regarding the collectables with customers potentially going bust even though I would not expect
these to be significant amounts.

[hotfinance14] 30/6/2020 13:47

Latest broker forecssts for GBG :


GBG GB Group PLC Peel Hunt Buy Buy 768
GBG GB Group PLC Jefferies International Hold Hold 743

[sweenoid] 30/6/2020 13:33

Presentations are up


For presentation slides

And probably better but more time consuming, but the one I have lined up for this afternoon- the webinar presentation





I fully expect the share price to recover from this mornings loss, but WTFDIK ;-) it’s the stock market after all, but in terms of solid reliable earnings companies, in growth sectors ( yes they are! ) that are well run and managed, GBG IMHO AND DYOR takes some beating

[stig2] 30/6/2020 12:34

I fully expect that sometime in the the distant future when GBG annouses it is being bought out for £30 per share the price will inextricably drop to £10. Just to keep us guessing as per usual......hey ho

[kemche] 30/6/2020 12:23

Picked up a few for a first batch.

[hotfinance14] 30/6/2020 11:35

It is bizarre that the share price is down this morning.Hopefully the share price will head north during the rest of the week.

[prettygreen] 30/6/2020 10:39

Excellent results but down they go..

[bulltradept] 30/6/2020 10:06

Picking them up under £6.40 might prove profitable later down the line..

[hotfinance14] 30/6/2020 07:47

We were already aware of the divdend situation.

Th outlook is the important part of the report :

FY2020 has been another successful year in terms of delivering on our strategic priorities and further growth of the Group. Whilst we are pleased at how GBG has responded to the immediate challenges presented by Covid-19, it still remains unclear how it will affect GBG in the coming months as each customer, sector and geography are impacted in different ways. However, consumers are carrying out more transactions online and organisations are responding to this by accelerating their plans to offer seamless, quick and secure digital services. These are healthy indications that we could see an increasing demand for our services in the medium-term. We look forward to playing our part in supporting businesses as economies recover from the effects of the pandemic

During the year GBG has some great new customers such as Adidas,Wish,First Abu Dhabi Bank and Volkswagen Payments S.A.

Overall excellent resukts.

[sweenoid] 30/6/2020 07:42

Financials as expected- excellent.

The results will be viewed purely from the COVID-19 perspective. I was particularly pleased to see that organic growth has grown as a rate of about 10% a very good performance for the year and also that I D ology has been successfully incorporated into the group and is trading well. GBG is a highly cash generative company and it is great to see the level of debt has been significantly reduced. Taking alone and ignoring Covid these results could only be described as exceptional

Given the situation I think the statement is a strong as confident as anyone could’ve expected, I’ll be looking forward to see the investor presentation When it’s put up on the website.

With that in mind and looking at the business drivers it’s very encouraging to see these comments


While it is too early to draw definitive conclusions on the impact of Covid-19, initial observations indicate that many of these drivers to business might well accelerate.

Despite COVID-19 and the companies cash position and potential growth as still allows them to consider acquisitions and as detailed by this statement “ Our financial position at the year-end, together with the steps we have taken to conserve our cash resources and protect access to debt financing, means that we continue to have the means and ability to consider acquisitions and investments when they arise. This gives us the option to increase the pace of our go to market initiatives and/or broaden our geographic reach and product capabilities.” That strikes me as very positive.

In terms of growth business and new customers, GBG saw the addition of some really big names and particularly impressed by then adding names like PayPal Sky John Lewis To a list of all right and ready very very very serious customers.

As for the all important post COVID-19 OUTLOOK , I think the statement is as positive as could be expected, there are very few if any companies giving a positive outlook at present and saying they are unaffected ( although my main holding IQE appears a rare exception) , certainly not 1 company is prepared to issue forecasts due to visibility issues, but given GBG’s business model being location, identity and fraud, it’s heavyweight reliance on license fees and the worlds move to a digital economy is being accelerated , with its inherent risks of increased fraud, I believe the outlook statement is highly satisfactory


Although it is still early in the pandemic, customer churn and levels of insolvency are at normal levels although we have started to see some customers taking more time to settle their invoices. There has been little impact on our suppliers. We have continued to win new business, although sales cycles are, understandably, lengthening.
It is not possible to predict how long the effects of the disruption caused by the pandemic will last. While the Group has a high level of annual recurring licence revenue, which provides good visibility, the full impact on volume-based sales are harder to predict. This means we do not yet have sufficient visibility to provide guidance for the year ending 31 March 2021.
8

Despite what is happening to global economies, our drivers for growth remain the same and in some cases are more important as businesses have needed to adapt to new norms. We have confidence that the Group is well-positioned to face what might be ahead of us, thanks to a combination of our market-leading solutions, a diversified customer base and revenues not being reliant on a single customer or sector. Fundamentally, I believe that our long-term prospects in a post-Covid-19 environment remain as attractive as before.

S

[barnesian] 30/6/2020 07:42

Above market expectations
Very cash generative
Too early to assess overall impact of covid-19 but looking good.
Happy staff - which is a positive indicator.

[togglebrush] 30/6/2020 07:18

Synopsis
______________________________2020_________2019______% change
'
Revenue_____________________ GBP199.1m___GBP143.5m_____38.7%
Adj operating profit ________GBP_47.9m___GBP_32.0m_____49.7%
Adj basic earnings per share_____21.8p_______18.2p_____19.8%
Profit before tax____________GBP_20.6m___GBP_14.7m_____40.0%
‘
does not intend to declare a final dividend in respect of financial year 2020.

[hotfinance14] 29/6/2020 16:40

I am aurprised with today's drop in the share price I am hoping the MM's are after stock.

[hotfinance14] 29/6/2020 14:03

I agree Bernesian as online transactions must have increased significantly during
the lockdown period.

[barnesian] 29/6/2020 13:35

A bit of nervousness leading up to the results?
Only natural I suppose.
But I think there is much more upside than downside.
We'll soon see.

[hotfinance14] 28/6/2020 10:46

Gaming seems to be a significant amount of GBG's revenues so the blogs are great news.

I also expect the results to be Tuesday 30th June so we may get a decent rise in the share price on Monday leading up to the results.

[sweenoid] 28/6/2020 09:46

3 great new BLOGS from GBG dated 24th June



My money still on Tuesday for results..the sooner the better?
S

[hotfinance14] 26/6/2020 08:23

GBG's customer 888 holdings reported today thay theIR revenue since March 2020 :

that average daily revenue in the year to date has been 34% higher than the prior year. As a result of the Group's trading during the year to date the Board now anticipates that 888 will achieve an adjusted EBITDA outcome for 2020 significantly ahead of its prior expectations

As all sales will be online this is great news for GBG.