Gb Share Discussion Threads

[hotfinance14] 21/2/2023 08:01

So from the latest Edisson report we have for FY23 forecasts :

Revenue £293m (Includes $4.2m US stimulus)
ADJ operating profit £67.3m

From todays trading update :

Revenue £273m
ADJ operating profit £60m

[simon gordon] 21/2/2023 07:23

Is this one of the worst deals in recent times for a UK listed company?

November 2021:

"GB Group plc (AIM: GBG), the expert in digital location, identity and identity fraud software, is pleased to announce that it has conditionally agreed to acquire the entire issued and to be issued share capital of Acuant (the "Acquisition"), a leading US Identity Verification and Identity Fraud prevention business, for a cash free, debt free enterprise value of $736 million (c.£547 million).

For the twelve months ended 30 September 2021 Acuant generated $58.1 million in revenue, an increase of 22% on the year to 30 September 2020, with the business continuing to trade strongly on a like-for-like basis since September."

February 2023:

"At our interim results in late November 2022, we reported on the trends that had been impacting our end markets for identity services, most notably the challenging conditions for cryptocurrency and our internet economy customers. These challenging conditions have continued into the second half of the year and given the relative concentration of these customers in our North America business this is the region where we are seeing the most pronounced impact. We have also seen some incremental lengthening of sales cycles, also in North America, as a result of the macro-economic uncertainty and this has delayed some expected customer contracts."

[hotfinance14] 21/2/2023 07:21

Unexpected trading update.It was on the cards with the current economic climate.

[seanyboy] 10/2/2023 06:22

What I mean is the days of ONLY positive news flow from GBG is a distant memory. Any new investors will do so in the hope of another bid but that is foolish and desperate investing. I still have substantial holding in this stock but where it is going right now would not have a clue

[simmsc] 10/2/2023 00:43

This is a bid risk indeed, but analysts are still moving their EPS forecasts down every few weeks, so anyone interested in taking this over will sit back and watch while this is still going on as they can get it cheaper and cheaper. Once the EPS forecasts stop getting revised downwards they will probably act.

[hotfinance14] 09/2/2023 07:47

How have the dynamics changed ? The big acquisition ?

[seanyboy] 09/2/2023 04:16

Alas the last interested party did not see it that way! You say currently cheap? So when it was recently hovering at 300p it musta been a STEAL & even then no one interested! Look I also like GBG group but at least for now the dynamics have changed big time!

[sailorsam1] 08/2/2023 08:11

Good international growth opportunity and cheap imo. Get bought by US and scaled up over there

[aishah] 07/2/2023 15:16

What makes you think that?

[sailorsam1] 07/2/2023 13:59

Looking cheap. I wonder if a bid will appear

[seanyboy] 02/12/2022 06:09

Just read that report thx for the link! Have to say I cannot see investors being in any hurry to invest! There is of course potential but will that be enough to underpin the current SP? The ace in the hole of another bid as suggested in an earlier post is a bit desperate - they really need to be announcing MAJOR new clients/partners for any near-term move north! IMHO

[hotfinance14] 01/12/2022 13:16

I thought the same and I didn't see a target share price that they usually have in the report.

[marktime1231] 01/12/2022 12:40

Brilliant from Edison. The poor report is hiding good news! How much are we paying these guys?

[hotfinance14] 01/12/2022 08:17

GBG Edison report published today :

hxxps://www.edisongroup.com/publication/h123-performance-masks-strategic-progress/31720/

[nigeldoug1] 30/11/2022 17:54

Bring back Richard Law a good M+A guy.

[wolansm] 30/11/2022 09:11

Paid way to much for that acquisition and now paying the price .... Heads should roll in my view £10 is a long way away if it ever returns....

[seanyboy] 30/11/2022 08:34

Can't argue with this script! Def the sentiment with GBG has dramatically changed but importantly the growth prospects remain! Patience is in short supply for punters hence the tecent stampede for the exit door but GBG is due "good news" I feel so will hang for that possibility & put a stop @ 300p

[marktime1231] 29/11/2022 18:41

Weak growth on a constant currency basis, and repeated reference to headwinds from a stuttering crypto market? Continuing to write down the intangible premium in the price paid for Acuant? A drop in margin? Where are the synergy savings? No longer eradicating net debt at the phenomenal rate we got used to? Nothing like the super upbeat outlook we usually get?

These numbers do not deserve GBG to be trading at any higher.

I can see lots of reasons why the pre-emptive 5% drop in share price was followed by another 5% drop today. The headline trading figures did not reveal the crummy bottom line. All pretty disappointing, no wonder the prospective bids came to nought. Trading at about a 50% discount to the 725p the market coughed up to buy Acuant. How many investment managers who decided to participate will be in line for a bumper bonus, how many private investors nursing huge losses share the "looks good to me" view?

[primarch1] 29/11/2022 16:06

Like the company and I can see revenue/profit growing once the new acquisitions are bedded in but the debt pile is putting me off for now

[saj3] 29/11/2022 08:46

Chance of another bid maybe in 6-12 months

[hotfinance14] 29/11/2022 08:44

The loss/profit beore tax of zero is mainly caused by a relative increase in operating expenses which is explained as :

Adjusted operating expenses increased in total by 51.7%. 28% of this was as a result of the prior year acquisitions and 8% was due to the translation of non-GBP expenses at less favourable FX rates than the prior year. The remainder of the increase relates to new roles hired in the second half of the last financial year and current year wage inflation, which averaged approximately 6.5%. The effect of these factors was partially offset by the effect of integration cost synergies and a reduction in bonus accruals to reflect lower full year outturn assumptions.

[seanyboy] 29/11/2022 08:31

Roaring back like the tiger it is! GBG remains a very good growth stock! Current price for me well undervalued! Imho

[farukequity] 29/11/2022 08:24

H1 (Loss) before tax (GBP0.0m) (100.2%) YoYThis looks rather poor for a business valued at GBP800M?

[saj3] 29/11/2022 08:22

Gave me a chance to load up

[hotfinance14] 29/11/2022 08:21

Seems to be as I can't see anything negative compared to the trading statement.