Gb Share Discussion Threads

[hotfinance14] 20/7/2023 07:16

2023 AGM Statement



GBG (AIM: GBG), the experts in digital location, identity verification and fraud prevention software, will hold its Annual General Meeting ("AGM") today at 10am at its registered office in Chester, UK. Shareholders are invited to attend the meeting in person to engage and share views with the Board of Directors.



At the AGM, Richard Longdon, Non-Executive Chair, will make the following statement:

"As reported in our full-year results announcement on 15 June 2023, FY23 was a year of continued strategic progress as GBG reported its highest-ever revenue and adjusted operating profit, supported by contributions from the businesses acquired in the previous year alongside strong delivery in Location and Fraud. Group revenue and profit in FY23 was lower than expected at the start of the year, largely due to significant macro uncertainty and challenging post-pandemic conditions in certain end markets, primarily impacting our identity business in the Americas.

While there has been no material change in market conditions, we continue to expect some gradual revenue acceleration in the latter part of the year and to achieve our FY24 profit and cash generation expectations assisted by a group-wide focus on efficiency. We remain focused on cash generation and repayment of debt and are pleased with the improvement in our current net debt position to £90.9 million, prior to the payment of the final dividend, which is subject to shareholder approval at today's meeting.

Looking to the future, the Board is confident GBG is well-placed to benefit from attractive structural growth in our markets. The increasing proliferation and sophistication of fraud through the advent of generative AI reinforces the need for customers to adopt multi-layered identity solutions. This presents a long runway of opportunity for GBG to capitalise on the breadth of its capabilities and global reach.

Our next scheduled trading update will be the pre-close trading statement in mid-October 2023."

ALL positive and the debt lowering significantly.

[seanyboy] 18/7/2023 12:33

The bottom line is how are GBG fixed going forward? their recent mistake-riddled past is clear for all to see but it is past and any signs on Thursday that the monkey is off the shoulder would be welcome news and create a platform for the share price to head north

[expleaseme] 17/7/2023 18:49

From the annual report and accounts to March 2023 I can see that options over 354k shares to the CEO (issued in prior years) lapsed as the EPS growth and TSR target were not fully achieved. I would suggest that the option awards outstanding over a further 400k options (share match award scheme) will probably be adversely affected by performance to date and will also lapse.

FYI - Performance criteria for the Share Match Plan are set out below and have been the same/similar for a number of years.

Not saying this excuses the current awards and performance but might explain that the CEO has lost out as he used his bonus in prior years to buy shares at market rates in order to get the share match awards - he's lost not only his investment in GBG shares (would have purchased between £4-£8 per share) but also the loss of the option awards.

Remco thinking is always to take action to incentivise and consider what has been lost and see if this can be made up in some way.

I would also suggest that the Remco chair would have met with major investors to check and balance the award rationale with them in order to avoid potential vote against the RemCo report at the current AGM.


Share Match Award Criteria (Page 88 of the 2023 Annual Report):

The share matching awards were subject to a three-year adjusted EPS compound annual growth performance condition with vesting. 75% of the share matching awards were subject to a three-year adjusted EPS compound annual growth performance condition and 25% to TSR vesting requirements. The EPS element vested on a sliding scale from 25% if 8% EPS CAGR is achieved over three consecutive financial years with full vesting being applied where a level of 15% EPS CAGR is achieved. In terms of the portion of the award subject to the TSR measure, 25% of the award vests at median performance against the peer group (FTSE 250) and 100% of award vests at upper quartile, i.e. the 75th percentile.

At the time of this report, based on GBG’s EPS performance and TSR, neither award has vested.

[togglebrush] 17/7/2023 11:07

Nice pickup today ... ahead of AGM on 20th July 2023 at 10:00am on Thursday

[lomax99] 14/7/2023 17:48

The price they paid was eye watering, I am not surprised it cratered the share price

[nigeldoug1] 14/7/2023 16:59

Below the current CEO and FD was a group MD who left some months ago but after the Acuant acquisition. No adequate explanation was given for the reason of his departure or where he was going. I recall this was referred to in an RNS so assume he sat on the main board.

[hotfinance14] 14/7/2023 16:40

What makes you think the old MD took the rap ? And how could he after he had left ?

[nigeldoug1] 14/7/2023 15:55

They need to stop rewarding failure and start rewarding shareholders. Seems like the old MD took the rap for the Acuant deal and I am not sure that was entirely fair?

[hotfinance14] 14/7/2023 14:50

I would hope in the options the share price has to be at least double what it is now.

Wol...my email to the CFO stated how frustrating the share price is and that they had over paid for the Acuant aquisition and that they should not allow this to happen again on future acquisitions. I just stated points so did not expect a reply which I did not get.

[nigeldoug1] 14/7/2023 14:21

Just issued new chunks of options for CEO and FD but dont disclose performance conditions!

[nigeldoug1] 14/7/2023 13:57

GBG has to be in play, and if a realistic offer came in there would be pressure on the Non Execs to recommend it given the recent history.

[wolansm] 14/7/2023 12:57

Hot did you ever get a reply from the CFO

[seanyboy] 14/7/2023 10:39

Hopefully the AGM and Trading update will be the beginning of a NEW positive era for GBG - it's been too long since we had those positive vibes! At 250p that for me is quite enticing for new or even previous investors

[hotfinance14] 14/7/2023 08:22

AGM 20th July which will include a trading update.

[hotfinance14] 12/7/2023 15:55

I remember when the CFO bought in over £8 about 2 years ago.

[aishah] 12/7/2023 13:38

Directors bought early in the year at over £3.

[aishah] 11/7/2023 17:28

Yes over 9.5m traded. Perhaps a seller cleared.

[se81] 11/7/2023 16:38

Huge turnover of shares today and a rally once the volume had gone through. Looks like a decent point to have a crack at opening a position