Gb Share Discussion Threads

[hotfinance14] 02/6/2020 10:52

Thanks for the confirmation.

[nigeldoug1] 02/6/2020 10:32

9th June results announcement.

[hotfinance14] 31/5/2020 09:29

The year end to 31st March 2020 results are due at the end of this week or the start of the following week.The outlook will be crucial. With more people buying online now hopefully this will be positive and lift the share price

[hotfinance14] 05/5/2020 08:44

Great find Robow.

[robow] 05/5/2020 08:32

from The Daily Telegraph this morning

Questor: this cybersecurity firm is not immune from Covid-19 but long-term prospects are good
Questor share tip: while some of GB Group’s customers will be affected, they will still want to be able to trade online safely

By
Russ Mould
5 May 2020 • 6:04am

GB Group remains a powerful player in the growth industry of cybersecurity CREDIT: Andrew Brookes
When even a well run, well funded, well positioned business such as GB Group is noticing the effects of the Covid-19 outbreak, you know that few, if any, companies are truly immune from the virus’s potential ripple effects on the wider economy.

However, the business remains a powerful player in what must surely be the growth industry of cybersecurity and, as a result, risk-tolerant growth seekers can permit themselves to take a long-term view and keep the stock on their side.

A trading update last month showed that GB Group had beaten analysts’ forecasts for the fiscal year that ended in March, as sales and operating profits reached new record levels. However, the company did see an impact on its Chinese business in January and February and, although the operation there has started to emerge from shutdown, the firm has begun to feel the effects elsewhere.


Even if gaming may remain relatively resilient, other customer sectors such as travel, leisure and retail are clearly suffering a downturn in trading, and that is likely to filter through to GB’s sales and profits.

Visibility is not what it would normally be, and Chris Clark, the chief executive, is understandably fighting shy of making anything that could be misconstrued as a profit forecast for the new fiscal year, which runs to March 2021.

A glittering run of sales and profit growth is therefore likely to come to an end, even as management reacts by cutting costs where it can, while the business will not pay a dividend for the year that has just finished.

Thankfully, our initial analysis in November 2016 was based not on the company’s yield but on its potential for capital returns. In that respect, things have worked out well so far, as the shares have gained more than 170pc and GB has continued to develop its competitive position.

Investors should benefit from that strategy over the long term, as GB’s customers will still want to be able to conduct business online in a safe and secure fashion during and after the current viral outbreak.

In addition, net debt continues to come down, as the company remains cash-generative, and this also gives investors good reason to stay patient. The trading update showed that net debt was just £35m by March.

The one thing that will give some investors pause for thought is the valuation.


A forecast price-to-earnings ratio of nearly 60 for the year to March 2021 is no bargain so the stock is not suitable for widows and orphans, even if that multiple could be a bit deceptive thanks to the probable dip in profits in the coming 12 months.

The valuation could limit the potential for near-term gains but GB’s long-term growth prospects still look good.

Questor says: hold

Ticker: GBG

Share price at close: 648p

[hotfinance14] 02/5/2020 17:03

We have the final resukts for y/e Mar 20 in what is usually early June.The outlook wlll hopefully be promiing which will lift the share price

[hotfinance14] 30/4/2020 08:27

Chanson...Normal trading day for GBG as far as I can see.

[chanson] 29/4/2020 16:53

Big whoosh just before the bell....something afoot?

[rivaldo] 23/4/2020 12:31

Edison have reduced their forecasts to 10.6p EPS to March'21 and 13.8p EPS to March'22:



Don't get me wrong, GBG is a terrific company, and I'd be prepared to pay a reasonable premium for the shares - but a P/E of over 60 going forward (with £35m net debt too) is far too rich for me :o))

Good luck anyway.

[hotfinance14] 23/4/2020 10:05

The final results should be announced early June. The outlook statement should give us a clear indication of the impact of the virus which i anticipate as being minimal.

[wolansm] 22/4/2020 12:47

Good luck mate, I just do my best for me sometimes it rocks and sometimes it don't

[eaglebeagle] 22/4/2020 11:13

Wolansm,

All down to your investment window I guess. I added a few today as I feel this will ride any further volatility well and can only benefit longer term from faster digital shift. If I was more of a trader I would be more like you!

[wolansm] 22/4/2020 10:41

Eagle the uptick is exactly what I think, however that increase will likely level again. Anyway it is what it is, I sold a few at higher levels, so I guess in some respects I'm a winner, just need to decide what to do.

[strategic trout] 22/4/2020 10:37

Given the paltry yield, cutting the divvy does little real shareholder damage. Surely no-one is holding this as an income stock. And if you are holding it as a future income stock, the cut is all the better for future divvies, present cashflow, and employee PR.

[hotfinance14] 22/4/2020 10:35

I agree the pulling of the dividend has lowered the share price Being prudent is probably the best option.It would appear all staff are being fully paid instead of going on furlough which is very positive.

It is possible they will payout a special dividend if the overall impact of the virus is minimal.

[eaglebeagle] 22/4/2020 10:31

It means they aren’t going to give an indication of how things are looking . Is ahead of targets, behind the run rate. This is because the situation is so volatile. My gut feel is that they are seeing a big uptick but feel it’s too early to flag it.

[barnesian] 22/4/2020 10:15

The company could afford to pay the dividend but cancelling it is a signal of solidarity with staff who are bearing a salary freeze, and a display of prudence. It is symbolic.

The dividend yield is only about 0.6% so shareholders are not holding this share for income but for capital growth including a possible takeover.

Some shareholders may be upset by this dividend cancellation and sell. Personally I think that is short sighted and it provides a buying opportunity.

I'm not sure what "withhold market guidance" means in practice. Can anyone enlighten me? Clearly these are uncertain times.

[wolansm] 22/4/2020 09:46

Sorry it's £5.8 million divi which changes nothing in my view, paying this out would have given a better message.

[wolansm] 22/4/2020 09:42

47,000,000 profit, holding onto 4,000,000 divi, basically is poor in my view, withhold market guidance, what does that give to the party, poor show in my opinion, holding the divi would have given a better message. Doesn't inspire me. I hold too many of these and already sold a few x000 prior to this, and bought back a few last week.... plenty value elsewhere AINHO,

[nigeldoug1] 22/4/2020 09:39

They don't like the dividend pull, but it is the right thing to do and are also not expecting a lot of news flow until the results themselves.

[amt] 22/4/2020 09:17

Strange share price reaction to great results

[barnesian] 22/4/2020 08:46

A realistic solid responsible update.

It recognises the uncertainties caused by Covid-19 and makes no dodgy promises. In fact it is going to withhold market guidance for the time being.

It is securing its financial position - no non-essential recruitment, freezing of pay rises and bonuses, and cancelling the final dividend. It is a highly cash generating business anyway so this secures against any major downside, however unlikely that may be. It's very prudent.

In the meantime the business is doing well, is focused on its priority areas and is well-positioned for the post Covid world.

I take comfort from this update.

[hotfinance14] 22/4/2020 07:35

The only negative is that this years dividend is cancelled.

[sweenoid] 22/4/2020 07:33

Good guess ‘hit’

2020 figures are excellent, beats on revenue AND earnings, significant reduction in debt and very good organic growth.
Covid-19 as with everything else blurs the outlook, but as statements go, this is as positive as can be expected.

In summary, a very solid company, huge potential, in the right markets and with a great long term future, short term in as good a position as it could be, as a major beneficiary of the growth industry of internet fraud which is bound to increase exponentially I believe this is an incredibly ‘solid’ investment.

I see GBG are running this webinar tomorrow for those interested



And this Q&A too



Stay safe
S

[gswredland] 14/4/2020 17:59

Thanks for that hot