GB Group expects to report Profit growth of over 90%

Identity data specialists GB Group (LON: GBG) has released a positive trading update this morning that has sent shares up over 5%.

The Group saw Revenues grow by 40% to £52.6m, bolstered by the recent acquisition of PCA Predict. Underlying Organic Growth was approx. 12%.

It also expects to report Adjusted Operating Profit growth of over 90% to c. £10m thanks to the sale of a licence to "a leading European bank". Management said this is "ahead of half-year expectations".

CEO of GB Group Chris Clark commented:

"The performance of GBG since the beginning of April has been very encouraging. The PCA Predict acquisition completed successfully in May and the business has integrated well into the Group, giving us new growth opportunities. Looking forward to the second half, we again have high visibility (over 70%) of our full-year revenues and continue to grow well in the UK and internationally."

The stock has been on an upward trend for many years now and has grown from an October 2011 price of 42p to reach an all-time high today of 417p, representing growth of almost 900%.

Today's update confirms the Group is on track to reach consensus Revenue and Net Profit forecasts of £116m and £17m respectively, up from the £88m and £11m reported last year.

For the five years to 2017 the Group has seen average YoY Revenue growth of 22% and average YoY Net Profit growth of almost 25%. It currently trades on an earnings multiple of 30x against an industry median of 18x.