GB Group (GBG) expects to report revenue, adjusted operating profit and net cash ahead of consensus for FY21, with strength in the Identity and Location businesses outweighing slower business for the Fraud division. We have upgraded our FY21 forecasts to reflect this and revised our FY22 and FY23 forecasts to reflect the disposal of Employ & Comply at the start of FY22.
Companies: GB Group PLC
GB Group (GBG) has announced it has signed an agreement to sell its Employ and Comply (E&C) business to First Advantage, a specialist in background and employment screening, for an undisclosed amount. This follows on from the disposal of the marketing services business in January, as the company streamlines its portfolio to focus on its three core global capabilities: Identity, Location and Fraud.
GB Group (GBG) has confirmed that trading since it last reported in December has been stronger than expected. Continued benefits from the US stimulus packages and higher volumes of bitcoin and retail share trading have boosted Identity volumes. We have upgraded our FY21 forecasts to reflect new company guidance, with FY22 and FY23 estimates substantially unchanged.
GB Group (GBG) has sold its marketing services business to HH Global Group for an undisclosed amount. This was not an area of focus for GBG and has been in managed decline for several years. Just before Christmas, GBG boosted its Fraud business with the acquisition of fraud investigation automation software from HooYu for £4m in equity. We have revised our forecasts to reflect the disposal and acquisition, leading to small upgrades to our EPS forecasts. Both deals emphasise the company’s strateg
GB Group’s (GBG’s) H121 results were in line with its recent trading update, confirming revenue growth of 10% y-o-y and normalised EPS growth of 25% y-o-y. COVID-19-related cost reduction and cash preservation measures helped reduce net debt by £32m h-o-h. FY21 revenue guidance is unchanged and the company expects to return to more normal levels of investment (both opex and capex) in H221. We have made small upgrades to our forecasts.
GB Group (GBG) expects to report underlying revenue growth of 10% y-o-y for H121, with a one-off contract in the US making a material contribution to revenues. Combined with strict cost control this resulted in adjusted operating profit growth of 26% y-o-y and a £32m h-o-h reduction in net debt. With management guidance for revenue well ahead of our and consensus forecasts for FY21, we have upgraded our revenue and EPS forecasts for FY21–23. Despite COVID-19 related pressure on new business in t
GB Group reported strong performance in FY20 and started taking measures to preserve cash in Q420. Trading in Q121 has been mixed and while management is unwilling to provide guidance for FY21, it has confidence that in the longer term it is well positioned to benefit from the acceleration in digital transformation that should drive demand for its identity data intelligence services. We have upgraded our EPS forecasts by 5% in FY21 and 3% in FY22.
GB Group’s (GBG’s) year-end trading update confirmed a strong performance in FY20, despite COVID-19 restrictions in Asia Pacific having a modest impact in Q4. Although the lockdown restrictions are boosting demand for online products and services, not all verticals are benefiting (eg travel, transport). We have revised our FY21 and FY22 forecasts to reflect lower levels of usage-based revenues and new business as well as reductions to operating costs. We estimate that the company has ample funds
Strong organic revenue growth in H120 was boosted by several multi-year fraud licences and the contribution from the VIX Verify and IDology acquisitions. During H1, GB Group (GBG) made good progress with its strategy to expand internationally and enhance its product functionality and datasets. Management is confident of meeting consensus expectations for FY20; while our forecasts are unchanged at the operating profit level, a higher effective tax rate reduces our normalised EPS forecasts by c 3%
GB Group (GBG) expects to report strong revenue and profit growth for H120, with exceptional organic growth boosted by recent acquisitions. Constant currency organic growth of 18% is ahead of the company’s double-digit target, boosted to a large extent by the signing of contracts in the Fraud division that had been expected in H2. Management expects to meet FY20 consensus estimates, implying a stronger weighting to H1 revenues and profits than in previous years. We maintain our forecasts.
GB Group’s Identity capital markets day was a deep dive into the group’s largest business (36% of FY19 revenues). With electronic identity verification (eIDV) a structural growth market, GBG has invested heavily in the business over the last four years, expanding geographically and adding new capabilities and data sets. We forecast the identity business to be the fastest growing division over the next three years, underpinning the group’s targeted double-digit organic revenue growth target.
GB Group (GBG) reported FY19 results in line with recently upgraded estimates. It continues to deliver on its strategy to grow organic revenues at double-digit rates while delivering operating margins in excess of 20%. Recent acquisitions are performing well and helped drive the 56% growth in international revenues over the year. We make minor changes to our forecasts, resulting in small upgrades to normalised EPS estimates.
GB Group expects to report FY19 revenues, adjusted operating profit and net debt ahead of consensus expectations. The recent acquisitions have integrated and performed well, providing much of the upside to forecasts. We have upgraded our FY19 earnings forecasts to reflect the better trading performance in H2 and lower net debt in FY20 and FY21.
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An in-line update for FY21E means that losses have been contained by management's action on the cost base. Losses are not materially higher than in FY20A and sequential growth shows that revenues are recovering rapidly. With an identifiable pipeline of commercial opportunities, we see capacity for upside risk to financial forecasts to emerge this year.
Companies: Kromek Group Plc
Ahead of today’s AGM, Luceco raises guidance due to further share gains in WA & an earlier than expected demand improvement for LED projects from the commercial construction sector. The group expects 1H21 sales of £105m up 43% and a doubling of & adj OP to £18m, 5% above prior forecasts, supported by robust action on cost inflation. We now expect a stronger 2H21 and raise our FY 22 estimates by 8%. Accordingly, we raise our TP to 350p.
Companies: Luceco PLC
Highlights of FY21 are 43% c/c ARR growth at SwipedOn, routes to market for Space Connect signed and delivering, and significantly reduced burn. Q1 trading looks promising, with SwipedOn ARR 9% since year-end and Space Connect’s pipeline doubling to £1.2m. Looking forward, SMRT’s desk and meeting room booking tools are ideally suited to the emerging hybrid workplace (more employees than desks). We also note initiatives to narrow the price discount with competitors and target customers with more
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Today's news & views, plus announcements from MRW, CPI, UAI, MGP, BGO, JOUL, ANG, THG
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Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in spor
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Belluscura plc intends to seek admission of its entire issued and to be issued share capital on the AIM market of the London Stock Exchange towards the end of May. The company will be seeking to raise £15m in a conditional placing of shares at a price between £0.42-0.48/shr, which is expected to translate to a post-money valuation of £50-55m.
Companies: Tekcapital Plc
After a quiet 1 st half (p/e Oct’21) due to the pandemic, Kromek is now enjoying a powerful rebound for its next generation, radiation detectors from existing & new medical (eg BMD, SPECT), nuclear (D3S) & security screening (Airport baggage/bottles) customers. Saying today that FY’21 results would be “in line with expectations”, with the Board equally being “excited” about the near-term prospects for its ground-breaking, biological threat detector. These mobile or static devices continuously te
Amino has completed a £9.4m placing at 140p, boosting the strength of the balance sheet in anticipation of acquisitions to deliver the route to the financial targets of “Amino 2025”. The auction for the trade and assets of MobiTV, in Chapter 11 proceedings in the US, resulted in Amino’s selection as the reserve bidder, effective if the successful bidder’s transaction does not complete by 31 May. Amino’s ability to respond quickly to future acquisition opportunities, with balance sheet strength a
Companies: Amino Technologies plc
The UK market showed a continued recovery in the first quarter albeit the indices are still well short of their all-time peaks, unlike many of their international peers. The FTSE 100 has risen by 1,186 points (21.4%) since the end of October and the FTSE 250 by 4,304 points (25.0%). The comparable performance since the start of the year is less spectacular- the FTSE 100 has risen by 253 points (3.9%) and the FTSE 250 has risen by 1,070 points (5.0%). The factors behind the sustained rally are fa
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FY20 results were broadly as expected at the January prelims with sales up 2.4%, a 510bp margin expansion to 16.8%, and adj. EPS of 15.5p (7.7p). The revenue outlook is ahead of January expectations; 1H21 was previously expected to increase +25% vs new expectations for +40% due to ongoing share gains. Management announced new through-cycle EBIT margin guidance for 15-20% vs 10-15% previously. We expect FY22 margins to progress towards the upper-end of the new range, with near-term inflation head
During H121 Nanoco successfully delivered on the technical and commercial milestones for its programme with a major customer to develop new nanomaterials for sensing applications. Management implemented further restructuring actions, cutting cash-burn to £0.4m/month and extending the cash runway to calendar H222.
Companies: Nanoco Group PLC
MAST Energy Developments (MED) is to IPO on the Standard List on 14th April 2021 under the ticker MAST. The company has raised £5m giving a market capitalisation on listing of c. £23m. MED is currently a 100% subsidiary company of AIM quoted, Kibo Energy*. MED was established to acquire and develop a portfolio of flexible power plants in the UK and become a multi-asset operator in the rapidly growing Reserve Power market. PensionBee has confirmed its intention to float on the High Growth Se
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Virgin Wines has upgraded its sales and EBITDA margin outlook for FY’21E (ending June), driven by continuing strong demand from both new and existing customers over Jan-Apr 2021. The company now expects sales of at least £73m in FY’21E, 4% ahead of our estimates, and an improvement in EBITDA margin (we upgrade +30bps to 8.6%) which leads to a 9% FY’21E EPS increase. We leave FY’22E estimates unchanged for now mindful of the uncertainty around consumer behaviour as lockdowns ease. However it is l
Companies: Virgin Wines UK PLC
Mirriad Advertising’s FY20 revenues grew strongly by 91%, in line with forecasts. The EBITDA loss of £8.6m, a 25% reduction, was notably better than consensus forecast loss of £10.2m. This reflects careful husbandry of resource during the pandemic, after restructuring in FY19. FY20 has been well used in building recognition for Mirriad’s technology among platforms, brands and agencies, culminating in the framework agreement signed with a tier 1 entertainment group in Q420. In Q221, the group add
Companies: Mirriad Advertising plc
SMRT has released an encouraging y/e update, announcing expected revs of £4.6m (PY: £5.1m) and within which, SaaS revenue (from SwipedOn and Space Connect) has almost doubled from £1.3m to £2.3m. ARR also reflects this progress - £2.9m at y/e, ~+60% y/y gr‘th. Additionally, closing gross cash of £4.5m (~£4.1m net) highlights progress on profitability, as implies £2.3m of FCF burn - materially better than FY20. On current trading, SMRT note a “noticeable increase in activity“ driven by customers
