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GB Group

May 2013

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • GBG
  • Price:
  • 98p
Ahead of full year results in June, GB issued a trading update saying that revenues will be up 24% to £39.4m and adjusted operating profit up 49% to £5.5m, indicating strong margin growth as it benefits from economies of scale. DataAuthentication revenues are 20% ahead helped by the acquisition of TMG (a criminal records organisation) during H2 whilst DataSolutions is 26% ahead.GB also said the commercial relationship with BT has been renegotiated at better rates, which will helped grow margins. Eps forecast for the current year is c.6p. Net cash stand at  £6.3m. Strong hold. ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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