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GB Group - Looming net cash surplus

September 2026

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:
  • 232p
The shares unexpectedly came off after GB said Americas Identity revenue was behind plan largely due to Q2 seeing higher-than-anticipated attrition (two customers on a legacy product). Although the sales pipeline remains “robust, standard sales-cycle conversion timelines will prevent new revenue from offsetting this attrition within the current financial year”. The head of the Americas unit has fallen on his sword. Consequently, full-year (FY27) total group revenue growth guidance has been revised downwards to 1-3% growth (having exited FY26 at a 5% run rate). Pretax profit forecast is now £56.1m with EPS of17.7p for the year to end March and £64.1m/20.2p the year after. Disappointing for sure but not fatally ...

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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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