May 30th 2012 - Edison Investment Research today published a report on GB (GBG.L, LSE:GBG, LON:GBG) entitled "Scale Delivering". In summary, the report says:
GB Group’s FY12 results show the benefit of economies of scale and the group’s recent acquisitions. Group revenue grew 31% to £31.8m, while normalised pre-tax profit more than doubled to £3.7m, nearly £0.2m higher than our increased estimate after management’s very positive trading update in April. Our normalised EPS of 3.8p (up 81%) excludes the significant £1.1m tax credit from the recognition of part of the group’s deferred tax asset. Further economies of scale are likely and we see strong growth in normalised EPS for both FY13 and FY14. With £4.8m cash and £7m of revolving credit facility, the group has the firepower to add further acquisitions.
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