I tipped GB Group’s shares more than 18 months ago and it is disappointing in the extreme that they have made no headway over that period. They currently trade at 31.25p, which compares with a recommendation level of 36.25p. The company has a strong position in the market for electronic identity verification and has lifted the number of customers for its key DataAuthentication products from 101 to 174 in the past 15 months. Sales last year rose 16 per cent to £15 million. But losses also rose – from £268,000 to £1.23 million – as £1 million was ploughed into further product development.

Since the year-end in March, however, GB’s cash balances have started rising again (from £5.2 million to £5.4 million), which suggests a return to positive cash flow and, dare one suggest, profitability. With a host of top names in the banking industry among its customers and a strong foothold in the fast-expanding market for pre-paid cards, GB should have a lot to offer. If you have held through the last 18 months, stay with this one for a while longer yet.

GB Group	LSE	£18.42m	22.00p	0.00p
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Other company articles:
GB turnaround continues			16/07/2008
GB expands – but so do its losses			08/06/2007
KBC Peel Hunt			11/12/2006
Authentic growth at GB Group			28/11/2006
ID theft boom a winner for GB			06/12/2005