Our online shopping tip is up tenfold

EVEN as 2020 showed consumers what was really essential in their lives, it also changed the way they shopped. E-commerce was already on the increase before Covid-19 erupted but the pandemic pushed it to new levels. Online purchases are expected to account for more than 16 per cent of global sales this year and in the UK the percentage is even higher.

While shopping from the sofa is seductive, it needs careful monitoring behind the scenes to prevent fraud and ensure that transactions can be completed swiftly and safely. Chester-based GB Group specialises in this field and its progress has been phenomenal. Midas recommended the shares in 2013 when they were 92p, annual profits were £ 5 million and customers were almost exclusively British.

The stock has risen nearly tenfold since then to £8.86. Profits of more than £40 million are expected for the year to March 31, 2021 and there are now 20,000 customers in 70 countries, including multinational operators such as Citigroup, eBay and Etsy as well as homegrown businesses such as John Lewis, Asos and HSBC.

The company’s technology helps these firms to make sure that people are who they say they are when they go online. Banks and gaming groups use GBG’s software when customers open an account. Retailers use the technology to ensure consumers are bona fide and help them buy goods quickly online. Government departments also use the kit to prevent identity fraud.

Interim results to September, published last week, revealed a 75 per cent rise in pre-tax profits to £14.9 million. Chief executive Chris Clark cancelled the dividend back in May, citing Covid-19 uncertainty. Now, in an expression of confidence about the future, he has declared a 3p interim payment, and brokers forecast a total of 6p for the year.

Traded on: AIM Ticker: GBG Contact: gbgplc.com or 020 7353 4200 (via Tulchan Group)