Trading update reveals GB Group remains on course

GB Group, the Chester-based global identity data intelligence specialist, said trading is in line with expectations, today.

In an update for the six months to September 30, and head of the release of half-year results on November 27, the group revealed that it has achieved total revenues of £57.2m, which represents underlying organic revenue growth of 11%, after adjusting for a material non-recurring revenue item reported last year.

GB expects to report adjusted operating profit of approximately £8.7m, which reflects underlying profit growth of 7% on last year’s adjusted comparator of £8.1m.

Adjusted operating profit reflects the impact of planned additional technology investments and sales and marketing costs, which will have a disproportionate effect on first half profitability, compared with the second half over this financial year.

Net cash grew by £14.5m to £18.6m.

On Monday this week GB announced it had acquired VIX Verify Global Pty, and selected subsidiaries and assets in a deal worth £21m, which completed after the half-year end.

GB said this brings additional scale to its identity verification and location intelligence solutions in Australia and New Zealand, two markets where it currently only provides fraud detection solutions to customers.

Chief executive Chris Clark said: “Our business is performing well and we have delivered the underlying level of growth we expected during the period.

“Our pipeline is looking strong in terms of opportunities for our core products and markets and that gives us good momentum as we head into the second half of the year.

“We remain confident in meeting full-year consensus revenue and profit expectations.”

He added: “We have also acquired VIX Verify, which makes us even stronger in the area of identity and location verification solutions.

“This will support our growing businesses in Australia, New Zealand and APAC (Asia Pacific). With synergies, the transaction is expected to be earnings accretive in the first 12 months of consolidated GBG ownership.”