ID verification specialist predicts results ahead of market consensus

Chris Clark

Chester-based GB Group, the global identity data intelligence specialist, published an update on its trading performance for the year to March 31, today, in advance of the release of its final results during the week commencing June 3.

It revealed that total revenue for the year is expected to be up 19.7% at £143.3m, ahead of market consensus.

On an underlying constant currency basis, organic revenues were up 11.3%.

GBG expects to report adjusted operating profit of approximately £31.7m, a 20.6% increase on last year and also ahead of market consensus.

Net debt balance, at March 31, was £66.3m, compared with £13.5m net cash the previous year, following the use of cash and debt to acquire Vix Verify Global, and an additional £86m of debt, partially to finance the purchase of IDology.

Chief executive Chris Clark said: “This has been a transformational year for GBG underpinned by a good performance across all regions and all our core propositions.

“During the period we completed the acquisitions of VIX Verify Global and IDology, which have bolstered our international reach and capabilities in the growing identity sector.

“We are pleased that both acquisitions have integrated and performed very well since joining GBG.”

He added: “Our unique partnerships with global data partners have enabled GBG’s continued success alongside an outstanding and growing global team.

“We have gained some significant new customers during the period and remain confident in the strength of our solutions and our ability to maintain momentum from our core propositions in key geographies.”

In February this year GBG announced it was raising £160m through a share placing to buy US company IDology, in a deal valued at £233m.

IDology is an Atlanta-based private company providing identity verification and fraud detection services.

GBG said it would fund the deal through the placing, and approximately £84m in borrowings from new bank facilities.

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