GB Group riding on crest of a wave

BIG government contracts and a deal with Royal Mail have helped big rises in revenues for data identity intelligence specialist GB Group.

The Chester-based AIM firm has reported a 37% increase in turnover to £57.3m, (2014: £41.8m) in its latest trading update.

Ahead of its annual results for the year to March 31, due for release in early June, the group expects to report a 50% increase in adjusted operating profit to £10.8m (2014:£7.2m), which is ahead of market expectations.

Organic revenue growth is forecast at 15% with the balance coming from acquisitions of DecTech and Transactis earlier in the year.

GBG said the acquisitions have further strengthened GBG’s identity intelligence credentials and both businesses have integrated and performed very well in the period.

Over the course of the year, deferred revenue in the balance sheet – amounts invoiced under annual contracts, which will be recognised in future periods – is also expected to have increased by £3.2m to £9.9m.

The group’s businesses have grown strongly with IDP (GBG’s Identity Proofing business) revenues approximately 66% ahead and IDS (GBG’s Identity Solutions business) showing growth of approximately 20% compared to last year.

In addition, in March 2015, GBG was chosen as one of the identity assurance providers on the new GOV.UK Verify service. GBG will be offering the service through its own brand – CitizenSafe – to citizens directly through the GOV.UK verify portal.
 
The company has also been chosen by Royal Mail to be its ID verification partner on this project, which means that GBG’s technology is behind two of the nine choices being made available.

GBG chief executive Richard Law said: “I’m extremely pleased that our results have, once again, exceeded market expectations.

“They reflect the substantial potential of our markets and the clear vision we have put in place to maximise that potential.

“Our high quality team is strongly motivated and committed to deliver continued growth. I believe that the prospects of the group continue to be excellent.”