ID specialist confident after encouraging first half trading
GB Group (GBG), the Chester-based identity data intelligence specialist, reports a strong first half today, in a trading update for the six months to September 30.
Total revenue for the period is expected to be up 64% at £93.7m, reflecting the recent acquisitions of Vix Verify and IDology, supplementing positive underlying trading across the group’s key growth areas of location, identity and fraud.
On a constant currency basis, organic revenues have increased by 18%.
GBG expects to report adjusted operating profit of approximately £20.9m, a 138% increase on last year, again driven by good organic growth and its recent acquisitons.
Net debt balance at September 30, was £53.8m, compared with £18.6m last year, as the acquisitions of Vix Verify and IDology in the second half of the last financial year were supported by debt.
Net debt levels have improved by £12.5m since March 31, including a £10.4m repayment of borrowings in the period.
Chief executive Chris Clark said: “We are pleased with the progress we have made over the past six months against the GBG growth strategy.
“In the period, we delivered a strong organic performance in each of our three core solutions (location, identity and fraud) and across each of our target geographies.
“This organic performance has been complemented by the successful integrations of Vix Verify and IDology. We’re excited about how both can further strengthen the GBG customer proposition and help grow the business further.”
He added: “The positive first half performance was additionally helped by the favourable timing of some contracts for our fraud division, which have been brought forward into H1.
“So far H2 has begun well and at this stage we remain confident in meeting full-year consensus revenue and profit expectations.”
Looking forward to the longer term, GBG said the board remains positive about the prospects for the group.
This is driven by the significant market opportunities, GBG’s strong market position, long-term customer relationships and its outstanding people, technology and solutions.
The group intends to publish its half-year results on November 26.