GB Group sees annual revenues rise and announces new chair

Chester-based identity verification specialist GB Group achieved better revenues for the year to March 31, 2022, and will increase its dividend payout to shareholders, despite a fall in pre-tax profits.

Revenues were 11.4% ahead at £242.5m, while pre-tax profits of £21.7m compared with £34.3m the previous year. The group ended the year with a net debt of £107m, against a £21.1m surplus the previous year. The final dividend of 3.81p per share is a 12.1% improvement.

The group said growth across all segments was underpinned by subscription and consumption revenue of £227.5m – 94% of the total. Combined with growth in the deferred revenue balance and strong customer retention, this provides good forward revenue visibility.

Strong cash generation enabled repayment of £30.1m of the £157m of debt drawn to finance the Acuant acquisition. The group said integration of Acuant is well on track.

The board said it is excited by the long runway of sustainable growth opportunities and its unique ability to capitalise on these given the significant strategic progress of the past few years and additional capability presented by the acquisition of Acuant.

As demonstrated by GB’s ability to adapt to the challenges of the pandemic over the past two years, it says it has a resilient and adaptable business model and is used to navigating macroeconomic uncertainty.

In financial year 2023 GB said it will continue to manage the business tightly through the current climate of rising inflation and interest rates, adding it is well positioned to successfully achieve its strategic and financial objectives in 2023.

Chief executive, Chris Clark, said: “I am proud of the team’s performance this year, their focus on delivering critical digital identity solutions with a great customer experience underpins GBG’s strong financial results.

“Our excellent customer advocacy and record team engagement scores highlight each team member’s huge contribution towards achieving our success and delivering on the considerable potential in our markets.

“The acquisition of Acuant marks a powerful and complementary addition to GBG, accelerating our strategic progress and strengthening our leadership position in the identity verification and fraud markets.”

GB Group also announced today the appointment of Richard Longdon to its board as its next chair and non-executive director with effect from September 1, 2022.

He will replace David Rasche, who is stepping down from the board and retiring after 12 years with the group. David will remain an active member of the board until September 30, 2022 to ensure an orderly handover.

Richard Longdon will join GBG following a highly successful career in the technology sector. He spent 33 years with AVEVA Group where he was chief executive for 17 years and has held a number of non-executive director and chair roles since.

Mr Longdon said: “It is clear that the business has the ambition and capabilities to execute on the attractive long term growth opportunities in its markets. This is underpinned by the talent, passion and culture of the team.”

David Rasche said: “I am proud of what GBG has achieved during my time as chair, particularly the journey of significant growth which has seen GBG become the largest pure-play identity software solutions provider on the public markets. It has been a privilege to spend twelve enjoyable and successful years with this great business, it is now time to hand on the baton of chair.”

Chris Clark added: “I want to express my personal thanks to David Rasche. His commitment, passion and advice have been invaluable since I joined GBG five years ago. He has led the board through transformational change as the business has grown to become an industry leader while creating significant value for shareholders. He will depart with our best wishes for the future.

“We look forward to welcoming Richard as we continue our ambitious growth journey. Richard’s appointment reflects his calibre and suitability for the role of leading the GBG board. He brings a deep technology understanding with proven experience of successful expansion in the sector. We will benefit hugely from his guidance and insight as GBG continues to execute upon its global growth strategy.”