GB Group reports good growth and eyes more deals

CHESTER-based identity management specialist GB Group said it had enjoyed a ‘strong’ first half with good growth in sales and profits.

In a trading update ahead of its interim figures for the six months to the end of September, GB said it had traded well, but expects to  fare even better in the second half as this is when many contracts are renewed.

Revenues in the first half grew 7% to £12.4m, while profits before exceptionals are 33% up to £1m.

GB acquired two businesses in July, Edinburgh-based Data Discoveries and electronic driving licence checker, Advanced Checking Services, and have both traded well and in line with expectations.

It added: “These acquisitions took place towards the end of the period and whilst the post-completion trading performance of these acquisitions is included within the Group results, the full impact won’t be seen until the second half.”

Chief executive Richard Law, said: “The group is in an excellent financial position with growing profits, a strong balance sheet and healthy cash generation.

“We believe we are well placed to pursue future growth and investment opportunities across both DataAuthentication and DataSolutions. The board continues to review opportunities in the market for further, more substantial acquisitions.”

DataAuthentication, the business unit providing identity verification services, saw revenue growth of 14% to £5.8m, while DataSolutions, which provides identity-based marketing solutions, saw slower growth of 2% to £6.6m.
 
The company said: “The board believes that the medium and longer-term prospects for GB Group are encouraging and that the group has the correct strategy and structure in place to drive future growth in both home and international markets.”

The company is developing a new Electronic ID Verification services for South Africa having already launched a product in Denmark.