Acquisitions fuel strong H1 growth for GB Group
CHESTER-based identity data specialist GB Group is heralding a strong first half year thanks to an acquisition strategy targeted at expanding its international and technical capabilities.
Loqate and IDscan, bought by the AIM-listed company in April and July respectively, are both performing well as revenue for the six months to September 30 climbed 16% to £37.5m(2015: £32.4m).
Profit after tax was £1.2m (H1 2015: £2.3m) after increased exceptional costs, when compared against the same period last year, relating to reorganisation costs and fees for the acquisition of IDscan.
International revenues represented 31% of group turnover compared to 26% for the same period last year with a number of global deals, including Barclays, signed in the period.
Other key international wins included Bank of Beijing, taking the number of Chinese financial sector clients to 26, and Rizal Commercial Banking Corporation (RCBC), one of the Philippines’ largest banks.
Net assets of the group increased to £82.8m (H1 2015: £46.2m) and there was net debt on September 30 of £4m (2015: £1.2m cash) after borrowing £12m to fund IDscan acquisition, the final £1m earn out payment for DecTech and a dividend payment of £2.8m.
Chief executive Richard Law said: “The group has continued to perform well and we have increased our identity data intelligence capabilities considerably through the acquisition of IDScan as well as with ongoing product development.
“Our expanded product range now incorporates elements of artificial intelligence and machine learning technology, enhancing our position at the forefront of technology innovation in our rapidly growing markets.”
Meanwhile, has appointed former Experian chief for UK and Ireland as the CEO to succeed Law on April 1 2017.
