GB Group plc (AIM: GBG), the experts in digital location, identity and identity fraud software, has announced its unaudited results for the six months ended 30 September 2022.

Notes: 1 Defined within note 23 to the Half Year Results. 2 Growth percentages are calculated with reference to the actual unrounded figures in the primary financial statements and so might not tie directly to the rounded figures in the table if recalculated. 3 This measure is defined within note 8 to the Half Year Results.

Chris Clark, CEO, commented:

Chris Clark, GBG’s CEO“Excellent strategic progress has been made across the Group over the past six months as we maintain our relentless focus to deliver against our long-term growth strategy, bringing our market leading Location, Identity and Fraud solutions together to address the ever-growing needs of customers in the digital world.

Our fantastic people around the world are key to this success, and I would like to thank them for their efforts. Their continued hard work and dedication has underpinned GBG as it has evolved into one of the world’s leading pure play identity software providers.

The macro uncertainties have been well publicised, but with world class technology, a diversified blue chip customer base and our strong cash generative business model, the Board remains confident in the long-term prospects of the business.”

Financial summary

  • Reported growth in revenue of 22.6% and adjusted operating profit of 1.0%, despite tough first half comparators driven by the US Stimulus project and exceptional cryptocurrency volumes last year
  • Pro forma revenue of £134.9 million represents underlying growth of 10.4% helped by FX; on a constant currency basis, pro forma revenue increased by 3.4%
  • 3% of our pro forma revenue is from subscription and consumption revenue models which demonstrates GBG’s attractive, repeatable and cash generative business model
  • Adjusted operating profits up 1.0% to £28.1 million, an adjusted operating profit margin of 21.0%
  • Expect margin improvement for the full year due to second half weighted revenues, supported by our strong pipeline of opportunities and disciplined cost control
  • Focused on maintaining a strong balance sheet, using cash generation to pay down debt. Net debt increased to £132.6 million as at 30 September 2022 primarily driven by a USD retranslation impact

Strategic progress drives a sustainable runway of growth

  • Acuant integration completed; focused on realising the benefits. Well-positioned to drive growth and on track to deliver £5 million synergies through cost and cross-sell/up-sell revenue initiatives
  • The combination of GBG and Acuant’s document and biometric capability is accelerating our R&D, and enhancing the fraud and anti-tampering functionality delivered to customers
  • Launched GBG GO, a low code/no code product that brings our services into one platform, allowing customers to build their identity and fraud prevention journey to capture new consumers
  • Our ExpectID platform in the USA released the latest version of FlexAPI for easy consumption of its services, launched a “Know your business” service and enhanced its fraud consortium
  • Accelerated releases in EMEA immediately building revenue with the launch of Mobile Fraud intelligence and Multi Bureau; fraud alerts in ANZ delivering value to customers impacted by recent data breaches
  • Created fraud data sharing consortiums in APAC and a new release of a location intelligence product globally building on our capabilities in data science

Capital markets event in January 2023

On Thursday, 19th January 2023, GBG will host a capital markets event in London for institutional investors and sell-side analysts starting at 1430hrs GMT. The event will be held at Numis’ office at 45 Gresham Street, London EC2V 7BF.

This event will focus on the strategic progress the Group has delivered to drive differentiation across its powerful set of combined capabilities, reinforcing its position as a global leader in digital location, identity and identity fraud software with the ability to achieve sustainable and profitable growth over the mid-term.

To register your interest in attending the event in person and any further details, please contact the team at Tulchan:

Source:  GB Group Earnings Release