REG - GB Group PLC - FY24 trading update

GBAnnouncement

23/04/2024 07:00

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RNS Number : 5836L  GB Group PLC  23 April 2024

 ~Embargoed until 7.00 a.m.  Tuesday, 23 April 2024

 

GB GROUP PLC

("GBG", the "Group" or the "Company")

 

FY24 trading update

 

Strong finish to the year with adjusted operating profit above expectations

 

GB Group plc, (AIM: GBG), the experts in global identity and location
software, today provides an update on trading for the financial year ended 31
March 2024.

 

The Board is pleased with the Group's performance in FY24. The Group expects
to report revenue of £277.3 million, driven by growth accelerating in
Identity during the fourth quarter as anticipated. Adjusted operating profit¹
is expected to be slightly ahead of the top end of current analyst
expectations², reflecting the excellent progress achieved throughout the year
to drive simplification and cost-effectiveness in our business.

 

·      We expect to report revenue of approximately £277.3 million,
representing growth of c.2.7% on a constant currency basis.

 

·      As anticipated, improved fourth-quarter growth of approximately
5.0% on a constant currency basis was primarily driven by an acceleration in
Identity, as a result of improving trends in the Americas and EMEA. Growth in
Location remained solid, while growth in sales of software licenses in Fraud
slowed following two years of higher growth.

 

·      Expected adjusted operating profit of approximately £61.2
million is slightly above the top end of current analyst expectations²,
driven by a focus on simplification and cost-effectiveness delivering £10
million of annualised savings. This would represent year-on-year growth in
adjusted operating profit of approximately 8.0%, excluding the £3 million
foreign exchange gain in the prior year.

 

·      Strong cash generation in the second half has reduced net debt to
around £81 million, which was better than current analyst expectations².

 

·      Looking to FY25, the Group expects mid-single-digit revenue
growth on a constant currency basis, which will drive high single-digit growth
in adjusted operating profit, as a result of the operational efficiency gains
achieved in FY24.

 

Dev Dhiman, CEO, commented:

 

"I am proud of our achievements during FY24 reflecting the focus and effort of
the entire GBG team. While continuing to support our customers around the
world, we have also improved our ability to drive profitable growth by driving
simplification throughout the business.

 

We have begun the new financial year with good operational momentum, and our
confidence in FY25 is underpinned by the Group's strong fourth-quarter
performance. By prioritising competitive differentiation and a
high-performance culture, we will ensure GBG capitalises on the exciting
market opportunity presented by an increasingly digital world."

 

Notice of results

 

GBG expects to report full-year results on Tuesday, 11 June 2024.

 

Notes

¹ Adjusted operating profit excludes amortisation or impairment of
intangible assets, share-based payments and exceptional items

 

² Current FY24 revenue consensus is £277.8 million with a range of £276.8
million to £279.7 million.

Current FY24 adjusted operating profit consensus is £60.2 million with a
range of £58.8 million to £61.0 million.

Current FY24 net debt consensus is £84 million with a range of £88.2 million
to £79.2 million.

Based on the median of nine covering analysts as published on our IR website.

 

For further information, please contact:

 GBG

 Dev Dhiman, CEO & David Ward, CFO                        +44 (0) 1244 657333

 Richard Foster, Investor Relations                       +44 (0) 7816 124164

 Deutsche Numis (Nominated Adviser and Corporate Broker)  +44 (0) 0207 260 1000

 Simon Willis & Joshua Hughes

 Barclays (Corporate Broker)                              +44 (0) 207 623 2323

 Robert Mayhew & Stuart Jempson
 Teneo (Financial PR)                                     +44 (0) 20 7260 2700

 James Macey White & Matt Low                             GBG@teneo.com

 Website                                                  www.gbgplc.com/investors

About GBG

GBG is the leading expert in global identity and location. In an increasingly
digital world, GBG helps businesses grow by giving them intelligence to make
the best decisions about their customers, when it matters most.

 

Every second, our global data, agile technology, and expert teams, power over
20,000 of the world's best-known organisations to reach and trust their
customers.

 

To find out more about how we help our customers establish trust with their
customers visit www.gbgplc.com (http://www.gbgplc.com) and follow us on
LinkedIn and X @gbgplc.

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