REG - GB Group PLC - Half-year trading update

GBAnnouncement

17/10/2024 07:00

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RNS Number : 5072I  GB Group PLC  17 October 2024

 Embargoed until 7.00 a.m.  Thursday, 17 October 2024

GB GROUP PLC

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

Strong 1H25 results: FY25 outlook reiterated

Today, GBG, (AIM: GBG) the expert in global identity fraud and location
software, provides an update on its performance for the six months to 30
September 2024.

The Board is pleased with the strategic progress and financial performance
that GBG has delivered in the period. This performance is in line with our
expectations and underpins the Board's confidence in reiterating its FY25
outlook.

 

Business performance and outlook

 

First half revenue was approximately £137 million (1H24: £132.4 million), up
4.5% on a constant currency basis, with our two largest segments, Identity and
Location, together up 6.8% on a constant currency basis.

 

Identity built on the momentum generated in the final quarter of FY24, led by
the year-on-year improvement in EMEA and Americas as a result of improving net
revenue retention. We maintained solid growth in Location through new logos,
partner activity and strong retention, despite the subdued consumer backdrop.
The growth of these segments more than offset the anticipated
high-single-digit decline in Fraud which, as previously noted, relates to
year-on-year timing differences in our customer renewal cycles.

 

As a result of our revenue growth in the last six months and the continued
benefit of our group-wide cost and simplification initiatives executed in the
prior year, the first half adjusted operating profit¹ grew by approximately
21% to £29 million, representing a margin of 21.2%.

Our balance sheet remains strong with good progress in lowering net debt,
which as at 30 September had reduced to around £72 million (31 March 2024:
£80.9 million). This includes the FY24 final dividend payment of £10.6
million and a £5.0 million retranslation benefit given the relative strength
of pound sterling since our FY24 results.

With the strong progress achieved by the business in the last six months and
positive momentum moving into the second half of the year, the Board
reiterates its FY25 outlook. We expect to deliver mid-single-digit revenue
growth on a constant currency basis, leading to high single-digit growth in
adjusted operating profit.

Commenting on the results, Dev Dhiman, CEO, said:

"On becoming CEO, I outlined four initial focus areas - removing complexity;
being globally aligned; driving a performance culture; and accelerating the
pace of innovation to ensure the business capitalises on its potential as well
as the significant market opportunity.

We have made encouraging progress in each of these areas, and this is
translating into our performance - with strong pipeline execution, ramp-up
with a number of important customers, and some significant customer win-backs
reinforcing our market leadership position in identity fraud and location
software.

The positive operating momentum we carry into the second half underpins both
the Board's ongoing confidence in delivering the FY25 outlook, and our ability
to fulfil the longer-term potential of the business. I look forward to sharing
more on this progress at our November results."

Notes

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

Notice of results

GBG intends to release its half-year results on Tuesday, 19 November 2024. On
the morning of the announcement, a management presentation with Q&A will
be hosted virtually for investors and sell-side analysts at 09:30am GMT.
Sign-up details can be found on our investor relations 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 & Nicola Tennent
 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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