REG - GB Group PLC - Pre-close trading update

GBAnnouncement

20/04/2023 07:00

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RNS Number : 7986W  GB Group PLC  20 April 2023

     Thursday, 20 April 2023

GB GROUP PLC

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

Pre-close trading update

GB Group plc (AIM: GBG), the experts in digital location, identity and
identity fraud software, today announces a trading update for the year to 31
March 2023.

Results in line with expectations

GBG confirms that it will deliver its full year results in line with the
trading update provided on 21 February 2023. The Group expects reported
revenue to be £278.8 million (FY22: £242.5 million), representing growth of
15.0%.

On a pro forma basis, organic constant currency revenue growth was 3.7%. This
fully adjusts for the impact of the two prior year acquisitions, including the
associated FY23 deferred revenue haircut adjustment. It also adjusts for £4.2
million of revenue from US stimulus customers in the prior period and the full
£15.4 million impact from the year-on-year decline in cryptocurrency customer
revenues.

Adjusted operating profit is expected to be £59.8 million (FY22: £58.8
million), representing a margin of 21.5%. Within this, gains on foreign
exchange are expected to be approximately £3 million.

Net debt at 31 March 2023 was approximately £106 million (FY22: £107
million), despite a negative £8.6 million retranslation impact since FY22
from the conversion of US dollar-denominated debt into pound sterling.

GBG's FY23 results will be published in mid-June.

Chris Clark, CEO, commented:

"As noted in our February update, the difficult global macroeconomic
environment has impacted performance in certain parts of the group,
particularly our GBG Americas Identity business. Despite this, the wider group
has displayed resilience, including double-digit growth in both Location and
Fraud. GBG's ability to continue to deliver growth, maintain strong operating
margins and cash generation against the difficult backdrop, is in no small
part due to our team and their dedication throughout the year to deliver for
our valued customers."

 

For further information, please contact:

 GBG

 Chris Clark, CEO & David Ward, CFO              +44 (0) 1244 657333

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

 Numis (Nominated Adviser and Corporate Broker)  +44 (0) 207 260 1000

 Simon Willis & Joshua Hughes

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

 Stuart Jempson & Rob Mayhew
 Teneo (Financial PR)                            +44 (0) 20 7353 4200

 James Macey White & Matt Low                    GBG@tulchangroup.com

 Website                                         www.gbgplc.com/investors

About GBG

We are the experts in digital location, identity and managing fraud risk and
compliance. Helping organisations across the globe eliminate customer friction
and fraud from their digital experiences. GBG develop and deliver address
verification, digital identity, fraud risk and compliance software to
businesses globally.

Through the combination of the latest technology, the most accurate data and
our unrivalled expertise, GBG helps organisations ranging from start-ups to
the largest consumer and technology brands in the world deliver seamless
experiences, so their customers can transact online with greater
confidence.

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 Twitter @gbgplc.

 

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