REG - GB Group PLC - Trading Statement

GBAnnouncement

24/04/2025 07:02

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RNS Number : 9208F  GB Group PLC  24 April 2025

 Embargoed until 7.00 a.m.  Thursday, 24 April 2025

GB GROUP PLC

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

Strong profitability and cash generation; well-positioned to accelerate growth

Today, GBG, the leading expert in global identity and location software,
provides an update on its trading performance for the year to 31 March 2025.

 =  Group revenue was approximately £283 million (FY24: £277.3 million), up 3%
    on a constant currency basis.

 =  Growth in Identity was approximately 3% driven by year-on-year growth in EMEA
    and APAC. Having successfully stabilised operations and transitioned to new
    leadership in our Americas Identity business, our focus on the turnaround to
    drive growth continues.

 =  Location achieved growth of just over 6% as a result of net revenue retention
    (NRR) reflecting our strong customer relationships and continued success from
    our partner channel, despite the subdued consumer backdrop.

 =  Fraud declined by approximately 4%; primarily impacted by previously
    referenced year-on-year timing differences in customer licence renewals in the
    first half. The second half of the year returned to modest growth supported by
    very strong customer retention, however new logo growth and related
    professional services activity was slower.

 

Adjusted operating profit¹ is expected to be approximately £67 million, up
10% (FY24: £61.2 million), supported by continued cost control,
simplification and efficiency improvements. Exceptional costs of around £4.5
million were incurred in the second half of the year arising from initiatives
to simplify the business and increase global alignment to drive sustainable,
profitable growth.

 

GBG is a highly cash generative business and our balance sheet continues to
strengthen. In FY25, our cash conversion was over 90%, which enabled net debt
as at 31 March to reduce to £48.5 million (31 March 2024: £80.9 million).
GBG has undrawn facilities of around £100 million.

 

Looking forward, GBG is well-diversified by region and end market, underpinned
by recurring subscription revenues and strong NRR with a more focused and
sustainable approach to achieving profitable growth. The Group's strategic
progress, including recent innovations such as our new identity platform, GBG
Go, means we are well-positioned to capitalise on the attractive long-term
structural growth opportunity in our key markets. In the near-term, we expect
to gradually accelerate growth, but recognise this may be moderated by the
impact of increasing tariff-related macroeconomic uncertainty.

 

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

 

"The digital economy has evolved at speed over the past 30 years - and GBG has
evolved with it. Through relentless innovation, we've helped businesses
connect with and trust their customers using our powerful identity and
location intelligence.

This year, I am proud of the major leap forward that the business has
achieved. As of 1 April, we are going to market as one global brand, one
global team with a unified identity platform, GBG Go, built for a connected
world. It's a step change, and only possible thanks to the dedication and
focus of our team.

We're now entering an exciting new chapter - driven by a refreshed purpose:
enabling safe, rewarding digital lives for genuine people, everywhere. In
June, I'll outline the strategic initiatives that will strengthen our market
leadership and deliver the impact to accelerate our growth."

Notes

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

Notice of results

GBG intends to release its full year results on Tuesday, 10 June 2025. On the
morning of the announcement, a management presentation will be held in person
for institutional investors and sell-side analysts. Invites to attend in
person will be circulated in due course. The event will also be broadcast live
via webcast, please sign-up via: https://www.gbgplc.com/en/investors/
(https://www.gbgplc.com/en/investors/)

For further information, please contact:

 GBG

 Dev Dhiman, CEO & David Ward, CFO                        +44 (0) 124 465 7333

 Richard Foster, Investor Relations                       +44 (0) 781 612 4164

 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
 FTI Consulting (Financial PR)                            +44 (0) 203 727 1779

 Ed Bridges, Dwight Burden & Emma Hall                    GBG@fticonsulting.com (mailto:GBG@fticonsulting.com)

 Corporate website                                        www.gbgplc.com/investors

About GB Group plc ("GBG")

GBG is the leading expert in global identity and location tech, enabling safe
and rewarding digital lives for genuine people, everywhere.

For over 30 years, we have combined global data with our innovative technology
to make sure that genuine people everywhere can digitally prove who they are
and where they live.

We are an essential ingredient that protects against digital crime,
strengthens business resilience and drives responsible growth, at scale,
across a diverse range of sectors. Today, our team of over 1,100 people serve
more than 20,000 customers globally.

GBG is a publicly traded company (LSE: GBG). Further information on our
business can be found on our corporate website: www.gbgplc.com
(http://www.gbgplc.com/)

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