GB Group confident after strong full year

23rd Jul 2024 11:53

(Sharecast News) - Identity and location software provider GB Group said in an update on Tuesday that its 2024 revenue of £277.3m was driven by accelerated growth in the identity segment during the fourth quarter.

The AIM-traded firm, which was holding its annual general meeting, added that its adjusted operating profit surpassed market expectations, reflecting its success in reducing complexity and achieving £10m in annualised cost savings.

It said its focus on simplicity and cost-effectiveness had enabled continued investment in product innovation, strengthening its position in the identity fraud and location intelligence markets.

Enhanced collaboration and global alignment had improved the performance of GBG's Americas identity business through strengthened go-to-market strategies, sales enablement, and product capabilities.

Following the positive results of 2024, GBG said it had continued to trade in line with expectations in the first quarter of the 2025 financial year.

The company said it anticipated mid-single-digit revenue growth on a constant currency basis for 2025, translating to high single-digit growth in adjusted operating profit due to the operational efficiency gains achieved in the previous year.

Growth in 2025 was expected to be driven by the identity and location segments, while the fraud segment was projected to see a decline in revenue in the first half due to the timing of software licence renewals, with a return to year-on-year growth anticipated in the second half.

"As we look to the longer term, the board remains confident that GBG's strong competitive differentiation will continue to underpin our leadership positions across the markets we serve," said non-executive chair Richard Longdon.

"The technological capabilities we have built and our highly repeatable business model will enable us to capitalise upon the significant growth opportunities ahead to deliver significant and enduring shareholder value."

GB Group said its next scheduled trading update would be its half-year pre-close trading update in mid-October.

At 1149 BST, shares in GB Group were up 0.43% at 344.2p.

Reporting by Josh White for Sharecast.com.