GB Group flags strong first-half performance

17th Oct 2024 15:16

(Sharecast News) - Identity fraud and location software specialist GB Group flagged strong first-half financial results on Thursday, with revenue reaching £137m, a 4.5% increase on a constant currency basis over the year.

The AIM-traded firm said that growth was driven by strong performances in the identity and location segments, which together saw a 6.8% rise, offsetting an anticipated decline in the fraud segment due to customer renewal timing differences.

It said its adjusted operating profit grew around 21% to £29m, reflecting a margin of 21.2%.

That was supported by revenue growth and the continued benefits of cost simplification initiatives implemented in the prior year.

GB Group's net debt decreased to £72m as of 30 September, down from £80.9m at the end of March, despite a £10.6m final dividend payment and a £5m foreign exchange benefit due to strength in sterling.

With positive momentum moving into the second half, the company's board reiterated its 2025 outlook, expecting mid-single-digit revenue growth on a constant currency basis and high single-digit growth in adjusted operating profit.

"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," said chief executive officer Dev Dhiman.

"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 2025 outlook, and our ability to fulfil the longer-term potential of the business."

At 1457 BST, shares in GB Group were up 13.42% at 328p.

Reporting by Josh White for Sharecast.com.