GB Group PLC Half-year trading update (5744Q)
October 19 2023 - 2:00AM
UK Regulatory
TIDMGBG
RNS Number : 5744Q
GB Group PLC
19 October 2023
Embargoed until 7.00 a.m. Thursday, 19 October 2023
GB GROUP PLC
("GBG", "Group" or the "Company")
Half-year trading update
Today, GBG, (AIM: GBG) the experts in digital location, identity
verification and fraud software, provides an update on its
performance for the six months to 30 September 2023.
Summary
The Board is pleased with the first half performance, with
excellent progress to drive simplification t hat will increase the
effectiveness of our business . This ongoing group-wide focus has
resulted in cost efficiencies which underpin the Board's confidence
that GBG will deliver its FY24 profit expectations.
1H24 1H23
(Approximate
figures)
------------------------------------------------ -------------- ---------
Revenue GBP132.4m GBP133.8m
Adjusted operating profit excluding FX gain GBP23.4m GBP21.9m
Adjusted operating margin excluding FX gain 17.7% 16.4%
Net gain on foreign exchange GBP0.3m GBP6.2m
Adjusted operating profit GBP23.7m GBP28.1m
First-half revenue was approximately GBP132.4 million (1H23:
GBP133.8 million), which represents constant currency growth of
1.8%. Excluding the impact of the year-on-year decline in
cryptocurrency customer revenues, first-half growth was 3.3%.
Location delivered high single-digit constant currency revenue
growth through new customer and partner wins alongside upsell
activity, despite continued weakness in e-commerce volumes, while
Fraud achieved low double-digit revenue growth driven by important
contract renewals and new business wins.
In line with our expectations, Identity revenues declined by
approximately 3% on a constant currency basis. Excluding the
year-on-year decline in cryptocurrency customer revenue, Identity
was broadly flat, with strong growth in APAC offsetting a tough
prior-year comparator in the Americas. It is also encouraging that,
as expected, monthly transaction volumes in Identity have
stabilised and we still expect some year-on-year revenue growth in
the latter part of the year.
Profitability
Gross margin was approximately 69.2% (1H23: 71.1%) reflecting
the revenue mix in the period. As previously indicated, GBG has
continued to focus on group-wide efficiencies while maintaining
disciplined investment to capitalise on the long-term opportunity
in our markets. We have made excellent progress; 1H24 operating
expenses were approximately GBP6 million lower than the prior year
despite inflationary pressure.
Overall, we expect first-half adjusted operating profit of
approximately GBP23.7 million.
The ongoing focus on simplicity and efficiency underpins the
Board's confidence that GBG will deliver its FY24 profit
expectations.
Balance sheet
GBG's financial position remains strong; our year-to-date cash
conversion has improved to approximately 100% (1H23: 57.5%) due to
a reduction in one-off items. Net debt as at 30 September 2023 was
approximately GBP104.8 million (31 March 2023: GBP105.9 million)
after the GBP10.1 million payment of the FY23 final dividend.
GBG intends to release its half-year results on Tuesday, 28
November 2023.
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)
Simon Willis & Joshua Hughes +44 (0) 0207 260 1000
-------------------------
Barclays (Corporate Broker)
Rob Mayhew & Stuart Jempson +44 (0) 207 623 2323
-------------------------
Teneo (Financial PR) +44 (0) 20 7353 4200
James Macey White & Matt Low GBG@teneo.com
-------------------------
Website www.gbgplc.com/investors
-------------------------
About GBG
GBG is the leading expert in global digital identity. We combine
our powerful technology, the most accurate data coverage and our
talented team to deliver award-winning location intelligence,
identity verification and fraud prevention solutions.
With over 30 years' experience, we bring together a team of over
1,250 dedicated experts with local industry insight from around the
world to make it easy for businesses to identify and verify
customers and locations, protecting everyone, everywhere from
fraud.
To find out more about how we help our customers establish trust
with their customers visit www.gbgplc.com and follow us on LinkedIn
and Twitter @gbgplc.
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END
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