GB Group revenues rise as profits take a dip

Identity data intelligence specialist GB Group released its unaudited results for the six months ended 30 September on Tuesday, reporting a 9% uptick in revenue to £57.3m.

The AIM-traded company said its adjusted operating profit was down 16% at £8.8m, while its operating profit was 28% lower at £2.7m.

Its adjusted basic earnings per share were off 13% compared to a year earlier at 5.3p, with profit after tax sliding 17% to £2.0m.

Deferred revenue was 18% higher than 12 months ago at £28m.

GB Group said its net assets were up 6% at £157.8m, while net cash rose £14.5m to £18.6m at period end.

“We've made pleasing progress over the period, balancing good organic revenue growth across the business with strategic investments in our products, technology and people to maintain competitive advantage,” said chief executive officer Chris Clark.

“This strategy is delivering positive results.”

Clark said the company’s key focus areas of identity verification, location intelligence and fraud, risk and compliance had all performed well.

He said the location intelligence business - now operating under the solution brand of Loqate - had made “good” strategic progress, with strong growth in North America during the period and would be the focus of a capital markets update next month.

“Looking at the big picture, with good customer gains in the faster-growth markets in Asia, the rich potential in the US and steady progress in Europe, there's a lot to be pleased about.

“We're continuing to deliver on our strategy of growing the business both organically and through acquisitions and in October we acquired VIX Verify in Australia and New Zealand,” Clark explained.

“We are on track to meet our full-year revenue and profit expectations.”