FY24 trading update

GB Group PLC

23 April 2024

 

~Embargoed until 7.00 a.m.

Tuesday, 23 April 2024

GB GROUP PLC

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

FY24 trading update

Strong finish to the year with adjusted operating profit above expectations

GB Group plc, (AIM: GBG), the experts in global identity and location software, today provides an update on trading for the financial year ended 31 March 2024.

The Board is pleased with the Group's performance in FY24. The Group expects to report revenue of £277.3 million, driven by growth accelerating in Identity during the fourth quarter as anticipated. Adjusted operating profit¹ is expected to be slightly ahead of the top end of current analyst expectations², reflecting the excellent progress achieved throughout the year to drive simplification and cost-effectiveness in our business.

·      We expect to report revenue of approximately £277.3 million, representing growth of c.2.7% on a constant currency basis.

·      As anticipated, improved fourth-quarter growth of approximately 5.0% on a constant currency basis was primarily driven by an acceleration in Identity, as a result of improving trends in the Americas and EMEA. Growth in Location remained solid, while growth in sales of software licenses in Fraud slowed following two years of higher growth.

·      Expected adjusted operating profit of approximately £61.2 million is slightly above the top end of current analyst expectations², driven by a focus on simplification and cost-effectiveness delivering £10 million of annualised savings. This would represent year-on-year growth in adjusted operating profit of approximately 8.0%, excluding the £3 million foreign exchange gain in the prior year.

·      Strong cash generation in the second half has reduced net debt to around £81 million, which was better than current analyst expectations².

·      Looking to FY25, the Group expects mid-single-digit revenue growth on a constant currency basis, which will drive high single-digit growth in adjusted operating profit, as a result of the operational efficiency gains achieved in FY24.

Dev Dhiman, CEO, commented:  

"I am proud of our achievements during FY24 reflecting the focus and effort of the entire GBG team. While continuing to support our customers around the world, we have also improved our ability to drive profitable growth by driving simplification throughout the business. 

We have begun the new financial year with good operational momentum, and our confidence in FY25 is underpinned by the Group's strong fourth-quarter performance. By prioritising competitive differentiation and a high-performance culture, we will ensure GBG capitalises on the exciting market opportunity presented by an increasingly digital world."

Notice of results

GBG expects to report full-year results on Tuesday, 11 June 2024.  

Notes

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

² Current FY24 revenue consensus is £277.8 million with a range of £276.8 million to £279.7 million.

Current FY24 adjusted operating profit consensus is £60.2 million with a range of £58.8 million to £61.0 million.

Current FY24 net debt consensus is £84 million with a range of £88.2 million to £79.2 million.

Based on the median of nine covering analysts as published on our IR website.

For further information, please contact:

GBG Dev Dhiman, CEO & David Ward, CFO Richard Foster, Investor Relations	[phone] [phone]
Deutsche Numis (Nominated Adviser and Corporate Broker) Simon Willis & Joshua Hughes	[phone]
Barclays (Corporate Broker) Robert Mayhew & Stuart Jempson	[phone]
Teneo (Financial PR) James Macey White & Matt Low	[phone] [e-mail]
Website	www.gbgplc.com/investors

About GBG

GBG is the leading expert in global identity and location. In an increasingly digital world, GBG helps businesses grow by giving them intelligence to make the best decisions about their customers, when it matters most.

Every second, our global data, agile technology, and expert teams, power over 20,000 of the world's best-known organisations to reach and trust their customers.

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 X @gbgplc.

 

END