GB Group revenue, adjusted profit rises in first half

The AIM-traded firm said its operating profit was down 5.2% year-on-year for the six months ended 30 September at £14.8m.

Its adjusted operating profit was 2.5% firmer at £27.8m, even though its adjusted operating margin was 40 basis points narrower at 25.5%.

Profit before tax was 3.2% weaker at £14.4m, and diluted earnings per share were down 6.7% at 5.6p.

GB Group said its adjusted diluted earnings per share were 4.8% higher than last year’s restated first half figure at 10.9p, while the company swung to net cash of £39.5m at period end, from net debt of £2.7m a year ago.

“I am extremely pleased with these results and the significant progress we have made strategically,” said chief executive officer Chris Clark.

“These results reflect both the considerable potential in our markets and the commitment and expertise of our highly motivated team at GBG.

“Our goal is to be the global leader in location, identity and identity fraud solutions and the professionalism and hard work of the GBG team has helped us make significant advances this year.”

Clark said he was “particularly proud” that, despite a number of outside challenges, the firm maintained its focus on engagement.

“We have strengthened our leadership position in our markets both organically and also, post half year end, by adding new customers, technology and people through welcoming Acuant to the GBG family.

“I am excited by the potential Acuant unlocks for the group, this combination accelerates our strategic progress by some two years and strengthens our solution set addressing the fast-growing problem of identity fraud.

“Looking to the rest of this year we are focussed on executing our plans, optimising the considerable assets now at our disposal and delivering exceptional value to our customers, opportunity to our team members and long-term value to our shareholders.”

At 1000 GMT, shares in GB Group were up 1.03% at 788p.