Revenue rises, operating profit tumbles at GB Group

The AIM-traded firm said pro forma constant currency revenue was 3.4% higher year-on-year in the six months ended 30 September, at £134.9m.

Adjusted operating profit expanded by 1% over the prior-year period to £28.1m, although its adjusted operating margin contracted by 450 basis points to 21%.

Operating profit tumbled 83% to £2.5m, as GB Group reported a £0.0m loss before tax, compared to a £14.4m profit a year ago.

Adjusted, diluted earnings per share were down 33% at 7.3p, as the company swung to diluted losses of 0.3p per share, from earnings of 5.6p in the first half of the 2022 financial year.

Net assets at period end totalled £889.4m, up 135.2% year-on-year, while the firm swung to net debt of £132.6m from cash of £39.5m 12 months prior.

“Excellent strategic progress has been made across the group over the past six months as we maintain our relentless focus to deliver against our long-term growth strategy, bringing our market leading location, identity and fraud solutions together to address the ever-growing needs of customers in the digital world,” said chief executive officer Chris Clark.

“The macro uncertainties have been well publicised, but with world class technology, a diversified blue chip customer base and our strong cash generative business model, the board remains confident in the long-term prospects of the business.”

At 1629 GMT, shares in GB Group were down 5.26% at 331.6p.

Reporting by Josh White for Sharecast.com.