GB Group makes 'strong finish' to FY24
By Iain Gilbert
Date: Tuesday 23 Apr 2024
(Sharecast News) - Software firm GB Group said on Tuesday that it had made a "strong finish to the year", with adjusted operating profits coming in above expectations.
GB Group expects to report revenues of £277.3m, up approximately 2.7% year-on-year, driven by accelerating growth in its identity unit during the fourth quarter, while adjusted operating profits were expected to be "slightly ahead" of the top end of current analyst expectations at £61.2m, reflecting "excellent progress" achieved throughout the year to drive simplification and cost-effectiveness in the business.
The AIM-listed group also noted that "strong cash generation" in the second half had reduced net debt to around £81.0m, which was better than current analyst expectations.
Looking ahead, GB expects mid-single-digit revenue growth on a constant currency basis, which it said will drive high single-digit growth in adjusted operating profit, as a result of the operational efficiency gains achieved in FY24.
Chief executive Dev Dhiman said: "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."
As of 0945 BST, GB shares had shot up 14.39% to 296.04p.
Reporting by Iain Gilbert at Sharecast.com
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