GB Group swings to profit after solid first half
By Benjamin Chiou
Date: Tuesday 19 Nov 2024
(Sharecast News) - Shares in AIM-listed GB Group rose on Tuesday as the identity fraud and location software firm reiterated its full-year outlook after swinging into the black in the first half.
The company reported a pre-tax profit of £5.6m for the six months to 30 September, compared with a loss of £57.3m the year before, with the prior year's results damped by a £55m goodwill impairment.
On an adjusted basis, operating profits improved by 21.3% to £29m, with a 310-basis point improvement in the adjusted operating margin to 21.2%.
Revenues were up 3.4% at £136.9m, rising 4.5% on a constant currency basis driven by 6% growth in identity revenues and location revenues up 8.6%. Fraud revenues were down 2.9% at constant currencies as expected due to the timing of licence renewals.
"I'm pleased to report on a first half where we have made positive progress against my initial focus areas; removing complexity, being globally aligned, driving a performance culture and differentiating through innovation," said chief executive Dev Dhiman.
"We are retaining customers and doing more with them, and our new customer acquisition continues to be strong. Combined with the continued benefit of our group-wide cost and simplification initiatives executed in the prior year, we have delivered a good first half outcome."
Trading over the second half to day has been in line with the board's expectations, and the company still expects mid-single-digit revenue growth on a constant currency basis over the full year. Operational efficiency gains are also forecast to drive a high single-digit improvement in adjusted operating profits.
The stock was up 3.9% at 354.54p by 1056 GMT, having now risen more than 30% over 2024.
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