GBG Half Yearly Report 2021
Press Release

GBG Half Yearly Report 2021

GB GROUP PLC (“GBG”, “Group” or the “Company") HALF YEAR RESULTS FOR SIX MONTHS ENDED 30 SEPTEMBER 2021 Strong underlying growth and cash flow, significant strategic and operational progress.

GB Group plc (AIM: GBG), the global identity data intelligence specialist, announces its unaudited results for the six months ended 30 September 2021.

 

Financial highlights

 

2021

2020

Growth2

Revenue

£109.2m

£103.5m

 5.4%

Organic constant currency revenue

£108.7m

£96.6m

12.6%

Operating profit

£14.8m

£15.7m

(5.2%)

Adjusted operating profit 1

£27.8m

£26.8m

3.5%

Adjusted operating margin 1

25.5%

25.9%

(40bps)

Profit before tax

£14.4m

£14.9m

(3.2%)

Diluted earnings per share

5.6p

6.0p

(6.7%)

Adjusted diluted earnings per share (restated3)

10.9p

10.4p

4.8%

Net cash/(debt)

£39.5m

(£2.7m)

n/a

Notes:

1 These measures are defined within note 16 to the Half Year Results.

2 Growth percentages are calculated with reference to the actual unrounded figures in the primary financial statements and so might not tie directly to the rounded figures in the table if recalculated.

3 Refer to note 7 of the Half Year Results for details of the restatement.


Chris Clark, CEO, commented:

I am extremely pleased with these results and the significant progress we have made strategically. 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. I am particularly proud that despite so many outside challenges on our people we maintained our focus on engagement and we continue to be recognised as a great place to work.

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.”

 

Highlights and outlook

Strong first half performance and
balance sheet

  • Organic constant currency revenues have grown by 12.6% with strong performance from all three segments:
  • Identity benefitted from strong underlying demand combined with higher than expected volumes from US stimulus and cryptocurrency related transactions
  • Location continued its strong momentum as customers recognised the importance of frictionless experiences in the shift to digital commerce. New customers included Nestle UK and Garmin
  • Fraud saw recovery on last year as restrictions lifted and on-premise installations became possible again in some locations
  • Growth underpinned by subscription and transactional/consumption revenues of £105.0 million and strong customer retention which supports good forward revenue visibility
  • Adjusted operating profits up 3.5% to £27.8 million
  • Strong balance sheet with £39.5 million of net cash as at 30 September 2021
  • Refinancing completed post half year end to increase total facility to £175m and extend term to July 2025

 

 

Product development

 

 

  • Launched two new products in the Identity segment; ExpectID Flex API in the US, for the enterprise market and RapID in the UK aimed at the small business market
  • Launched new version of our market leading Loqate solution, incorporating machine learning and predictive addressing capability globally
  • The Investigate solution acquired last year is being rolled out ahead of expectation and with strong customer take-up

Acuant Acquisition
(post half year end)

 

  • Acuant acquisition delivers material US customer base in the largest market for identity solutions globally
  • The acquisition accelerates GBG’s product, data and platform strategy by approximately two years, supporting accelerated global expansion
  • The acquisition is expected to accelerate GBG’s growth, enhance operating profit margins and be earnings neutral in FY23 (post synergies), its first full year of ownership and to be accretive thereafter

 

People

 

  • Introduction of global ‘Work When and Where You Want’ policy giving team members increased flexibility
  • Employee engagement scores continue to be high: 94% ‘would recommend GBG as a great place to work’

 

Positive outlook

 

  • GBG has significant opportunity evidenced by clear growth and market drivers
  • The GBG Board reiterates its confidence in meeting financial expectations for the enlarged Group for the remainder of the financial year 2022

 


Click here for further details of the full announcement.


- Ends –

 

To find out more, please contact:

GBG

Chris Clark, CEO & David Ward, CFO

Richard Foster, Investor Relations

 

+44 (0) 1244 657333

Peel Hunt LLP (Nominated Adviser and Broker)

Edward Knight & Paul Gillam

 

+44 (0) 20 7418 8900

Tulchan Communications LLP

James Macey White, Matt Low, Jordan McCulla & Olivia Lucas

 

Website

+44 (0) 20 7353 4200

GBG@tulchangroup.com

 

 

www.gbgplc.com/investors

 

Presentation and webcast

GBG management will be hosting an analyst presentation today (30 November 2021) at 09:00 a.m. GMT. To register for the webcast please use the following link:

https://webcasting.brrmedia.co.uk/broadcast/6176883cdf7b150b81e939ae

Shortly following the presentation, an archived webcast will be available on the GBG Investor Centre.


About GBG

GBG are the experts in digital location, identity and identity fraud software. Helping organisations across the globe eliminate customer friction and fraud from their digital experiences. GBG develop and deliver digital identity, address verification, fraud prevention and compliance software to over 21,000 customers globally.

Through the combination of the latest technology, the most accurate data and our unrivalled expertise, GBG helps organisations ranging from start-ups to the largest consumer and technology brands in the world deliver seamless experiences, so their customers can transact online with greater confidence.

GBG is headquartered in the UK with over 1,200 team members across 18 countries.

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 Twitter@gbgplc.

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