AGM Statement July 2015
GB GROUP PLC
(“GBG” or the “Group”)
AGM Statement and Trading Update
GBG (AIM: GBG), the Identity Data Intelligence specialist, today provides an update on current trading ahead of its Annual General Meeting, to be held at its Chester Headquarters at 1.00 pm today.
GBG has made a positive start to the year and remains on track to deliver sustained revenue growth, meeting market expectations. During the first quarter we built upon our consistent year-on-year profit progress through organic growth and acquisitions. Our improved profitability is after making substantial additional investments in operating costs to accelerate our international expansion and to support our GOV.UK Verify service project.
The global market for Identity Data Intelligence is experiencing rapid expansion. It is driven by a variety of factors including: the increased use of data on a global basis for informing decisions; the growth in online transactions; and our clients’ requirements to comply with increased regulation. Our dual approach of expanding our leading global product portfolio and entering new markets and territories means that we are ideally positioned to benefit from these market drivers. In addition, this approach leaves us better able to sell to and support existing clients and potential clients who operate globally.
Value Enhancing Acquisition Strategy
GBG has completed eight acquisitions in the past four years and all have been fully integrated and are performing well. Loqate, our most recent acquisition, completed in April 2015. It brings with it an established presence, team and customer base on the West Coast of the United States. Its major customers include Oracle, IBM and Pitney Bowes. Loqate’s acquisition adds to our geographic reach - which now spans Europe, Asia Pacific and the USA from a base of 18 global offices - and also provides us with the potential to access new customers and ventures.
The Group’s acquisition strategy plays an important part in our future growth and we remain alert to potential acquisitions that provide opportunities to develop the markets in which we operate and enhance our product portfolio.
A high proportion of our recurring revenues are achieved from both SaaS (Software as a Service) offerings and software licencing models. This provides us with increased predictability and lower risk in forecasting our future performance and we expect these high quality revenues to continue to grow with new client wins. We expect to achieve double digit organic growth in the fiscal year by bringing new propositions to market and fully utilising the capabilities we have obtained through our acquisitions to date.
As a result of our strong year-on-year performance and confidence in our future prospects, the proposed final dividend of 1.85p per share, which is submitted for shareholder approval at today’s AGM, represents a 12% increase on last year.
David Rasche, Chairman of GBG, commented:
“We have enjoyed a strong start to the year as we continue to pursue and grow our leading position in the global identity data intelligence market. Our strategies are progressing to plan and, together with a healthy pipeline of opportunities and high levels of recurring revenue, we have confidence in maintaining our growth profile and providing increased value for our shareholders.
“Our progress this year has been made possible by our dedicated and high quality management team and staff and on behalf of the Board I would like to thank them, our shareholders and our customers for their continued support.”