AGM statement July 2016
GB GROUP PLC
(“GBG” or the “Group”)
GBG (AIM: GBG), the Identity Data Intelligence specialist, today provides the following statement ahead of its Annual General Meeting, to be held today at its Chester Headquarters at 1.00 p.m. At the AGM, Non-Executive Chairman, David Rasche will make the following statement:
“GBG’s performance in the year to date is in line with our expectations as demand in the market for global online identity intelligence services continues to grow. This market growth is driven by: the continued move online (particularly in developing economies where internet penetration is still low); the increase in cross border ecommerce; the rise in fraud and tougher compliance regulation for our clients in areas such as age verification, anti-money laundering and the right to work.
“Consequently, the Board remains confident in GBG’s prospects based upon our long-term strategy, the quality and engagement of our team and our robust financial position.
“We are pleased to report that GBG has secured a number of new contract wins during the first quarter, examples of which include:
- a three year contract with Creditsafe, the world's most used supplier of company credit reports, under which GBG will provide a number of its solutions to Creditsafe including GBG ID3global (for UK and global identity verification checks) and GBG Connexus; and
- a technology partner agreement for the launch of Sun Bets in the UK, a new online betting partnership between Tabcorp and News Corporation. This global partnership is intended to reach The Sun’s 10 million weekly readers and more than one million football fans participating in the newspaper's fantasy football competition. The multi-year deal deploys a number of our solutions including GBG Matchcode360, GBG ID3global and GBG Predator (respectively the Group’s identity registration, identity verification and anti-fraud solutions).
“In June 2016, we announced that IDScan Biometrics Limited (www.idscan.com) had joined the Group. IDScan is a provider of software that automates and simplifies the identification process of customers and employees by authenticating documents (including passports, visas and driving licenses), whilst capturing facial biometrics to provide proof that these documents are not stolen. These capabilities are highly complementary to GBG's existing product suite.
“The acquisition effectively positions GBG as a world leader in proprietary global document validation and biometric and identity verification, providing access to a market potential in excess of US$19 billion a year.
“Loqate, which was acquired in April 2015, continues to perform well. The Loqate technology, which at the time of acquisition served only the enterprise market, has now been developed and launched into the self-serve pay as you go market in the USA under the Everything Location brand.
“The Group’s acquisition strategy plays an important part in our future growth. We remain alert to potential acquisitions that provide opportunities to develop the markets in which we operate and enhance our product portfolio.
“The process to identify and appoint a successor to Richard Law, who announced his intention to retire from GBG earlier this year, is progressing well and we are hopeful of being in a position to announce his successor on or around the half year end (30th September 2016).
“As a result of our strong year-on-year performance and confidence in our future prospects we are able to continue our progressive dividend policy. The proposed final dividend of 2.08p per share represents a 12% increase on last year and is submitted for shareholder approval at today’s AGM.
“I am delighted to report that GBG’s solid growth has continued into the current financial year. Our position as the leading global provider of identity data intelligence has been reinforced by the recent successful acquisition of IDScan which is expected to provide numerous opportunities for further growth. This, combined with a strong existing sales pipeline and healthy levels of recurring revenue, gives us confidence for continued future success.
On behalf of the Board I would like to thank our first class management team and staff whose talent and hard work have made our success to date possible. I would also wish to extend our thanks to GBG’s shareholders and customers for their continued support.”