Investor news

Trading update April 2015

Published: Friday April 24, 2015

GB GROUP PLC
("GBGroup", "GBG", or the "Group")
Trading Update

As indicated in its pre-close trading update, published on 7 April 2015, GBG, the data identity intelligence specialist, today provides additional information regarding trading for the year to 31 March 2015, in advance of the release of its annual results in early June.

Group Trading Performance

The Board is pleased to report that the Group's strong performance has continued this year and revenues for the year to 31 March 2015 are expected to have increased by approximately 37% to £57.3 million (2014: £41.8 million). Organic revenue growth is expected to be 15% with the balance coming from the acquisitions of DecTech and Transactis, made earlier in the year. These acquisitions have further strengthened GBG’s identity intelligence credentials and both businesses have integrated and performed very well in the period.

As a result of positive growth, both organically and through acquisition, the Group expects to report a 50% increase in adjusted operating profit to £10.8 million (2014: £7.2 million), which is ahead of market expectations.

Over the course of the year, deferred revenue in the balance sheet (in respect of amounts invoiced under annual contracts, which will be recognised in future periods) is also expected to have increased by £3.2 million to £9.9 million, representing additional future value for the Group.
The Group continues to be highly cash generative and cash balances at 31 March 2015 were £15.8 million (2014: £11.8 million) with net cash balances of £11.4 million (2014: £11.8 million).

Operational Highlights

The Board is pleased to report that the Group's strong performance has continued this year and revenues for the year to 31 March 2015 are expected to have increased by approximately 37% to £57.3 million (2014: £41.8 million). Organic revenue growth is expected to be 15% with the balance coming from the acquisitions of DecTech and Transactis, made earlier in the year. These acquisitions have further strengthened GBG’s identity intelligence credentials and both businesses have integrated and performed very well in the period.

The Group's businesses have grown strongly with IDP (GBG’s Identity Proofing business) revenues approximately 66% ahead and IDS (GBG’s Identity Solutions business) showing growth of approximately 20% compared to last year. In addition, in March 2015, GBG was chosen as one of the identity assurance providers on the new GOV.UK Verify service. GBG will be offering the service through its own brand – CitizenSafe® – to citizens directly through the GOV.UK verify portal. GBG has also been chosen by Royal Mail to be its ID verification partner on this project, which means that GBG’s technology is behind 2 of the 9 choices being made available.

Further information about the GOV.UK Verify service project can be found at the Government’s website:

https://identityassurance.blog.gov.uk/2015/03/25/procurement-2-new-identity-suppliersto-join-gov-uk-verify/

Commenting on the expected results, Richard Law, CEO of GBG, said:

"I’m extremely pleased that our results have, once again, exceeded market expectations. They reflect the substantial potential of our markets and the clear vision we have put in place to maximise that potential. Our high quality team is strongly motivated and committed to deliver continued growth. I believe that the prospects of the Group continue to be excellent.”