Published: Wednesday June 8, 2016
Written by on Investor News
GB GROUP PLC
(“GBG”, the “Group” or the “Company”)
Annual Results for the Year Ended 31 March 2016
GBG (AIM: GBG), the global specialist in identity data intelligence, is pleased to announce its annual results for the year ended 31 March 2016.
- Strong performance and revenue growth resulted in profits ahead of market expectations
- Revenue growth of 28% to £73.4 million (2015: £57.3 million), with organic revenue growth‡ of 16% (2015: 15%)
- 24% increase in adjusted†operating profits to £13.4 million (2015: £10.8 million)
- 34% increase in adjusted†† basic earnings per share to 10.6p (2015: 7.9p)
- 57% increase in profit before tax (after exceptional costs) to £9.3 million (2015: £5.9 million)
- Solid balance sheet and strong cash generation, resulting in cash balances at 31 March 2016 of £12.4 million (2015: £15.8 million), following payments of £14.5 million during the year for the cash purchase of Loqate, the settlement of earn outs on prior acquisitions and the payment of a £2.3 million dividend to shareholders
- A progressive 12.4% increase to the proposed dividend for 2016 to 2.08 pence per share (2015: 1.85 pence)
- Loqate, which became part of the Group in April 2015, reached profitability earlier than anticipated and finished the year ahead of management expectations
- Development of CitizenSafe®, GBG’s public identity verification service as part of the UK government’s GOV.UK Verify platform
- Strong growth in international revenues, increasing to 26% of Group revenues (2015: 19%), reflecting success in expanding our operations outside the UK
- Growing levels of new business from major blue chip organisations including British Airways and HSBC
- Deferred revenue balances increased to £13.8 million (2015: £9.9 million), giving strong visibility for the year ahead
Commenting, Richard Law, Chief Executive, said: "GBG has had another strong year achieving record revenues and delivering profitability ahead of market expectations. This is testament to the hard work, dedication and talent of our excellent team.
This was achieved whilst simultaneously increasing our operating expenditure on the development of new products, expanding our international operations and strengthening our management team. As a result we enter the new financial year with strong momentum and excellent prospects and I’m pleased to report that trading since the start of the year is in line with the Board’s expectations.”
For further details of the full announcement please click here.
† Adjusted operating profit means profits before amortisation of acquired intangibles, share-based payment charges, exceptional items, share of results from associates, net finance costs and tax.
†† Adjusted earnings per share is determined with reference to the adjusted operating profit less net finance costs and tax.
‡ Adjusting for constant currency.
For further information, please contact:
Richard Law, Chief Executive
Dave Wilson, Group Finance Director & Operations Director
+44 (0) 1244 657333
Peel Hunt LLP (Nominated Adviser and Broker)
+44 (0)20 7418 8900
Newgate (Financial PR Adviser)
Bob Huxford, Andrew Jones, Ed Treadwell
+44 (0)20 7680 6550
GBG is a global specialist in Identity Data Intelligence. We help organisations make decisions about the customers they serve and the people they employ.
Through our fundamental belief that the digital economy relies on everyone having access to data they can trust, GBG enables companies and governments to fight fraud and cybercrime, to improve the customer experience and help to protect the more vulnerable people in our society.
Headquartered in Chester (UK) and operating on 21 locations in 13 countries, GBG provides solutions to many of the world's biggest organisations, from established brands like Nike and Harrods to disruptive newcomers such as TaskRabbit and Stripe.
About GBG's solutions
We provide a number of business solutions aimed at informing decisions about customers or employees in key areas:
Employing people – we provide thorough background checks through the online verification of individuals and validation of key documents such as a driver's licence, enabling organisations to safeguard, recruit and engage with confidence.
Registering identities – GBG solutions facilitate the registration of identity data, such as name and address, contact information and social network IDs, quickly and with minimum impact on the customer experience.
Verifying identities – we provide more innovative ways of confirming identity than simply relying on credit data. Our solutions check the identities of more than 4 billion people worldwide and also verify citizens of the world's largest economies to the rigorous standards set by the world's financial regulators.
Building relationships – we work collaboratively with clients to make sure they use the data their customers share with them to create personalised customer journeys for each individual, responding to every interaction in real time.
Fighting fraud – our fraud prevention solutions not only check new customer details in real time as they register but monitor and detect application and transaction fraud on an ongoing basis.
Locating people – voted 'Most Innovative Online Product' at the 2015 UK Retail Fraud Awards, GBG technology confirms and locates the people our clients need to connect with. It saves valuable time and resource and ensures that good customers don't incur the cost of inefficient processes.
GBG is listed on the London Stock Exchange (GBG). For more information visit www.gbgplc.com