Annual Results Announcement for the Year Ended 31 March 2014

 Published: Wednesday July 2, 2014

 Written by GBG News on Investor News

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LONDON – 02 July 2014

GB GROUP PLC

(“GBGroup”, “GBG”, the “Group” or the “Company”)

 

Annual Results Announcement for the Year Ended 31 March 2014

GBGroup, the identity intelligence specialist, is pleased to announce its annual results for the year ended 31 March 2014.

 

Highlights

 

  •    Strong revenue growth and margin improvements resulted in profits ahead of market expectations

o    15% adjusted†† revenue growth to £41.8 million (2013 adjusted††: £36.3 million), with underlying organic adjusted††revenue growth of 10% (2013: 7%)

o    30% increase in adjusted operating profits to £7.2 million (2013: £5.5 million)

o    30% increase in adjusted basic earnings per share to 6.5p (2013: 5.0p)

o    14% increase in profit before tax (after exceptional costs) to £4.0 million (2013: £3.5 million)

 

  •    Solid balance sheet and strong cash generation, resulting in cash balances of £11.8 million (2013: £6.3 million) after dividend payment (£1.6 million) and cost of investing activities (£2.6 million) 

 

  • A 10% increase to the proposed dividend for 2014 to 1.65 pence (2013: 1.5 pence)
  • Successful acquisition and integration of CRD (UK) Ltd into the Group and the post year-end strategic acquisition of DecTech Solutions Pty Ltd in Australia, extending GBG’s suite of solutions and geographic reach.

 

 Commenting, Richard Law, Chief Executive, said:

 

“The Group has had a very successful year. Our team of talented people, working to a clear vision of the future, delivered significantly higher revenue, adjusted operating profits and margins through a combination of organic growth and acquisition.

 

The new year has started well with the acquisition of DecTech in April giving us greater scale, technical capability and geographic reach.  Our priorities for the year will be the continued internationalisation of our product portfolio and leveraging the opportunities that global online trading brings, whilst making sure that we continue to invest wisely and continue to improve margins.”  

 

 

Notes:

† 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 Results Analysis

During the previous financial year, GBG restructured its commercial relationship with BT which meant that ID Verification margins under the revised agreement are higher in absolute terms but revenues are reduced in the current financial year.   For ease of comparison, the revenue for the comparative period has been adjusted to show the true underlying growth.

 

Statutory results

 

2014

£’000

2013

£’000

Growth

Revenue

41,835

39,424

6%

Cost of sales

(14,473)

(16,663)

(13%)

Gross margin

27,362

22,761

20%

 

Adjusted††results

 

2014

£’000

2013

£’000

Growth

Organic
growth*

Adjusted revenue

41,835

36,344

15%

10%

Cost of sales

(14,473)

(13,583)

7%

3%

Gross margin

27,362

22,761

20%

14%

 

 

Download the full release

 

For further information, please contact:

 

GB Group plc

Richard Law, Chief Executive

Dave Wilson, Group Finance Director & Operations Director

 

01244 657333

Peel Hunt LLP (Nominated Adviser and Broker)

Richard Kauffer

Daniel Harris

 

020 7418 8900

Newgate Threadneedle

Caroline Forde

Josh Royston

Heather Armstrong

 

020 7653 9850

Website

www.gbgplc.com

 

 

 

About GBGroup

 

The most profitable and successful organisations recognise the value of understanding the individual identity of their customers and employees. GBG combines this concept of identity with technology to create an environment of trust, so that organisations can employ people and connect, communicate and transact with consumers, safely and responsibly.

 

We call this Identity Intelligence.

 

GBG's solutions include:

 

Register & Verify  -  International software and services for quick and accurate customer registration; prevention and detection of fraud and the verification of identities of individuals & businesses remotely.

 

Cleanse & Engage - Innovative software and services which provide accurate and up-to-date identity information to deliver improved intelligent customer contact strategies.

 

Employ & Comply - Thorough background checks through online verification and authentication of individuals enabling organisations to safeguard, recruit and engage with confidence.

 

Trace & Investigate - Leading software and services which provide the most accurate and up-to-date picture of the UK's population, properties and businesses to quickly locate, investigate and contact the right individual, first time.

 

 

GB Group is listed on the London Stock Exchange (GBG). For more information, please visit GB Group’s website: www.gbgplc.com