Published: Wednesday April 18, 2018
GB GROUP PLC
(“GBG” or the “Company")
Pre-Close Trading Statement
GBG, (AIM:GBG) the identity data intelligence specialist, provides an update on its trading performance for the year to 31 March 2018, in advance of the release of its final results.
- GBG expects to report adjusted operating profit† of approximately £26 million (2017: £17.0 million), a 53% increase on last year and ahead of market consensus.
- Revenue growth is expected to be approximately 37%, with total revenue of c.£119.7 million, also ahead of market consensus, of which 17% is organic*.
- Net cash balances at 31 March 2018 (following the settlement of earn outs and loan repayments relating to prior year acquisitions and the payment of a dividend to shareholders) were £13.4 million (2017: £5.2 million).
Chris Clark, CEO of GBG, commented: “I am delighted with GBG’s performance, in this my first year, which was made possible by the great team of people at GBG. We remain confident in the strength of our existing products and services and the momentum across the business.
“This encouraging update is testament to the dedication of our team members across the globe and I want to thank everyone at GBG for their continued hard-work and contribution.”
The Group intends to publish its full year results week commencing 4 June 2018.
† Adjusted operating profit means profit before amortisation of acquired intangibles, share-based payments, exceptional items, interest and tax. This measure is not defined under IFRS but Management believe that this Alternative Performance Measure (APM) is a more appropriate metric to understand the underlying performance of the Group.
* As we highlighted in the October 2017 trading update, the organic revenue growth includes £3.5m from the sale in September 2017 of a material perpetual licence to a leading European bank. Had this particular transaction been a fully delivered, 3-year agreement, payable in annual instalments then our revenue recognition policies would have resulted in an underlying organic growth rate of approximately 15%.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 ("MAR"). Upon the publication of this announcement, this inside information is now considered to be in the public domain.
For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of GBG by John Constantin, Company Secretary of GBG.
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For further information, please contact:
Chris Clark, CEO
Dave Wilson, CFO & COO
Peel Hunt LLP (Nominated Adviser and Broker)
020 7418 8900
020 3805 4822
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 with people in 17 countries, GBG provides solutions to many of the world's biggest organisations, from established brands like HSBC and Zurich Insurance to disruptive newcomers such as Stripe and Plus500.