Shares of Chester-based identity data company GB Group (GBG) fell about 10% after it published results for the year ended March 31, 2023, showing an operating loss of £112.4 million despite a 15% rise in revenue to £278.8 million.
The company’s CEO warned it has been hit by “unexpectedly deep post-pandemic corrections in some end markets” that were largely felt in “the internet economy, notably by cryptocurrency and fintech customers primarily in our Identity business in the Americas …”
GBG, experts in digital location, identity verification and fraud prevention software, said the operating loss was “principally due to the FY23 goodwill impairment charge of £122.2 million following the annual impairment review and higher charge for amortisation of acquired intangibles.”
Adjusted operating profit edged up to £59.8 million from £58.8 million.
Final dividend is up 5% to 4p.
GB Group CEO Chris Clark said: “GBG continued to make important strategic progress and operational improvements that will have long-term benefits; however, we were impacted by unexpectedly deep post-pandemic corrections in some end markets.
“These corrections were largely felt in the internet economy, notably by cryptocurrency and fintech customers primarily in our Identity business in the Americas, as flagged in our February trading update.
“Looking ahead to FY24, since our update in February, there has been no material change in market conditions.
“Uncertainty remains; however, we still expect some gradual revenue acceleration in the latter part of the year.
“The board is confident that GBG will deliver its FY24 profit expectations assisted by a group-wide focus on efficiency.
“The business is well-placed to benefit from structural growth, including the increasing proliferation and sophistication of fraud through the advent of generative AI, capitalising on the breadth of its capabilities and global reach to deliver our mid-term growth targets.”