GB Group shareholders reject directors’ remuneration

Chester-based identity data company GB Group (GBG) said that 57.46% of votes were cast against its directors’ remuneration report at the firm’s AGM on Thursday.

“The board notes that the advisory vote on the Directors’ Remuneration Report did not receive the required majority number of votes to pass,” said GB Group.

“Prior to the AGM the Remuneration Committee conducted an extensive consultation with the company’s largest shareholders regarding the Directors’ Remuneration Report. 

“The Remuneration Committee values the feedback they have received on the company’s remuneration arrangements and will continue to engage constructively with shareholders.”

At the AGM, GB Group chair Richard Longdon said: “As reported in our full-year results announcement on 15 June 2023, FY23 was a year of continued strategic progress as GBG reported its highest-ever revenue and adjusted operating profit, supported by contributions from the businesses acquired in the previous year alongside strong delivery in Location and Fraud.

“Group revenue and profit in FY23 was lower than expected at the start of the year, largely due to significant macro uncertainty and challenging post-pandemic conditions in certain end markets, primarily impacting our identity business in the Americas.

“While there has been no material change in market conditions, we continue to expect some gradual revenue acceleration in the latter part of the year and to achieve our FY24 profit and cash generation expectations assisted by a group-wide focus on efficiency.

“We remain focused on cash generation and repayment of debt and are pleased with the improvement in our current net debt position to £90.9 million, prior to the payment of the final dividend, which is subject to shareholder approval at today’s meeting.

“Looking to the future, the board is confident GBG is well-placed to benefit from attractive structural growth in our markets. The increasing proliferation and sophistication of fraud through the advent of generative AI reinforces the need for customers to adopt multi-layered identity solutions. This presents a long runway of opportunity for GBG to capitalise on the breadth of its capabilities and global reach.

“Our next scheduled trading update will be the pre-close trading statement in mid-October 2023.”