Shares of Chester-based GB Group (GBG), experts in global identity and location software, rose as much as 15% after it published an update on trading for the financial year ended March 31, 2024.
GB Group said it expects to report revenue of £277.3 million, representing growth of 2.7% on a constant currency basis, and expects adjusted operating profit of £61.2 million, slightly above the top end of current analyst expectations.
“The board is pleased with the group’s performance in FY24,” said GB Group.
“The group expects to report revenue of £277.3 million, driven by growth accelerating in Identity during the fourth quarter as anticipated.
“Adjusted operating profit is expected to be slightly ahead of the top end of current analyst expectations, reflecting the excellent progress achieved throughout the year to drive simplification and cost-effectiveness in our business …
“As anticipated, improved fourth-quarter growth of approximately 5.0% on a constant currency basis was primarily driven by an acceleration in Identity, as a result of improving trends in the Americas and EMEA.
“Growth in Location remained solid, while growth in sales of software licenses in fraud slowed following two years of higher growth.
“Expected adjusted operating profit of approximately £61.2 million is slightly above the top end of current analyst expectations, driven by a focus on simplification and cost-effectiveness delivering £10 million of annualised savings.
“This would represent year-on-year growth in adjusted operating profit of approximately 8.0%, excluding the £3 million foreign exchange gain in the prior year.
“Strong cash generation in the second half has reduced net debt to around £81 million, which was better than current analyst expectations².
“Looking to FY25, the group expects mid-single-digit revenue growth on a constant currency basis, which will drive high single-digit growth in adjusted operating profit, as a result of the operational efficiency gains achieved in FY24.”
GB Group CEO Dev Dhiman said: “I am proud of our achievements during FY24 reflecting the focus and effort of the entire GBG team.
“While continuing to support our customers around the world, we have also improved our ability to drive profitable growth by driving simplification throughout the business.
“We have begun the new financial year with good operational momentum, and our confidence in FY25 is underpinned by the group’s strong fourth-quarter performance.
“By prioritising competitive differentiation and a high-performance culture, we will ensure GBG capitalises on the exciting market opportunity presented by an increasingly digital world.”