GB Group PLC – 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 2019, in advance of the release of its final results during the week commencing 3 June 2019. 

Note: “CCY” indicates figure reported on a constant currency basis.

• Total revenue for the year is expected to be up 19.7% at £143.3 million, ahead of market consensus. On an underlying constant currency basis, organic revenues were up 11.3%.
• GBG expects to report adjusted operating profit^† of approximately £31.7 million, a 20.6% increase on last year and also ahead of market consensus.
• Net debt balance at 31 March 2019 was £66.3 million (2018: £13.5 million net cash) following the use of cash and debt to acquire Vix Verify Global and an additional £86 million of debt partially to finance the purchase of IDology. 

Chris Clark, CEO of GBG, commented:

“This has been a transformational year for GBG underpinned by a good performance across all regions and all our core propositions. During the period we completed the acquisitions of VIX Verify Global and IDology, which have bolstered our international reach and capabilities in the growing identity sector. We are pleased that both acquisitions have integrated and performed very well since joining GBG. 

“Our unique partnerships with global data partners have enabled GBG’s continued success alongside an outstanding and growing global team. We have gained some significant new customers during the period and remain confident in the strength of our solutions and our ability to maintain momentum from our core propositions in key geographies.”

^† 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 highlighted in the October 2017 trading update, organic revenue growth included £3.5 million from the sale of a material perpetual licence to a leading European bank in September 2017. Had this particular transaction been a fully delivered, 3-year agreement, payable in annual instalments (as is normal), then our revenue recognition policies at the time would have only recognised one third of this value.