GB Group 'well-positioned' as profits increase by 40%

GB Group is continuing its impressive growth with full year revenues up 39% to £199m, including a double-digit (11%) rise in organic sales, and insists it is well placed to support clients through the Covid-19 crisis and beyond.

The AIM-listed company also reported a £20.6m pretax profit for the financial year ending March 31, up 40% from £14.7m from 2019. The all-important EBITDA figures – adjusted earnings before interest, tax, depreciation and amortisation – came in at £51.7m for a 26% margin.

In fact, the business has more than doubled its revenues since 2017, when it recorded sales of £90m and pretax profits of £10.1m.

This year’s revenue rise was seen across the all three of its segments of fraud, location, and identity verification data but especially in ID saw the biggest growth, doubling from £58.2m to £105.5m.

This is likely to continue, given the boom in online shopping due to Covid-19. The company says it seen some customers accelerate their digitalisation programmes during the period, although the management has refused to provide 2021 growth guidance.

The Chester-based company now generates 56% of its revenues from outside the UK and continues to target international growth through three complementary solutions that target location, identity and fraud.

Chief executive Chris Clark said he was confident the group is approaching the future from a position of strength. He added: “I am extremely proud of our performance in the last 12 months, which saw profit and revenues exceed market expectations. This was driven by GBG’s international expansion and innovative product offerings. Although it is hard to predict the full impact of Covid-19, we remain well-positioned to support our customers through the current environment and in the longer term.”