GB Group plc (AIM: GBG), the global identity data intelligence specialist, announces its annual results for the year ended 31 March 2019.
Financial highlights
2019 | 2018 | % change | |
Revenue | £143.5m | £119.7m | 19.9% |
Adjusted operating profit† | £32.0m | £26.3m | 21.7% |
Adjusted basic earnings per share‡ | 18.2p | 15.3p | 19.0% |
Profit before tax | £14.7m | £13.4m | 10.0% |
Deferred income balance | £36.6m | £28.3m | 29.2% |
Net assets | £321.5m | £157.8m | 103.8% |
Net (debt)/cash†† | £(66.3)m | £13.5m | n/a |
Dividend per share | 2.99p | 2.65p | 12.8% |
2019 | 2018 | Total | 2018 | Underlying | |
Revenue | £143.5m | £119.7m | 19.9%
| £116.7m | 11.5% |
Adjusted operating profit†
| £32.0m | £26.3m | 21.7% | £24.0m | – |
Note: “CCY” indicates figure reported on a constant currency basis.
Strategic and operational highlights
Enhancing our customer proposition
- o Successfully launched Loqate, our Location solution brand
- o Key wins across our chosen geographies including Discover Financial Services, N26, Bosch, BNI, Kohls and eBay
- o Shift to a cloud operational model to support faster growth and evolving security requirements across our key markets
Strengthening international footprint
- International revenues grew from 34% to 45% of total revenue
- Encouraging performance from North America and Asia Pacific
- Total number of employees increased to nearly 1,000 working in 16 countries
Strategic acquisitions enhance global capabilities
- IDology materially strengthens our position in the North American market
- VIX Verify provides complementary technology and data, and increases our reach in Asia Pacific
- Both acquisitions are performing in line with expectations
Outlook
- Significant long-term growth opportunities across our target markets
- Clear delivery plans for organic growth
- Successfully integrating acquisitions that advance the Group’s strategy
- New financial year is trading in line with our expectations
Chris Clark, CEO, commented,
“This was another good year for GBG. The continued investment in our three core solutions led to exciting product innovation and deeper geographical reach. Our strong growth and track record of delivery is a testament to our commitment to customer value and the expansion of our global presence through organic developments and strategic acquisitions.”
“We remain committed to developing world class products and making the most of the significant market opportunities ahead. As a global business, with a well-defined strategy, we are confident in our future growth and our ambition to become the leading provider of identity data intelligence solutions.”
Notes:
† 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
‡ Adjusted earnings per share is defined as adjusted operating profit less net finance costs and tax divided by the basic weighted average number of ordinary shares of the Company.
†† Net (debt)/cash means cash and short-term deposits less loans.
* As highlighted in the October 2017 trading update, organic revenue growth in the year to 31 Match 2018 included £3.5 million from the sale of a material perpetual licence to a leading European bank in September 2017, paid upfront. 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.
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