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GB Group reports record performance ahead of consensus

By Josh White

Date: Tuesday 15 Jun 2021

GB Group reports record performance ahead of consensus

(Sharecast News) - Identity verification and fraud prevention technology company GB Group reported a record financial performance in its final results on Tuesday, ahead of updated market expectations.
The AIM-traded firm reported revenue growth of 12.1% in organic constant currency terms for the 12 months ended 31 March, to £210.8m.

Its adjusted operating profit improved 20.8% year-on-year to £57.9m, while strong cash generation resulted in a net cash position at year-end of £21.1m, swinging from net debt of £35.0m at the start of the year.

The board declared a final dividend of 3.4p per share for the year, making for total distributions of 6.4p for the 2021 financial period.

Operationally, GB Group said it achieved its "best ever" customer engagement scores in the year, with all channels - direct, self-serve and partnership - performing well.

It said revenue growth was driven by "significant" demand from existing customers who experienced increased usage in their digital channels, as well as adding new clients in all lines of business.

Looking ahead, the company said it had made a "good start" to the 2022 financial year, with current trading in line with its own expectations.

GB Group said it was continuing its strategy of organic and inorganic investment, to drive product and market expansion.

"Today we report a record financial performance together with our best ever customer and team member engagement scores," said chief executive officer Chris Clark.

"The pandemic has accelerated customer digitisation initiatives and permanently shifted more consumer activity online."

Satisfying consumer expectations for online journeys, while meeting the needs of businesses to reduce fraud and trade in compliant ways, created "significant" long-term opportunities for the company, Clark said.

"In the year ahead we will continue to invest in our people, technology and channel to market capabilities in order to further converge our location, identity and fraud solutions, create new propositions and capitalise on the growth opportunities our strategy identifies."

At 0945 BST, shares in GB Group were down 3.24% at 895.5p.

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