Identity intelligence specialist GB Group has reported a 5.3% increase in its revenue for the six months to September 30, 2021, in advance of releasing its half-year results.
In a statement released to the London Stock Exchange this morning, Chester-headquartered GBG reported growth across each of its three business units – location, identity, and fraud – as consumer activity shifted online and demand for its fraud prevention solutions grew.
Chris Clark, CEO of GBG, said: “We are pleased with the financial and operational performance over the past six months, particularly considering the conditions many of our customers and teams around the world continue to experience.
“We have made excellent progress against our growth strategy and have continued to support our customers throughout.
“This progress is testament to the hard work and dedication shown by the GBG team around the world. GBG remains excellently positioned at the forefront of the digital identity software industry.”
GBG intends to publish its half-year results on November, 30 2021.
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In a statement to the City this morning GBG announced: “Total revenue for the first six months is expected to be approximately £109m, which represents an increase of 5.3 per cent over the prior year period.
“This is before adjusting for exits from our marketing services and employment screening businesses, which gives an increase of 12.4 per cent on an organic constant currency basis.
“In identity we had expected the revenue comparison for H1 to be challenging, given the substantial benefit derived from a one-off project related to the USA government’s financial stimulus activity last year.
“However, this customer project continued into the current financial year at higher than expected volumes, generating additional revenue of approximately £3m.
“We also benefited from the increased transaction volumes across cryptocurrencies, experienced in our Q4 last year, continuing into April and May of this financial period.
“This generated a further circa £4m of additional consumption revenue in H1. In both cases, consumption volumes have now settled at normalised run rates and we anticipate these will remain at these levels through the second half of the year.
“GBG’s location business continued to experience good demand across a range of sectors driven by the continuing consumer shift to greater online activity.
“As anticipated, our fraud business unit experienced strong year-on-year growth as a result of restarting more on premise deployment activity, new contracts and strong renewals.
“As a result, adjusted operating profit for H1 is expected to be approximately £27.5m, an increase of 3 per cent on last year and an adjusted operating profit margin of approximately 25.2 per cent.
“This is marginally higher than we had expected due to the one-off revenue impacts noted above. Because of the market opportunity available to us we continue to increase investment in GBG’s people, technology and channel-to-market capacity.”