GB Group PLC Trading update (5045Q)
21 Febrero 2023 - 1:00AM
UK Regulatory
TIDMGBG
RNS Number : 5045Q
GB Group PLC
20 February 2023
21 February 2023
GB GROUP PLC
("GBG", "Group" or the "Company")
Trading update
GBG, (AIM: GBG) the experts in digital location, identity
verification and fraud software, today provides the following
trading update.
At our interim results in late November 2022, we reported on the
trends that had been impacting our end markets for identity
services, most notably the challenging conditions for
cryptocurrency and our internet economy customers. These
challenging conditions have continued into the second half of the
year and given the relative concentration of these customers in our
North America business this is the region where we are seeing the
most pronounced impact. We have also seen some incremental
lengthening of sales cycles, also in North America, as a result of
the macro-economic uncertainty and this has delayed some expected
customer contracts.
As a result, the Board now expects GBG to report revenue for the
year ending 31 March 2023 of approximately GBP279 million (FY22:
pro forma revenue of GBP273.8 million). Excluding GBP4.2 million
revenue from US stimulus customers in the comparative period, the
full effect (c. GBP15 million) of the year-on-year decline in
revenues from cryptocurrency customers and the FY23 impact of the
deferred revenue haircut (GBP1.2 million), this would equate to
organic pro forma constant currency growth of approximately 4% for
the financial year, almost evenly split between the first half and
second half of the year.
Adjusted operating profit is anticipated to be approximately
GBP60 million, representing a margin of 21.5%. Gains on foreign
exchange included within adjusted operating profit are expected to
be approximately GBP3 million.
As we approach our new financial year and as we move through
these headwinds, the Board's current expectation is that organic
constant currency revenue growth is likely to improve gradually
through the period from current levels towards high single-digits
in the latter part of the year. Strong control of cost is
anticipated to sustain FY24 adjusted operating profit margins at
around current levels, without compromising ongoing investment in
the business which will support achieving our medium-term guidance
for growth and profitability.
Chris Clark, CEO, commented:
"The difficult macroeconomic environment has been well
publicised and it is disappointing to have seen the impact on
certain parts of our business. However, GBG continues to achieve
growth and maintain strong operating margins and cash generation.
GBG's services remain crucial for customers to operate safely and
efficiently in an ever more digital world and the Board remains
confident in the long-term opportunities."
GBG will publish a full year pre-close trading statement in
April 2023.
This announcement contains Inside Information as defined in
Article 7 of the Market Abuse Regulation. The person responsible
for arranging the release of this announcement on behalf of GB
Group plc is Annabelle Burton, Company Secretary.
For further information, please contact:
GBG
Chris Clark, CEO & David Ward, CFO +44 (0) 1244 657333
Richard Foster, Investor Relations +44 (0) 7816 124164
Numis (Nominated Adviser and Corporate
Broker)
Simon Willis & Joshua Hughes +44 (0) 207 260 1000
-------------------------
Barclays (Corporate Broker)
Stuart Jempson & Rob Mayhew +44 (0) 207 623 2323
-------------------------
Teneo (Financial PR) +44 (0) 20 7353 4200
James Macey White & Matt Low GBG@tulchangroup.com
-------------------------
Website www.gbgplc.com/investors
-------------------------
About GBG
We are the experts in digital location, identity and managing
fraud risk and compliance. Helping organisations across the globe
eliminate customer friction and fraud from their digital
experiences. GBG develop and deliver digital identity, address
verification, fraud prevention and compliance software to
businesses globally.
Through the combination of the latest technology, the most
accurate data and our unrivalled expertise, GBG helps organisations
ranging from start-ups to the largest consumer and technology
brands in the world deliver seamless experiences, so their
customers can transact online with greater confidence.
To find out more about how we help our customers establish trust
with their customers visit www.gbgplc.com and follow us on LinkedIn
and Twitter @gbgplc.
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END
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