24th Oct 2019 09:40
(Alliance News) - Shares in GB Group PLC rose early on Thursday after the identity management company forecast a first half revenue surge and a sharp profit rise, helped by the contribution of new acquisitions.
The stock was trading 12% higher at 591.00 pence each in London on Thursday morning.
Adjusted operating profit for the six months to September 30 is expected to jump to GBP20.9 million, more than double the GBP8.8 million reported in the first half of last year.
Revenue is expected to grow by 64% year-on-year to GBP93.7 million from GBP57.3 million.
The Chester-based firm said this was partly due to the performances of both Vix Verify, an Australian peer it acquired for GBP21 million in October 2018, and US fraud detection company IDology, purchased for USD300 million in February.
GB Group also cited positive trading in its Location, Identity and Fraud divisions.
Chief Executive Chris Clark said: "In the period, we delivered a strong organic performance in each of our three core solutions (Location, Identity and Fraud) and across each of our target geographies. This organic performance has been complemented by the successful integrations of Vix Verify and IDology. We're excited about how both can further strengthen the GB Group customer proposition and help grow the business further.
"The positive first half performance was additionally helped by the favourable timing of some contracts for our Fraud division, which have been brought forward into the first half. So far the second half has begun well and at this stage we remain confident in meeting full-year consensus revenue and profit expectations."
GB Group will release its first-half results on November 26.
By Eric Cunha; [email protected]
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