11th Jun 2024 09:46
(Alliance News) - GB Group PLC on Tuesday said growth accelerated in the fourth quarter leaving it confident of a pick-up in revenue in the new financial year.
Shares in the Chester, England-based software company specialising in fraud prevention and identity verification were up 1.9% to 352.60 pence each in London early Tuesday, giving a market capitalisation of GBP895.0 million.
GB Group said its pretax loss narrowed to GBP50.4 million in the financial year that ended March 31 from GBP118.8 million in financial 2023. This included a GBP54.7 million exceptional non-cash goodwill impairment charge that was recognised in the first half.
Revenue slipped 0.5% to GBP277.3 million from GBP278.8 million, but rose 2.7% at constant currency.
GB Group noted growth accelerated to 5.0% in the final quarter of the year, driven by improved trends in the Americas and in Europe, Middle East & Africa.
Growth in financial 2024 remained constrained by two significant headwinds to transactional volumes, GB Group said.
First, subdued macroeconomic conditions impacted consumer demand, and second, changes in consumer behaviours within the internet economy.
But GB Group explained that as consumer behaviour "normalised", the headwinds related to certain internet economy customers abated through the year.
GB Group said the new financial year has begun in-line with expectations, with improved momentum in Identity and Location continuing from the final quarter of financial 2024.
For financial 2025 as a whole, the firm expects mid-single-digit revenue growth on a constant currency basis, which will drive high single-digit growth in adjusted operating profit, given the operational efficiency gains achieved in financial 2024.
GB Group declared a final dividend 4.20 pence per share, up 5.0% from 4.00p a year ago. The company pays no interim dividend.
By Jeremy Cutler, Alliance News reporter
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