26th Nov 2019 10:00
(Alliance News) - GB Group PLC said Tuesday its interim profit more than doubled on a sharp revenue increase, driven by contributions from recent acquisitions and robust organic growth.
For the six months to the end of September, the identity management firm's pretax profit more than doubled to GBP8.6 million from GBP3.6 million, on revenue that grew by 62% to GBP94.3 million from GBP58.3 million. On a constant currency basis, organic revenue increased by 17%.
The revenue growth was also driven by the successful integrations of VIX Verify Global and IDology, GB Group said, as well as the favourable timing of some contracts for the Fraud division.
VIX Verify Global is an Australian identity verification firm that was acquired by GB Group in October 2018 for GBP21.2 million, while US fraud detection firm IDology was bought in February for USD300 million.
GB Group declared an interim dividend of 2.99 pence per share, up 13% from 2.65p the prior year.
Looking ahead, GB Group said it has made a good start to its financial year and remains confident on meeting its full-year consensus for revenue and profit.
For the financial year ending March 31, 2020, company-compiled consensus has guided for an adjusted operating profit of GBP44.6 million, on revenue of GBP194.9 million.
This reflects an increase from GBP32.0 million in adjusted operating profit and GBP143.5 million in revenue the year before.
"We had a strong organic growth performance across each of our three key solutions of Location, Identity and Fraud across our core geographies. This performance has also been supported by the successful integrations of VIX Verify and IDology and we are excited about our future prospects and how these businesses will develop and strengthen our propositions," said Chief Executive Officer Chris Clark.
Shares in GB Group - which is headquartered in Chester, UK - were up 1.6% at 674.60 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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