9th Apr 2014 08:53
LONDON (Alliance News) - GB Group PLC said Wednesday that it expects to beat market consensus expectations for the year to end-March 2014.
Due to both organic and acquisitive growth, it expects to see adjusted revenues to rise to GBP41.6 million from GBP36.3 million. Revenue will be adjusted to reflect changes to the company's commercial relationship with BT Group PLC that has led to higher margins but reduced revenues.
GB Group renegotiated its supply and distribution agreements with BT, meaning that GB Group no longer receives a royalty from BT for the use of its technology, but also does not have to pay BT a portion of revenues from transactions through its ID3global identification verification service. This means that although revenues from the agreement have reduced, margins have increased due to lower costs.
GB Group expects an adjusted operating profit of GBP7.0 million, up from GBP5.5 million in the previous year.
GB Group said that its profit performance was "particularly impressive" as it increased its operational expenses by around GBP1 million during the year to develop and expand its international services.
Shares in GB Group were trading up 3.1% at 141.25 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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