22nd Apr 2020 10:32
(Alliance News) - Identity management firm GB Group PLC on Wednesday said it expects to report a full-year earnings rise, beating market expectations.
For the year to March 31, GB expects a 39% revenue jump to GBP199 million from GBP144 million. On an organic basis, revenue was 11% higher at constant currency to GBP143 million.
GB tips a 47% hike in adjusted operating profit to GBP47 million from GBP32 million.
The earnings performance is set to beat market consensus, which pointed to revenue of GBP196.3 million and adjusted operating profit of GBP44.6 million.
Chief Executive Officer Chris Clark said: "GBG has delivered a strong set of results which are ahead of market expectations despite some, albeit limited, financial impact from Covid-19 in the final quarter."
"Looking further forward, I take much confidence from financial 2020 being a record revenue and profit outcome with the business delivering good organic growth across our product solutions and geographies. Although it is yet to become clear on what a post Covid-19 world will look like, this recent performance will provide a good foundation to weather this crisis and leaves us well-positioned when it is over."
GB has turned to cost savings, having paused all non-essential recruitment and suspended executive bonuses for financial 2020. It also added that it does not plan to propose a final dividend.
"It should be emphasised that GB has a strong balance sheet with intact bank draw down facilities, good liquidity and a high proportion of annual recurring licence revenue. The group has significant financial headroom of GBP75 million in addition to an unused but available accordion option of GBP30 million," the company added.
Shares in the company were 2.9% lower at 639.00 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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