23rd Apr 2024 09:27
(Alliance News) - Shares in GB Group PLC soared on Tuesday after reporting full-year operating profit would beat market expectations.
Shares in GB Group leapt 12% to 290.58 pence in London on Tuesday.
The Chester, England-based software company specialising in fraud prevention and identity verification expects adjusted operating profit in the year to March 31 to reach GBP61.2 million.
This is above a company-cited consensus of GBP60.2 million.
The performance was driven by a focus on simplification and cost-effectiveness delivering GBP10 million of annualised savings, GB Group said.
GB Group said it expects to report revenue of GBP277.3 million, up 2.7% on a constant currency basis, at the top-end of the market consensus of GBP277.8 million.
GB Group highlighted a strong end to the year with fourth-quarter growth of around 5.0% on a constant currency basis. It noted improving trends in the Americas, solid growth in Location while growth in sales of software licenses in Fraud slowed following two years of higher growth.
Looking to financial 2025, the group expects mid-single-digit revenue growth on a constant currency basis, which will drive high single-digit growth in adjusted operating profit, as a result of the operational efficiency gains achieved in financial 2024.
Chief Executive Dev Dhiman commented: "We have begun the new financial year with good operational momentum, and our confidence in [financial 2025] is underpinned by the group's strong fourth-quarter performance."
GB Group expects to report full-year results on June 11.
By Jeremy Cutler, Alliance News reporter
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