GB Group slightly ahead of forecasts

GB Group, the global identity data intelligence specialist, reports adjusted operating profits of £5.2m for the six months to the end of September.

This is 15% up on last time and slightly ahead of expectations of £5.0 million set out in its trading update on 20 October.

Revenue rose 16% to £37.5 million and the group says a strong pipeline and inclusion of IDscan for the full second half provides confidence of an increased rate of growth in the second half.

Other highlights: - Adjusted basic earnings per share of 3.6p (2015: 3.4p).

- Profit after tax of £1.2 million (2015: £2.3 million) after increased exceptional costs, when compared against the same period last year, relating to reorganisation costs and fees for the acquisition of IDscan.

- Double digit organic growth expected to return in the second half.

- Strong balance sheet

* Deferred revenue balances increased to £15.5 million (2015: £11.2 million), giving good revenue visibility for the year ahead.

* Net assets of the Group increased to £82.8 million (2015: £46.2 million).

* Net debt at 30 September of £4.0 million (2015: £1.2 million cash) after borrowing £12 million to fund IDscan acquisition, the final £1.0 million earn out payment for DecTech and a dividend payment of £2.8 million. Cash conversion remains high and we expect cash balances will return to surplus at year end.

Chief executive Richard Law said: "The Group has continued to perform well and we have increased our identity data intelligence capabilities considerably through the acquisition of IDScan as well as with ongoing product development. Our expanded product range now incorporates elements of artificial intelligence and machine learning technology, enhancing our position at the forefront of technology innovation in our rapidly growing markets."