GB Group advances as it reports revenue growth

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GB Group PLC (LON:GBG) shares advanced as it told investors that total revenue for the six months ended September 30 is expected to be reported at £103mln.

Organic revenue, on a constant currency basis, grew by 10% with the company noting that it was underpinned by strong performance in the United States for a specific one-off customer project.

The improved revenue and disciplined cost management resulted in a 26% improvement in operating profit to £27mln, the company added.

It has reduced net debt to £2.7mln, representing a £32.3mln improvement since March.

The identification and digital security group now plans to reinstate its dividends and expects to announce a 3p interim dividend as it releases its half year results. It added that future dividends will be subject to performance, cashflow and the economic environment.

“We have been prudent in cash management, which, combined with our highly cash-generative business model, enabled us to significantly reduce our net debt in the period,” said chief executive Chris Clark.

He added: “One impact of COVID-19 has been the rapid digitalisation of businesses and this is likely to continue.

“For consumer-facing companies to be successful online they need to know who and where their customers are. They need to meet stringent regulations and protect themselves from fraud, while keeping the customer journey as smooth as possible. Our solutions are a key enabler of these factors and this leaves us well-positioned for the future.”

GB Group shares rose by 55p or 6.3% to trade at 926p.

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