Software company GB Group has said its trading is in line with expectations in its first quarter of 2025, after it reported a dip in revenue for 2024.
It said its identity verification and location intelligence services would drive revenue growth in the year ahead. At the same time, its fraud prevention arm is expected to report a drop in revenue in the first half due to “the timing of software license renewals”.
GB Group, which has its annual general meeting (AGM) this morning, is expecting mid-single-digit revenue growth and high single-digit growth in adjusted operating profit for the full year.
Revenue fell by 0.5 per cent to £277m for the year to 31 March 2024.
“The board is pleased to report that GBG has continued to trade in line with our expectations in the first quarter as the improved momentum in Identity and resilient growth in Location continued from the final quarter of FY24,” non-executive chairman Richard Longdon will say this morning before the AGM.
London-listed GB Group’s shares have risen over 26 per cent year to date.
In June, the company said adjusted operating profit rose eight per cent to £61.4m. However, it reported an overall operating loss of £41.4m caused by a £54.7m exceptional non-cash goodwill impairment charge.
“As we look to the longer term,” Longdon will continue saying, “the Board remains confident that GBG’s strong competitive differentiation will continue to underpin our leadership positions across the markets we serve.
“The technological capabilities we have built and our highly repeatable business model will enable us to capitalise upon the significant growth opportunities ahead to deliver significant and enduring shareholder value.”
GB Group’s next trading update is set for mid-October.