GB Group PLC said on Tuesday it swung to a loss despite increasing its reported revenue, while its start to the second half of the financial year was in line with guidance.

The Chester, England-based digital location and identity specialist said it swung to a pretax loss in the six months that ended September 30 to £24,000 from a profit of £14.4 million a year earlier. This was despite reported revenue increasing 23% to £133.8 million from £109.2 million.

It said this was due to tough first half comparators driven by the US government’s stimulus programme and exceptional cryptocurrency volume. Operating expenses also grew by 61% to £99.3 million from £61.5 million.

GB Group said it started with the second half of its financial 2023 in line with its guidance, observing cryptocurrency activity to start to normalise and so it expected to deliver mid-single digit pro forma constant revenue growth.

It also expects a continued benefit from a foreign exchange tailwind, as the first half of its financial 2023 saw volatile FX movements particularly in pound sterling versus the US dollar. This reportedly contributed 7.0% to GB Group’s reported first half pro forma revenue growth from a year prior.

‘The macro uncertainties have been well publicised, but with world class technology, a diversified blue chip customer base and our strong cash generative business model, the board remains confident in the long-term prospects of the business,’ said Chief Executive Officer Chris Clark.

Shares in GB Group were down 1.4% at 345.20 pence each in London on Tuesday morning.

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