Source - SMW
GB Group's first half revenues grew by 40% and it expects adjusted operating profits to be up by over 90%.

The group said the board's outlook for full year revenue and profit growth remained unchanged and in-line with consensus expectations.

A pre-close update said that revenue in the first half of the year had grown by 40% to £52.6m, which amounted to an organic growth rate of approximately 17%. 

It said: 'The organic revenue growth includes £3.5m from the sale of a perpetual licence to a leading European bank, finalised in September. 

'This was payable on signing and therefore recognised in full under GAAP. Perpetual licenses, which are sometimes beneficial to large clients, form a small element of our annual revenues. 

'Had this been a fully delivered, 3-year agreement, payable in annual instalments then our revenue recognition policies would have resulted in an underlying organic growth rate of approximately 12%.'

GBG said it expected to report adjusted operating profit for the half year in excess of £10 million, an increase of over 90% on last year. 

It said this was ahead of half year expectations due to the positive effect on profitability resulting from the perpetual licence agreement.    It said the recent acquisitions continued to perform well and had been instrumental in driving GBG's international expansion. 

It said GBG DecTech, GBG Loqate, IDscan and the latest acquisition PCA Predict, had all had a strong first half, increasing its international presence and opportunities.

Chief executive Chris Clark said: 'The performance of GBG since the beginning of April has been very encouraging.

'The PCA Predict acquisition completed successfully in May and the business has integrated well into the Group, giving us new growth opportunities. 

'Looking forward to the second half, we again have high visibility (over 70%) of our full year revenues and continue to grow well in the UK and internationally.'




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