Business
Pre-close Trading Update and Notice of Results
Pre-close Trading Update and Notice of Results.
About this update from Gb Group Plc
[{"type":"text","content":"\n \nRNS Number : 3882U GB Group PLC 24 October 2017 \n\n\n\n\n\nEmbargoed until 7.00 a.m.\n\n\n24th October 2017\n\n\n\n\n \nGB GROUP PLC\n(\"GBG\" or the \"Group\")\n \nPre-close Trading Update and Notice of Results\n \nGBG (AIM: GBG), the identity data intelligence specialist, provides the following trading update for the six months ended 30 September 2017 prior to the release of its half year results.\n \nGroup Trading Performance\nThe Group has continued to trade strongly in the first half of the financial year and remains well positioned to meet the growing demand for identity data intelligence products. Accordingly, the Board's outlook for full year revenue and profit growth remains unchanged and in-line with consensus expectations.\n \nRevenue in the first half of the year has grown by 40% to £52.6m, which amounts to an organic growth rate of approximately 17%. 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 recognized 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%.\n \nGBG expects to report adjusted operating profit for the half year in excess of £10 million, an increase of over 90% on last year. This is ahead of half year expectations due to the positive effect on profitability resulting from the perpetual licence agreement referred to above. \n \nThe recent acquisitions continue to perform well and have been instrumental in driving GBG's international expansion. GBG DecTech, GBG Loqate, IDscan and the latest acquisition PCA Predict, have all had a strong first half, increasing our international presence and opportunities.\n \nChris Clark, CEO of GBG commented:\n\"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...