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Identity management specialist GB Group has had an encouraging third quarter. The three acquisitions that it made last year appear to be integrating well and CEO Richard Law is confident that full year results will be “at least in line with market expectations”. GB Group’s three purchases boosted revenue growth to 20% in the nine months to the end of December taking turnover in the period to £21.2m. Organic revenue growth was a respectable 7% (to £19m). Profitability also appears to be moving in the right direction – operating margins (before exceptional items & share based payments) increased to 11.4% from 6.8%.
The DataSolutions business unit reports strong growth in its ID tracing service following the acquisition of Data Discoveries in 2011 (see GB Group boosts ID tracing business). It grew by 21% to turn over £12.2m in the 9 month period. The DataAuthentication business reported a significant increase in organic growth and improved profitability. Turnover from the division climbed 18% to £9m in the first three quarters.
Acquisitions have played a key part in GB Group’s performance so far this year and they will continue to be important as it looks to add depth and breadth to its identity management offering in an increasingly crowded marketplace. Don’t be surprised to see further M&A activity from the group in the months ahead – it’s still very much on the lookout for accretive acquisitions.
