Identity management specialists GB Group have had ‘a year of significant achievement’, to quote Chairman David Rasche. In the twelve months to 31 March, GB Group has made three acquisitions (most recently Capscan see GB Group expands again – and needs to) which have had added capabilities and customers and helped to strengthen its position in the vibrant identity management market. The acquisitions added 20% to GB Group’s top line taking total revenues to £31.8m for the year. We’re pleased to see the underlying business is growing too though - organic growth was a healthy 11% (cf 9% in FY11). Margins have also improved as the benefits of greater scale, a wider product set and more effective cost control took effect. Pre-tax profit was up 62% to £2.5m. The strong results and confidence in future prospects have led the Board to increase the dividend by 7.8% to 1.375p per share.
GB Group is in one of the ‘hotspots’ in the market and there’s no doubt that demand for identity management solutions like its ID Verification and ID Customer Registration software is strong both in the UK and internationally. But scale is important, and the market still has the feel of one where vendors have to acquire or be acquired. GB Group’s recent purchases have helped to strengthen its position but it can’t afford to rest on its laurels. However, having just made three acquisitions, the focus in the coming year will rightly be on organic growth, improving margins and bedding in the acquisitions, whilst also adding new countries to its portfolio in the cross-border identity management market.