First half results from identity management specialists GB Group largely confirm the picture painted in its recent trading update (see GB Group growing nicely). Turnover increased by 44% to £17.7m as three acquisitions contributed a full six months of revenue for the first time. Organic revenue growth was also healthy at 14% (to £13.4m) with GB Group benefiting from growth in online and cross-border trading and corresponding demand for identity management services.
Operating profit before amortisation of acquired intangibles, share-based payments and other ‘exceptional’ items increased by 57% to £1.5m. But take these adjustments out of the equation and pre-tax profit declined by 31% to just £501k, predominantly due to higher levels of amortisation. The group is highly cash generative though (cash balances increased by 22% to £5.8m) and the trading outlook is encouraging. Indeed, deferred revenue balances now stand at £4.9m, compared to £2.4m this time last year.
GB Group’s fourth acquisition in eighteen months – that of CRB software and services specialists TMG CRB earlier this month (see GB Group acquires criminal records supplier) – could also prove strategically important, providing the opportunity to address new markets and offer a broader solution to its clients. CEO Richard Law describes the overall picture as one of ‘exciting times’ for GB Group. He’s understandably positive about the Group’s prospects longer term and confident of a strong performance for the remainder of the year.