Identity management specialists, GB Group, continue to move in the right direction. Ahead of its half-yearly results for the six months to 30th September, the Group has revealed that revenues for the six months were up 7% to £12.4 million, with profits (before exceptional items, interest, share-based payments and tax) up by 33% to £1.0 million.
The Group made two acquisitions towards the end of the period (GB Group boosts ID tracing business for details on the acquisition of Data Discoveries and GB Group acquires again for details on Advanced Checking Services, both in July). Data Discoveries joined GB Group’s DataSolutions business, while Advanced Checking Services was taken into the DataAuthentication fold. Combined, the two businesses had annual revenues of £2.2 million before the acquisition.
During H1, the DataAuthentication business saw revenues increase 14% to £5.8 million (the acquisition would have had very little impact on this figure). However, the DataSolutions business only saw revenues increase 2% to £6.6 million. By our calculations, this business would probably have seen a small decline had it not been for the addition of Data Discoveries.
GB Group’s DataAuthentication business usually suffers when the economy is in the doldrums (see GB Group ‘identifies’ revenue and profits growth’, as identity verification usually happens when the trading relationship between organisations and their customers begin. It is possible, therefore, that this business could hit problems again if economic conditions worsen. On the other hand, we would have expected a better performance from the DataSolutions business considering the ability of its tracing solution to 1) help companies trace and make contact with potential customers and 2) manage fraud. We’d imagine that GB Group is finding this market increasingly crowded as small and large companies alike flock to benefit from spend in this space.