AUS
NZ
UK
CA
USA
IND
Highlights
- GBG’s FY24 revenue rose 2.7%, with 5.0% growth in Q4 driven by Identity Americas and EMEA.
- Simplification and cost-efficiency led to GBP 10 million in savings and an 8.0% profit increase.
- The company’s FY25 outlook includes mid-single-digit revenue growth and high single-digit profit growth due to efficiency.
GB Group PLC (LSE:GBG) is a UK firm listed on the FTSE AIM UK 50 Index. It provides identity data intelligence solutions. The company focuses on three main areas: location, identity, and fraud prevention. It has a market capitalization of GBP 851.63mn.
In FY24, the company saw a slight increase of 2.7% in constant currency revenue compared to the previous year. Growth accelerated to 5.0% in the final quarter (Q4 FY24), largely due to improved performance in Identity Americas and EMEA. Adjusted operating profit also surged by 2.3% during the same period.
The company's focus on simplification and cost-effectiveness resulted in GBP 10 million in annual savings and a GBP 8.8 million benefit within the year. Consequently, adjusted operating profit increased by 8.0%, reaching GBP 61.4 million.
Additionally, the company had a current ratio of 1.00x and a debt-equity ratio of 0.16x in FY24. This compares to a current ratio of 0.94x in FY23 and a debt-equity ratio of 0.18x for the industry median.
Recent Business Update
The company proposed a final ordinary dividend of GBX 4.20 per share for FY24, an increase from GBX 4.00 in FY23. This amounts to a total of GBP 10.6 million for FY24, up from GBP 10.1 million in FY23.
Company outlook
The company began FY25 as expected, maintaining the momentum from the final quarter of FY24 in both Identity and Location segments. Mid-single-digit revenue growth in constant currency is anticipated for the year, with high single-digit growth in adjusted operating profit driven by improved operational efficiency.
GB Group's emphasis on identity onboarding supports customers during this critical phase of the customer lifecycle, promoting growth and long-term trust. Their products, such as GBG Trust, underscore their market strength amid the growing digital transformation and escalating fraud risks.
Top 10 Shareholders
The top 10 shareholders of GBG Group together hold approximately 42.21% of the total shares. Octopus Investments Limited is the largest shareholder with around 6.82% of the shares, while AXA Investment Managers UK Ltd. follows with about 5.97%. This distribution is illustrated in the chart below.
Stock Information
GBG's stock price has decreased by approximately 3.80% over the past month but has risen by about 21.50% over the last six months. The stock has a 52-week low of GBX 202.80 and a 52-week high of GBX 366.80. It is currently trading higher than the average of these 52-week high and low values.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 02 Sep 2024. The reference data in this report has been partly sourced from EODHD/Others.
