GB Group Expects Revenue Decline in H1

GB Group, the London-listed identity-data-intelligence specialist, has announced that it expects a decrease in revenue for the first half of fiscal year 2024. However, the company remains confident that it will meet its profit expectations for the full year.

According to GB Group, revenue is projected to be around £132.4 million ($160.7 million), compared to £133.8 million the previous year. On a constant-currency basis, revenue is expected to show a growth rate of 1.8%.

The company anticipates a decline of approximately 3% in identity verification revenue for the first half, as previously predicted. However, GB Group notes that monthly transaction volumes in the identity sector have stabilized, and it still expects some year-on-year revenue growth in the latter part of the year.

Adjusted operating profit for the first half is estimated to be around £23.7 million.

GB Group also states that its gross margin is anticipated to be approximately 69.2%, down from 71.1% in the previous year. This reflects the revenue mix during the period.

"The ongoing focus on simplicity and efficiency underpins the board's confidence that GBG will deliver its fiscal 2024 profit expectations," the company explains.