GB Group PLC on Thursday said it was hurt by ‘unexpectedly deep post-pandemic corrections’ in some of its end markets in the financial year that ended March 31, as it swung to an annual loss.

The digital location and identity services provider explained that the corrections were largely felt in the internet economy, notably by cryptocurrency and fintech customers in its Identity business in the Americas.

GB Group reported a pretax loss of £118.8 million, swinging from a profit of £21.7 million the year prior. Revenue totalled £278.8 million, up 15% from £242.5 million. However, cost of sales increased 15% to £81.0 million from £70.5 million, and operating expenses more than doubled to £313.5 million from £148.2 million.

Chief Executive Officer Chris Clark said: ‘GBG continued to make important strategic progress and operational improvements that will have long-term benefits; however, we were impacted by unexpectedly deep post-pandemic corrections in some end markets. These corrections were largely felt in the internet economy, notably by cryptocurrency and fintech customers primarily in our Identity business in the Americas, as flagged in our February trading update.’

The company declared a final and total dividend of 4.00 pence per share, up 5.0% from 3.81p a year prior.

CEO Clark said: ‘Looking ahead to FY24, since our update in February, there has been no material change in market conditions. Uncertainty remains; however, we still expect some gradual revenue acceleration in the latter part of the year. The board is confident that GBG will deliver its FY24 profit expectations assisted by a group-wide focus on efficiency. ’

GB shares fell 9.9% to 258.30 pence each in London on Thursday morning.

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