GB Group PLC on Tuesday said its loss ballooned in the first half due to one-off charges, but said it expects full-year revenue growth.
The Chester, England-based software company reported that it posted a pretax loss of £57.3 million in the first half ended September 30, having recorded a loss of just GB24,000 a year prior. The company noted that the loss figure was predominantly a result of a £54.7 million goodwill impairment charge due to the increase in central bank interest rates. Rate rises resulted in an increase in the pretax discount rate applied to US cashflows in its impairment assessment.
It added that its finance costs increased to £4.7 million, from £2.6 million previously.
The firm said revenue fell 1.1% to £132.4 million, from £133.8 million a year ago. GB noted that its location and fraud sectors performed well, growing 8.1% and11% respectively. Its identity business declined 2.8%, however, which it said was expected.
Looking ahead, the company said its second half performance has so far been in line with its expectations, and maintained its forecast of revenue growth for the full year. It noted that it expects its identity business to grow in the latter part of financial 2024.
Chief Executive Chris Clark said: ‘We are pleased with the first-half performance, Location and Fraud delivered good growth and transaction volumes within Identity have stabilised. At the same time, our continued focus on structural efficiency savings has already achieved an annualised run-rate reduction in operating expenditure of £10 million, while maintaining investment in our differentiated product portfolio.
‘While the subdued macroeconomic environment may persist, we continue to expect some year-on-year Identity revenue growth in the latter part of the current year, and I am confident that our strong discipline on cost, good momentum with customer wins and high retention leave GBG very well positioned to deliver our FY24 profit expectations.’
GB Group shares fell 3.0% to 248.40 pence each on Tuesday morning in London.
Copyright 2023 Alliance News Ltd. All Rights Reserved.
