Identity data intelligence provider GB Group (GBG:AIM) has toughed out the Covid-19 crisis impressively given the company’s half-year figures to 30 September.
Revenue grew close on 10% to £104 million while adjusted operating profits grew 24.5% to £26.8 million, bolstered by a major contract win. The adjustments relate to the amortisation of acquired intangibles, share-based payment charges and exceptional items.
The on-premise deployment nature of GB’s Fraud arm did struggle under the various pandemic restrictions, falling 27%, but this is the smallest part of the business (about 12% of overall sales) and so was easily offset by 26% growth on its larger Identity arm, worth 62% of total revenue.
NO NASTY SURPRISES
That the share price hardly budged on Tuesday is another firm indication of GB’s reputation for setting out its expectations stall and delivering on them.
The stock nudged just 0.8% lower to 893p, just 7p off its 900p all-time high.
If anything, market expectations err to the pessimistic, with revenue expected to rise just 2% year-on-year £203 million and adjusted operating profits to decline 7% to £44.5 million.
With Covid vaccines having emerged and, in the UK so far, now being gradually deployed, management are comfortable about turning on the business investment taps again. This should mean making funds available for new products, additional sales capacity and the marketing programmes to support the emerging pipeline.
‘Pre-Covid growth levels should follow’, believes Megabuyte analyst Indraneel Arampatta, although that will depend on ‘global macroeconomic confidence’, he said.
‘Having upgraded recently, we pause to better assess the vaccine implications’, said Peel Hunt’s analysts, who admit to strengthening tailwinds for GB. ‘We believe the risks are now to the upside.’
