GB Group PLC (LSE:GBG) shares plunged more than 23% after the identity verification and fraud prevention specialist cut its full-year revenue growth guidance following weaker-than-expected trading in its Americas Identity business.
The shares were down 23.4% at around 177.7p in early London trading on 14 August, wiping more than 54p from the stock price.
GBG now expects revenue growth of 1%-3% for the year ending March 2027, compared with its previous expectation of mid-single-digit growth.
Americas customer attrition hits outlook
The downgrade follows higher-than-expected volume attrition from several material customers in the Americas Identity division.
GBG said first-quarter revenue from the business had been only marginally below plan, but growth failed to improve during the second quarter. Although its sales pipeline remains strong, the company said normal sales cycles mean new opportunities are unlikely to compensate for the lost volumes during the current financial year.
Adjusted operating profit margin guidance has consequently been tightened to around 21%, compared with the previous 21%-22% range.
Americas chief revenue officer Tom Schutz has also left the company, with chief operating officer James Gothard assuming interim responsibility for the division.
GBG Go investment continues
Despite the weaker outlook, GBG will proceed with the previously announced £6 million investment in GBG Go, its AI-powered global identity platform, aimed at accelerating its innovation roadmap.
GB Group provides identity verification, location intelligence and fraud prevention technology. The company reported FY26 revenue of £285 million, up 3.2% on a constant-currency basis, with adjusted operating profit of £67.5 million.
