GB Group PLC (LON:GBG) has said it will not declare a final dividend to save cash amid the coronavirus (COVID-19) crisis but expects to post strong full-year results.
In a pre-close season trading update, the identity data intelligence specialist said some business areas are still experiencing growth while there is reduced demand in others.
It said operations have been moved to remote working though the Chinese arm is coming out of the lockdown. Other cost-saving measures are pay freezes across the group and pausing of all non-essential recruitment.
For the year to March 31, 2019, the firm said it expects to report revenue up 38% to £199mln and adjusted operating profit up 47% to £47mln, both ahead of consensus forecasts.
GBG noted that it has financial headroom of £75mln, plus £30mln available to draw down, with net debt at £35mln.
Chris Clark, the group's CEO commented: "GBG has delivered a strong set of results which are ahead of market expectations despite some, albeit limited, financial impact from COVID-19 in the final quarter."
"Looking further forward, I take much confidence from FY20 being a record revenue and profit outcome with the business delivering good organic growth across our product solutions and geographies. Although it is yet to become clear on what a post-COVID-19 world will look like, this recent performance will provide a good foundation to weather this crisis and leaves us well-positioned when it is over," he added.
In a note to clients, analysts at 'house' broker Peel Hunt said they think GBG can weather over a 30% headwind to its revenue thanks to its cost actions.
GB shares rose 1% to 667.56p on Wednesday morning.