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The Markets
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The Markets
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Business & education services

GB Group to beat market expectations despite 'macro uncertainties'

It suspended business with Russian customers, which accounted for less than 0.5% of revenue

GB Group (LSE:GBG) PLC expects revenue and profit to beat expectations and said it remains upbeat despite the pandemic, rising inflation and 'macro uncertainties'.

The identity-data-intelligence specialist expects revenue for the year ended 31 March 2022 of about £242mln, including approximately £13 million of initial revenue¹ from the recent acquisitions of Acuant and Cloudcheck. Organic constant currency growth is expected to be approximately 10.5% for the year.

The group added it expects adjusted operating profit margin at the upper end of expectations, of around 24%, resulting in adjusted operating profits of not less than £58m, ahead of market expectations.

“We carry momentum into our new financial year with real enthusiasm for what we can achieve despite some significant macro uncertainties,” said chief executive Chris Clark.

The company creates software focused on verifying digital identities and location, as well as preventing fraud said it suspended business with Russian customers, which accounted for less than 0.5% of revenue.

Cash generation was “strong” which allowed the group to pay part of the debt for the Acuant acquisition, with net debt at US$139.7mln.

According to a statement, it benefitted from growing demand, shifts in consumer behaviour to greater online activity and the resumption of on-premise activities in the last year

GB Group (LSE:GBG) said the acquisition of Acuant was driven by a “compelling strategic rationale,” as it allowed it to increase its presence in the US and accelerate the development of new products and technology.

Shares were up 7% to 614.2p in morning trading.

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