Shares in GB Group (GBG) climbed 13 per cent on news that revenue and adjusted operating profit should beat market expectations for the year to March 2018.
The identity data intelligence company expects to report sales of around £120m, up 37 per cent year on year – comprising 17 per cent organic growth. This includes £3.5m from last September’s sale of a non-recurring perpetual licence to a European bank. But, even on an underlying basis, organic momentum was strong at 15 per cent. Meanwhile, adjusted operating profit should come in at £26m, up 53 per cent.
Net cash also improved significantly, from £5.2m to £13.4m – despite the settlement of payments tied to prior-year acquisitions and dividend payouts.
For Peel Hunt, GB’s trading update “is testament to the quality of its offering, the market demand and solid execution”. The house broker highlights, among other areas, the outperformance of PCA Predict – the address validation specialist acquired last May – and its broader location intelligence offering.
