GB ups international presence

International revenues also stepped up as a proportion of the total, rising from 34 per cent to 45 per cent – with “encouraging” trading in GB’s two key target markets, North America and Asia. Such expansion and diversification was enabled by two strategic acquisitions made during the period. First, GB bought VIX Verify – an Australian company that specialises in identity and location intelligence – for A$38.3m (£21.3m) last October. Then, in February of this year, it purchased IDology – a provider of identity verification and anti-fraud services – for $300m (£232m), marking its largest transaction to date. Based in Atlanta, Georgia, the business enhances GB’s presence in the US.

Of course, deals don’t come for free. IDology was funded via a £160m share placing and £84m of debt. Cash and debt were also used to acquire VIX. In turn, GB swung to a net debt position of £66.3m overall, from net cash of £13.5m. Management noted that decision-making around future acquisitions would consider four criteria: whether the respective business brings in new technology; whether it takes GB into new geographies; whether it brings access to new data sets; and whether it offers new customers.

Turning back to the profit-and-loss account, on an adjusted basis, the operating margin edged up from 22 per cent to 22.3 per cent – despite “significant” ongoing investments.

Investec expects adjusted pre-tax profits of £40.7m and EPS of 17p for the March 2020 year-end, up from £31.3m and 17.9p in FY2019.