GB Group eyes main market listing

Digital location, and identity fraud software provider GB Group (GBG) intends to commence the required workstreams to move from its AIM home of the last fifteen years to a listing on the Main Market of the London Stock Exchange. The Board believes this proposed change will further enhance GBG's reputation with larger and more global customers in-line with its strategy to move into new geographies. In addition, the switch should also increase GBG's access to a broader pool of capital from domestic and overseas investors. 

News of the plan accompanied the publication of the company’s FY25 results. The twelve months ended 31st March saw GBG’s revenue increase by 3% yoy at constant currency to £282.7m, albeit the pace of expansion slowed somewhat in the second half. The company’s topline was up 4.5% yoy in H125 (see here). The period, described by GBG as a year of transition, also saw the software house both turn the loss before tax of £50.2m delivered in FY24 into a £15.7m profit for the latest full fiscal and generate a 160 bps improvement in adjusted operating margin of 23.7%.

The company’s Location and Identity businesses, together accounting for 86% of total annual sales, both made positive progress in FY25. Revenues in the two units were up yoy by 3.1% and 6.2% respectively. The performances were supported by expanded activity with customers such as Certipath, Capital One and Costco in the former and customer wins at Microsoft, Dell, and FedEx in the latter. Turnover from GBG’s Fraud offerings, however, dipped by 4% to £38.1m, although there was a modest return to growth for this division in H2.

Commenting on his first full financial year GBG’s helm, new CEO Dev Dhiman (see here) believes that the foundations laid during FY25 have created a platform for accelerated growth. The new financial year is reported to have begun as anticipated and GBG’s outlook for FY26 is described as consistent with market expectations. The current sell-side analyst estimate median is, however, for a yoy top line improvement of less than 1%. At the time of writing, the company’s share price was down 9% on last night’s close to leave GBG’s value more than a third lower than six months ago.

Posted by: Duncan Aitchison at 09:29

Tags: results   software   cybersecurity