News Column

GB Group Raises Dividend As Profit Boosted By Margin Improvements

July 2, 2014

Hana Stewart-Smith

LONDON (Alliance News) - GB Group PLC Wednesday raised its total dividend for the year to end-March, and said it was confident in its long-term growth prospects, as it saw pretax profit rise in the year to end-March.

The identity solutions company raised its total dividend by 6.7% to 1.60 pence from 1.50p for the year before.

GB Group posted a pretax profit of GBP4.0 million, up from GBP3.5 million in the previous year, as revenue rose to GBP41.8 million from GBP39.4 million and margins improved. Cost of sales dropped to GBP14.5 million from GBP16.7 million.

The company saw a strong performance in its Identity Proofing business, driven by the launch of its ID3global identity verification software.

In its Identity Solutions business, the company saw revenues rise 11%, driven by the launch of new versions of its software products.

The company restructured its commercial agreements with BT Group PLC last year, and whilst under the new terms it no longer receives royalty payments from BT, it no longer pays a proportion of revenue for clients served through its ID3global platform. As a result of this, revenue from the agreement has reduced, but margins have increased.

The company said shortly after the year end that it had acquired Australia-based DecTech Solutions Pty Ltd, which had helped provide it with better better scale, capabilities and geographic reach. The acquisition is being integrated into the company's Identity Proofing business.

In the coming year GB Group said it will continue to focus on internationalising its product portfolio, continuing its investments and improving margins.

Shares in GB Group were trading up 3.8% at 162.38 pence Wednesday morning.

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Source: Alliance News

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