Yahoo Finance GB Group reports soaring revenues as companies pivot online in Covid era
The company said good growth in fintech and many more online shopping transactions had boosted revenues.
(PA)GB Group, the AIM-listed anti-fraud firm, has reported soaring annual revenues as businesses pivot online during the pandemic.
The company, which provides online identity verification services to more than 20,000 customers, said in a trading statement on Thursday that it saw operating profits up 21% to £58 million in the year to end March.
Revenues were up 9% to £217 million, and the company ended the year with £21 million in net cash, compared to £35 million in net debt a year earlier.
The company said it “had a strong year in challenging conditions and benefited from customers shifting to digital models”.
The US now accounts for over 41% of the UK-based identity and location verification specialist’s business, following a period of development and a major US acquisition 19 months ago.
Around half of the firm’s clients are in the financial services sector.
On Thursday the company said good growth in fintech and many more online shopping transactions had boosted revenues.
It said this “strong cash generation” had allowed the firm to repay its bank loans in full by the end of the period.
Bosses said profits also rose in part due to “cost savings as a direct result of the pandemic”.
Chief executive Chris Clark said he was “very pleased” with the firm’s “significant financial and strategic progress in the most extraordinary circumstances”.
He said: “One legacy of the pandemic will be accelerated digitalisation. GBG will play a major role in this transition and over the next year we will continue to make important strategic investments in the business, its technology and in our people to fully leverage the opportunity this presents.”
Shares were up 3.3% on Thursday morning.
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