Half year results for the six months ended 30 September 2024

GB GROUP PLC

(“GBG”, the “Group” or the “Company”)

Half year results for the six months ended 30 September 2024

A good first half: FY25 outlook reiterated

GB Group plc, (AIM: GBG), the experts in global identity fraud and location software, today announces its unaudited results for the six months ended 30 September 2024.

¹Defined within note 21 to the results. ²Prior year included a £54.7 million non-cash goodwill impairment charge. Growth percentages are calculated with reference to the actual unrounded figures in the primary financial statements and so might not tie directly to the rounded figures found in this release if recalculated.

Financial highlights

• Good half-year results, in line with the trading update released on 17 October 2024
• Growth of 4.5% on a constant currency basis (CCY); and 3.4% on a reported basis
• Revenue growth acceleration driven by Identity, up 6.0% and Location, up 8.6% on a CCY basis
• As anticipated, our smallest segment Fraud was down 9.2% on a CCY basis given timing of licence renewals
• Net revenue retention (NRR) on a rolling 12-month basis improved to 100.2% at 30 September 2024 compared with 94.9% at 30 September 2023
• Revenue from new wins in the last 12 months continued to be strong at 3.8%
• First half adjusted operating profit¹ grew by 21.3% to £29.0 million, representing a margin of 21.2% driven by our revenue growth and the enduring benefit of the cost initiatives executed in FY24
• Net debt decreased by £9.0 million since 31 March 2024 to £71.9 million, representing a net debt to EBITDA leverage of 1.05x (FY24: 1.27x). Cash conversion on a 12-month rolling basis was 83.7% (FY24: 90.6%)

Executing well against our four initial focus areas

• Removing complexity: Continued benefit from the FY24 cost and simplification initiatives, while actions to streamline our commercial processes are helping to accelerate our sales cycle
• Being globally aligned: We are harmonising our brands, delivered increased cross-sell and up-sell through Identity Fraud and Location GTM collaboration, and started transitioning to a unified online GTM presence for our Identity Fraud business
• Differentiation through innovation: Enhancing the user experience for our document and biometric capabilities, expanded international data coverage and ramping up of activity on GBG Trust and GO to drive customer value
• Driving a performance culture: Increased team engagement as our teams embrace a performance culture, driving progress on execution, new customer acquisition and existing customer retention

FY25 outlook reiterated

• Trading since the half year end has been in line with expectations and the Board reiterates its FY25 outlook underpinned by the strong progress achieved in the year to date
• We continue to expect mid-single-digit revenue growth on a constant currency basis for FY25, which will drive high single-digit growth in adjusted operating profit, given the operational efficiency gains achieved in FY24

Dev Dhiman, Chief Executive Officer (CEO), commented:

"I’m pleased to report on a first half where we have made positive progress against my initial focus areas; removing complexity, being globally aligned, driving a performance culture and differentiating through innovation. We are retaining customers and doing more with them, and our new customer acquisition continues to be strong. Combined with the continued benefit of our group-wide cost and simplification initiatives executed in the prior year, we have delivered a good first half outcome.

There is more to be done to drive our reacceleration in organic growth, but I am highly encouraged with our progress to date, and I thank the entire team who have responded with energy and positivity to this challenge. This performance underpins our confidence in reiterating our full year outlook and in GBG over the longer term.”.

Analyst and investor presentation
Management will host a virtual presentation this morning at 0930hrs GMT for sell-side analysts and institutional investors.

To register to view the event live online, please use the following link:
https://www.investis-live.com/gb-group/66fd06fb4132f400154edff1/mqpet

The full results statement and presentation is accessible via our investor website at the following link:
https://www.gbgplc.com/en/investors/resources/reports-and-presentations/