GB Group confident of future growth

Shares of identity management specialist GB Group shot ahead after it issued a confident outlook for future growth and said it expects revenues to increase by 27 per cent for the year to 31 March 2012.

The year-on-year improvement in revenue was due to both organic and acquisitive growth, it explained.

GB expects to report adjusted EBITDA of £3.9m, up 62% and adjusted operating profit of £3.5m, an increase of 85%, comfortably ahead of market expectations.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

CEO Richard Law said, "Our growth is closely linked to that of online business, as companies seek to better understand their customers in this environment. With our growing international capabilities we are now strongly positioned in the emerging cross-border online identity verification market, which we believe represents an exceptional opportunity."

"As a result of all these factors, the board remains confident of future growth."

Cash balances are expected to be around £3.5m as at 31 March 2012 compared to £6.2m in 2011 after payments of £1.1m for the final dividend for the year ended and £3.6m in respect of consideration for acquisitions.

GB said all three acquisitions made during the financial year are all integrating well and synergies are expected to be higher than anticipated at the time of acquisition.

cj