Growth in online transactions a boon for GB

Identity management specialist GB Group was heading back towards its 52-week high after racking up double-digit percentage organic growth in the first half of its financial year.

The group said it performed in line with market expectations in the six months to the end of September, with organic growth supplemented by contributions from acquired businesses.

Group revenues grew 44% to £17.7m from £12.3m the year before, with an expected 55% increase in adjusted operating profit to £1.4m from £0.9m the previous year.

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The DataAuthentication and the DataSolutions businesses performed well ahead of last year. DataSolutions' revenue was some 60% ahead while DataAuthentications' revenue was about 25% up year-on-year.

A sizeable chunk of the increase in the DataSolutions' divisions revenue came from Capscan, which was acquired early in the second half of the previous year. As a result, the year-on-year growth rate will slow down in the second half of the year.

GB Group remains confident of the long-term potential of the markets in which it operates, as businesses and governmental organisations increase their on line transactions.

"As UK and international business continues to move online and cross border online trading between individuals and businesses increases, the need for our identity verification and engagement services by organisations becomes ever more critical. In addition to further improvements and developments of our technologies, we have continued to invest in, and added further countries to, our already extensive international capability to promote long term growth for GB Group," said Richard Law, GB Group's Chief Executive Officer.

Cash at the end of September stood at £5.8m, up from £4.2m a year earlier.

JH