GB GROUP (GBG) H1 2025 earnings summary

Executive summary

• Revenue grew 4.5% year-over-year to £136.9 million, with adjusted operating profit up 21.3% to £29 million, reflecting strong cost discipline, operational improvements, and execution of strategic focus areas.

• Identity and Location segments drove growth, with Identity up 6% and Location up 9%, while Fraud declined 9% due to renewal timing but is expected to recover in H2.

• Net revenue retention improved to 100.2%, with upselling, cross-selling, and pricing initiatives supporting organic growth.

• Net debt reduced by £9 million to £71.9 million, with leverage at 1.05x EBITDA and strong cash conversion at 83.7%.

• No exceptional items in the period; prior year included significant impairment charges.

Financial highlights

• Revenue: £136.9 million, up 4.5% constant currency and 3.4% reported year-over-year, led by Identity and Location.

• Adjusted operating profit: £29 million, up 21.3% year-over-year; margin at 21.2%.

• Adjusted diluted EPS increased 42.4% to 7.3p year-over-year.

• Gross margin improved to 69.6%, up 40bps year-over-year.

• Cash generated from operations before tax was £24.5m; cash conversion at 83.7%.

Outlook and guidance

• Full-year outlook reiterated: mid-single-digit constant currency revenue growth and high single-digit adjusted operating profit growth expected.

• Operating expenses to rise in H2 as savings are reinvested in growth initiatives, but within guidance.

• Fraud segment expected to return to growth in H2 and maintain long-term double-digit CAGR.

• Full-year adjusted effective tax rate expected to be approximately 25%.