GB GROUP (GBG) H1 2025 earnings summary

Executive summary

• Revenue grew 4.5% year-over-year in constant currency to £136.9 million, with adjusted operating profit up 21.3% to £29.0 million and adjusted diluted EPS up 42.4%, reflecting strong execution and cost initiatives.

• Growth was driven by strong performance in Identity (+6.0%) and Location (+8.6%) segments, while Fraud declined 9.2% due to renewal timing.

• Net revenue retention improved to 100.2%, with Identity and Location at 102.6%, and new customer wins contributed 3.8% to revenue.

• Operational focus on efficiency, innovation, customer centricity, and team engagement delivered tangible improvements.

• Net debt reduced by £9.0 million to £71.9 million, with leverage at 1.05x EBITDA and cash conversion at 83.7%.

Financial highlights

• Revenue: £136.9 million (+4.5% constant currency, +3.4% reported year-over-year); gross margin improved to 69.6%.

• Adjusted operating profit: £29.0 million (+21.3% year-over-year), margin at 21.2% (up 310bps).

• Adjusted diluted EPS increased 42.4% to 7.3p; adjusted earnings up 39.9% to £18.5m.

• Net debt reduced by £9.0m to £71.9m; net debt/EBITDA leverage improved to 1.05x.

• Cash conversion at 83.7% on a rolling 12-month basis; 95% of revenue from recurring streams.

Outlook and guidance

• FY25 outlook reiterated: mid-single-digit constant currency revenue growth and high single-digit adjusted operating profit growth expected.

• Trading since period end in line with expectations; Board confident in delivering full-year targets.

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