GB GROUP (GBG) H2 2024 earnings summary

Executive summary

• FY24 results met expectations with revenue of £277.3m and 2.7% constant currency growth year-over-year.

• Adjusted operating profit rose 8% (excluding prior year FX gain), margin improved to 22.1%.

• Net revenue retention improved to 98.1%, with new business wins contributing to growth.

• Strategic focus on cost effectiveness, simplification, and operational improvements, especially in the Americas.

• CEO outlined four focus areas for FY25: removing complexity, global alignment, high performance, and innovation.

Financial highlights

• Revenue: £277.3m, up 2.7% year-over-year on constant currency; reported revenue declined 0.5%.

• Adjusted operating profit: £61.2m, margin 22.1%, up 170bps excluding prior year FX gain.

• Net revenue retention (NRR) improved 580bps to 98.1%; excluding fraud, NRR rose to 99%.

• Net debt reduced by £25m to £80.9m; leverage at 1.27x.

• Free cash flow: £35.2m; cash conversion at 90.6%.

Outlook and guidance

• FY25 guidance: mid-single digit revenue growth, high single-digit adjusted operating profit growth, and 90–95% cash conversion.

• Adjusted effective tax rate expected to be approximately 25%.

• Confidence underpinned by Q4 momentum and operational initiatives.