GB GROUP (GBG) Trading update summary

Revenue

• 1H revenue expected at £139.5m, up 1.4% on a constant-currency basis; organic constant-currency growth was 0.4%, excluding the DataTools acquisition.

• Location and Identity, c.95% of revenue, grew 4.5% on a constant-currency basis; organic growth was 3.4%.

• Location revenue grew 8.9% on a constant-currency basis, or 5.5% organically, led by enterprise channel partnerships and APAC.

• Identity revenue grew 2.4%, with double-digit growth outside the Americas led by EMEA; Americas performance was affected by attrition among a small number of material direct customers.

• Global Fraud Solutions, c.5% of revenue, declined more than expected amid renewal timing, churn and fewer new wins; the business remains profitable and cash generative as strategic options are assessed.

Profitability

• 1H adjusted operating profit expected at £27.0m, versus £29.5m in 1H26, reflecting additional investment to accelerate GBG Go; incremental spend remains on track to conclude by FY27 end.

• Transformation and simplification continued, with accelerated cost-efficiency actions; c.£4.5m of exceptional costs incurred in 1H.

• A non-cash goodwill impairment charge is expected for Americas Identity; it will be treated as exceptional, with no impact on adjusted operating profit or cash.

Outlook

• FY27 revenue growth expected at 1–3%; outlook is in line with recently revised market expectations.

• Cost-efficiency progress underpins confidence in adjusted operating profit in line with market expectations; consensus indicated FY27 revenue of £288m–£292m and median adjusted operating profit of £61m.