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GB Group’s (GBG) Share Price Rallied 12% on Its Half-Year Results

Simon Mugo trader
Updated 19 Oct 2023

The GB Group plc (LON: GBG) share price rallied 12% after the company released its half-year trading update for the six months to 30 September 2023. In the first half of the year, the company reported revenues of around £132.4 million compared to £133.8 million in the same period in the previous year.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The revenues indicated a steady growth of 1.8% in constant currency terms. When the decline in cryptocurrency customer revenues is eliminated, the actual growth for the year's first half was a more robust 3.3%. 

The company’s location segment demonstrated robust performance with high single-digit constant currency revenue growth. The growth was attributed to new customer and partner acquisitions, alongside increased upsell activities. This achievement is noteworthy given the prevailing challenges in e-commerce volumes.

The Fraud segment achieved an impressive low double-digit revenue growth. This growth was primarily driven by renewing crucial contracts and acquiring new business.

The Identity segment experienced a revenue decline of approximately 3% in constant currency terms. However, when we eliminated the decline in cryptocurrency customer revenues, the Identity segment remained relatively stable. 

The stability was attributed to solid growth in the Asia-Pacific (APAC) region, which offset the challenges presented by a tough comparison to the previous year in the Americas. 

The company's gross margin for the year's first half stood at approximately 69.2%, a slight decrease from the previous year's 71.1%. The revenue mix influenced the dip during this period.

As previously communicated, the company has focused on achieving efficiency across the group while making disciplined investments to capitalise on long-term opportunities within their markets. 

The company expects an adjusted operating profit of around £23.7 million for the year's first half. This outcome underscores the company's commitment to enhancing simplicity and efficiency, reinforcing the Board's confidence in GBG's ability to meet its profit expectations for the 2024 financial year.

GBG's financial position remains robust. Year-to-date cash conversion has notably improved to approximately 100%, compared to 57.5% in the previous year, owing to the reduction of one-off items. 

As of September 30, 2023, the company's net debt was approximately £104.8 million, a slight decrease from the £105.9 million recorded on March 31, 2023.

GB Group (GBG)  share price. 

The GB Group (GBG) share price rallied 12% today after the upbeat half-year results.

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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading