Software firm GB Group has reported that its trading aligns with expectations for the first quarter of 2025, following a slight decline in revenue for 2024.
The company anticipates that its identity verification and location intelligence services will be key drivers of revenue growth in the coming year. However, it expects to see a reduction in revenue from its fraud prevention division in the first half, attributing this to "the timing of software license renewals".
With its annual general meeting (AGM) scheduled for this morning, GB Group is forecasting mid-single-digit revenue growth and high single-digit growth in adjusted operating profit for the full year.
For the year ending 31 March 2024, the Chester-based company saw a marginal revenue decrease of 0.5 per cent, totalling £277m, .
"The board is pleased to report that GBG has continued to trade in line with our expectations in the first quarter as the improved momentum in Identity and resilient growth in Location continued from the final quarter of FY24," Richard Longdon, non-executive chairman, is set to announce at the AGM.
Shares of the London-listed GB Group have seen an increase of over 26 per cent since the start of the year.
In June, GB Group revealed an eight per cent rise in adjusted operating profit to £61.4m, despite an overall operating loss of £41.4m due to a significant exceptional non-cash goodwill impairment charge of £54.7m.
"As we look to the longer term," Longdon will add, "the Board remains confident that GBG's strong competitive differentiation will continue to underpin our leadership positions across the markets we serve."
He will add: "The technological capabilities we have built and our highly repeatable business model will enable us to capitalise upon the significant growth opportunities ahead to deliver significant and enduring shareholder value."
GB Group has scheduled its next trading update for mid-October.
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