GB Group: Anti-fraud firm declares interim dividend after posting strong US-led profit growth

The AIM-listed anti-fraud firm GB Group has revealed it will issue an interim dividend for the first time after seeing strong profit growth in the first half. 

The company, which provides online identity verification services to more than 20,000 customers across 70 countries, reported revenues of £103.5 million in the six months to September 30, up nearly 10% from the £94.3 million reported in the same period a year earlier. 

Operating profits increased by almost 25% on an underlying basis, to £26.8 million, with net debts reduced to £2.7 million by the end of the period - a £32 million improvement since the start of the financial year.  The company declared an interim dividend of 3p per share in its results statement on Tuesday. 

Growth in the period was boosted as many sectors made major shifts online due to the pandemic, and by a one-off customer project in the US, which is not expected to continue into the second half of the year. 

The US now accounts for around 41% of the UK-based identity and location verification specialist's business, following a period of development and a major US acquisition 19 months ago. 

Around half of the firm's clients are in the financial services sector. 

Chief executive Chris Clark told the Standard the company is "very confident for the future" in the long-term as the "pandemic has accelerated many of the tailwinds that help us grow".

He said the firm - whose mission is  to "prevent fraud in many guises" - had seen the most growth in sub-sectors of retail since the pandemic broke out, with retail now accounting for around 9% of the firm’s business.

He said: "What we have seen [in the six months to September 30] is explosive growth in some sectors. 

"The biggest growth has definitely been in the US over the last 9 months - lots of tech companies are finding the same. I think there are lots of reasons for this, besides the scale.... There is a different attitude in the US, more of a 'just get on with it' attitude."

In the results statement the firm reiterated guidance for the full year, anticipating revenue to be marginally ahead of last year on an underlying basis.