LONDON (ShareCast) - (Sharecast News) - Shares in GB Group took a dive on Tuesday despite the identity verification and fraud prevention software firm swinging to a full-year profit, as annual results a showed a slight slowdown in the second half.
The company, which had already detailed its top-line results in a trading update in April, said revenues totalled £282.7m over the 12 months to 31 March, up 3.0% at constant currencies, compared with the 4.5% growth reported at the half-year stage.

As previously stated, adjusted operating profit rose 9.5% to £67.0m, helped by a 160-basis point improvement in the adjusted operating margin to 23.7%.

Statutory results, however, showed a headline pre-tax profit of £15.7m, compared with a loss of £50.4m the year before. Net debt was also reduced to just £48.5m from £80.9m, driven by strong cash conversion, while the final dividend was lifted 4.8% to 4.4p per share.

Looking ahead, the company said the new financial year has "begun as expected", and the outlook is consistent with market forecasts.

GB Group also said it intends to kickstart the required work needed to move from AIM to the Main Market - a decision which is said it "increasingly appropriate".

"The Board believes this proposed move will further enhance GBG's reputation with larger and more global customers in-line with its strategy to move into new geographies. In addition, the move should also increase GBG's access to a broader pool of capital from domestic and overseas investors. An update on the timing and process for the move will be provided in due course," said chief executive Dev Dhiman.

Shares were down nearly 10% at 245.02p by 0935 BST.



"While GBG's H225 was slightly weaker than anticipated, we have reviewed its growth credentials and think the recent product developments and ongoing reworking of its go-to-market strategy provide the potential for improvements to its organic growth rate and margins," said analysts at Berenberg, who initiated coverage of the stock on Tuesday with a 'buy' rating.

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