Posted on April - 22 - 2010
GB Group sees shares leap after optimistic outlook
Shares in north west identity checking firm GB Group raced to a year high after it said profits for the year to March 31 would be higher than market expectations.
GB Group, which is based in Chester, said it expects pre-tax earnings to match last year’s £1.2m despite a slight fall in like-for-like revenues, from £23.5m to £22.2m.
It said its better-than-expected performance was mainly due to increased gross margins and effective cost controls.
The firm had £5.3m in cash at end of March, up from £4.5m a year earlier.
In a trading update, GB Group said its market sector had shown signs of improvement in the last quarter of its financial year, adding that, while it is too early to determine if growth will be sustained, it remains well placed to benefit from an economic recovery.
GB Group’s technology enables customers such as online retailer ASOS to verify the identity of callers and combat ID fraud and underage gambling.
Full-year results are due towards the end of May.
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