GB Group raises outlook again

21st Apr 2011 12:31

Six months after its last profits guidance upgrade identity management specialist GB Group was at it again on Thursday, as it said full year figures will be better than expected. The main reason for its beat on profit has been the increased gross margins in its Data Solutions business. The firm also indicated that its Data Authentication business improved as the year progressed. In the year to end-March the group expects profits to come in ahead of market consensus, with a profit for the year, before interest, tax, exceptional costs and share-based payments of approximately £1.9m (2010: £1.3m). Market consensus is for profit before tax of £1.66m.Revenues are anticipated at circa £24.4m, an increase of 10% when compared to the same period last year (2010: £22.2m), and marginally ahead of market consensus of £24.3m.Net cash balances were £6.2 million at 31 March 2011 (2010: £5.7 million) after the payment of a dividend during the year of 1.2p per share (2010: 1.15p), amounting to £1.0 million, and investment in capital expenditure of £0.4 million (2010: £0.5 million).Richard Law, chief exeutive officer, has underlined the importance of differentiation to the firm's strategy, as well as on-going investment in its product offering, as the critical elements of their strategy for continued organic growth. The company is confident of continued growth in the year ahead. As of 12:30 London time shares of GB Group were tradng at 38.25p, close to their 52-week high.ab