GB Group cuts revenue growth guidance as US sales chief leaves
(Alliance News) - GB Group PLC on Friday lowered revenue growth guidance, as it grapples with tough trading conditions in the Americas Identity arm and the departure of its sales leader in that region.
GB Group shares fell 27% in response to 169.00 pence each on Friday morning in London, having earlier set a new 52-week low of 167.20p.
The Chester, England-based identity verification and fraud prevention company said revenue for the financial year ending March 31, 2027 is to rise by between 1% and 3%, the outlook cut from mid-single-digit percentage growth previously.
GB Group reiterated that its financial performance in its first financial quarter was supported by "strong" trading from Identity in Europe, Middle East & Africa amid continued momentum with GBG Go, its artificial intelligence-powered global identity platform.
"First quarter revenue in Americas Identity was only marginally below our plan, but growth has not improved in the second quarter as we have seen higher than expected volume attrition on a few material customers," GB Group said.
"While our sales pipeline remains strong, the time required to convert opportunities into recognised revenue given our normal sales cycle means the impact of this attrition is unlikely to be mitigated within the current financial year."
The company said its chief revenue officer in the Americas, Tom Schutz, has left the business, with Chief Operating Officer James Gothard serving in Schutz's place on an interim basis.
By Tom Budszus, Alliance News slot editor
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