Shares in GB Group plc have dropped 11% in trading today (writing at 1pm) after it wrote down the value of its US business segment by around 拢90 million in its latest annual results.
The Cheshire-based identity solutions business recorded a small increase in revenue for the year ended 31st March 2026 but the writedown saw it swing to a huge loss on a statutory basis.
Revenue was 拢285m, up from 拢282.7m; but losses before tax were 拢74.5m, compared with a 拢15.7m profit in the previous year.
The figures reflected a write-off charge of 拢16.5m for the retirement of its legacy Compliance platform, which operated primarily in the Americas, as well as a 拢73.1m non-cash goodwill impairment charge.
鈥淒espite strong board and management confidence in the mid-term outlook for the Identity – Americas CGU, it has recorded a revenue decline for the last three financial years before returning to growth in Q4 FY26,鈥� GBG stated.聽
鈥淎s a consequence of this and increased macroeconomic uncertainty, more cautious assumptions were adopted as to the medium-term growth outlook for the CGU in the FY26 value in use approach when compared to FY25.鈥�
The business segment incorporates solutions from IDology and Acuant, respectively acquired for $300m in 2019 and 拢547m in 2021.
Away from the writedowns, adjusted operating profit was 拢67.5m, up from 拢67m.
Net debt increased from 拢48.5m to 拢80.1m. GBG said 拢45m of share buybacks completed in the year, with a further 拢10m committed.
GBG’s share price is down 10% in the year-to-date, 19% in the last 12 months and 77% over the last five years.
“FY26 has been a year of considerable progress. We have delivered on the strategic initiatives that have the largest impact on our topline momentum, including returning Americas Identity to growth and generating strong demand for GBG Go – our global identity platform,鈥� said CEO Dev Dhiman.聽
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鈥淥ur simplified operating model is driving efficiency and platform scalability. The foundations we have built, a scalable, global platform, and a high-performance culture, are now translating into tangible results with growth accelerating.
鈥淕BG Go has been extremely well received by customers, and now is the time for us to be bolder in capitalising on the significant market opportunity. Given strong demand, we will accelerate Go’s roadmap to release enhanced capabilities sooner, investing to drive incremental growth and expedite efficiency gains from retiring legacy technology, enhancing our competitiveness.
鈥淲e enter FY27 from a position of strength, APAC and EMEA Identity and Location performed well as Americas Identity generated Q4 growth. Combined with the structural tailwinds expanding our markets, such as the acceleration of AI-driven fraud, we have a compelling opportunity ahead.聽
鈥淲e are confident we will accelerate growth and deliver sustained long-term shareholder value.”
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