GB Group shares plunged 23.4 percent to 177.7p after the identity verification company cut its full-year revenue growth guidance to 1-3 percent, down from mid-single-digit, on weaker-than-expected trading in its Americas Identity division.
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GB Group plunges 23% as Americas weakness forces guidance cut
GB Group shares plunged 23.4 percent to 177.7p after the identity verification company cut its full-year revenue growth guidance to 1-3 percent.
The FTSE 250 constituent now expects revenue growth of 1-3 percent for the year ending March 2027, down from its previous mid-single-digit expectation, after weaker-than-expected trading in its Americas Identity division. The decline wiped more than 54p from the stock price in early London trading on 14 August.
The downgrade follows higher-than-expected volume attrition from several material customers in the Americas Identity business. GBG said first-quarter revenue from the division was only marginally below plan, but growth failed to improve during the second quarter. Although its sales pipeline remains strong, the company said normal sales cycles mean new opportunities are unlikely to compensate for the lost volumes during the current financial year.
Adjusted operating profit margin guidance has been tightened to around 21 percent, compared with the previous 21-22 percent range. Americas chief revenue officer Tom Schutz has left the company, with chief operating officer James Gothard assuming interim responsibility for the division.
GBG reported FY26 revenue of £285 million, up 3.2 percent on a constant-currency basis, with adjusted operating profit of £67.5 million. Despite the weaker outlook, the company will proceed with the previously announced £6 million investment in GBG Go, its AI-powered global identity platform, aimed at accelerating its innovation roadmap.
The most recent analyst rating on GBG stock is a Buy with a £240 price target, according to TipRanks. The company, which provides identity verification, location intelligence and fraud prevention technology to more than 20,000 customers worldwide, competes with peers across the identity and fraud prevention sector.
The guidance cut shows that management expects the Americas weakness to persist through the current fiscal year, testing the stock's support near its 52-week low of 180.6p. Investors will watch the company's interim results for updated segment performance and any further attrition among material customers.
This article is for informational purposes only and does not constitute investment advice.
[1] GB Group shares plunge 23% as Americas weakness forces revenue guidance cut[2] GB Group shares plunge 23% as Americas weakness forces revenue guidance cut | LSE:GBG[3] Gb Group PLC Share Price (LSE:GBG) | AJ Bell[4] GB Group cuts revenue outlook as Americas identity growth slows and leadership shifts - TipRanks.com
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