RttNews – GB Group PLC (GBG.L), a provider of identity and location technology solutions, has revised its fiscal 2027 financial outlook, reducing both margin and revenue growth projections following underperformance in its Americas Identity division.
The company’s shares declined approximately 25% on the London Stock Exchange, trading at 173.91 pence.
For the fiscal year 2027, GB Group now projects total group revenue growth between 1% and 3%, down from the prior mid-single-digit growth forecast. Adjusted operating profit margin is expected to marginally decline to around 21%, slightly below the previously indicated 21-22% range.
Regarding the Americas Identity business, the company reported first-quarter revenue in the segment remained marginally below expectations, while overall group performance benefited from strong trading in the EMEA Identity division. However, Americas Identity growth has not improved in the second quarter due to elevated customer attrition rates among key clients.
The company noted that, despite a robust sales pipeline, the conventional sales cycle duration prevents mitigating the current quarter’s attrition-related revenue shortfall within the existing financial year. To accelerate growth in the Americas market, GB Group is transitioning into a new strategic phase. Chief Revenue Officer Americas Tom Schutz has exited the business, with Chief Operating Officer James Gothard assuming interim oversight of the Americas operations.