Listed identity specialist GBG saw an impact on its North American business from last year’s cryptocurrency crash.
The Chester company reported revenue for the year ending 31st March 2023 of £279 million, up from £273.8m in 2022.
“Excluding £4.2m revenue from US stimulus customers in the comparative period, the full effect – around £15m – of the year-on-year decline in revenues from cryptocurrency customers and the FY23 impact of the deferred revenue haircut (£1.2m), this would equate to organic pro forma constant currency growth of approximately 4% for the financial year, almost evenly split between the first half and second half of the year,” it stated.
“Adjusted operating profit is anticipated to be approximately £60m, representing a margin of 21.5%.”
It said several trends have impacted its end markets for identity services, “most notably the challenging conditions for cryptocurrency and our internet economy customers”.
“These challenging conditions have continued into the second half of the year and, given the relative concentration of these customers in our North America business, this is the region where we are seeing the most pronounced impact,” said GBG.
“We have also seen some incremental lengthening of sales cycles, also in North America, as a result of the macro-economic uncertainty and this has delayed some expected customer contracts.”
CEO Chris Clark said: “The difficult macroeconomic environment has been well publicised and it is disappointing to have seen the impact on certain parts of our business.
“However, GBG continues to achieve growth and maintain strong operating margins and cash generation.
“GBG’s services remain crucial for customers to operate safely and efficiently in an ever more digital world and the board remains confident in the long-term opportunities.”