GB Group saw its shares slump sharply on Friday, sliding as much as 27.6% to 168 pence - a level not seen since the company was admitted to the London Stock Exchange Main Market in October 2025.
The identity verification and location technology group has revised down its full-year revenue growth expectation to a range of 1% to 3%, below the prior mid-single-digit guidance. The company attributed the downgrade to higher-than-expected customer volume attrition within its Americas Identity unit.
GB Group reported that first-quarter revenue from Americas Identity was only slightly below plan, but warned the gap is expected to widen in the second quarter as the effects of the volume attrition build. While the company said its sales pipeline remains robust, management highlighted that the time required to convert those opportunities into booked revenue, coupled with a lengthy sales cycle, makes it unlikely that pipeline activity will fully compensate for the lost volumes inside the current fiscal year.
In contrast to the Americas performance, identity revenue across EMEA held up well. GB Group specifically cited strength in GBG Go, its AI-powered global identity platform, as a supporting factor for EMEA identity revenue.
The group confirmed it will continue a one-off investment of A36 million in the GBG Go innovation roadmap. Despite the revenue outlook cut, GB Group reiterated its expectation for an adjusted operating profit margin of approximately 21% for fiscal 2027.
The company also disclosed a leadership change in the Americas region, saying the Chief Officer for the Americas has left the business. Chief Operating Officer James Gothard will assume responsibility for the Americas operations. GB Group noted that Gothards operational experience with the Americas leadership team positions him to focus on continued execution through the transition.
Investors reacted strongly to the guidance revision and the prospect that conversion of the sales pipeline will lag the pace needed to offset customer attrition in the Americas within the fiscal year. GB Group pointed to resilient EMEA performance and its continued targeted investment in GBG Go as ongoing elements of its strategy while managing the Americas shortfall.
Summary - GB Group has trimmed its full-year revenue growth guidance to 1%-3% after higher-than-expected customer volume attrition in its Americas Identity business. Shares fell to 168 pence, the lowest since the firm's October 2025 Main Market admission. Management said strong EMEA results, a healthy sales pipeline and continued investment in GBG Go remain, but conversion lag and long sales cycles mean the Americas shortfall is unlikely to be fully recovered this fiscal year.