GB Group (LSE:GBG), the global identity and location technology business, now expects full-year revenue growth of 1-3%, down from its previous mid-single-digit guidance.
The downgrade stems from Americas Identity, where first-quarter revenue came in only marginally below plan but second-quarter growth failed to recover as attrition hit "a few material customers".
GBG said its sales pipeline remains strong but the normal sales cycle means the impact is unlikely to be offset within the current financial year.
EMEA Identity, by contrast, continues to benefit from momentum behind GBG Go, the company's AI-powered global identity platform, echoing the first-quarter update given at its AGM statement on 21 July.
The group will press ahead with the previously announced one-off £6 million investment to accelerate GBG Go's innovation roadmap, while leaning on cost control to defend an expected FY27 adjusted operating profit margin of approximately 21%.
Alongside the guidance cut, GBG confirmed that Tom Schutz, Chief Revenue Officer for the Americas, has left the business.
Chief Operating Officer James Gothard will take interim responsibility for the Americas division, drawing on what the company described as deep operational expertise and close prior work with the regional leadership team.
Shore Capital Markets analyst Alasdair Young, in a note, said GBG’s guidance cut and higher-than-expected Americas attrition prompt downgraded EPS forecasts and a lower valuation.
The broker repeated a Buy rating but lowered its price target to 340p from 390p, whilst citing an expected FY27–29 EPS reduction of 7–10% and a revised FY27 revenue of c.£288m.
News Intelligence what this means for the company
GB Group has cut full-year revenue growth guidance to 1–3% from mid-single-digit, citing unexpected customer attrition in its Americas Identity business that persisted into Q2 despite Q1 being only marginally below plan. The company's sales pipeline remains strong, but the normal sales cycle means recovery within FY27 is unlikely. This reversal comes just weeks after the company reported Q1 Identity and Location organic growth described as comfortably mid-single digit, making the Q2 deterioration a sharp and material miss.
The guidance cut materially narrows the company's growth outlook and signals execution risk in its largest geographic segment, offsetting the momentum in EMEA Identity behind GBG Go. Management's confidence in defending a ~21% adjusted operating profit margin for FY27 depends on cost control and the strength of the sales pipeline, but near-term revenue visibility has deteriorated.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
