Frog Capital, the growth capital investor, announced today that it has accumulated a shareholding of over 10% and become the largest shareholder in AIM-listed GB Group PLC, a leading UK fraud and identity management business. The shareholding has been built up over several months.
GB Group is the UK market leader in identity verification services and in the provision and analysis of customer information. The company’s technology enables clients to make business decisions based on a thorough understanding of customer data and to combat identity fraud and money laundering. Its extensive client list includes Vodafone, Citi, Lloyds TSB, SkyBet and William Hill.
The company, which is based in Chester and employs 150 people, today gave the market a trading update ahead of its six monthly results to end of September, in which it announced a revenue increased of 10% to £11.5 million (2009: £10.5 million) and expected group profits, before interest, taxation, exceptional costs and share-based payments, of approximately £740,000 (2009: £300,000).
Identification fraud, money laundering and corruption are rapidly becoming critical issues for an increasingly wide array of businesses and organisations. Regulatory bodies across the globe have now mandated enhanced due diligence and know-your -customer policies to combat these threats. The challenge for businesses is to allocate the right amount of resource, relative to value, on verification. After years of investment into its online database platform, GB Group offers a range of services that are proving attractive to various market sectors, making it well-positioned in an exciting and growing market.
Frog's Managing Partner, Mike Reid, says, “GB Group is well-managed and has steadily built UK market leadership in a rapidly growing sector. We believe the company has the potential to expand its services and geographic reach, as the need for clever identity management grows in parallel with the digital economy. Our investment represents full support of the company’s strategy.”
Frog Capital is investment partner to some of Europe’s most ambitious growth-stage companies. The firm’s portfolio includes e-commerce specialist eCommera and Europe’s largest biogas energy supplier, agri.capital.