AGM Statement
GB Group PLC
12 July 2006
Embargoed until 07.00 12 July 2006
GB GROUP PLC
('GB' or the 'Group')
AGM TRADING UPDATE STATEMENT
At the Annual General Meeting to be held today at noon in Chester, John
Walker-Haworth, Chairman of GB Group, will give the following trading update
statement to shareholders:
'The Group has continued to generate revenue growth in the first quarter of the
current financial year with Group revenues increased by 14% compared to the same
period last year.
DataAuthentication
DataAuthentication, whose current principal offering is URU(TM), has continued
its strong performance. Revenue in the first quarter increased to £1 million up
from £384,000 in the same period last year. Likewise, transaction volumes for
the URU service grew from 250,000 in the first quarter last year to 700,000 in
the first quarter of the current financial year, reflecting both the increase in
client numbers and the growth in size and strategic importance of these clients.
URU(TM) client numbers continue to increase and now stand at 114 compared to 105
at 1 June 2006. We are very pleased by the number of new clients which are now
coming from the Financial Services sector, and we believe this is indicative of
the growing recognition and acceptance of URU(TM) as the leading electronic
solution for age and identity authentication.
DataIntegrity and DataSolutions
GB's traditional services, DataIntegrity and DataSolutions, continue to operate
in challenging and competitive markets and this is reflected in the first
quarter performance which is marginally lower than the previous year. As
indicated in June, GB intends to differentiate its offerings in these markets by
providing its services online and these services are expected to be operational
during the second half of the year.
Cash
Group cash balances remain strong at £6.6 million. During the year, our
investment plans for both DataAuthentication and our traditional services,
together with investment in our group-wide infrastructure, are expected to
result in net cash outflow. As announced at the time of our results last month,
however, we do not expect Group cash balances to fall below £5.0 million during
the course of the year.
Prospects
This is an exciting time for GB with substantial opportunities for the business
and the Board has a very positive view of GB's prospects.'
- Ends -
For further information, please contact:
GB Group plc
Richard Law, Chief Executive 01244 657333
Mona Navin-Mealey, Finance Director
Weber Shandwick Square Mile 020 7067 0700
Richard Hews
Helen Thomas
Website www.gb.co.uk
Notes to Editors
About URU(TM)
URU is an electronic identity verification service which was developed jointly
with BT and is DataAuthentication's principle offering. URU, which is powered by
GB's ID3(TM) search engine and decision making technology, provides access to
GB's comprehensive range of identity data and BT's high capacity web delivery.
It helps organisations to protect themselves from the growing problem of
identity theft and fraud, which is estimated to cost the UK economy over £1.7
billion per annum. URU enables companies subscribing to the service to make an
instant decision whether to accept the identity claimed by any given individual
and confirm their age in seconds.
URU works by cross checking personal information provided by an individual at
the point of acquisition against a comprehensive range of datasources to confirm
that an individual is who they claim to be, live where they claim to live and
meet certain minimum legal age requirements.
No personal data is disclosed by the reference databases and as a result URU is
compliant with the Data Protection Act.
URU also provides a valuable audit trail demonstrating that the necessary checks
have taken place, thereby helping companies comply with legislation, including
the 2nd European Money Laundering Directive, Proceeds of Crime Act and Minimum
Legal Age requirements of certain industry sectors.
The addition of data from CallCredit also enables users of URU to incorporate
credit reference data.
As a result of legislation, new opportunities and social responsibility
requirements, the market for electronic ID verification is significant and
growing. Although an estimated 0.5 billion manual ID checks are conducted
annually in the UK, less than 3% of these are currently performed
electronically.
URU has demonstrated that electronic checks are more effective, less expensive
and more robust.
The market is moving towards electronic checks as fraudulent documents become
ever more sophisticated, more readily available and more difficult to check
manually. It is estimated that by 2010, the market for electronic ID checks
could be 300 million checks per annum.
GB works closely with trade and industry associations, such as the Finance and
Leasing Association, the Remote Gambling Association and the Financial
Technology Research Centre, to advise businesses that more robust processes can
prevent financial crime. We have worked closely with the Gaming Industry to
address social issues such as underage gambling and addiction and our Social
Responsibility Consultancy helps Gaming operators formulate best practice to
comply with regulatory requirements and improve profitability.
About GB Group plc
GB Group plc provides a range of products and services to enable organisations
to capitalise on one of their greatest assets - customer data. The Company has
expertise across a range of sectors and is able to transform customer data into
valuable information, enabling clients to make better, more informed decisions.
The development of innovative software and services, through to the provision of
the UK's most comprehensive consumer business databases - The National Register
(R) and the National Authentication Register - positions GB Group as a widely
acknowledged industry leader in its specialist markets.
We are constantly improving business processes by building on our core values of
Innovation, Quality and Excellence. This is reflected in our customer
satisfaction surveys and also through research, carried out by Manchester
Business School, which confirms our products are out performing the competition.
GB Group plc has three complementary offerings:
• DataAuthentication helps businesses validate personal identity
information and provides anti-fraud solutions to fight crime.
• DataIntegrity helps companies capture and maintain accurate customer
contact data, an essential foundation for any profitable customer
relationship.
• DataSolutions empowers companies to consolidate and analyse customer
data from various sources, enabling them to make better, more informed
decisions.
Established since 1989, GB's core competencies combined with industry sector
knowledge have enabled the company to deliver significant value to organisations
such as Standard Life, Scottish Power and TD Waterhouse in helping them derive
maximum value from their customer data and sustain real advantage over their
competition.
GB Group is supported by its key relationships with major organisations with
whom it works with on major initiatives (an example being British Telecom),
together with a team of highly talented and motivated staff successfully
delivering business solutions.
GB Group plc is listed on the London Stock Exchange (www.gb.co.uk).
This information is provided by RNS
The company news service from the London Stock Exchange