AGM Trading Update
GB Group PLC
21 July 2005
For immediate release: 21 July 2005
GB GROUP PLC ('GB' or the 'Group')
AGM Trading Update
At the Annual General Meeting due to be held today at noon in Chester, John
Walker-Haworth (GB's Chairman) will give the following trading update statement
to shareholders:
'The Group has continued to make progress during the first quarter of the
current financial year.
URU(TM)
The performance of the DataAuthentication division, and its flagship business,
URU(TM), which is developed and marketed jointly with BT, has been extremely
pleasing. Turnover in the first quarter grew by 37% compared to the previous
quarter.
The number of clients registered for the URU(TM) service is currently 66, up from
59 at the time of my last statement on 1 June 2005. URU(TM) continues to
strengthen its position as the clear market leader for electronic identity
verification in the Online Gaming sector. It now has 20 clients in this sector,
including PartyGaming Plc (which operates Partypoker.com), Cassava Enterprises
Ltd (which operates 888.com) and Betfair Limited (which operates Betfair.com).
We have also strengthened our position in the Mobile Telecommunications sector
where there are 8 URU(TM) clients including a number of the largest operators in
the market. Good progress has also been achieved in the Financial Services
market and there are now a total of 28 URU(TM) clients in this sector. URU(TM) also
has clients in the Retail and Government sectors.
At present, the greatest competition for URU(TM) comes from companies continuing
to employ paper-based, labour intensive manual methods of verification. However,
with the standards of fraudulent documentation becoming much more sophisticated,
we believe that the change to electronic systems for verification will continue
to accelerate. URU(TM) is well placed to serve this growing demand. The revenues
of URU(TM) are predominantly geared to usage of the service, and we consider that
this is the correct business model with which to build a high quality and
profitable revenue stream.
Investment in URU(TM) has been increased as planned during the first quarter in
the areas of technical development, sales and marketing and customer service.
The purpose of this investment is to seize the URU(TM) opportunity and build up
strong market positions as swiftly as possible.
Existing Business
The profitability of our existing DataIntegrity and DataSolutions operations is
marginally ahead of the same period last year. The strategy of developing new
products and services, together with a focus on generating high quality and
repeatable revenue has continued successfully.
Cash
Group cash balances remain strong at £6.8 million. The existing business
continues to be cash generative and we expect cash-flow from these operations to
continue funding the greater part of the investment in URU(TM). Accordingly, as
announced last month and based on our current plans, we do not expect that Group
cash balances during the remainder of the year will fall below £5.5 million.
Prospects
As you will have gathered, this is an exciting time for GB and we view our
prospects with confidence.'
- 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
Website www.gb.co.uk
Notes to Editors
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.
GB Group plc has three business areas:
• The DataAuthentication division helps businesses validate personal
identity information and provides anti-fraud solutions to fight crime.
• The DataIntegrity division helps companies capture and maintain accurate
customer contact data, an essential foundation for any profitable customer
relationship.
• The DataSolutions division 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).
About URU(TM)
The URU(TM) service, the DataAuthentication division's principle offering, has
been developed jointly with BT. It combines GB's Authenticator(TM) search engine
and decision making software, 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 £1.3 billion per annum. URU(TM) 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(TM) works by cross checking personal information provided by an individual at
the point of acquisition against a comprehensive range of up-to-date UK and
International population 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(TM)
is compliant with the Data Protection Act.
URU(TM) 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(TM) to incorporate
credit reference data.
The market for identity verification checking continues to grow. Research
published in February 2005 showed a 45% increase in the number of individuals
accessing gaming sites compared to the previous year. In addition, it is
predicted that around 10% of potential revenue is lost by Mobile
Telecommunications operators as a result of fraud and furthermore, the British
Bankers Association reported in March 2005 that losses of its members
attributable to fraud had increased by 11% compared to the previous year.
GB is working closely with organisations such as Gamcare, the charity promoting
responsible gambling, and RGA (Remote Gambling Association), formerly ARGO, to
help promote better understanding by gambling companies of the requirements of
good social responsibility processes. We are also working closely with some of
our clients to help them develop their social responsibility policies and
practices thereby ensuring they are well placed to address any issues in this
area as they arise and to adopt 'best practice' behaviour.
This information is provided by RNS
The company news service from the London Stock Exchange
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