Trading Statement

RNS Number : 6903P

GB Group PLC

29 October 2012

 



29 October 2012

GB Group PLC

("GB Group" or the "Group")

Pre-Close Trading Statement

GB Group, the identity management specialist, provides the following trading update for the six months to 30 September 2012 in advance of the release of its half year results.

Group Trading Performance

The Board reports that the Group has performed in line with market expectations with growth coming from both our organic activities and our acquired businesses.  Good strategic progress has also been made in the half year with the addition of new country services for the identity verification of individuals from Argentina and China.

Group revenues grew 44 per cent. to £17.7 million (2011: £12.3 million¹) with an expected 55 per cent. increase in adjusted operating profit² to £1.4 million (2011: £0.9 million¹).

The Group had cash balances of £5.8 million at 30 September 2012 (2011: £4.2 million) after payment of £1.5 million in respect of the final dividend in August 2012.

Operational Highlights

The DataAuthentication and the DataSolutions businesses performed well ahead of last year. DataSolutions' revenue was approximately 60% ahead while DataAuthentications' revenue was approximately 25% ahead.

A large proportion of the increase in revenue in DataSolutions came from Capscan, acquired early in the second half of the previous year, so the comparative rate of growth year-on-year will reduce, as expected, in the second half. Excluding acquisitions, the Group demonstrated double digit organic growth in the first half. 

We continue to see good long-term potential from the need to verify identity and manage customer engagement on line as businesses and governmental organisations increase their on line transactions.  Our investments, including the ongoing development of a new International Identity Verification service combining our current UK and International systems, will exploit this potential.

Acquisitions

The Group continues to explore acquisition opportunities which will add further market or product expertise to complement our organic growth.

Notice of Results

The Group expects to report its results for the six months ended 30 September 2012 on 27 November 2012.

Richard Law, GB Group's CEO, said:

"As UK and international business continues to move online and cross border online trading between individuals and businesses increases, the need for our identity verification and engagement services by organisations becomes ever more critical.  In addition to further improvements and developments of our technologies, we have continued to invest in, and added further countries to, our already extensive international capability to promote long term growth for GB Group."

Note 1: the 2011 comparison figures for revenue and adjusted operating profit are restated in accordance with the prior period restatement as disclosed in the 2012 Annual Report and Accounts.

Note 2: adjusted operating profit means profits before share of results from joint ventures and associates, interest, tax, share based payment charges, amortisation of acquired intangibles, acquisition related costs and non-recurring acquisition integration costs.

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For further information, please contact:

GB Group plc	01244 657333
Richard Law, Chief Executive
Dave Wilson, Finance Director
Peel Hunt LLP (Nominated Adviser and Broker)	020 7418 8900
Richard Kauffer
Daniel Harris
Newgate Threadneedle	020 7653 9850
Caroline Evans-Jones
Heather Armstrong

Website

www.gb.co.uk

Editors' Notes

Who are GB Group

The most successful organisations recognise the value of understanding your individual identity - who you are, what you need and what you like. GB combines this concept of identity with technology to create an environment of trust so that organisations can connect, communicate and transact with consumers safely, responsibly and profitably. We call this Identity Management.

GB Group has four complementary Identity Management offerings:

·      ID Verification, which provides the ability to verify consumers' identities remotely, without the physical presentation of documentation, in order to combat ID fraud, money laundering and restrict access to under age content, purchases and gambling

·      ID Customer Registration, which includes software and services for quick and accurate customer registration and validation of records

·      ID Engagement Services, which provides database services so our clients can better understand, target and retain their customers and offers accurate and up-to-date identity information for their contact strategies 

·      ID Tracing Services, which provides the largest and most accurate picture of the UK's population and properties in order to locate and contact the right individual, first time

This enables our clients to make informed business decisions based on a thorough knowledge of consumer identity and behaviour, leading to more effective communication and interaction with the customer.

GB Group is listed on the London Stock Exchange (GBG). For more information, please visit GB Group's website: www.gb.co.uk

GB Group - because identity matters® 

 

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