Trading Statement

RNS Number : 5026Q

GB Group PLC

20 October 2011

 



Embargoed until 7.00 a.m.

20 October 2011

GB GROUP PLC

("GB Group" or the "Group")

Trading Update

GB Group plc, the Identity Management specialist, is today issuing a trading update in advance of its half yearly results for the six months ended 30 September 2011.

The Group traded well in the period and in line with the Board's expectations for the full year with a strong performance at the half year.  As is usual, GB expects the second half of the year to be stronger than the first in terms of revenue and profit in line with contract renewals.

The recent acquisitions, which prior to acquisition had combined annual revenues of circa £2.2m, have traded well and are in line with our expectations. These acquisitions took place towards the end of the period and whilst the post-completion trading performance of these acquisitions is included within the Group results, the full impact won't be seen until the second half.

The Group experienced growth of 7 per cent. in revenues to £12.4m (2010: £11.6m) with a 33 per cent. growth in profits before exceptional items, interest, share-based payments and tax to £1.0m (2010: £752k).   Margins continue to improve across the Group, as a result of the operational leverage, with a consequent effect on profitability.

In DataAuthentication, the business unit providing identity verification services, revenues grew by 14 per cent.  to £5.8m compared to £5.1m in the same period last year.  In DataSolutions, the business unit providing identity-based marketing solutions, revenues increased by 2 per cent. to £6.6m (2010: £6.5m).

The Group had £4.3m of cash as at 30 September 2011 (2010: £4.6m), after the payment of £1.1m on the final dividend and £1.3m in respect of the consideration for the acquisitions of Data Discoveries Ltd and Advanced Checking Services Ltd.

The Board believes that the medium and longer-term prospects for GB Group are encouraging and that the Group has the correct strategy and structure in place to drive future growth in both home and international markets.  Since our last update, GB Group has concluded some important contracts and has entered into a further commercial agreement with TransUnion to enable the development of a new Electronic ID Verification ("EIDV") services for South Africa.  A new EIDV service for Denmark was also developed and launched.

Richard Law, GB Group's Chief Executive, said:

"The Group is in an excellent financial position with growing profits, a strong balance sheet and healthy cash generation. We believe we are well placed to pursue future growth and investment opportunities across both DataAuthentication and DataSolutions. The Board continues to review opportunities in the market for further, more substantial acquisitions."

The Group will be announcing its results for the six months ended 30 September 2011 in early December 2011.

GB Group plc                                                                              01244 657333

Richard Law, Chief Executive

Dave Wilson, Finance Director

Peel Hunt (Nominated Adviser and Broker)                       020 7418 8900

Richard Kauffer

Daniel Harris

Weber Shandwick Financial                                                    020 7067 0700

Nick Oborne

John Moriarty

Website                                                                                       www.gb.co.uk

Notes to Editors:

About GB Group plc

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

GB Group - because identity matters™

 

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