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GB Group PLC (GBG)

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Wednesday 01 June, 2005

GB Group PLC

Final Results

GB Group PLC
01 June 2005

For immediate release
Wednesday, 1 June 2005


                       GB GROUP PLC ('GB' or the 'Group')

              Preliminary Results for the Year Ended 31 March 2005

                                   Highlights

   • URU(TM) (GB DataAuthentication division's joint service with BT) achieved 
     strong growth within its key target markets of Online Gaming, Financial Services 
     and Mobile Telecommunications. The number of subscribers to the service at 
     31 May 2005 was 59 (1 subscriber at 31 March 2004).

   • Turnover from URU(TM) increased significantly to £600,000 (2004: £6,000)

   • The existing business, comprising of GB's DataIntegrity and
     DataSolutions operations, generated operating profits, before exceptional
     items, £186,000 ahead of last year.

   • Exceptional, non-recurring costs were in line with expectations at
     £321,000.

   • Operating loss, after goodwill but before exceptional items, was in line 
     with expectations at £242,000 (2004: £123,000) and included increased 
     investment in URU(TM) of £354,000.

   • The existing business continues to be strongly cash generative and, as
     planned, funded the cash investment in URU(TM).

   • Cash balances were £6.7m at the year end (2004: £6.9m).

   • Dividend of 0.5p per ordinary share maintained.


John Walker-Haworth, Chairman, commented:

'This year is one of significance for the Group, particularly in relation to the
growth of our DataAuthentication business and, as explained more fully in the
Chief Executive's Report, GB has a clear strategy to develop this further. From
an initial assessment of the growth experienced to date, your Board is
increasingly confident that there are substantial and profitable opportunities
in this new market and is deploying appropriate resources to enhance the Group's
position.

As in previous years, the profitability of our DataIntegrity and DataSolutions
operations will be weighted towards the second half of the year in line with
contract renewals, however, during the year as a whole, we expect the cash flow
from these businesses to continue to fund the greater part of our investment in 
our DataAuthentication business and in particular URU(TM).

Your Board looks to the current year ahead with confidence and optimism.'

                                    - 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
Rachel Taylor

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 partners 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 comphrensive 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 individuals 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.



CHAIRMAN'S STATEMENT

The Group has made very positive progress throughout the year, both in
consolidating its position in its existing markets and quickly moving towards a
leading position in the emerging 'electronic identity verification' market with
the URU(TM) service which has been developed by GB's DataAuthentication division
in collaboration with BT. I am pleased to report that this major new initiative,
which has involved a significant investment in financial and management
resources, has been managed within our financial plans for the year and has not
prevented us from achieving profit improvement within our existing business.

Revenue from the DataAuthentication division grew strongly during the year in
line with the increase in subscriptions to the URU(TM) service. At 31 May 2005,
59 business clients had been installed as subscribers of the service, including
clients such as Betfair, TD Waterhouse and O2. This early success provides URU(TM) 
with valuable endorsements within our target markets of Online Gaming, Financial 
Services and Mobile Telecommunications.

URU(TM) is addressing a market which is growing fast and where prospects are
excellent. Our relationship with BT means that together, we have the commercial
and technical infrastructure to continue to establish a strong market position
for URU(TM) in the UK and the expertise and resource to develop URU(TM) into a
service capable of expanding internationally.

The profitability of the existing DataIntegrity and DataSolutions operations
increased compared to the previous year as a result of continued focus on
improving margins and the introduction of efficiencies. The markets in which our
existing businesses operate are mature and although competition is keen, these
businesses are of high quality and accordingly have good prospects.

Overall, the Group's performance for the year was in line with expectations and,
as planned, we were able to fund the development of URU(TM) from the cash flow
from our existing business.

I am pleased to report, therefore, that the Group's financial position remains
strong and cash balances at 31 March 2005, after taking account of the dividend
of £398,000 paid during the year, were £6.7 million (2004: £6.9 million). As a
result of the Group's continued financial strength and its prospects, the
Directors will propose the payment of a maintained dividend of 0.5p per ordinary
share (2004: 0.5p) at the Annual General Meeting to be held in July.

With respect to the current year, in the period to the end of May, sales in the
DataAuthentication division have continued to grow in line with the take up of
URU(TM). The performance of our existing business is marginally ahead of the same
period last year and we remain pleased with progress.

This year is one of significance for the Group, particularly in relation to the
growth of our DataAuthentication business and, as explained more fully in the
Chief Executive's Report, GB has a clear strategy to develop this further. From
an initial assessment of the growth experienced to date, your Board is
increasingly confident that there are substantial and profitable opportunities
in this new market and is deploying appropriate resources to enhance the Group's
position.

As in previous years, the profitability of our DataIntegrity and DataSolutions
operations will be weighted towards the second half of the year in line with
contract renewals, however, during the year as a whole, we expect the cash flow
from these businesses to continue to fund the greater part of our investment in 
our DataAuthentication business and in particular URU(TM).

The GB team, led by Richard Law, has continued to work well and effectively
during the past year. All of our employees are to be congratulated on the part
they have played, and are continuing to play, in improving the overall quality
of our business. Your Board looks to the current year ahead with confidence and
optimism.


J L Walker-Haworth

Chairman



CHIEF EXECUTIVE'S REVIEW

Overview

The Group continued to make good progress throughout the year.

GB's DataAuthentication division has achieved pleasing growth in revenue as a
result of increased sales of URU(TM), its joint service with BT. In addition, GB's
existing DataIntegrity and DataSolutions divisions continued to operate
effectively and efficiently, albeit in increasingly competitive markets.

The highlights of the year were as follows:

   • Revenue in the DataAuthentication division grew throughout the year and
     accelerated towards the end of the year reaching £450,000 in the second half
     of the year, up from £150,000 in the first half, as a result of both higher
     subscriber numbers to URU(TM) and higher usage of the service by those
     subscribers. Revenue for the full year was £600,000 (2004: £6,000).

   • The DataAuthentication division has continued to successfully develop
     its Authenticator(TM) technology on which URU(TM) is based and has increased the
     breadth of data which URU accesses. In October 2004, GB entered into an
     agreement with Aristotle Inc. of the USA for the inclusion of international
     identity data into URU(TM). As a result of these and other joint initiatives
     with BT, URU(TM) has established a strong position in the markets in which it
     is focusing its efforts and is now the market leader for the provision of
     identity verification service in the Online Gaming sector.

   • As expected, the Group made a small operating loss, before exceptional
     costs, of £242,000 (2004: £123,000) after taking account of significantly
     increased investment in URU(TM). The combined profitability of GB's existing
     DataIntegrity and DataSolutions operations, however, improved compared to
     the previous year by £186,000.

   • Combined turnover from the DataIntegrity and DataSolutions businesses
     was lower than in the previous year principally as a result of the decision
     to discontinue low margin third party software sales, taken in March 2004,
     and also as a result of increased competition. The decision to discontinue
     third party software sales had a positive impact on profitability.

   • The overall quality of the Company and its prospects were significantly
     improved during the year.

DataAuthentication Division

A year ago, the problems associated with the ability of criminals to commit
identity fraud and to launder money were already well known. Since then, new
problems, such as the need to verify that online gamblers are of the legal age,
have started to emerge. The scale of these problems has increased as a result of
both the significant growth in the volume of transactions conducted over the
telephone and the internet and the ability of fraudsters to obtain high quality,
false identity documents.

URU(TM), the DataAuthentication division's principle offering, is an effective
solution addressing these problems and is capable of providing instantaneous
assurance of an individual's true identity without the individual being present
or the need for paper based proofs. It does this by combining GB's Authenticator(TM)
search engine and decision making software and GB's access to a comprehensive
range of identity data together with BT's high capacity web services delivery.

The number of subscribers for URU(TM) is now 59, spread principally across the key
target sectors of Online Gaming, Financial Services and Mobile
Telecommunications. URU(TM) has developed a strong position in each of these
sectors and in Online Gaming we now believe URU(TM) to be the UK market leader.

In the current year, increased regulation in our markets, such as the Gambling
Act which was introduced in April 2005 and now makes age verification checks an
obligation for all UK based gambling businesses, is expected to result in the
continued development of the market.

Although the take up of electronic identity verification is increasing, the
number of checks performed using electronic methods comprises only a small
proportion of the total potential market and the majority of identity checks are
still performed manually. It is GB's aim in the year ahead to lead the
development of the market for electronic identity verification in the UK and to
implement our plans for taking electronic identity verification into
international markets in the future.

In order to achieve this aim and continue the strong growth in revenues, we plan
to increase investment beyond that anticipated at this stage last year. This
investment will be used to develop further the functionality and efficacy of the
Authenticator(TM) technology, to acquire more international data and increase our
sales and marketing resource.

Our work to develop an international identity verification service is already showing
early signs of success. In April 2005, GB entered into a contract with NETeller
Plc, the leading provider of electronic wallet services, to develop a version of
the URU(TM) service for the verification of their customers in the UK and Europe.
Our expectations for the growth of the international market in the current year
are modest, however this development is an important indication that an
international market for electronic identity verification exists.

In summary, the Directors are very encouraged by the progress made by the
DataAuthentication division in this growing and exciting market and in
particular its work with BT to develop and market URU(TM). We believe that our
investment plans in the current year will enable us to continue to exploit the
significant potential of this opportunity.

DataIntegrity and DataSolutions Divisions

GB's existing DataIntegrity and DataSolutions operations produced operating
profits, before exceptional costs, £186,000 ahead of the previous year.
Exceptional costs, associated with the amalgamation of GB's two locations and
the consolidation of a number of functions, are in line with the expectations
set out in our statement at the half-year.

The DataIntegrity and DataSolutions operations continue to be businesses of high
quality. A large proportion of the turnover from these businesses is derived
under long-term contracts or contracts which renew annually. In the current
year, the markets served by these businesses are expected to remain challenging,
however, the efficiencies flowing from the merger of our two locations, which
took place during the last year, together with new product and service
offerings, will help to offset these competitive pressures.

Our assessment of these businesses is that they should be capable of maintaining
profitability in the current year and indications during the first two months of
the year support this view. Our priority in the current year is to provide high
quality, innovative products to our clients and to continue to provide excellent
customer service, and in so doing, continue to remain competitive.

Management and People

The Executive Management Team has been strengthened during the year with the
promotion of Rob Laurence to Managing Director of our DataAuthentication
division. Rob has been, and continues to be, responsible for building GB's
DataAuthentication business which incorporates the URU(TM) service.

In addition, a number of new managers have been recruited to strengthen further
our team of dedicated and talented professionals.

Summary

The Group continues to make good progress. The DataAuthentication division has
worked well with BT to establish an impressive client base for URU(TM) and the
service now has a proven track record and is showing exciting growth. During the
current year it is our objective to secure a strategic position in the market
for electronic identity verification which is capable of yielding material
future benefit to the Group.

The prospects for our existing DataSolutions and DataIntegrity operations remain
positive and these businesses are expected to continue to be both profitable and
cash generative during the current year.

Overall, we expect the increased investment in our DataAuthentication division
to exceed our cash-flow from the existing businesses in the current year. The
amount of this net investment will be largely dependent on how quickly the
market develops and accordingly, how quickly we expand our resource and
infrastructure. As a guide, however, the estimate based on our current plans is
that cash balances should not fall below £5.5 million during the course of the
year.

These are exciting times for GB and I am pleased by our progress and encouraged
by our prospects.


R A Law

Chief Executive



FINANCIAL AND OPERATING REVIEW

As outlined in the Chairman's statement and Chief Executive's review, the
Company made good progress during the year, increasing significantly the
turnover of URU(TM) in its DataAuthentication division and producing combined
profits ahead of last year in its existing DataSolutions and DataIntegrity
businesses, despite a reduction in turnover. The table below shows an analysis
of the Group's profit and loss performance.

                             URU        Existing   Exceptional    Total    Total
                                        Business         Items
                            2005            2005          2005     2005     2004
                           £'000           £'000         £'000    £'000    £'000

Turnover                     600          10,631             -   11,231   11,916

Cost of sales               (520)         (4,158)            -   (4,678)  (5,224)
                          -------         -------       -------  ------- --------
Gross profit                  80           6,473             -    6,553    6,692

Other operating expenses 
(excluding exceptional items 
 and goodwill)              (847)         (5,421)            -   (6,268)  (6,239)
                          -------         -------       -------  ------- --------
Operating profit/(loss) 
 before exceptional items 
 and goodwill               (767)          1,052             -      285      453

Exceptional items -
 office merger & 
 restructuring                 -               -          (321)    (321)     (89)
                          -------         -------       -------  ------- --------
Operating profit/(loss) 
 before goodwill 
 amortisation               (767)          1,052          (321)     (36)     364

Goodwill amortisation          -            (527)            -     (527)    (576)
                          -------         -------       -------  ------- --------
Operating (loss)/profit

URU                         (767)              -             -     (767)    (413)
Existing business              -             525             -      525      290
Exceptional items              -               -          (321)    (321)     (89)
                          -------         -------       -------  ------- --------
                            (767)            525          (321)    (563)    (212)
                          -------         -------       -------  ------- --------

During the year, the Group invested an additional £354,000 in the development of
the URU(TM) opportunity compared to the previous year. This investment was
partially offset by greater profitability, before exceptional costs, from our
existing business of £186,000 leaving Group losses greater than last year at the
operating line, before exceptional costs, of £168,000. The Group incurred
exceptional costs of £321,000 which were associated with outstanding rentals on
a building the Group no longer uses or requires and restructuring costs. These
costs are non-recurring and as a result ongoing operating costs are lower. More
details on these points are as follows:

   • GB's investment in URU(TM), principally in development and marketing
     costs, increased by £354,000 to £767,000 and resulted in turnover increasing
     to £600,000 compared to £6,000 in the previous year. The following table
     compares the results for URU(TM) to last year.


     URU(TM)                                          2005     2004 *   Variance
                                                      £000     £000         £000
     Turnover                                          600        6          594
     Costs & sales                                    (520)     (11)        (509)
                                                     ------   ------       ------
     Gross profit/(loss)                                80       (5)          85
     Other operating expenses 
      (excluding exceptional items and goodwill)      (847)    (408)        (439)
                                                     ------   ------       ------
     Operating profit/(loss) before goodwill
      amortisation                                    (767)    (413)        (354)
                                                     ------   ------       ------

     * Results shown for 'new business' in the 2004 accounts of £41,000 included
       £35,000 with respect to sales of Authenticator(TM) Software and £6,000 with 
       respect to URU(TM).

   • The existing business (DataIntegrity and DataSolutions) increased
     operating profit before goodwill amortisation by £186,000 compared to the
     previous year. Turnover reduced by £1.3 million following the decision to
     withdraw from the sale of third party software, which in the previous year
     generated sales of £667,000, and also as a result of a competitive
     marketplace. Increased focus on margins and the introduction of efficiencies
     resulted in an increase in operating profit before goodwill of 21% compared
     to the previous year. The following table compares the results to the
     previous year.

     Existing Business                              2005       2004 *   Variance
                                                    £000       £000         £000

     Turnover                                     10,631     11,910       (1,279)
     Costs & sales                                (4,158)    (5,213)        1055
                                                  -------    -------      -------
     Gross profit                                  6,473      6,697         (224)
     Other operating expenses 
      (excluding exceptional items 
      and goodwill)                               (5,421)    (5,831)         410
                                                  -------    -------      -------
     Operating profit before goodwill 
      amortisation                                 1,052        866          186
                                                  -------    -------      -------

   • Other operating expenses before exceptional items and goodwill were in
     line with those of the previous year as the increased investment in URU(TM)
     was offset by lower costs elsewhere.

   • Exceptional costs (primarily costs relating to the consolidation of two
     office locations and restructuring costs) of £321,000 were expensed during
     the year, compared to one-off exceptional costs of £89,000 in the previous
     year.

> Goodwill amortised during the year was £527,000 (2004: £576,000), net
  interest earned during the year was £280,000 (2004: £212,000) resulting in a
  loss after goodwill but before taxation for the year of £283,000 (2004:
  £10,000).

> Cash generated from operating activities during the year was £94,000
  (2004: £440,000). Interest receivable was £280,000 (2004: £212,000) and
  dividends paid were £398,000 (2004: £398,000) leaving cash balances held at 31
  March 2005 of £6.7 million (2004: £6.9 million).

Gross Profit and Cost of Sales

The gross profit margin for the Group for the year increased by 2 percentage
points to 58% (2004 : 56%). This was principally as a result of the removal of
lower margin third party software sales which previously had an adverse impact
on the overall Group margin.

Other Operating Expenses before Exceptional Costs

Other operating expenses, excluding exceptional costs and goodwill amortisation,
were £6.3 million (2004: £6.3 million), however, the mix of expenditure changed
compared to the previous year as follows:-

   • URU(TM) development costs increased by £439,000, due primarily to sales
     and marketing costs and technical development costs.

   • Operating costs with respect to the existing business reduced by
     £410,000 principally as a result of discontinued activities.

Goodwill Amortisation

The goodwill amortised during the year ended 31 March 2005 was £527,000 (2004:
576,000).

Group Profit/Loss

The operating profit before goodwill amortisation and exceptional items was
£285,000 (2004: £453,000). The operating loss after goodwill amortisation, but
before exceptional items, was £242,000 (2004: £123,000) and interest earned
during the year was £280,000 (2004: £212,000) resulting in a profit before tax
and exceptional costs of £38,000 (2004: £79,000).

Interest Receivable

Interest is earned on cash balances which are invested in accordance with the
Group's treasury policy. Interest earned during the year was £280,000 (2004:
£212,000).

Taxation

The Group provided for taxation credits of £109,000 (2004: tax charge of £4,000)
principally with respect to research and development tax credits. In accordance
with Financial Reporting Standard ('FRS') 19, the Group has recognised a
deferred tax asset of £346,000 (2004: £340,000).

At 31 March 2005, the Group had potential deferred tax assets of £6.8 million
(2004: £7.1 million) of which £346,000 (2004: £340,000) had been recognised.

In accordance with FRS 19, trading losses carried forward were £19.8 million
(2004: £20.1 million) and capital losses were £2.3 million (2004: £2.2 million).

Dividend

The Board of Directors will propose a final dividend of 0.5p (2004: 0.5p)
approval and payment of which is subject to ratification by the shareholders at
the Annual General Meeting on 21 July 2005.

Amounts Transferred from Reserves

The amount transferred from reserves after accounting for the proposed dividend
of £400,000 (2004: £400,000) is £574,000 (2004: £412,000).

Balance Sheet and Liquidity

Explanations of the most significant items in the Balance Sheet during the year
are as follows:

Intangible Assets

The carrying value of intangible assets at 31 March 2005 was £6.0 million (2004:
£6.5 million). During the year, goodwill amortised was £527,000 (2004:
£576,000).

Debtors

The value of debtors reduced by £153,000 to £2.6 million at 31 March 2005,
compared to the same date last year. This was principally as a result of a
decrease in the level of trade debtors.

Cash and Short Term Deposits

At 31 March 2005, the Group held cash and short term deposit balances of £6.7
million (2004: £6.9 million) and, in accordance with the Group's treasury
policy, all funds are placed with major UK clearing banks and building
societies.

The principal source of funds during the year were cash inflows from operating
activities of £94,000 (2004: £440,000) and interest earned of £280,000 (2004:
£212,000).

The principal uses of funds recognised in the balance sheet during the year were
the net investment in tangible fixed assets of £173,000 (2004: £153,000) and the
dividend payment of £398,000 (2004: £398,000).

Creditors

The value of creditors falling due within one year has reduced by £428,000 to
£2.7 million at 31 March 2005, compared to the same date last year. The
principal reason for this is a reduction in the value of trade creditors, other
taxes and social security costs and deferred income.

International Accounting Standards

During the year ended 31 March 2006, GB will be required to publish its
consolidated Financial Statements in accordance with International Financial
Reporting Standards ('IFRS'). As a result, the Group's interim results for the
period ended 30 September 2005 will be the first results to be reported under
IFRS.



MT Navin-Mealey
Group Finance Director




GROUP PROFIT AND LOSS ACCOUNT
Year ended 31 March 2005
--------------------------------------------------------------------------------

                                                            Unaudited     
                                                                 2005     2004
                                                     Note       £'000    £'000      

Turnover                                                       11,231   11,916

Cost of sales                                                  (4,678)  (5,224)
                                                              --------  -------
Gross profit                                                    6,553    6,692

Other operating expenses (excluding goodwill
 amortisation and exceptional items)                           (6,268)  (6,239)
 Goodwill amortisation                                           (527)    (576)
 Exceptional items                                               (321)     (89)
                                                              --------  -------
Other operating expenses                                       (7,116)  (6,904)

--------------------------------------------------------------------------------
Operating loss before exceptional items                          (242)    (123)
Exceptional items                                                (321)     (89)
--------------------------------------------------------------------------------
Operating loss                                                   (563)    (212)

Share of operating loss in associate                                -      (10)
                                                              --------  -------
Total operating loss: Group and share of associate               (563)    (222)
Interest receivable                                               280      212
                                                              --------  -------

Loss on ordinary activities before taxation                      (283)     (10)

Taxation                                                          109       (4)
                                                              --------  -------

Loss on ordinary activities after taxation                       (174)     (14)

Proposed dividend                                                (400)    (398)
                                                              --------  -------

Amount transferred from reserves                                 (574)    (412)
                                                              --------  -------

(Loss)/earnings per 2.5p ordinary share (pence) 
 - basic                                                 1       (0.2)     0.0
                                                              --------  -------

(Loss)/earnings per 2.5p ordinary share (pence) 
 - diluted                                               1       (0.2)     0.0
                                                              --------  -------
Adjusted earnings per 2.5p ordinary share (pence) 
 - before goodwill                                       1        0.5      0.7
                                                              --------  -------

Dividend per share (pence)                                        0.5      0.5
                                                              --------  -------


GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

There were no other recognised gains or losses in the year ended 31 March 2005
or in the year ended 31 March 2004 apart from those shown in the profit and loss
account for the year.




GROUP BALANCE SHEET
As at 31 March 2005
--------------------------------------------------------------------------------

                                                            Unaudited     
                                                                 2005     2004
                                                      Note      £'000    £'000

Fixed assets

Intangible assets                                               5,979    6,504

Tangible assets                                                   361      410
                                                              --------  -------
                                                                6,340    6,914
                                                              --------  -------
Current assets

Stock                                                               -       18

Debtors                                                         2,571    2,724

Cash at bank and in hand                                        6,749    6,859
                                                              --------  -------
                                                                9,320    9,601


Creditors: amounts falling due within one year                 (2,685)  (3,113)
                                                              --------  -------
Net current assets                                              6,635    6,488
                                                              --------  -------
Total assets less current liabilities                          12,975   13,402


Provisions for liabilities and charges                           (230)    (132)
                                                              --------  -------
                                                               12,745   13,270
                                                              --------  -------

Capital and reserves

Called up share capital                                         2,001    1,989

Share premium account                                           3,170    3,133

Merger reserve                                                  6,575    6,575

Capital redemption reserve                                          3        3

Profit and loss account                                           996    1,570
                                                              --------  -------

Shareholders' funds attributable to equity interests    3      12,745   13,270
                                                              --------  -------



GROUP STATEMENT OF CASH FLOWS
Year ended 31 March 2005
--------------------------------------------------------------------------------

                                                           Unaudited      
                                                                2005      2004
                                                      Note     £'000     £'000

Net cash inflow from operating activities               2a        94       440

Returns on investments and servicing of finance

Interest received                                                280       212

Taxation

Corporation tax                                                   58        (4)

Capital expenditure and financial investment

Payments to acquire tangible fixed assets                       (173)     (153)

Acquisitions and disposals

Acquisitions of subsidiary undertakings                          (20)        -

Disposal of associate                                              -        12

Equity dividends paid                                           (398)     (398)
                                                              -------    ------

Net Cash (outflow)/inflow before management of
 liquid resources                                               (159)      109

Management of liquid resources

Cash (deposited to)/withdrawn from short-term
 deposits                                                       (259)      291

Financing

Proceeds from issue of ordinary shares                            49         2
                                                               -------    ------

(Decrease)/increase in cash                             2b      (369)      402
                                                               -------    ------




Notes to the Preliminary Announcement:


1. Earning per Ordinary Share

Earnings per share have been calculated in accordance with Financial Reporting
Standard 14 by reference to the following:

                                      Unaudited                     
                                           2005   Unaudited         2004    
                                      pence per        2005    pence per    2004
                                          share       £'000        share   £'000

Loss after taxation (used in basic and     
 diluted EPS calculation)                  (0.2)       (174)         0.0     (14)
Add goodwill amortisation                   0.7         527          0.7     576
                                         -------    --------     ------- --------

Adjusted earnings after taxation
(used in adjusted EPS calculation)          0.5         353          0.7     562
                                         -------    --------     ------- --------

                                                         Unaudited            
                                                              2005          2004
                                                               No.           No.

Basic weighted average number of shares in issue        79,754,856    79,585,369
Diluted effect of share options                                  -             -
                                                        ----------    ----------
Diluted weighted average number of shares in issue      79,754,856    79,585,369
                                                        ----------    ----------

The Directors consider that EPS calculated on the adjusted profit is an
appropriate measure of the Group's performance.

The loss for the period and the weighted average number of ordinary shares for
calculating the diluted earnings per share for the period to 31 March 2005 is
identical to those used for the basic earnings per share. This is because the
outstanding share options would have the effect of reducing the loss per
ordinary share and would therefore not be dilutive under the terms of Financial
Reporting Standard No. 14 (FRS 14).


2(a) Reconciliation of operating (loss)/profit to net cash inflows from
     operating activities

                                                           Unaudited      
                                                                2005      2004
                                                               £'000     £'000

Operating loss                                                  (563)     (212)
Depreciation                                                     222       257
Goodwill amortisation                                            527       576
Decrease/(increase) in stocks                                     18       (16)
Increase/(decrease) in provisions                                 98       (58)
Decrease in debtors                                              204       220
Decrease in creditors                                           (412)     (327)
                                                               ------    ------

Net cash inflow from operating activities                         94       440
                                                               ------    ------


2(b) Reconciliation of net cash flow to movement in net funds
                                                                2005      2004
                                                               £'000     £'000

At the beginning of the year                                   6,859     6,748
(Decrease)/increase in cash                                     (369)      402
Movement in short-term deposits with banks                       259      (291)
                                                              ------    ------

At the end of year                                             6,749     6,859
                                                              ------    ------


2(c) Analysis of net funds

                                       2004                               2005
                                      £'000          £'000               £'000

Cash at bank and in hand              1,327           (369)                958
Short-term deposits *                 5,532            259               5,791
                                     --------       --------           --------

                                      6,859           (110)              6,749
                                     --------       --------           --------

* Short-term deposits are included within cash at bank and in hand on the
balance sheet.


3. Reconciliation of Movements in Shareholders' Funds

                                                                Group
                                                    Unaudited             
                                                         2005             2004
                                                        £'000            £'000

Total recognised (loss)/profit                           (174)             (14)
Issue of shares                                            49                2
Proposed dividend                                        (400)            (398)
                                                       -------          -------
Total movements during the year                          (525)            (410)

Shareholders' funds attributable to equity
 interests at 1 April 2004                             13,270           13,680
                                                       -------          -------
Shareholders' funds attributable to equity
 interests at 31 March 2005                            12,745           13,270
                                                       -------          -------




OTHER INFORMATION

1. The above financial information, which is unaudited, does not constitute
   statutory accounts as defined in Section 240 of the Companies Act 1985. The
   financial information for the year ended 31 March 2005 has been extracted from
   the draft statutory accounts on which an unqualified audit opinion is expected
   to be issued. Statutory accounts for the year ended 31 March 2004 will be
   delivered to the Registrar in due course. The preliminary announcement is
   prepared on the same basis as set out in the previous year's statutory accounts.
   Those accounts, upon which the auditors issued an unqualified opinion, have been
   delivered to the Registrar of Companies.

2. The preliminary statement was approved by the board of directors of GB Group
   plc on 31 June 2005.

3. The ex-dividend date is 29 June 2005; the record date is 1 July 2005; the
   payment date is 29 July 2005.

4. The AGM will take place on 21 July 2004.

5. The 2005 interim results announcement is expected to be on 30 November 2005.

6. This report will also be available on the GB Group web site: www.gb.co.uk
   from 1 June 2005.

7. The Company intends to dispatch to shareholders printed copies of the full
   annual report and accounts for the year to 31 March 2003 by 24 June 2005.







                      This information is provided by RNS
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