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GB Group PLC (GBG)

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Thursday 18 November, 2004

GB Group PLC

Interim Results

GB Group PLC
18 November 2004



Embargoed until 07.00                                           18 November 2004

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

           Interim Results for the Six Months Ended 30 September 2004

                                   Highlights

   • The Group has made good progress during the first half of the year.

   • The Group's new business, URU(TM), generated sales of £150,000 in the
     period (2003: nil). The investment in marketing and developing the service
     (net of sales) was £346,000 (2003: £142,000). The number of URU(TM) customers
     has increased from 6 (as at the date of the AGM on 22 July 2004) to 25.

   • The Group's existing businesses generated like-for-like turnover
     marginally ahead of the same period last year. This is after adjusting for
     sales of third party software licences which have been discontinued and
     which generated turnover in the first half last year of £497,000). Overall,
     Group turnover for the period was £5.2 million (2003: £5.5 million).

   • The operating loss for the period was £366,000 (2003: £337,000) after
     taking account of the increased investment in URU(TM). The Group's
     profitability continues to be weighted towards the second half of the
     financial year due to the timing of contract renewals.

   • Net cash balances at 30 September 2004 were £6.3 million (2003: £6.6
     million) providing the Group with the opportunity to increase investment in
     URU(TM) if required.

John Walker-Haworth, Chairman, commented: 'The Group has continued to make
significant investment in its new business initiative in the first half and the
benefits derived from this are reflected in the progress made in winning new
customers for the URU(TM) service. Our existing businesses are competing
effectively and efficiently. Whilst the impact of increased competition on these
businesses is difficult to predict over the course of the full year, it remains
our aim to fund new development in the current financial year, in particular
URU(TM), largely if not entirely from the cash flow from these businesses. Looking
beyond the full year, the Group's cash balances provide the ability to step up
investment in URU(TM) if this is required to accelerate progress.

As in previous years, profitability associated with the Group's existing
businesses continues to be weighted towards the second half as a result of the
timing of contracts originally signed in the second half of previous years and
which continue to be renewed. This makes it difficult to comment at this stage
on prospects for the year as a whole. But it is both an exciting and challenging
time for GB, and we are encouraged by our progress, particularly the gathering
momentum of URU(TM).'

                                    - 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
Sarah Richardson

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 DataIntegrity business helps companies capture and maintain accurate
     customer contact data, an essential foundation for any profitable customer
     relationship.

   • The DataSolutions business empowers companies to consolidate and analyse
     customer data from various sources, enabling them to make better, more
     informed decisions.

   • The DataAuthentication business helps businesses validate personal
     identity information and provides anti-fraud solutions to fight crime.

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 Laura Ashley 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)

BT and GB Group have jointly developed the service, URU(TM), to help companies
protect themselves from the growing problem of identity theft and fraud, which
is estimated by the Cabinet Office 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 vast range of up-to-date UK and
International population datasources including Passport, Driving Licence,
Utility Bill and Voters Roll 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 HALF YEAR STATEMENT

Overview

The Group has made good progress during the first half of the year.

GB's new business initiative URU(TM), developed jointly with BT and which both
parties are now marketing, has made significant advances in winning new
customers. Investment in URU(TM) during the period was £204,000 higher than the
same period last year.

In the Group's existing businesses, like-for-like turnover (adjusting for sales
of third party software licences which were discontinued at the start of the
current financial year) was marginally higher than the same period last year.
Competition increased in the markets served by GB's existing businesses,
although the effects of this were offset by efficiency savings leaving the
operating result for the existing businesses £175,000 better than for the same
period last year.

Overall, therefore, the Group's loss on ordinary activities for the first half
was in line with that of last year.

New Business

The continuing growth of the URU(TM) service, launched in January 2004, has been
encouraging. Revenue from customers and trialists has increased to £150,000 in
the period. This is compared to £6,000 in the preceeding three months from the
launch of URU(TM) on 1st January 2004 to 31 March 2004. GB's investment,
net of revenue, in developing and marketing URU(TM) was £346,000, an increase of
£204,000 compared to the same period last year.

As I outlined in my statement at the AGM in July, the strategy to develop URU(TM)
is initially to win reference customers across the key target sectors and then
to expand sales within those sectors. This strategy is working well and since
July the number of customers contracted to URU(TM) has increased from six to
twenty five.

The first application for URU(TM) was the prevention of identity theft and
anti-money laundering. Further applications are being developed by GB as the
market for the authentication of individuals expands. For example, it is now
successfully assisting businesses in the online gaming sector fulfil their
obligations to verify the age, as well as the identity, of internet and
telephone account customers.

The challenge of authenticating the identity and age of individuals is a growing
problem not just in the UK but globally and in this context GB entered into an
agreement with Aristotle Inc. of the USA in October 2004 to gain access to
international identity and age verification data for inclusion in URU(TM).

GB's Joint Collaboration Agreement with BT to develop and market URU(TM) and its
derivatives continues to operate well, and BT's role of providing its web
services infrastructure as well as its technical and commercial expertise has
been important in the considerable progress achieved to date.

In summary, progress has been positive in the first half of the year. We remain
aware, however, that the URU(TM) proposition and the markets into which it is
deployed are in the early stages of their development and further investment and
growth will be required to take the business to profitability. The early
indications remain encouraging.

Existing Businesses

Despite increased competition, our existing DataIntegrity and DataSolutions
businesses generated like-for-like turnover in the first half of the year
marginally ahead of the same period last year and operating profitability
£175,000 ahead of the same period last year.

Following on from the decision taken in March 2004 to withdraw from the sale of
third party software licences, which generated turnover in the first half of
last year of £497,000, the DataSolutions division has benefited from greater
focus and a better quality of business giving higher margins and an increased
proportion of repeatable future revenues.

The DataIntegrity division, which provides software and services to assist
clients to capture, enhance and maintain accurate customer data, continues to
generate high quality repeatable revenue streams with around half of its revenue
coming from the renewal of annual contracts. The market in which this business
operates is maturing and accordingly continues to be competitive. We have,
therefore, continued to implement efficiencies and in October, GB's two
locations were merged and a number of functions were consolidated resulting in
cost savings to the Group.

One-off exceptional costs associated with these actions are expected to be
approximately £300,000 and will be recognised in the second half of the year;
these costs are expected to be matched by the savings in the second half, and
the overall impact on earnings of merging locations will, therefore, be broadly
neutral in the year as a whole.

Prospects

The Group has continued to make significant investment in its new business
initiative in the first half and the benefits derived from this are reflected in
the progress made in winning new customers for the URU(TM) service. Our existing
businesses are competing effectively and efficiently. Whilst the impact of
increased competition on these businesses is difficult to predict over the
course of the full year, it remains our aim to fund new development in the
current financial year, in particular URU(TM), largely if not entirely from the
cash flow from these businesses. Looking beyond the full year, the Group's cash
balances provide the ability to step up investment in URU(TM) if this is required
to accelerate progress.

As in previous years, profitability associated with the Group's existing
businesses continues to be weighted towards the second half as a result of the
timing of contracts originally signed in the second half of previous years and
which continue to be renewed. This makes it difficult to comment at this stage
on prospects for the year as a whole. But it is both an exciting and challenging
time for GB, and we are encouraged by our progress, particularly the gathering
momentum of URU(TM).



John Walker-Haworth
Chairman

18 November 2004




CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 30 September 2004

                                           Unaudited      Unaudited    Audited
                                         6 Months to    6 Months to    Year to
                                        30 September   30 September   31 March
                                                2004           2003       2004
                                               £'000          £'000      £'000
                                 Note

Turnover                            3          5,232          5,537     11,916

Cost of sales                       3         (2,194)        (2,530)    (5,224)
                                             --------       --------   --------

Gross profit                        3          3,038          3,007      6,692

Other operating expenses
 (excluding goodwill amortisation
 and exceptional items)             3         (3,140)        (3,080)    (6,239)
Goodwill amortisation               3           (264)          (264)      (576)
Exceptional items                   3              -              -        (89)
                                              --------       --------  --------
Other operating expenses                      (3,404)        (3,344)    (6,904)

Operating loss before
 exceptional items                              (366)          (337)      (123)

Exceptional items                                  -              -        (89)

Operating loss after exceptional
 items                              3           (366)          (337)      (212)

Share of operating (loss)/profit
 in associate                                      -             (9)       (10)
                                             --------       --------   --------
Total operating loss : Group and
 share of associate                             (366)          (346)      (222)

Interest receivable less payable                 135            104        212
                                             --------       --------   --------

Loss on ordinary activities
 before taxation                                (231)          (242)       (10)

Taxation                                          58            (32)        (4)
                                             --------       --------   --------
Loss on ordinary activities
 after taxation                                 (173)          (274)       (14)

Dividend                                           -              -       (398)
                                             --------       --------   --------
Amount transferred from reserves                (173)          (274)      (412)
                                             --------       --------   --------
Loss per 2.5p ordinary share
 (pence) - basic                    6           (0.2)          (0.3)       0.0
                                             --------       --------   --------
Loss per 2.5p ordinary share
 (pence) - diluted                  6           (0.2)          (0.3)       0.0
                                             --------       --------   --------
Adjusted profit per 2.5p
 ordinary share (pence) 
 - before goodwill                  6            0.1            0.0        0.7
                                             --------       --------   --------
Dividend per share (pence)                         -              -        0.5
                                             --------       --------   --------




CONSOLIDATED BALANCE SHEET
As at 30 September 2004
                                           Unaudited      Unaudited    Audited
                                        30 September   30 September   31 March
                                                2004           2003       2004
                                               £'000          £'000      £'000

Fixed assets

Intangible assets                              6,240          6,815      6,504
Tangible assets                                  391            438        410
Investments                                        -             13          -
                                            ---------      ---------   --------
                                               6,631          7,266      6,914
                                            ---------      ---------   --------
Current assets

Stocks                                             3              5         18
Debtors                                        2,071          2,450      2,724
Cash and short term deposits                   6,283          6,588      6,859
                                            ---------      ---------   --------
                                               8,357          9,043      9,601

Creditors : amounts falling due
 within one year                              (1,781)        (2,695)    (3,113)
                                            ---------      ---------   --------
Net current assets                             6,576          6,348      6,488
                                            ---------      ---------   --------
Total assets less current liabilities         13,207         13,614     13,402

Creditors : amounts due in more than 
 one year                                          -              -          -

Provisions for liabilities and charges          (105)          (206)      (132)
                                            ---------      ---------   --------
                                              13,102         13,408     13,270
                                            ---------      ---------   --------
Capital and reserves

Called up share capital                        1,990          1,989      1,989
Share premium account                          3,137          3,133      3,133
Merger reserve                                 6,575          6,575      6,575
Capital redemption reserve                         3              3          3
Profit and loss account                        1,397          1,708      1,570
                                            ---------      ---------   --------
                                              13,102         13,408     13,270
                                            ---------      ---------   --------



CONSOLIDATED CASHFLOW STATEMENT
For the six months ended 30 September 2004


                                 Note      Unaudited      Unaudited    Audited
                                         6 Months to    6 Months to    Year to
                                        30 September   30 September   31 March
                                                2004           2003       2004
                                               £'000          £'000      £'000

Net cash (outflow)/inflow from
 operating activities            5(a)           (220)           186        440
                                            ---------     ----------  ---------
Returns on investments and
 servicing of finance

Interest received                                135            104        212
                                            ---------     ----------  ---------
Taxation

Corporation tax paid                               -              -         (4)
                                            ---------     ----------  ---------

Capital expenditure and
 financial investment

Payments to acquire tangible
fixed assets                                   (98)           (54)      (153)
                                            ---------     ----------  ---------
Acquisitions and disposals

Disposal of associate                              -              -         12
                                            ---------     ----------  ---------
Equity dividends paid                           (398)          (398)      (398)
                                            ---------     ----------  ---------
Net Cash (outflow)/inflow                       (581)          (162)       109
                                            ---------     ----------  ---------

Management of liquid resources

Cash deposited to/(withdrawn from)
 short term deposits                             124           (394)      (291)
                                            ---------     ----------  ---------
Financing

Proceeds from issue of ordinary 
 shares                                           (5)            (2)        (2)
                                            ---------     ----------  ---------
(Decrease)/increase in cash      5(b)           (700)           234        402
                                            ---------     ----------  ---------
                                                (581)          (162)       109
                                            ---------     ----------  ---------


NOTES TO THE INTERIM FINANCIAL STATEMENTS

1.  BASIS OF PREPARATION

    The interim financial statements are prepared on the basis of the accounting 
    policies set out in the annual report and accounts for the year ended 31 March 
    2004.

2.  PUBLICATION OF NON-STATUTORY ACCOUNTS

    The financial information contained in this interim statement does not constitute 
    statutory accounts as defined in section 240 of the Companies Act 1985. The 
    financial information for the full preceding year is based on the statutory 
    accounts for the financial year ended 31 March 2004. Those accounts, upon which 
    the auditors issued an unqualified opinion, have been delivered to the Registrar 
    of Companies.

3.  SEGMENTAL INFORMATION

    Turnover and Operating Profit

    All of the turnover, profits and operating assets relate to the Group's principal 
    business activities, being the development, sale and support of business application 
    software, the provision of marketing database services and the licensing of 
    technology. Turnover is stated net of value added tax. Turnover and operating 
    profit arise principally in the United Kingdom.

4.  ANALYSIS OF BUSINESSES - TURNOVER & OPERATING LOSS

                                                                   Unaudited       Audited 
                                                                 6 Months to       Year to
                                Unaudited 6 months ended        30 September      31 March 
                                   30 September 2004                    2003          2004
                          Existing            New       Total          Total         Total
                          Business       Business
                             £'000          £'000       £'000          £'000         £'000

(a) Turnover                 5,082            150       5,232          5,537        11,916
                            -------        -------      ------      ---------      --------
(b) Operating loss

    Existing businesses        (20)             0         (20)          (195)          290
    New business                 0           (346)       (346)          (142)         (413)
    Exceptional items            0              0           0              0           (89)
                            -------        -------      ------      ---------      --------
                               (20)          (346)       (366)          (337)         (212)
                            -------        -------      ------      ---------      --------


5.  NOTES TO THE STATEMENT OF CASH FLOWS

a) Reconciliation of operating loss to operating cash flows

                                        Unaudited        Unaudited       Audited
                                      6 Months to      6 Months to       Year to
                                     30 September     30 September      31 March
                                             2004             2003          2004
                                            £'000            £'000         £'000

    Operating loss                          (366)            (337)         (212)
    Depreciation                              117              132           257
    Goodwill amortisation                     264              264           576
    Decrease/(increase) in stocks              15              (3)          (16)
    (Decrease)/Increase in provisions        (27)               15          (58)
    Decrease in debtors                       653              494           220
    Decrease in creditors                   (876)            (379)         (327)
                                       -----------        ----------   -----------
                                            (220)              186           440
                                       -----------        ----------   -----------

b) Reconciliation of net cashflow to movement in net funds

                                        Unaudited        Unaudited       Audited
                                      6 Months to      6 Months to       Year to
                                     30 September     30 September      31 March
                                             2004             2003          2004
                                            £'000            £'000         £'000

At the beginning of the period              6,859            6,748         6,748
Increase/(decrease) in cash                 (700)              234           402
Movement in short term deposits with banks    124            (394)         (291)
                                        ----------        ---------   -----------
At the end of the period                    6,283            6,588         6,859
                                        ----------        ---------   -----------


c) Analysis of net funds
                                      At 31 March         Cashflow  At 30 September
                                             2004       Six Months             2004
                                            £'000            £'000            £'000

Cash                                        1,327           (700)               627
Short term deposits                         5,532            124              5,656
                                        ----------      ---------        -----------
                                            6,859           (576)             6,283
                                        ----------      ---------        -----------


6. EARNINGS PER SHARE

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

                               Unaudited 6 Months        Unaudited 6 Months          Audited Year to
                                to 30 September            to 30 September              31 March
                                      2004                      2003                      2004
                             Pence           £'000      Pence           £'000     Pence          £'000
(Loss)/profit after 
 taxation                    (0.2)           (173)      (0.3)           (274)      0.0            (14)

Add goodwill amortisation      0.3             264        0.3             264       0.7            576
                           -------         -------    -------         -------   -------       --------
Adjusted profit/(loss)
 after taxation                0.1              91        0.0            (10)       0.7            562
                           -------         -------    -------         -------   -------       --------

Basic weighted average 
 number of shares in issue              79,624,238                 79,579,898               79,585,369
Diluted effect of share 
 options                                         -                          -                        -
                                        ----------                 ----------               ----------
Diluted weighted average
 number of shares in issue              79,624,238                 79,579,898               79,585,369
                                        ----------                 ----------               ----------
Diluted earnings per share                   (0.2)                      (0.3)                      0.0
                                           -------                    -------                 --------

The loss for the period and the weighted average number of ordinary shares for
calculating the diluted earnings per share for the period to 30 September 2004
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).



INDEPENDENT REVIEW REPORT TO GB GROUP PLC

Introduction
We have been instructed by the company to review the financial information for
the six months ended 30 September 2004 which comprises the Consolidated Profit
and Loss Account, Consolidated Balance Sheet, Consolidated Cash Flow Statement
and the related notes 1 to 6. We have read the other information contained in
the interim report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.

This report is made solely to the company in accordance with guidance contained
in Bulletin 1999/4 'Review of interim financial information' issued by the
Auditing Practices Board. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company, for our work,
for this report, or for the conclusions we have formed.

Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
'Review of interim financial information' issued by the Auditing Practices Board
for use in the United Kingdom. A review consists principally of making enquiries
of management and applying analytical procedures to the financial information
and underlying financial data, and based thereon, assessing whether the
accounting policies and presentation have been consistently applied, unless
otherwise disclosed. A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in accordance with United
Kingdom Auditing Standards and therefore provides a lower level of assurance
than an audit. Accordingly we do not express an audit opinion on the financial
information.

Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2004.



Ernst & Young LLP
Manchester

18 November 2004









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