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GB Group PLC (GBG)

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Wednesday 30 November, 2005

GB Group PLC

Interim Results

GB Group PLC
30 November 2005



Embargoed until 07.00 30 November 2005

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

           Interim Results for the Six Months Ended 30 September 2005

                                   Highlights

• Group revenue increased by 14% to £5.9m (2004: £5.2m) due entirely to strong 
  growth in DataAuthentication which provides the technology behind URU(TM), the 
  electronic age and ID verification service provided jointly with BT.

• The market for electronic age and ID verification continues to grow. Revenue 
  from URU(TM) at £862,000 (2004: £150,000), was more than five times higher than 
  last year and double that of the preceding six months.

• URU(TM) has shown strong growth in Mobile Telecommunications, is the clear market 
  leader in Online Gaming and the Financial Services sector represents a major 
  future opportunity.
 
• The number of URU(TM) customers has risen to 82 and usage of the service is 
  expected to increase substantially during the second half of the year.

• GB's traditional operations, DataIntegrity and DataSolutions remain profitable 
  and cash generative, delivering an improved profit performance in the first 
  half.

• The Group's loss before tax was £183,000 (2004: £20,000 loss) due to increased 
  investment to develop GB's DataAuthentication business, which was partially 
  offset by improved profitability in DataIntegrity and DataSolutions.

• Cash balances at 30 September remained strong at £6.4m (2004: £6.3m).

John Walker-Haworth, Chairman, commented: 'The Group performed well during the
first half of the year with the DataAuthentication business now contributing
significantly towards growth. GB's investment in this business has increased as
planned, and this has enabled its technology, through its principal offering of
URU(TM), to establish a strategic position in this new and exciting market.

Cash flows from the Group's DataIntegrity and DataSolutions operations are
continuing to fund technical and commercial development in these businesses and
in the DataAuthentication business. We are therefore able to reaffirm our
guidance issued in our preliminary announcement in May 2005 that cash balances
for the remainder of the year are not expected to fall below £5.5 million.

The Board views the second half of the financial year, and the continuing
development of the business, 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/ Rachel Taylor

Website                                                           www.gb.co.uk


Notes to Editors

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 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.

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 complementary 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).

CHAIRMANS HALF YEAR STATEMENT

Overview
Group revenue overall increased by 14% compared to the same period last year due
entirely to strong growth in turnover from GB's DataAuthentication division
which provides the technology behind URU(TM), the electronic age and ID verification 
service provided jointly with BT.

The Group's loss before tax was £183,000. This was £163,000 greater than in the
previous year as a result of increased investment to develop GB's
DataAuthentication business, which was partially offset by improved
profitability in GB's traditional operations. Cash balances at 30 September
remained strong at £6.4 million (2004: £6.3 million) giving the Group the
ability to invest further in DataAuthentication as necessary.

DataAuthentication
GB's DataAuthentication business develops technology that automates and improves
the effectiveness of age and identity verification, a fundamental component of
identity fraud prevention. GB has developed a suite of software products and
processes, which collectively comprise GBAuthenticator(TM) technology. To date,
the principal application of this technology has been GB's joint project with BT
to develop and market URU(TM).

URU(TM) was launched in January 2004 and has quickly become established in its
three principal markets of Online Gaming, Mobile Telecommunications and
Financial Services. Revenue from URU(TM) grew strongly during the first half of
the year. At £862,000, the revenue was more than 5 times higher than that for
the same period last year and almost double that of the preceding six months.
Revenue growth has been driven by the increase in the number of URU(TM) clients,
now totalling 82, and usage of the service is expected to increase substantially
during the second half of the year in line with the increase in client numbers.
Recent new clients include; in Online Gaming, Littlewoods betdirect and Skybet;
in Mobile Telecommunications, The Link (DSG international plc); and in Financial
Services, Abbey Stockbrokers and Cattles.

The market for electronic age and identity verification continues to grow apace.
GB estimates that the number of age and identity checks performed annually in
the UK exceeds half a billion and that this number continues to increase
rapidly. Furthermore, GB estimates that over 95% of these checks are performed
using paper based, manual methods. These manual methods of verification are
becoming ineffective and obsolete as the sophistication of fraudsters increases
and fake documents become ever more readily available over the internet.
Electronic verification processes, such as URU(TM), which check the underlying
data sources relating to a person's age or identity, rather than paper
documents, are therefore much less susceptible to fraud and are also
considerably more cost effective.

Our experience is that the rate of adoption of electronic methods of age and
identity verification is increasing across all of our target sectors. This is
particularly so in the Online Gaming and Mobile Telecommunications sectors,
where the requirement to verify the age or identity of individuals, either for
regulatory purposes or to combat rising fraud, is relatively new. In these
sectors few legacy systems or processes existed, and in open competition, URU(TM)
has consistently been selected. Accordingly, URU(TM) has quickly established a
strong presence in both of these sectors and in Online Gaming it is the clear
market leader.

The largest target sector for electronic age and identity verification is the
Financial Services sector which, according to Credit Today, accounts for 50% of
all identity verification checks conducted in the UK. The pace of adoption of
electronic methods of identity verification in this sector to date has been
slower than in GB's other target sectors. This is because this sector is subject
to embedded and established systems, and implementing change is therefore more
complex and time consuming. As a result, the Financial Services sector
represents a major future opportunity for URU(TM). Indications to date are
positive and we expect to see more financial institutions using URU(TM) in the
second half of the year.

Work is continuing to take electronic age and identity verification into
international markets, however, as previously indicated, the UK market will
remain our principal focus. Consequently, revenue expectations from
international usage in the current year remain modest.

In summary, we are very pleased with the progress made both in the 6 months to
30 September 2005 and in the continuing period to the end of November 2005. The
future rate of growth of revenue from the DataAuthentication business continues
to be dependent on the rate at which the electronic age and identity
verification technology is adopted and our current view of prospects is most
encouraging.

Other Operations
GB's traditional operations, DataIntegrity and DataSolutions, delivered an
improved profit performance in the first half of the year principally as a
result of cost saving measures taken in the last financial year. The markets
served by these operations are increasingly mature and challenging, particularly
those served by GB's DataIntegrity business. During October and November, new
sales in this business declined compared to the same period last year and
revenue to the end of November was 10% behind last year. In order to address the
keen competition in these markets and strengthen GB's differentiators in its
traditional business areas, we have embarked on a programme of investment to
enhance a number of our major product and service offerings over the next 12
months. Despite the current competitive environment, these operations remain
profitable and cash generative and are expected to continue to fund the majority
of our investment in DataAuthentication in the current year.

Prospects
The Group performed well during the first half of the year with the
DataAuthentication business now contributing significantly towards growth. GB's
investment in this business has increased as planned, and this has enabled its
technology, through its principal offering of URU(TM), to establish a strategic
position in this new and exciting market.

Cash flows from the Group's DataIntegrity and DataSolutions operations are
continuing to fund technical and commercial development in these businesses and
in the DataAuthentication business. We are therefore able to reaffirm our
guidance issued in our preliminary announcement in June 2005 that cash balances
for the remainder of the year are not expected to fall below £5.5 million.

The Board views the second half of the financial year, and the continuing
development of the business, with confidence.

John Walker-Haworth
Chairman                                                        30 November 2005




Footnote: Transition to International Financial Reporting Standards (IFRS)

As detailed to shareholders in the 2005 Annual Report & Accounts, all listed
companies with accounting periods commencing on or after 1 January 2005 are now
required to report in accordance with the recognition and measurement principles
of the International Financial Reporting Standards (IFRS) issued and effective
at the time of reporting to shareholders. The Board is pleased to report that
the Group has successfully completed this transition to IFRS. Consequently, the
comparative financial statements up to 31 March 2005 detailed in this report
which were previously prepared in accordance with the United Kingdom's Generally
Accepted Accounting Principles (UK GAAP) have been restated. The results, as set
out in this report, have been prepared in accordance with IFRS together with
unaudited restated comparative periods and details of the adjustments required
(although the Group has not applied IAS 34, 'Interim Financial Reporting', which
is not mandatory for UK groups, in the preparation of this report). The most
significant changes affecting the results and the financial position of the
Group as a result of the implementation of IFRS are as follows:

• the cessation of goodwill amortisation in the consolidated income statement;
• the inclusion of a charge in respect of outstanding share options issued
  after 7 November 2002 in the consolidated income statement; and
• the recognition in the consolidated balance sheet of employee benefits (i.e. 
  holidays accrued but not yet taken).

The overall effect has been an improvement to the profitability for the six
months ended 30 September 2005 and for the comparative periods against that
which would be reported under UK GAAP and is explained in more detail in the
notes 2 to 4 in the accounts.


CONSOLIDATED INCOME STATEMENT
For the six months ended 30 September 2005
________________________________________________________________________________

                                Note      Unaudited      Unaudited    Unaudited
                                        6 months to    6 months to      Year to
                                       30 September   30 September     31 March
                                               2005           2004         2005
                                                         (restated)   (restated)
                                              £'000          £'000        £'000

Revenue                                       5,939          5,232       11,231

Cost of sales                                (2,640)        (2,194)      (4,678)
                                            _________       ________     ________

Gross profit                                  3,299          3,038        6,553

Other operating expenses                     (3,638)        (3,193)      (6,366)

Exceptional items                                 -              -         (321)
                                            _________       ________     ________

Loss before tax and finance costs              (339)          (155)        (134)

Finance income                                  156            135          280
                                            _________       ________     ________

(Loss)/profit before tax                       (183)           (20)         146

Income tax                                        -             58          109
                                            _________       ________     ________

(Loss)/profit for the period                   (183)            38          255

                                            _________       ________     ________

(Loss)/earnings per share
- basic for the period             5           (0.2)p          0.0p         0.3p

- diluted for the period           5           (0.2)p          0.0p         0.3p


Dividends
- Dividend paid per share          6            0.5p           0.5p         0.5p

- Dividend paid                    6            404            398          398





CONSOLIDATED BALANCE SHEET
As at 30 September 2005
________________________________________________________________________________
                                         Unaudited      Unaudited    Unaudited
                                             As At          As At        As At
                                      30 September   30 September     31 March
                                              2005           2004         2005
                                                        (restated)   (restated)
                                             £'000          £'000        £'000

ASSETS

Non-current assets

Property, plant and equipment                  362            391          361
Goodwill                                     6,506          6,504        6,506
Deferred tax asset                             346            340          346
                                           _________       ________     ________

                                             7,214          7,235        7,213
                                           _________       ________     ________

Current assets

Inventories                                      1              3            -
Trade and other receivables                  2,097          1,731        2,225
Cash and cash equivalents                    6,434          6,283        6,749
                                           _________       ________     ________

                                             8,532          8,017        8,974
                                           _________       ________     ________

TOTAL ASSETS                                15,746         15,252       16,187
                                           _________       ________     ________

EQUITY AND LIABILITIES

Capital and reserves attributable to
 equity holders of the parent

Issued capital                               2,030          1,990        2,001
Share premium                                3,243          3,137        3,170
Merger reserve                               6,575          6,575        6,575
Capital redemption reserve                       3              3            3
Retained earnings                            1,366          1,595        1,869
                                           _________       ________     ________

Total equity                                13,217         13,300       13,618
                                           _________       ________     ________

Non-current liabilities

Provisions                                     182            105          230
                                           _________       ________     ________

Current liabilities

Trade and other payables                     2,347          1,846        2,339
Income tax payable                               -              1            -
                                           _________       ________     ________

                                             2,347          1,847        2,339
                                           _________       ________     ________

TOTAL LIABILITIES                            2,529          1,952        2,569
                                           _________       ________     ________

TOTAL EQUITY AND LIABILITIES                15,746         15,252       16,187
                                           _________       ________     ________


CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 September 2005
________________________________________________________________________________

                               Note      Unaudited      Unaudited    Unaudited
                                       6 months to    6 months to      Year to
                                      30 September   30 September     31 March
                                              2005           2004         2005
                                                        (restated)   (restated)
                                             £'000          £'000        £'000

Cash flows from operating
 activities

Cash (consumed)/generated from
 operations                       7            (68)          (220)          94

Income tax received                              -              -           58
                                           _________       ________     ________
Net cash (consumed)/generated
 from operating activities                     (68)          (220)         152
                                           _________       ________     ________

Cash flows from investing 
 activities

Acquisitions of a subsidiary,
 net of cash acquired                            -              -          (20)

Purchase of property, plant
 and equipment                                (101)           (98)        (173)

Interest received                              156            135          280
                                           _________       ________     ________

Net cash from investing   
 activities                                     55             37           87
                                           _________       ________     ________

Cash flows from financing
 activities

Proceeds from issue of shares                  102              5           49

Dividends paid to Company
 shareholders                                 (404)          (398)        (398)
                                           _________       ________     ________

Net cash flows used in
 financing activities                         (302)          (393)        (349)
                                           _________       ________     ________

Net decrease in cash and cash
 equivalents                                  (315)          (576)        (110)
Cash and cash equivalents at
 beginning of period                         6,749          6,859        6,859
                                           _________       ________     ________
Cash and cash equivalents at
 end of period                               6,434          6,283        6,749
                                           _________       ________     ________


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 September 2005
________________________________________________________________________________



                        Issued     Share     Merger     Capital   Retained     Total
                       Capital   Premium    Reserve  Redemption   Earnings    Equity
                                                        Reserve
                         £'000     £'000      £'000       £'000      £'000     £'000

Balance at 1 April 2004
 (UK GAAP)               1,989     3,133      6,575           3      1,570    13,270
                        _______   _______    _______     _______    _______   _______   

Effect of adopting 
 IFRS 2                      -         -          -           -        (66)      (66)

Cost of share-based
 payments                    -         -          -           -         66        66

Reversal of proposed
 ordinary dividend           -         -          -           -        398       398

Recognition of
 employee short-term    
 benefits                    -         -          -           -        (62)      (62)
                        _______   _______    _______     _______    _______   _______  

Balance at 1 April 
 2004 (restated)         1,989     3,133      6,575           3      1,906    13,606
                        _______   _______    _______     _______    _______   _______  

Profit for the period        -         -          -           -         38        38

Issue of shares              1         4          -           -          -         5

Cost of share-based
 payments                    -         -          -           -         49        49

Equity dividend              -         -          -           -       (398)     (398)
                        _______   _______    _______     _______    _______   _______  

Balance at 30 September
 2004 (restated)         1,990     3,137      6,575           3      1,595    13,300
                        _______   _______    _______     _______    _______   _______  

Profit for the period        -         -          -           -        217       217

Issue of shares             11        33          -           -          -        44

Cost of share-based
 payments                    -         -          -           -         57        57
                        _______   _______    _______     _______    _______   _______  

Balance at 31 March 
 2005 (restated)         2,001     3,170      6,575           3      1,869    13,618
                        _______   _______    _______     _______    _______   _______  

Loss for the period          -         -          -           -       (183)     (183)

Issue of shares             29        73          -           -          -       102

Cost of share-based 
 payments                    -         -          -           -         84        84

Equity dividend              -         -          -           -       (404)     (404)
                        _______   _______    _______     _______    _______   _______  

Balance at 30 September       
 2005                    2,030     3,243      6,575           3      1,366    13,217
                        _______   _______    _______     _______    _______   _______  


NOTES TO THE INTERIM FINANCIAL STATEMENTS

1. CORPORATE INFORMATION

The consolidated financial statements of GB Group plc for the six months ended
30 September 2005 were authorised for issue in accordance with a resolution of
the directors on 29 November 2005. GB Group plc is a public limited company
incorporated in the United Kingdom whose shares are publicly traded.

All of the revenue, 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 and anti-fraud
services and the licensing of technology. Revenue is stated net of value added
tax. Revenue and profits arise principally in the United Kingdom.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation
These September 2005 interim consolidated financial statements of GB Group plc
are for the six months ended 30 September 2005. The Group has not applied IAS
34, Interim Financial Reporting, which is not mandatory for UK groups, in the
preparation of these interim financial statements. These interim financial
statements are covered by IFRS 1 'First-time Adoption of IFRS', because they are
part of the period covered by the Group's first IFRS financial statements for
the year ended 31 March 2006. These interim financial statements have been
prepared in accordance with those IFRS standards and IFRIC interpretations
issued and effective or issued and early adopted as at the time of preparing
these statements (November 2005). The IFRS standards and IFRIC interpretations
that will be applicable at 31 March 2006, including those that will be
applicable on an optional basis, are not known with certainty at the time of
preparing these interim financial statements.

The policies set out below have been consistently applied to all the years
presented. The Group applied the exemption available under IFRS 1 to only apply
IFRS 3 'Business Combinations' from 1 April 2004. Details of the other
exemptions applied can be found in note 4.

GB Group's consolidated financial statements were prepared in accordance with
the United Kingdoms Generally Accepted Accounting Principles (UK GAAP) until 31
March 2005. UK GAAP differs in some areas from IFRS. In preparing GB Group's
consolidated interim financial statements, management has amended certain
accounting, valuation and consolidation methods applied in the UK GAAP financial
statements to comply with IFRS. The comparative figures in respect of 2004 were
restated to reflect these adjustments, as described in the accounting policies.

Reconciliations and descriptions of the effect of the transition from UK GAAP to
IFRS on the Group's equity and its net income and are provided in Note 4.

These consolidated interim financial statements have been prepared on a
historical cost basis. The consolidated financial statements are presented in
sterling and all values are rounded to the nearest thousand (£'000) except when
otherwise indicated.

Changes in Accounting Policies
The Group has adopted those standards designed to form the 'stable platform'
mandatory for financial years beginning on or after 1 January 2005. The
principal effects of this decision are discussed below.

IFRS 2 'Share-Based Payment'
IFRS 2 'Share-Based Payment' requires an expense to be recognised where the
Group buys goods or services in exchange for shares or rights over shares
('equity-settled transactions'), or in exchange for other assets equivalent in
value to a given number of shares or rights over shares ('cash-settled
transactions'). The main impact of IFRS 2 on the Group is the expensing of
employees' and directors' share options and other share-based incentives by
using an option-pricing model.

The Group has taken advantage of the transitional provisions of IFRS 2 in
respect of equity-settled awards and has applied IFRS 2 only to equity settled
awards granted after 7 November 2002 that had not vested on or before 1 January
2005.

The effect of the revised policy has been to decrease profits for the year ended
31 March 2005 by £106,000 due to the increase in the share based payment
expense. Profits for the six months ended 30 September 2005 decreased by £84,000
(2004: £49,000) due to the share based payment expense. The amounts charged to
profits in the Income Statement are reinstated in the Group's reserves.

IFRS 3 'Business Combinations', IAS 36 'Impairment of Assets' and IAS 38
'Intangible Assets'
The adoption of IFRS 3, IAS 36 (revised 2004) and IAS 38 (revised 2004) resulted
in a change in the accounting policy for goodwill. Until 31 March 2004, goodwill
was:
• Amortised on a straight line basis over a period ranging from 5 to 20 years; and
• Assessed for an indication of impairment at each balance sheet date.

In accordance with the provisions of IFRS 3 and IAS 36:
• The Group ceased amortisation of goodwill from 1 April 2004;
• Accumulated amortisation as at 31 March 2005 has been eliminated with a 
  corresponding decrease in the cost of goodwill of £527,000;
• From 1 April 2005 onwards, goodwill is tested annually for impairment, as well 
  as when there are indications of impairment.

IAS 19 'Employee Benefits'
As of 1 April 2004, the Group adopted IAS 19 (revised). As a result, it is
necessary to provide for the value of short-term employee benefits such as
accumulated annual holiday entitlement.

IAS 10 'Events after the Balance Sheet Date'
Until 31 March 2004, proposed dividends were accounted for in the period in which
they related to. IAS 10 requires that dividends proposed or declared after the
balance sheet are recognised as a liability in the period in which they are
approved by the Company's shareholders.

In addition to the standards referred to above, the Group has adopted the
following standards during the year, and comparative figures have been amended
as required:

• IAS 1 Presentation of Financial Statements (amended 2004);
• IAS 2 Inventories (revised 2003);
• IAS 7 Cash Flow Statements;
• IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (revised 
  2003);
• IAS 12 Income Taxes;
• IAS 14 Segment Reporting;
• IAS 17 Leases (amended 2004);
• IAS 18 Revenue;
• IAS 19 Employee Benefits;
• IAS 27 Consolidated and Separate Financial Statements (amended 2004);
• IAS 33 Earnings per Share (amended 2004);
• IAS 32 Financial Instruments: Disclosure and Presentation (amended 2004);
• IAS 37 Provisions, Contingent Liabilities and Contingent Assets; and
• IAS 39 Financial Instruments: Recognition and Measurement (amended 2004).

New Accounting Standards and IFRIC Interpretations
Certain new accounting standards and IFRIC interpretations have been published
that are mandatory for accounting periods beginning on or after 1 January 2006.
The Group's assessment of the impact of these new standards and interpretations
is that the implementation is not expected to change the accounting for any
current arrangements.

Property, Plant and Equipment
Plant and equipment is stated at cost less accumulated depreciation and any
impairment in value. Depreciation is calculated on a straight-line basis over
the estimated useful life of the asset as follows:

Plant and equipment - over 4 to 10 years

The carrying values of plant and equipment are reviewed for impairment either
annually, or when events or changes in circumstances indicate the carrying value
may not be recoverable (whichever is earlier). If any such indication exists and
where the carrying values exceed the estimated recoverable amount, the assets
are written down to their recoverable amount.

An item of plant and equipment is derecognised upon disposal or when no future
economic benefits are expected to arise from the continued use of the asset. Any
gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the item) is
included in the income statement in the year the item is derecognised.

Residual values and estimated remaining lives are reviewed annually.

Goodwill
Goodwill on acquisition is initially measured at cost being the excess of the
cost of the business combination over the acquirer's interest in the net fair
value of the identifiable assets, liabilities and contingent liabilities.
Following initial recognition, goodwill is measured at cost less any accumulated
impairment losses. Goodwill already carried in the balance sheet at 1 April 2004
or relating to acquisitions after that date is not amortised. Goodwill is
reviewed for impairment, annually or more frequently if events or changes in
circumstances indicate that the carrying value may be impaired.

As at the acquisition date, any goodwill acquired is allocated to the
cash-generating unit expected to benefit from the combination's synergies.
Impairment is determined by assessing the recoverable amount of the
cash-generating unit, to which the goodwill relates. Where the recoverable amount 
of the cash-generating unit is less than the carrying amount, an impairment loss 
is recognised. Where goodwill forms part of a cash generating unit and part of the
operation within that unit are disposed of, the goodwill associated with the
operation disposed of is included in the carrying amount of the operation when
determining the gain or loss on disposal of the operation. Goodwill disposed of
in this circumstance is measured on the basis of the relative values of the
operation disposed of and the portion of the cash-generating unit retained.

Intangible Assets

Research and development costs
Research costs are expensed as incurred. An intangible asset arising from
development expenditure on an individual project is recognised only when the
Group can demonstrate the technical feasibility of completing the intangible
asset so that it will be available for use or sale, its intention to complete
and its ability to use or sell the asset, how the asset will generate future
economic benefits, the ability of resources to complete and the availability to
measure reliably the expenditure during the development. Following the initial
recognition of the development expenditure, the cost model is applied requiring
the asset to be carried at cost less any accumulated amortisation and
accumulated impairment losses. Any expenditure capitalised is amortised over the
period of expected future sales from the related project.

Inventories
Inventory is stated at the lower of cost and net realisable value. Net
realisable value is the estimated selling price in the ordinary course of
business, less estimated costs of completion and the estimated costs necessary
to make the sale.

Work in Progress
Work in progress is the cost of direct materials, labour and direct overheads
based on normal levels of overhead activity.

Trade and Other Receivables
Trade receivables, which generally have 30-90 day terms, are recognised and
carried at original invoice amount less an allowance for any uncollectable
amounts. An estimate for doubtful debts is made when collection of the full
amount is no longer probable. Bad debts are written off when identified.

Cash and Cash Equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand
and short-term deposits with an original maturity date of three months or less.

For the purpose of the consolidated cash flow statement, cash and cash
equivalents consist of cash and cash equivalents as defined above, net of any
outstanding bank overdrafts.

Provisions
Provisions are recognised when the Group has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation. Where the
Group expects some or all of a provision to be reimbursed, for example under an
insurance contract, the reimbursement is recognised as a separate asset but only
when the reimbursement is virtually certain. The expense relating to any
provision is presented in the income statement net of any reimbursement. If the
effect of the time value of money is material, provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money and, where appropriate,
the risks specific to the liability. Where discounting is used, the increase in
the provision due to the passage of time is recognised as a borrowing cost.

Pensions
The Group does not have a contributory pension scheme. Payments are made to
individual private defined contribution pension arrangements. Contributions are
charged in the income statement as they become payable.

Exceptional Costs
Exceptional costs are the costs relating to reorganisations and restructurings
having a material effect on the nature and focus of the Group's operations.

Share-Based Payment Transactions
Employees (including directors) of the Group receive remuneration in the form of
share-based payment transactions, whereby employees render services in exchange
for shares or rights over shares ('equity-settled transactions').

Equity-Settled Transactions
The cost of equity-settled transactions with employees is measured by reference
to the fair value at the date on which they are granted. The fair value is
determined by an external valuer using a binomial model. In valuing
equity-settled transactions, no account is taken of any performance conditions,
other than conditions linked to the price of the shares of GB Group plc ('market
conditions'), if applicable.

The cost of equity-settled transactions is recognised, together with a
corresponding increase in equity, over the period in which the performance and/
or service conditions are fulfilled, ending on the date on which the relevant
employees become fully entitled to the award ('the vesting date'). The
cumulative expense recognised for equity-settled transactions at each reporting
date until the vesting date reflects the extent to which the vesting period has
expired and the Group's best estimate of the number of equity instruments that
will ultimately vest. The income statement charge or credit for a period
represents the movement in cumulative expense recognised as at the beginning and
end of that period.

No expense is recognised for awards that do not ultimately vest, except for
awards where vesting is conditional upon a market condition, which are treated
as vesting irrespective of whether or not the market conditions was satisfied,
provided that all other performance conditions are satisfied.

Where the terms of an equity-settled award are modified, as a minimum an expense
is recognised as if the terms had not been modified. In addition, an expense is
recognised for any modification, which increases the total fair value of the
share-based payment arrangement, or is otherwise beneficial to the employee as
measured at the date of modification.

Where an equity-settled award is cancelled, it is treated as if it had vested on
the date of cancellation, and any expense not yet recognised for the award is
recognised immediately. However, if a new award is substituted for the cancelled
award, and designated as a replacement award on the date that it was granted,
the cancelled and new awards are treated as if they were a modification of the
original award, as described in the previous paragraph.

The dilutive effect of outstanding options is reflected as additional share
dilution in the computation of earnings per share (see note 5).

Revenue Recognition
Revenue comprises the fair value for the sale of software and services, net of
value-added tax, rebates and discounts and after eliminated sales within the
Group. Revenue is recognised as follows:

(a) Sale of software licences
Revenue in respect of software licences where there are no further contractual
obligations is recognised in the period of sales. Revenue in respect of software
licences where there are further contractual obligations, in the form of
additional services provided by the Group, is recognised over the duration of
the licence.

(b) Sale of services
Revenue in respect of services are recognised in the accounting period in which
the services are rendered, by reference to completion of the specific
transaction assessed on the basis of the actual service provided as a proportion
of the total services to be provided.

There was a change to an estimation technique during the year ended 31 March
2005. A more sophisticated estimation process is now adopted to calculate the
fair value of the unfulfilled obligations that arise from the sale of certain
software licences. This resulted in a reduction in turnover and profits for the
year ended 31 March 2005 of £89,000 and an increase in turnover and profits for
the six months ended 30 September 2005 of £13,000.

Operating Leases
Payments made under operating leases (net of any incentives received from the
lessor) are charged to the income statement on a straight-line basis over the
period of the lease.

Dividends
Dividend distribution to the Company's shareholders is recognised as a liability
in the Group's financial statements in the period in which the dividends are
approved by the Company's shareholders.

Deferred Income Tax
Deferred income tax is provided in full, using the liability method, on
temporary differences arising between the tax bases of assets and liabilities
and their carrying amounts in the consolidated financial statements. However, if
the deferred income tax arises from initial recognition of an asset or liability
in a transaction other than a business combination that at the time of the
transaction affects neither accounting nor taxable profit or loss, it is not
accounted for. Deferred income tax is determined using tax rates (and laws) that
have been enacted or substantially enacted by the balance sheet date and are
expected to apply when the related deferred income tax asset is realised or the
deferred income tax liability is settled.

Deferred income tax assets are recognised to the extent that it is probable that
future taxable profit will be available against which the temporary differences
can be utilised.

Deferred income tax is provided on temporary differences arising on investments
in subsidiaries and associates, except where the Group controls the timing of
the reversal of the temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future.

3. SEGMENTAL INFORMATION

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

4. TRANSITION TO IFRS

Application of IFRS 1 'First Time Adoption of IFRS'
The Group's financial statements for the year ended 31 March 2006 will be the
first annual financial statements that comply with IFRS. These interim financial
statements have been prepared as described in Note 2. The Group has applied IFRS
1 in preparing these consolidated interim financial statements.

GB Groups' transition date is 1 April 2004. The Group prepared its opening IFRS
balance sheet at that date. The reporting date of these interim consolidated
financial statements is 30 September 2005.

In preparing these interim consolidated financial statements in accordance with
IFRS 1, the Group has taken advantage of certain of the optional exemptions from
full retrospective application of IFRS.

Exemptions From Full Retrospective Application Elected by the Group
GB Group has elected to apply the following optional exemptions from full
retrospective application.

(a) Business combinations
GB Group has applied the business combinations exemption in IFRS 1. It has not
restated business combinations that took place prior to the 1 April 2004
transition date.

(b) Share-based payments
The Group has elected to apply the share-based payment exemption. It applied
IFRS 2 from 1 April 2004 to those options that were issued after 7 November 2002
but that have not vested by 1 January 2005.

Reconciliations Between IFRS and UK GAAP
The following reconciliations provide a quantification of the effect of the
transition to IFRS. The first reconciliation provides an overview of the impact
on equity of the transition at 1 April 2004, 30 September 2004 and 31 March
2005. The following six reconciliations provide details of the impact of the
transition on:

- equity at 1 April 2004
- equity at 30 September 2004
- equity at 31 March 2005
- net income for the period ended 30 September 2004
- net income for the year ended 31 March 2005

4.1 Summary of Equity

                           Unaudited            Unaudited            Unaudited
                    Note     1 April     Note     30 Sept     Note    31 March
                                2004                 2004                 2005
                               £'000                £'000                £'000

Total equity    
 under UK GAAP                13,270               13,102               12,745

Reversal of 
 goodwill      
 amortisation                      -   4.3(a)         264   4.4(a)         527

Reversal of
 proposed ordinary
 dividends 
 payable          4.2(c)         398                    -   4.4(c)         400

Recognition of
 employee short
 -term benefits
 under IAS19      4.2(c)         (62)  4.3(c)         (66)  4.4(c)         (54)

                               _______               ______               ______
Total equity       
 under IFRS                    13,606               13,300               13,618
                               _______               ______               ______

4.2 Reconciliaton of equity at 1 April 2004

                                    Note          UK     Effect of      IFRS
                                                GAAP    transition 
                                                           to IFRS
                                               £'000         £'000     £'000

ASSETS
Non-current assets
Property, plant and equipment                    410             -       410
Goodwill                           4.2(a)      6,504             -     6,504
Deferred income tax asset                        340             -       340
                                              _______       _______   _______
                                               7,254             -     7,254
Current assets
Inventories                                       18             -        18
Trade and other receivables                    2,384             -     2,384
Cash and cash equivalents                      6,859             -     6,859
                                              _______       _______   _______
                                               9,261             -     9,261
                                              _______       _______   _______
TOTAL ASSETS                                  16,515             -    16,515
                                              _______       _______   _______

EQUITY AND LIABILITIES

Capital and reserves attributable to
 equity holders of the parent
Issued capital                                 1,989             -     1,989
Share premium                                  3,133             -     3,133
Merger reserve                                 6,575             -     6,575
Capital redemption reserve                         3             -         3
Retained earnings                  4.2(c)      1,570           336     1,906
                                              _______       _______   _______
Total equity                                  13,270           336    13,606
                                              _______       _______   _______
Non-current liabilities
Provisions                                       132             -       132
                                              _______       _______   _______
Current liabilities
Trade and other
 payables                          4.2(b)      3,112          (336)    2,776
Income tax payable                                 1             -         1
                                              _______       _______   _______
                                               3,113          (336)    2,777
                                              _______       _______   _______
TOTAL LIABILITIES                              3,245          (336)    2,909
                                              _______       _______   _______
TOTAL EQUITY AND LIABILITIES                  16,515             -    16,515
                                              _______       _______   _______

Explanation of the effect of the transition to IFRS
The following explains the material adjustments to the balance sheet and income
statement.

(a) Goodwill
Goodwill was tested for impairment at 1 April 2004. No impairment has been
identified at 1 April 2004.
The recoverable amount has been determined based on a value in use calculation.
To calculate this, cash flow projections are based on financial budgets approved
by senior management covering a two-year period. The discount rate applied to
cash flow projections is 4.75 per cent (2005: 4.75 per cent) and cash flows
beyond the two-year period are extrapolated using a nil growth rate for maximum
prudence.

(b) Trade and other payables
    (i) Reversal of proposed ordinary dividends payable                    (398)
    (ii) Recognition of employee short-term benefits under IAS19             62
                                                                        ________
Total impact - decrease in trade and other payables                        (336)
                                                                        ________

(i) Dividends proposed after the balance sheet date but before the financial
statements are finalised were treated as an adjusting post-balance sheet event
under UK GAAP and accrued in the financial statements. Such dividends are
treated as a non-adjusting balance sheet event under IFRS and are not accrued
until approved at the Annual General Meeting.

(ii) Compensated absences such as holiday pay were not accrued under UK GAAP.
The costs for earned but unused holiday entitlement are recognised as a
liability under IFRS and are accrued.

(c) Retained earnings
The cumulative effect of all the above adjustments has resulted in an increase
in retained earnings at 1 April 2004 of £336,000.

4.3 Reconciliaton of Equity at 30 September 2004
                                       Note          UK     Effect of     IFRS
                                                   GAAP    transition 
                                                              to IFRS
                                                  £'000         £'000    £'000
ASSETS
Non-current assets
Property, plant and equipment                       391             -      391
Goodwill                               4.3(a)     6,240           264    6,504
Deferred income tax asset                           340             -      340
                                                  ______       _______  _______
                                                  6,971           264    7,235
Current assets
Inventories                                           3             -        3
Trade and other receivables                       1,731             -    1,731
Cash and cash equivalents                         6,283             -    6,283
                                                  ______       _______  _______
                                                  8,017             -    8,017
                                                  ______       _______  _______
TOTAL ASSETS                                     14,988           264   15,252
                                                  ______       _______  _______

EQUITY AND LIABILITIES

Capital and reserves attributable to
 equity holders of the parent

Issued capital                                    1,990             -    1,990
Share premium                                     3,137             -    3,137
Merger reserve                                    6,575             -    6,575
Capital redemption reserve                            3             -        3
Retained earnings                      4.3(c)     1,397           198    1,595
                                                  ______       _______  _______
Total equity                                     13,102           198   13,300
                                                  ______       _______  _______

Non-current liabilities
Provisions                                          105             -      105
                                                  ______       _______  _______
Current liabilities
Trade and other payables               4.3(b)     1,780            66    1,846
Income tax payable                                    1             -        1
                                                  ______       _______  _______
                                                  1,781            66    1,847
                                                  ______       _______  _______
TOTAL LIABILITIES                                 1,886            66    1,952
                                                  ______       _______  _______
TOTAL EQUITY AND LIABILITIES                     14,988           264   15,252
                                                  ______       _______  _______


Explanation of the effect of the transition to IFRS
The following explains the material adjustments to the balance sheet and income
statement.
(a) Goodwill
Derecognition of goodwill amortisation                                     264
                                                                        ________
Total impact - increase goodwill                                           264
                                                                        ________

Goodwill was tested for impairment at 30 September 2004. No impairment has been
identified at 30 September 2004.
The recoverable amount has been determined based on a value in use calculation.
To calculate this, cash flow projections are based on financial budgets approved
by senior management covering a two-year period. The discount rate applied to
cash flow projections is 4.75 per cent (2004: 4.75 per cent) and cash flows
beyond the two-year period are extrapolated using a nil growth rate for maximum 
prudence.

(b) Trade and other payables
Recognition of employee short-term benefits under IAS19                     66
                                                                        ________
Total impact - increase in trade and other payables                         66
                                                                        ________

Compensated absences such as holiday pay were not accrued under UK GAAP. The
costs for earned but unused holiday entitlement are recognised as a liability
under IFRS and are accrued

(c) Retained earnings
The cumulative effect of all the above adjustments has resulted in an increase
in retained earnings at 30 September 2004 of £198,000.


4.4 Reconciliaton of Equity at 31 March 2005
                                         Note        UK     Effect of     IFRS
                                                   GAAP    transition 
                                                              to IFRS
                                                  £'000         £'000    £'000
ASSETS
Non-current assets
Property, plant and equipment                       361             -      361
Goodwill                               4.4(a)     5,979           527    6,506
Deferred income tax asset                           346             -      346
                                                  ______       _______  _______
                                                  6,686           527    7,213
Current assets
Inventories                                           -             -        -
Trade and other receivables                       2,225             -    2,225
Cash and cash equivalents                         6,749             -    6,749
                                                  ______       _______  _______
                                                  8,974             -    8,974
                                                  ______       _______  _______
TOTAL ASSETS                                     15,660           527   16,187
                                                  ______       _______  _______

EQUITY AND LIABILITIES

Capital and reserves attributable to
 equity holders of the parent

Issued capital                                    2,001             -    2,001
Share premium                                     3,170             -    3,170
Merger reserve                                    6,575             -    6,575
Capital redemption reserve                            3             -        3
Retained earnings                      4.4(c)       996           873    1,869
                                                  ______       _______  _______
Total equity                                     12,745           873   13,618
                                                  ______       _______  _______
Non-current liabilities
Provisions                                          230             -      230
                                                  ______       _______  _______
Current liabilities
Trade and other payables               4.4(b)     2,685          (346)   2,339
Income tax payable                                    -             -        -
                                                  ______       _______  _______
                                                  2,685          (346)   2,339
                                                  ______       _______  _______
TOTAL LIABILITIES                                 2,915          (346)   2,569
                                                  ______       _______  _______
TOTAL EQUITY AND LIABILITIES                     15,660           527   16,187
                                                  ______       _______  _______

Explanation of the effect of the transition to IFRS
The following explains the material adjustments to the balance sheet and income
statement.

(a) Goodwill
Derecognition of goodwill amortisation                                     527
                                                                        ________
Total impact - increase goodwill                                           527
                                                                        ________

Goodwill was tested for impairment at 31 March 2005. No impairment has been
identified at 31 March 2005.
The recoverable amount has been determined based on a value in use calculation.
To calculate this, cash flow projections are based on financial budgets approved
by senior management covering a two-year period. The discount rate applied to
cash flow projections is 4.75 per cent (2004: 4.75 per cent) and cash flows
beyond the two-year period are extrapolated using a nil growth rate for maximum 
prudence.

(b) Trade and other payables
    (i)  Reversal of proposed ordinary dividends payable                  (400)
    (ii) Recognition of employee short-term benefits under IAS19            54
                                                                        ________
Total impact - decrease in trade and other payables                       (346)
                                                                        ________

(i) Dividends proposed after the balance sheet date but before the financial
statements are finalised were treated as an adjusting post-balance sheet event
under UK GAAP and accrued in the financial statements. Such dividends are
treated as a non-adjusting balance sheet event under IFRS and are not accrued.

(ii) Compensated absences such as holiday pay were not accrued under UK GAAP.
The costs for earned but unused holiday entitlement are recognised as a
liability under IFRS and are accrued

(c) Retained earnings
The cumulative effect of all the above adjustments has resulted in an increase
in retained earnings at 31 March 2005 of £873,000.


4.5 Reconciliaton of net income for six months ended 30 September 2004

                        Note             UK            Effect of          IFRS
                                       GAAP           transition 
                                                         to IFRS
                                      £'000                £'000         £'000

Revenue                               5,232                    -         5,232
Cost of sales                        (2,194)                   -        (2,194)
                                     _______              _______       _______
Gross profit                          3,038                    -         3,038
Other operating 
 expenses             4.5(a)         (3,404)                 211        (3,193)
                                     _______              _______       _______ 
Loss before tax and
 finance costs                         (366)                 211          (155)

Finance income                          135                    -           135
                                     _______              _______       _______ 
Loss before tax                        (231)                 211           (20)

Income tax                               58                    -            58
                                     _______              _______       _______
(Loss)/profit from
 ordinary activities
 after tax                             (173)                 211            38
                                     _______              _______       _______ 


Explanation of the effect of the transition to IFRS
The following explains the material adjustments to the balance sheet and income
statement.

(a) Other operating expenses
    (i)  Derecognition of goodwill amortisation                             264
    (ii) Recognition of charge on share options issued after 7 November 
         2002 and not vested at 1 January 2005                              (49)
    (iii)Recognition of employee short-term benefits under IAS19             (4)
                                                                        ________
Total impact - decrease in other operating expenses                         211
                                                                        ________

4.6 Reconciliaton of net income for year ended 31 March 2005

                         Note             UK            Effect of         IFRS
                                        GAAP           transition 
                                                          to IFRS
                                       £'000                £'000        £'000

Revenue                               11,231                    -       11,231
Cost of sales                         (4,678)                   -       (4,678)
                                     _______              _______       _______  
Gross profit                           6,553                    -        6,553

Other operating 
 expenses              4.6(a)         (6,795)                 429       (6,366)
Exceptional items                       (321)                   -         (321)
                                     _______              _______       _______  
Loss before tax and
 finance costs                          (563)                 429         (134)

Finance income                           280                    -          280
                                     _______              _______       _______  
(Loss)/profit before tax                (283)                 429          146

Income tax                               109                    -          109
                                     _______              _______       _______  
(Loss)/profit from
 ordinary activities
 after tax                              (174)                 429          255
                                     _______              _______       _______  


Explanation of the effect of the transition to IFRS
The following explains the material adjustments to the balance sheet and income
statement.

(a) Other operating expenses
    (i)   Derecognition of goodwill amortisation                              527
    (ii)  Recognition of charge on share options issued after 7 November
          2002 and not vested at 1 January 2005                              (106)
    (iii) Reduction in value of employee short-term benefits under IAS19        8
                                                                           ________
Total impact - decrease in other operating expenses                           429
                                                                           ________

5. EARNINGS PER ORDINARY SHARE
Earnings per share have been calculated in accordance with International
Accounting Standard 33.

Basic
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the Company by the basic weighted average number of ordinary
shares in issue during the year.

                   Unaudited 6 Months   Unaudited 6 Months   Unaudited Year to
                     to 30 September      to 30 September      31 March 2005
                           2005                2004        
                                            (Restated)         (Restated)
                     Pence                Pence             Pence
                       per                  per               per 
                     share      £'000     share     £'000   share     £'000

(Loss)/ profit
 attributable to 
 equity holders of           
 the Company          (0.2)      (183)      0.0        38     0.3       255
                    _______    _______   _______   _______  _______  _______

Diluted
Diluted earnings per share amounts are calculated by dividing the net profit for
the year attributable to ordinary equity holders by the weighted average number
of ordinary shares outstanding during the year plus the weighted average number
of ordinary shares that would be issued on the conversion of all the dilutive
potential ordinary shares into ordinary shares.

                                            30 Sept      30 Sept     31 March
                                               2005         2004         2005
                                                No.          No.          No.
                                                      (Restated)   (Restated)

Basic weighted average number of shares
 in issue                                80,667,324   79,624,238   79,754,856
Diluted effect of share options                   -    2,510,802    3,076,165
                                         __________   __________   __________
Diluted weighted average number of
 shares in issue                         80,667,324   82,135,040   82,831,021
                                         __________   __________   __________

                   Unaudited 6 Months   Unaudited 6 Months   Unaudited Year to
                     to 30 September      to 30 September      31 March 2005
                           2005                2004        
                                            (Restated)         (Restated)
                     Pence                Pence             Pence
                       per                  per               per 
                     share      £'000     share     £'000   share     £'000

Diluted (Loss)/
 profit attributable
 to equity holders 
 of the Company       (0.2)      (183)      0.0        38     0.3       255
                    _______    _______   _______   _______  _______  _______

6. DIVIDENDS PAID AND PROPOSED

                                             30 Sept      30 Sept      31 March 
                                                2005         2004          2005
                                               £'000        £'000         £'000
                                                        (Restated)    (Restated)
Declared and paid during the period
Final dividend for 2005: 0.5p (2004: 0.5p)       404          398           398
                                            _________    _________     _________
Proposed for approval at AGM (not 
 recognised as a liability at 31 March 2005)
Final dividend for 2005: 0.5p (2004: 0.5p)         -            -           404
                                            _________    _________     _________

7. RECONCILIATION OF THE LOSS BEFORE INCOME TAX TO NET CASH (CONSUMED)/GENERATED
FROM OPERATIONS

                                   Unaudited         Unaudited       Unaudited
                                 6 months to       6 months to         Year to
                                30 September      30 September        31 March
                                        2005              2004            2005
                                                     (restated)      (restated)
                                       £'000             £'000           £'000

Loss before income tax                  (339)             (155)           (134)
Depreciation                             100               117             222
Loss on disposal of tangible
 fixed assets                              1                 -               -
Adjustment for share based payments       84                49             106
(Increase)/decrease in inventory          (1)               15              18
(Decrease)/increase in provisions        (48)              (27)             98
Decrease in debtors                      128               653             204
Increase/(decrease) in creditors           7              (872)           (420)
                                      ________          ________        ________
                                         (68)             (220)             94
                                      ________          ________        ________

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 2005 which comprises the Consolidated Income
Statement, Consolidated Balance Sheet, Consolidated Cash Flow Statement,
Consolidated Statement of Changes in Equity, and the related notes 1 to 7. 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.

As disclosed in note 2, the next annual financial statements of the group will
be prepared in accordance with those IFRSs adopted for use by the European
Union.

The accounting policies are consistent with those that the directors intend to
use in the next financial statements. There is, however, a possibility that the
directors may determine that some changes to these policies are necessary when
preparing the full annual financial statements for the first time in accordance
with those IFRSs adopted for use by the European Union.

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 group management and applying analytical procedures to the financial
information and underlying financial data, and based thereon, assessing whether
the accounting policies have been applied. 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 International Standards on Auditing 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 2005.

Ernst & Young LLP
100 Barbirolli Square
Manchester
M2 3EY






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