Final Results
GB Group PLC
07 June 2006
Embargoed until 07.00 7 June 2006
GB GROUP PLC
('GB' or the 'Group')
Preliminary Results for the Year Ended 31 March 2006
GB Group is today pleased to announce preliminary results for the year ended 31
March 2006.
Highlights
• Strong growth with Group revenues up by 14% to £12.8m (2005: £11.2m).
• Revenue from DataAuthentication, which markets URU(TM), GB's joint offering with
BT, increased threefold to £1.9m (2005: £0.6m).
• Number of customers for URU almost doubled to 105 (2005: 59) and transaction
volumes increased threefold to 572,000 in the last quarter (2005: 172,000).
• Investment in international identity verification services to be advanced in
line with demand from existing customers.
• DataIntegrity and DataSolutions delivered an improved profit performance
compared to last year.
• Cash balances at 31 March remained strong at £6.7m (2005: £6.7m).
• Proposed full year dividend of 0.75p, an increase of 50% (2005: 0.5p), based
on strong performance and Board confidence of future prospects.
Commenting on current trading, John Walker-Haworth, Chairman, said:
'This has been a significant year for the Group. DataAuthentication has
established itself as a leading provider of electronic solutions for age and ID
verification in an exciting market with considerable future opportunities.
Positive progress has also been made in DataIntegrity and DataSolutions.
The quality of our business continues to improve in line with the significant
investment we are making and the business has real and substantial potential.'
- Ends -
For further information, please contact:
GB Group plc
Richard Law, Chief Executive 01244 657 333
Mona Navin-Mealey, Finance Director
Weber Shandwick Square Mile 020 7067 0700
Richard Hews
Helen Thomas
Website www.gb.co.uk
An analyst presentation will be held at 10.30am today at the offices of Weber
Shandwick Square Mile, Fox Court, 14 Gray's Inn Road, London WC1X 8WS
Notes to Editors
About URU(TM)
URU is an electronic identity verification service which was developed jointly
with BT and is DataAuthentication's principle offering. URU, which is powered by
GB's ID3(TM) search engine and decision making technology, provides 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 £1.7 billion per
annum. URU 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 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 is
compliant with the Data Protection Act.
URU 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 to incorporate
credit reference data.
As a result of legislation, new opportunities and social responsibility
requirements, the market for electronic ID verification is significant and
growing. Although an estimated 0.5 billion manual ID checks are conducted
annually in the UK, less than 3% of these are currently performed
electronically.
URU has demonstrated that electronic checks are more effective, less expensive
and more robust.
The market is moving towards electronic checks as fraudulent documents become
ever more sophisticated, more readily available and more difficult to check
manually. It is estimated that by 2010, the market for electronic ID checks
could be 300 million checks per annum.
GB works closely with trade and industry associations, such as the Finance and
Leasing Association, the Remote Gambling Association and the Financial
Technology Research Centre, to advise businesses that more robust processes can
prevent financial crime. We have worked closely with the Gaming Industry to
address social issues such as underage gambling and addiction and our Social
Responsibility Consultancy helps Gaming operators formulate best practice to
comply with regulatory requirements and improve profitability.
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.
We are constantly improving business processes by building on our core values of
Innovation, Quality and Excellence. This is reflected in our customer
satisfaction surveys and also through research, carried out by Manchester
Business School, which confirms our products are out performing the competition.
GB Group plc has three complementary offerings:
• DataAuthentication helps businesses validate personal identity information and
provides anti-fraud solutions to fight crime.
• DataIntegrity helps companies capture and maintain accurate customer contact
data, an essential foundation for any profitable customer relationship.
• DataSolutions 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).
CHAIRMAN'S STATEMENT
This has been a significant year for the Group. DataAuthentication has
established itself as a leading provider of electronic solutions for age and ID
verification in an exciting market with considerable future opportunities.
Positive progress has also been made in DataIntegrity and DataSolutions.
To reflect the Board's confidence in the present position and the momentum of
the business, an increased dividend for the full year of 0.75p per ordinary
share (2005: 0.5p per ordinary share) will be proposed at the Annual General
Meeting to be held in July.
The market for electronic identity verification continues to grow apace and the
rate of adoption of electronic forms of identity verification is accelerating.
DataAuthentication, whose current principal offering is URU(TM), increased its
revenue three-fold compared to last year. The investment which funded this
growth, and which was increased significantly compared to the previous year, was
generated entirely by DataIntegrity and DataSolutions.
The number of URU(TM) clients has increased and now totals 105, compared to 59
this time last year, and the size and strategic importance of its new clients is
steadily increasing. As a result, the volume of transactions was 47% higher in
the second half of the year compared to the first half.
The traditional services offered by DataIntegrity and DataSolutions had a
positive year delivering revenue and profitability marginally ahead of the
previous year against a background of increasing competition. These markets are
mature, and in order to improve our position we are taking a number of
innovative steps, as mentioned in the Chief Executive's Review.
Overall, the Group had a positive performance. Although a small loss was
generated, the investment in DataAuthentication was significantly higher than
last year and like-for-like performance was improved. In addition, cash balances
at the year end were £6.7 million (2005: £6.7 million) after taking account of
the dividend of £404,000 paid during the year.
Richard Law, the Chief Executive, his executive management team and all our
employees are to be congratulated on their hard work and their achievements this
past year.
The quality of our business continues to improve in line with the significant
investment we are making, and the business has real and substantial potential.
J L Walker-Haworth
Chairman
CHIEF EXECUTIVE'S REVIEW
I am pleased to report an excellent year of progress which saw Group revenue
increase by 14% and our strategy to lead the market for electronic age and ID
verification gather momentum. Revenue for URU(TM), our joint service with BT,
increased threefold during the year. In addition, a further £0.5 million of
revenue, representing payments in advance for the service, was carried forward
into the current year. Competition continued to be keen for the services of
DataIntegrity and DataSolutions, although efficient operations ensured that the
results produced were ahead of the previous year.
DataAuthentication
Strong revenue growth in DataAuthentication has been driven both by the
effectiveness of the URU service in preventing identity fraud and by the growth
in the market for electronic age and Identity checks.
In a recent piece of research conducted on behalf of GB by Manchester Business
School, it was estimated that the market for electronic identity checks in the
UK will grow to over 300 million electronic checks per annum by 2010 and be
worth over £200 million. It is GB's aim to secure a significant share of this
market together with BT.
Our strategy to achieve this is to continue to provide the most effective
service based on GB's ID3(TM) technology (previously GB Authenticator(TM)) which
is combined with BT's delivery infrastructure and has proved to be extremely
reliable, robust and scaleable.
Our success to date is reflected in the growth of the number of clients using
URU and the growth in the transactional volumes being processed by those
clients. Transactional volumes increased from 172,000 transactions per quarter
to 572,000 per quarter over the course of the year ended 31 March 2006. This
figure excludes one-off batch re-verification jobs which generated additional
revenue. This pleasing growth has been achieved by focusing on our three core
sectors of OnIine Gaming, Mobile Telecommunications and Financial Services and
has continued into the current year.
URU dominates the Online Gaming sector for the provision of age and identity
verification solutions. 75% of the Top 20 'Online Gaming Power 50' UK
organisations (including Partygaming, Cassava, Betfair and Sporting Bet) are URU
clients.
URU is the market leader in the provision of electronic identity verification
solutions to the Mobile Telecommunications sector. URU clients include O2, and
since introducing URU, O2 has seen customer disconnection levels, fall
significantly.
In the Financial Services sector, encouraging progress to date includes the
first deployment of URU by a number of major retail banks which now utilise it
in niche applications.
Our range of clients, particularly those in Online Gaming, have a need to verify
individuals connecting to their services from overseas and, to meet this demand,
we have allocated resource in the coming year to extend our service in order to
verify American and certain European nationals.
We remain on target to achieve cash breakeven in DataAuthentication, before
investment in international developments, by the end of the year ending 31 March
2007 and thereafter DataAuthentication is expected to be cash generative.
DataIntegrity and DataSolutions
GB's traditional services, DataIntegrity and DataSolutions which operate in
established, competitive and challenging markets, produced turnover and
profitability marginally ahead of last year. GB is creating innovative
enhancements to its existing offerings, the first of which is the recently
launched 4C-UK(TM) service, GB's lifestage data service.
This service enables organisations to foresee the principal lifestage changes
that affect the spending patterns and behaviour of their customers. The first
component of the service is 'Pre-Homemovers' which accurately predicts when
individuals will move home and enables supplier organisations to tailor
proactively their customer service and retention strategies in order to minimise
the impact for their customers. Pre-Homemovers data is derived from property
searches conducted in the final stages of home conveyancing and is exclusive to
GB.
During the coming year, an online web delivery service will offer our clients
online access to both existing and new services. This method of delivery,
successfully utilised by the URU service, has already demonstrated that clients
are comfortable with and will embrace online technology which offers secure and
reliable services. This further investment in product development is required to
provide differentiation and protect our existing markets.
Summary
DataAuthentication has had considerable success to date and long term it
represents an exceptional opportunity for the Group.
Our business remains in very good shape and our balance sheet and cash balances
remain strong. In the coming year, our investment in the Group's traditional
services, together with the investment in international opportunities in
DataAuthentication as well as the infrastructure to ensure that our growth can
continue is expected to result in net cash outflow. As a guide, however, cash
balances should not fall below £5 million during the course of the current year,
and strong cash generation is expected in the following year.
The year ahead is planned to be a step change for GB and I continue to be
excited by the Group's future prospects and opportunities.
R A Law
Chief Executive
BUSINESS AND FINANCIAL REVIEW
The Group has had an impressive year, building a leading position through
DataAuthentication as a provider of electronic solutions for age and ID
verification in the UK and maintaining the underlying position of DataIntegrity
and DataSolutions in keenly competitive, established markets.
During the year, Group revenue was 14% higher than the previous year at £12.8
million (2005: £11.2 million). The value of non-returnable amounts invoiced to
clients, in the period, was £13.3 million (2005: £11.2 million), £0.5 million
(2005: nil) of which was carried over to future periods. This growth in revenue
and amounts invoiced was generated principally by DataAuthentication.
The Group invested an additional £868,000 in DataAuthentication compared to the
previous year. This additional investment was partially offset by greater
profitability from DataIntegrity and DataSolutions. Exceptional items of £58,000
(2005: £321,000) associated with staff reorganisation costs were incurred,
leaving an operating loss of £570,000 (2005: £134,000).
The Group financial highlights of the year were as follows:
• GB's investment in DataAuthentication was increased by £868,000 to £1.6 million
(2005: £767,000). The investment principally relates to sales, marketing and
product development costs.
• DataAuthentication invoiced amounts were £2.4 million (2005: £600,000) and
recognised revenue was £1.9 million (2005: £600,000).
• Combined revenue generated by DataIntegrity and DataSolutions was marginally
higher than the previous year at £10.9 million.
• Other operating expenses for the Group were £1.2 million higher than the
previous year as a result of the increased investment in sales, marketing and
development costs in DataAuthentication.
• Exceptional items relating to staff reorganisation costs of £58,000 were
expensed in the year, compared to one-off exceptional items of £321,000 in
the previous year.
• On a like-for-like comparison, before investment in DataAuthentication, the
operating results of the Group was £432,000 better than the previous year.
• Finance revenue from bank interest earned during the year was £302,000
(2005: £280,000) and the loss before taxation was £268,000 (2005: £146,000
profit).
• The loss for the year attributable to equity holders was £242,000 (2005: £255,000
profit) after taking account of the increased investment in DataAuthentication
of £868,000 compared to last year.
Revenue
Revenue for the Group showed strong growth principally as a result of increased
DataAuthentication revenues. DataAuthentication revenues for the year were £1.9
million (2005: £600,000) and combined revenues from DataIntegrity and
DataSolutions were £10.9 million (2005: £10.6 million).
Gross Profit and Cost of Sales
The gross profit margin for the Group for the year was 55% (2005: 58%). This was
principally as a result of the growth in revenue generated by
DataAuthentication, as a proportion of Group revenue. GB shares revenue from
DataAuthentication with BT which is classified as a cost of sale and,
consequently, DataAuthentication has a lower underlying gross margin than the
revenue generated by DataIntegrity and DataSolutions.
Other Operating Expenses before Exceptional Items
Other operating expenses, excluding exceptional items, were £7.6 million (2005:
£6.4 million). However, the mix of expenditure changed compared to the previous
year as follows:
• DataAuthentication's costs increased by £1.2 million to £2.0 million, due
primarily to sales, marketing and development costs.
• Operating costs with respect to DataIntegrity and DataSolutions remained in
line with the previous year at £5.5 million.
Group Profit/Loss
The operating loss was £570,000 (2005: £134,000 loss) and finance revenue earned
during the year was £302,000 (2005: £280,000) resulting in a loss before tax of
£268,000 (2005: £146,000 profit).
Taxation
The Group provided for taxation credits of £12,000 (2005: £103,000) with respect
to research and development tax credits. The figures for 2005 were higher due
primarily to the incorporation of a prior year credit adjustment in relation to
2004 in addition to the tax credits for 2005. Research and development tax
credits are reclaimed on 'pure' research and development projects and
consequently, claims for tax credits vary from year to year in relation to the
life cycles of development projects.
The Group has recognised a deferred tax asset of £360,000 (2005: £346,000).
At 31 March 2006, the Group had potential deferred tax assets of £7.2 million
(2005: £6.8 million) of which £360,000 (2005: £346,000) had been recognised.
In accordance with IAS 12, trading losses carried forward were £20.2 million
(2005: £19.8 million) and capital losses were £2.3 million (2005: £2.3 million).
Dividend
The Board of Directors will propose a final ordinary dividend of 0.75 pence per
share, amounting to £618,000 (2005: £404,000). As a result of the implementation
of International Financial Reporting Standards, dividends are now recognised in
the accounts in the year in which they are paid, or in the case of a final
dividend when approved by the shareholders. The amount recognised in the 2006
accounts, as described in note 11, is the final ordinary dividend for the year
ended 31 March 2005.
The final ordinary dividend with respect to the year ended 31 March 2006, if
approved, will be paid on 28 July 2006 to ordinary shareholders whose names
were on the register on 1 July 2006.
Amounts Transferred From Reserves
The amount transferred from reserves is £447,000 (2005: £37,000) after
accounting for the previous year's dividend of £404,000 (2005: £398,000) which
was paid during the year ended 31 March 2006.
Balance Sheet and Liquidity
Explanations of the most significant items in the Balance Sheet during the year
are as follows:
Intangible Assets
The carrying value of goodwill at 31 March 2006 was £6.5 million (2005: £6.5
million). In accordance with IAS 36 'Impairment of Assets', goodwill is tested
annually for impairment and no impairment was required.
Trade and Other Receivables
The value of trade and other receivables increased by £688,000 to £2.9 million
at 31 March 2006, compared to the same date last year. This was principally as a
result of an increase in the level of trade receivables, which increased as a
result of higher invoiced amounts in the final quarter of the year compared to
the same quarter in the previous year.
Cash Flows
The net result is that cash and cash equivalents reduced by £2,000 (2005:
£110,000) during the year. Further analysis of these movements are included in
the Consolidated Cashflow Statement.
Cash and Cash Equivalents
At 31 March 2006, the Group held cash and short term deposit balances of £6.7
million (2005: £6.7 million) and in accordance with the Group's treasury policy,
all funds are placed with major UK clearing banks and building societies.
Trade and Other Payables
The value of trade and other payables has increased by £972,000 to £3.3 million
at 31 March 2006, compared to the same period last year. The principal reason
for this is an increase in accruals and deferred income. The value of deferred
income has increased by £493,000 compared to the same period last year and is as
a result of the deferral of amounts invoiced in relation to DataAuthentication
revenues in accordance with IAS 18. Revenue is recognised on these contracts by
reference to the stage of completion and accordingly, any upfront payments are
spread.
Treasury Policy and Financial Risk
The Group's treasury operation is managed within formally defined policies which
are reviewed by the Board. The Group finances its activities with cash and
short-term deposits. Other financial assets and liabilities, such as trade
receivables and trade payables, arise directly from the Group's operating
activities. Surplus funds of the Group are invested through the use of
short-term deposits with the objective of maximising fixed interest rate returns
whilst still providing the flexibility to fund on-going operations when
required. It is not the Group's policy to engage in speculative activity or to
use complex financial instruments.
International Financial Reporting Standards (IFRS)
The Group's conversion to IFRS was communicated to shareholders in the 2005
interim report. As previously advised, the change in reporting regime has not
changed the fundamentals of the Group's businesses and the actions required of
management to maintain and improve shareholder value.
MT Navin-Mealey
Group Finance Director
CONSOLIDATED INCOME STATEMENT
Year ended 31 March 2006
--------------------------------------------------------------------------------
Note 2006 2005
£'000 £'000
Revenue 12,835 11,231
Cost of sales (5,800) (4,678)
-------- -------
Gross profit 7,035 6,553
Other operating expenses (7,547) (6,366)
Exceptional items (58) (321)
-------- -------
Operating loss (570) (134)
Finance revenue 302 280
-------- -------
(Loss)/profit before tax (268) 146
Income tax 26 109
-------- -------
(Loss)/profit for the year attributable to equity
holders of the parent (242) 255
-------- -------
(Loss)/earnings per share
- basic (loss)/earnings per share for the year 1 (0.3)p 0.3p
- diluted (loss)/earnings per share for the year 1 (0.3)p 0.3p
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year ended 31 March 2006
---------------------------------------------------------------------------------------------
Equity Merger Capital Retained Total
share reserve redemption earnings equity
capital reserve
£'000 £'000 £'000 £'000 £'000
Balance at 1 April 2004 5,122 6,575 3 1,906 13,606
------ ------- ------- ------ ------
Profit for the period - - - 255 255
------ ------- ------- ------ ------
Total income and expense
for the period - - - 255 255
Exercise of options 49 - - - 49
Cost of share-based payments - - - 106 106
Equity dividend - - - (398) (398)
------ ------- ------- ------ ------
Balance at 31 March 2005 5,171 6,575 3 1,869 13,618
------ ------- ------- ------ ------
Loss for the period - - - (242) (242)
------ ------- ------- ------ ------
Total income and
expense for the period - - - (242) (242)
Exercise of options 279 - - - 279
Cost of share-based
payments - - - 199 199
Equity dividend - - - (404) (404)
------ ------- ------- ------ ------
Balance at 31 March 2006 5,450 6,575 3 1,422 13,450
------ ------- ------- ------ ------
COMPANY STATEMENT OF CHANGES IN EQUITY
Year ended 31 March 2006
---------------------------------------------------------------------------------------------
Equity Merger Capital Retained Total
share reserve redemption earnings equity
capital reserve
£'000 £'000 £'000 £'000 £'000
Balance at 1 April 2004 5,122 6,575 3 4,354 16,054
------ ------- ------- ------ ------
Profit for the period - - - 123 123
------ ------- ------- ------ ------
Total income and expense
for the periiod - - - 123 123
Exercise of options 49 - - - 49
Cost of share-based
payments - - - 106 106
Equity dividend - - - (398) (398)
------ ------- ------- ------ ------
Balance at 31 March 2005 5,171 6,575 3 4,185 15,934
------ ------- ------- ------ ------
Loss for the period - - - (242) (242)
------ ------- ------- ------ ------
Total income and expense
for the period - - - (242) (242)
Exercise of options 279 - - - 279
Cost of share-based
payments - - - 199 199
Equity dividend - - - (404) (404)
------ ------- ------- ------ ------
Balance at 31 March 2006 5,450 6,575 3 3,738 15,766
------ ------- ------- ------ ------
CONSOLIDATED BALANCE SHEET
As at 31 March 2006
--------------------------------------------------------------------------------
2006 2005
£'000 £'000
ASSETS
Non-current assets
Property, plant and equipment 331 361
Goodwill 6,506 6,506
Deferred tax asset 360 346
-------- -------
7,197 7,213
-------- -------
Current assets
Trade and other receivables 2,868 2,180
Current tax 57 45
Cash and short-term deposits 6,747 6,749
-------- -------
9,672 8,974
-------- -------
TOTAL ASSETS 16,869 16,187
-------- -------
EQUITY AND LIABILITIES
Capital and reserves
Equity share capital 5,450 5,171
Merger reserve 6,575 6,575
Capital redemption reserve 3 3
Retained earnings 1,422 1,869
-------- -------
Total equity attributable to equity holders of the parent 13,450 13,618
-------- -------
Non-current liabilities
Provisions - 230
-------- -------
Current liabilities
Trade and other payables 3,311 2,339
Provisions 108 -
-------- -------
3,419 2,339
-------- -------
TOTAL LIABILITIES 3,419 2,569
-------- -------
TOTAL EQUITY AND LIABILITIES 16,869 16,187
-------- -------
COMPANY BALANCE SHEET
As at 31 March 2006
--------------------------------------------------------------------------------
2006 2005
£'000 £'000
ASSETS
Non-current assets
Property, plant and equipment 331 361
Investments 9,317 9,317
Deferred tax asset 360 346
-------- -------
10,008 10,024
-------- -------
Current assets
Trade and other receivables 2,884 2,196
Current tax 57 45
Cash and short-term deposits 6,747 6,749
-------- -------
9,688 8,990
-------- -------
TOTAL ASSETS 19,696 19,014
-------- -------
EQUITY AND LIABILITIES
Capital and reserves
Equity share capital 5,450 5,171
Merger reserve 6,575 6,575
Capital redemption reserve 3 3
Retained earnings 3,738 4,185
-------- -------
Total equity 15,766 15,934
-------- -------
Non-current liabilities
Provisions - 230
-------- -------
Current liabilities
Trade and other payables 3,822 2,850
Provisions 108 -
-------- -------
3,930 2,850
-------- -------
TOTAL LIABILITIES 3,930 3,080
-------- -------
TOTAL EQUITY AND LIABILITIES 19,696 19,014
-------- -------
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 March 2006
--------------------------------------------------------------------------------
2006 2005
£'000 £'000
Cash flow from operating activities
Operating loss (570) (134)
Depreciation 187 222
Loss on disposal of property, plant and equipment 3 -
Share-based payments 199 106
Decrease in inventory - 18
(Decrease)/increase in provisions (122) 98
(Increase)/decrease in trade and other receivables (688) 204
Increase/(decrease) in trade and other payables 972 (420)
-------- -------
Cash (consumed)/generated from operations (19) 94
Income tax received - 58
-------- -------
Net cash (consumed)/generated from operating activities (19) 152
-------- -------
Cash flow from investing activities
Acquisition of a subsidiary, net of cash acquired - (20)
Purchase of property, plant and equipment (160) (173)
Interest received 302 280
-------- -------
Net cash flow from investing activities 142 87
-------- -------
Cash flows from financing activities
Proceeds from issue of shares 279 49
Dividends paid to equity shareholders of the parent (404) (398)
-------- -------
Net cash flow from financing activities (125) (349)
-------- -------
Net decrease in cash and cash equivalents (2) (110)
Cash and cash equivalents at the beginning of the period 6,749 6,859
-------- -------
Cash and cash equivalents at the end of the period 6,747 6,749
-------- -------
COMPANY CASH FLOW STATEMENT
Year ended 31 March 2006
--------------------------------------------------------------------------------
2006 2005
£'000 £'000
Cash flow from operating activities
Operating loss (570) (266)
Depreciation 187 222
Loss on disposal of property, plant and equipment 3 -
Share-based payments 199 106
Decrease in inventory - 18
(Decrease)/increase in provisions (122) 98
(Increase)/decrease in trade and other receivables (688) 307
Increase/(decrease) in trade and other payables 972 (366)
-------- -------
Cash (consumed)/generated from operations (19) 119
Income tax received - 58
-------- -------
Net cash (consumed)/generated from operating activities (19) 177
-------- -------
Cash flow from investing activities
Acquisition of a subsidiary, net of cash acquired - (20)
Purchase of property, plant and equipment (160) (173)
Interest received 302 280
-------- -------
Net cash flow from investing activities 142 87
-------- -------
Cash flows from financing activities
Proceeds from issue of shares 279 49
Dividends paid to equity shareholders of the parent (404) (398)
-------- -------
Net cash flow from financing activities (125) (349)
-------- -------
Net decrease in cash and cash equivalents (2) (85)
Cash and cash equivalents at the beginning of the period 6,749 6,834
-------- -------
Cash and cash equivalents at the end of the period 6,747 6,749
-------- -------
NOTES TO THE PRELIMINARY ANNOUNCEMENT
1. Earnings Per Ordinary Share
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.
2006 2006 2005 2005
pence per £'000 pence per £'000
share share
(Loss)/profit attributable to equity
holders of the parent (0.3) (242) 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.
2006 2005
No. No.
Basic weighted average number of shares in issue 81,061,685 79,754,856
Diluted effect of share options - 3,076,165
---------- ----------
Diluted weighted average number of shares in issue 81,061,685 82,831,021
---------- ----------
The loss for the period and the weighted average number of ordinary shares for
calculating the diluted earnings per share for the period to 31 March 2006 are
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
International Accounting Standard No. 33 (IAS 33).
2006 2006 2005 2005
pence per £'000 pence per £'000
share share
(Loss)/profit attributable to equity
holders of the Company (0.3) (268) 0.3 255
------- ------- ------- -------
OTHER INFORMATION
1. The above financial information, which is unaudited, does not constitute
statutory accounts as defined in Section 240 of the Companies Act 1985. The
financial information for the year ended 31 March 2006 has been extracted from
the draft statutory accounts on which an unqualified audit opinion is expected
to be issued. Statutory accounts for the year ended 31 March 2006 will be
delivered to the Registrar in due course. Those accounts, upon which the
auditors issued an unqualified opinion, have been delivered to the Registrar of
Companies.
2. The preliminary statement was approved by the board of directors of GB Group
plc on 6 June 2006.
3. The ex-dividend date is 5 July 2006; the record date is 7 July 2006; the
payment date is 28 July 2006.
4. The AGM will take place on 12 July 2006.
5. The 2006 interim results announcement is expected to be on 29 November 2006.
6. This report will also be available on the GB Group web site: www.gb.co.uk
from 7 June 2006.
7. The Company intends to dispatch to shareholders printed copies of the full
annual report and accounts for the year to 31 March 2006 by 19 June 2006.
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 31st May 2024
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