Interim Management Statement

RNS Number : 9839A

GB Group PLC

10 February 2011

 



Embargoed until 7.00 a.m.

10 February 2011

GB Group PLC

("GB Group" or the "Group")

Interim Management Statement

GB Group, the identity management specialist, announces its Interim Management Statement to cover the period from 1 October 2010 to 9 February 2011, incorporating financial information relating to the performance of the business for its third quarter ended 31 December 2010.

Highlights for the 9 months to 31 December 2010 are as follows:

Financial Highlights

·     The good performance we reported at the half year continued into our third quarter.

·     Revenues in the 9 months to 31 December 2010 increased by 13% to £17.7 million compared to the same period last year (2009: £15.7 million).

·     Operating profit¹ for the nine months to 31 December 2010 increased by 120% compared to the same period last year at £1.21 million (2009: £0.55 million).

·     Margins for the year-to-date continue to improve as a result of operational leverage.

·     Cash balances up 22% at 31 December 2010 to £5.0 million (2009: £4.1 million).

·     Results were in line with market expectations which were revised and upgraded in October 2010.

¹ Operating profit is the operating profit before exceptional items and share-based payments.

Operational Highlights

·     DataAuthentication has benefited from clients' move to electronic identity verification and new client wins bring it into a growth position on a year to date basis.

·     New services released in the quarter included: Webcare (an online, self service data cleansing and enhancement service), Citizensafe® (an ID Verification service for citizens allowing them to only register once for local council services) and LiteIDV (an ID verification service targeted at the retail and utilities sectors).

·     New contract wins including ESRI UK, Pure Holiday Homes and a strategic alliance with Serco and Microsoft.

·     Investment in sales resource has been increased to continue the sales momentum in future periods.

Highlights for the nine months ended 31 December 2010 are as follows:

DataSolutions

In the nine months to 31 December 2010, DataSolutions, the provider of Identity-based Marketing Services, showed good revenue and profit growth.  Revenue increased by 20% to £10.1 million (2009: £8.4 million) and profitability improved.

DataSolutions provides a number of Identity Management offerings which can be illustrated as follows:

·     ID Customer Registration, which includes software and services for quick and accurate customer registration and validation of records.

·     ID Marketing Services, which provides database services so our clients can better understand, target and retain their customers and offers accurate and up-to-date identity information for their contact strategies.

·     ID Tracing Services, which provides the largest and most accurate picture of the UK's population and properties in order to locate and contact the right individual, first time.

We are pleased to note that growth has been seen across all of these areas of DataSolutions operations.

DataAuthentication

In the nine months to 31 December 2010, revenue in DataAuthentication, the provider of Identity Verification Services, was £7.6 million (2009: £7.4 million) a growth of 3%.

The rate of growth in the last three months has increased, as we continue to follow our strategy of targeting an increased number of new clients using our URU^TM and ID3® Check verification services. In December 2010, GB Group launched two new services - Citizensafe®, which is an ID Verification service for citizens allowing them to only register once for local council services; and LiteIDV, which is an ID Verification service targeted at the retail and utilities sectors.  There is early interest from the market in respect of both of these offerings.

Strategy

GB Group's Identity Management strategy, which links all of GB's products and services around the common theme of Identity, has progressed well and has led to an increasing number of new business contracts arising from the cross-selling of GB's solutions to its clients.

Following our move to AIM, we have the right platform to grow the Group through both the delivery of organic growth by the strengthening of the sales team, cross-selling our solutions and the development of new software and services. We are also investigating selective earnings enhancing acquisitions.

Outlook

We have been encouraged by our performance in the third quarter and our growth rates exhibited in the year-to-date and consequently anticipate that our full year results will be in line with current market expectations.

-Ends-

For further information, please contact:

GB Group plc	01244 657333
Richard Law, Chief Executive Dave Wilson, Finance Director
Peel Hunt (Nominated Advisor and Broker) Richard Kauffer Daniel Harris	020 7418 8900
Weber Shandwick Financial Nick Oborne Clare Thomas	020 7067 0700
Website	www.gb.co.uk

 

Notes to Editors

About GB Group plc

The most successful organisations recognise the value of understanding your individual identity - who you are, what you need and what you like. GB combines this concept of identity with technology to create an environment of trust so that organisations can connect, communicate and transact with consumers safely, responsibly and profitably. We call this identity management.

GB Group has four complementary identity management offerings:

·  ID Verification, which provides the ability to verify consumers' identities remotely, without the physical presentation of documentation, in order to combat ID fraud, money laundering and restrict access to under age content, purchases and gambling.

·  ID Customer Registration, which includes software and services for quick and accurate customer registration and validation of records.

·  ID Marketing Services, which provides database services so our clients can better understand, target and retain their customers and offers accurate and up-to-date identity information for their contact strategies.

·  ID Tracing Services, which provides the largest and most accurate picture of the UK's population and properties in order to locate and contact the right individual, first time.

This enables our clients to make informed business decisions based on a thorough knowledge of consumer identity and behaviour, leading to more effective communication and interaction with the customer.

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

GB Group - because identity matters™  

 

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