Interim Management Statement

RNS Number : 6510G

GB Group PLC

04 February 2010

 



Embargoed until 7.00 a.m.

4 February 2010

GB Group PLC

("GB" or the "Group")

Interim Management Statement

GB, the identity management specialist, announces its Interim Management Statement to cover the period from  1 October 2009 to 4 February 2010, incorporating financial information relating to the performance of the business for its third quarter ended 31 December 2009, in line with the UK Listing Authority's Disclosure and Transparency Rules.

Highlights for the 9 months to 31 December 2009 are as follows:

·      The Group has continued to generate profits and be cash generative.

·      Like-for-like¹ adjusted operating profit² for the nine months to 31 December 2009 was higher than the same period last year at £550,000 (2008: £320,000).

·      Like-for-like¹ revenues have reduced by 5% to £15.7 million compared to the same period last year (2008: £16.6 million).

·      The improved profitability came principally from increased gross margins in the DataSolutions business and effective cost control across the Group.

·      Cash balances at 31 December 2009 were £4.1 million (2008: £4.3 million) after taking account of the payment of a £1.0 million dividend in August 2009.

Note ¹     Like-for-like revenues in 2008 exclude revenue of £350,000 from a one-off settlement for licence arrears. The profit associated with this settlement was £330,000.

Note ²     Adjusted operating profit means operating profit before share-based payments.

Highlights for the quarter ended 31 December 2009 are as follows:

·      Group adjusted operating profit² for the quarter to 31 December 2009 increased to £250,000 (2008:£110,000).

·      Group revenues were in line with the same period last year at £5.25 million (2008: £5.27 million).

·      DataSolutions increased revenues to £3.05 million (2008: £2.66 million), representing a 15% increase on the same period last year as a result of contracts with new clients, an increased level of software renewals and a change in contract with an existing client which resulted in renewal fees being brought forward from January 2010.

·      Revenues in the DataAuthentication business decreased by 16% to £2.20 million (2008: £2.61 million) when compared to the same period last year. The principal reason for the decline was a reduction in volumes from two large clients as detailed in the half year statement issued in November 2009.

·      GB's 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 a pleasing increase in the number of new business contracts arising from the cross-sale of GB's solutions to its clients.

Outlook

In January 2010, DataSolutions continued to show particularly good progress whilst DataAuthentication continued to reflect lower volumes from two large clients.  GB's markets continue to offer exciting opportunities for the Group and performance remains in line with management expectations. 

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For further information, please contact:

GB Group plc	01244 657333
Richard Law, Chief Executive Dave Wilson, Finance Director
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 three complementary identity management offerings:

·  Identity Verification - combating ID fraud, money laundering and under-age gambling

·  Identity Capture and Maintenance - providing accurate and up-to-date customer information for your contact strategy

·  Identity Analysis - understanding, targeting and retaining profitable customers

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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