Last checked at 29 May 2008 07:00
| Embargoed until 07.00 | 29 May 2008 |
GB GROUP PLC
("GB" or the "Group")
Preliminary Results for the Year Ended 31 March 2008
GB is today pleased to announce preliminary results for the year ended 31 March 2008.
Highlights
Group revenue in the year increased by 30% to £19.4 million (2007: £15.0 million) driven by growth across all areas of the business
Revenue in DataAuthentication, GB's identity verification business, increased by 56% to £7.5 million (2007: £4.8 million)
Growth came both from new clients including Blyk and Ladbrokes and from increased volume usage by existing client
DataIntegrity and DataSolutions, providers of identity based marketing services, generated an increase in revenues of 17% to £11.9 million (2007: £10.2 million)
We have continued to invest in and develop online variants of these products and services provided by these businesses
Profit in the second half of £0.6 million (2007: £0.6 million loss) was achieved. Full year losses were reduced substantially to £0.4 million (2007: £1.2 million)
More than 50% of revenue is now derived from online services, providing greater scalability
Cash balances at the year-end were £4.3 million (2007: £5.2 million)
Increased dividend of 1p per share (2007: 0.75p) to be recommended to shareholders at the forthcoming AGM
Commenting on current trading, Richard Law, CEO, said:
"GB continues to demonstrate leadership in the emerging market for identity management. Trading in the current year to date is in line with expectations and underlying revenue in April was approximately 35% higher than in the same period last year.
I remain confident that GB's future prospects are excellent."
- Ends -
For further information, please contact:
| GB Group plc | |
| Richard Law, Chief Executive | 01244 657333 |
| Weber Shandwick Financial Ian Bailey / Rachel Martin / Hannah Marwood | 020 7067 0700 |
| Website | www.gb.co.uk |
Notes to Editors
About GB Group plc
GB Group believes that identity matters. Specialising in understanding consumer identity, GB enables its clients to make more informed business decisions and to communicate and interact more effectively with its customers through a deeper understanding of their identity and behaviour. Utilising its proprietary technology, GB can protect, predict and provide information that is used to maximise customer value for some of the UK's largest organisations.
GB offers solutions that assist organisations to capitalise on the value of their customers at every point of contact.
GB has three complementary offerings:
Identity Capture and Maintenance (DataIntegrity) - providing accurate contact information
Identity Verification (DataAuthentication) - combating identity fraud, money laundering and under-age gambling
Identity Analysis (DataSolutions) - understanding, targeting and retaining profitable customers
GB is listed on the London Stock Exchange (GBG). For more information, please visit GB Group's website: www.gb.co.uk.
GB Group - because identity matters(TM)
Chairman's Statement
This has been a year of significant achievement for the Group.
Our growth strategy, as we outline below, is proving to be successful. Our revenue grew by 30% during the year to 31 March 2008 and the business moved into profitability in the second half of the year, an important milestone for the Group. Also, over half of our revenue is now derived from online services which allows our business to be more flexible and scaleable.
Over the last four years, we have developed our business from traditional marketing services and address management software activities into one that provides online transactional services. This enables organisations to verify the age and identity of individuals with whom they trade, and provides online marketing services to existing and new customers.
The ability to prove an individual's identity and age is now a fundamental requirement for many businesses to trade with consumers, particularly for online businesses where the use of documents is not always practical or time or cost efficient. Increasingly, demand for our services is being driven by regulations such as anti-money laundering requirements and regulations in respect of the sale of restricted goods and services, together with a growing awareness of the need to protect sellers against identity fraud. Our estimate is that UK businesses now perform approximately 500 million identity checks each year and our expectation is that this will continue to increase.
GB is well placed to address the growing needs of business for electronic age and identity verification services. We have already established leadership in the UK's growing market for such services with URU(TM), our joint business with BT plc, and through our proprietary technology we are able to provide a similar international service with ID3 Check(TM).
We have continued to invest in, and develop online variants of our products and services for our traditional marketing services businesses, DataIntegrity and DataSolutions. These allow our clients to register new customers efficiently, and to analyse customer transactions and profiles for marketing initiatives and improving customer relationships. These services can be linked with URU and ID3-Check to address the wider identity management market and provide an integrated solution for our clients.
With respect to the current year, trading is in line with our expectations. We will continue to develop the business to serve the rapidly emerging market for identity management solutions. Your Board is confident that GB has the correct strategy and team in place to address current opportunities and that our prospects are excellent. Accordingly the Board will recommend an increased final ordinary dividend of 1p per share (2007: 0.75p) at the Annual General Meeting to be held in July 2008.
The GB team, led by Richard Law, is to be congratulated on their achievements to date and, in particular, during this past year which has been significant in terms of the overall prospects of the Group. We look forward to the year ahead with much confidence.
J L Walker-Haworth
Chairman
Chief Executive's Review
Overview
I am pleased to report that GB Group has made excellent progress in the year to 31 March 2008, underpinned by significant revenue growth across all areas of our business and a return to profitability achieved in the second half of the year. Through our strategy, as outlined in our Chairman's Statement, we have consolidated our position as the UK's leading identity management business and established a strong foundation to benefit further from the opportunities in this growing market.
Group revenues in the year increased by 30% to £19.4 million (2007: £15.0 million) and full year losses were reduced substantially to £0.4 million (2007: £1.2 million). Particularly pleasing was the higher rate of revenue growth in the second half of the year, which generated a profit in the half of £0.6 million (2007: £0.6 million loss). These results are in line with those indicated in the trading update issued in April 2008.
Cash balances at the year-end were £4.3 million (2007: £5.2 million).
DataAuthentication
GB continues to lead the market for electronic age and identity verification with its URU and ID3 Check services.
Most organisations continue to perform age and identity verifications manually using paper-based methods, which is time consuming, costly and potentially inaccurate. Consequently, we remain confident that there is further significant growth potential for the DataAuthentication business and we are seeing increasing evidence of a move from manual to electronic means of verification, both in terms of new customer enquiries and the volume of verifications performed.
In the year to 31 March 2008, revenue in our DataAuthentication business increased by 56% to £7.5 million (2007: £4.8 million). Growth came both from new clients including Blyk and Ladbrokes and from increased volume usage by existing clients.
The number of individual verifications (excluding one-off batch verifications) increased to 5.6 million from 3.5 million in the previous year. The pricing of individual transactions remains broadly in line with previous periods and, as expected, gross margins are benefiting from the higher volume of transactions.
Our UK strategy for the year ahead is to grow the URU client base across our three core sectors of Financial Services, Mobile Telecoms and Online Gaming where we already have established positions. We will also continue to target the Online Retail sector where the underage purchase of regulated or restricted products such as alcohol continues to pose a problem for companies.
ID3 Check, our international verification service allows organisations to verify individuals across multiple countries through a single online portal. This is a key service differentiator against our competitors and we expect to see growth in international revenues over the course of the year.
In April 2008, the number of individual verifications through URU and ID3 was materially higher than in April last year.
April was DataAuthentication's biggest month ever for online gaming with our clients opening a record number of accounts to bet on both the Grand National and the Cheltenham Gold Cup. On Grand National day, GB processed over 250,000 verifications, materially higher than the normal daily throughput and this caused revenue to peak in the month at approximately £1.1 million. Excluding this peak, underlying revenue in April 2008 was approximately £800,000, up from £400,000 in the same period last year.
DataIntegrity and DataSolutions
During the year DataIntegrity and DataSolutions, providers of identity based marketing services, generated an increase in revenues of 17% to £11.9 million (2007: £10.2 million).
Following investment over the year, we have extended and upgraded the products and services provided by these businesses for online delivery using the proven online proprietary technology developed by our DataAuthentication business. This is in line with GB's strategy of securing future revenue predominantly through online transactional services rather than disc-based data products under annual licenses. A significant proportion of new sales in these businesses are now of online variants of our rapid data capture and tracing solutions.
Our strategy in the year ahead is to continue to align the products and services of DataIntegrity and DataSolutions with the identity verification services provided by DataAuthentication. This will be achieved by linking the online marketing services provided by these businesses with URU and ID3 Check. The resulting services package will mean that, in addition to being capable of verifying the identity of a customer, our clients will be able to enhance their commercial relationships by continuing to contact and market to those customers.
This strategy not only gives DataIntegrity and DataSolutions greater access to the Group's new and growing client base from its age and identity verification services but is made easier by the common online technology now being deployed across all of these business units.
Outlook
Trading in the current year to date is in line with management expectations and underlying revenue in April was approximately 35% higher than in the same period last year.
The Group is continuing to see increasing evidence of a move in the market from manual to electronic methods of identity verification. Additionally, we are well positioned to capture the opportunities from a new market sector which is emerging that addresses how businesses verify their customers and then subsequently market to and manage these customers in a way which minimises fraud and regulatory risk but which also increases customer revenue. GB intends to continue to lead this emerging sector and will invest accordingly to achieve this so that all of its businesses can benefit from this opportunity.
R A Law
Chief Executive
BUSINESS AND FINANCIAL REVIEW
The Group's Business
The Group's principal business activities utilise the same assets and resources but correspond to three business propositions: DataAuthentication, DataIntegrity and DataSolutions.
DataAuthentication provides electronic identity verification services. Services are provided under two brands, URU(TM) and ID3 Check(TM). URU was jointly developed with BT and principally verifies the identity of UK residents. URU now has 223 live customers. ID3 Check is GB's international verification service which was developed by GB and was launched during the year to 31 March 2007. The market for electronic identity verification continues to grow and represents a significant future growth opportunity for the Group.
DataIntegrity and DataSolutions offer a range of solutions to enable our clients to really get to know their customers once they have been verified. Services include rapid data capture, data cleanse, data management and data analysis. Knowing more about the identity of their customers, their preferences, likes and dislikes enables our clients to trade with more people profitably and safely.
Group Vision, Objectives and Strategy
The Group's vision is to become a global leader in the provision of electronic identity management solutions and to reinstate growth in its mature business areas by creating products and services which are increasingly aligned to understanding customer identity, are unique compared to competitor offerings and, consequently, add greater value for GB's clients.
The Group's strategy continues to be to create and maintain unique products which provide additional value for clients and that are of sufficient strength to enable the Group to create new markets and to consistently win new business against our competition. The Group achieves this through investment in business development opportunities and the application of innovation, quality and excellence in everything it does.
Group Overview
The year ended 31 March 2008 was significant in terms of further developing the opportunity for DataAuthentication in the rapidly growing market for electronic verification. Also during the year, DataIntegrity and DataSolutions successfully developed and delivered online solutions for many of their products and services using the same technology used in the provision of URU and ID3 and, in so doing, have created the ability to link our offerings around the theme of customer identity thereby creating additional differentiation against competitor offerings.
The following table sets out the results of the Group for the year ended 31 March 2008.
| Years ended 31 March | ||||
| 2008 | 2007 | |||
| £'000 | £'000 | |||
| Revenue | 19,365 | 14,952 | ||
| Operating loss before share based payments | (455) | (1,302) | ||
| Operating loss | (680) | (1,519) | ||
| Finance revenue | 242 | 294 | ||
| Loss before tax | (438) | (1,225) | ||
| Income tax (expense)/credit | 40 | (16) | ||
| Loss for the financial year | (398) | (1,241) | ||
2008 Financial Year Compared to 2007 Financial Year
In the year to 31 March 2008, revenue for the Group increased 30% to £19.4 million (2007: £15.0 million) resulting from strong growth in DataAuthentication. Losses before taxation narrowed significantly to £0.4 million (£1.2 million).
Explanations of the significant items in the Income Statement during the year are as follows:
Revenue
Revenue for the Group showed strong growth as a result of increased DataAuthentication revenues. Revenues from DataAuthentication grew by 56% to £7.5 million (2007: £4.8 million) and combined revenues from DataIntegrity and DataSolutions were £11.9 million (2007: £10.2 million).
Gross Profit and Cost of Sales
Group gross profit margins were 49%, in line with those achieved for the year to 31 March 2007.
Other Operating Expenses
Other operating expenses were £10.2 million (2007: £8.8 million). Changes in the mix of expenditure compared to the previous year are as follows:
Increased levels of investment in DataAuthentication in areas of sales, marketing and development resulted in increased operating costs of £0.8 million to £3.7 million.
Operating costs for DataIntegrity and DataSolutions increased by £0.6 million to £6.4 million (2007: £5.8 million) following increased investment in sales and development activities.
Group Loss
The Group generated an operating loss of £0.7 million (2007: £1.5 million) and finance revenue earned during the year was £0.2 million (2007: £0.3 million) resulting in a loss before tax of £0.4 million (2007: £1.2 million). As a result of the substantial uplift in revenue, a profit of £0.6 million was generated by the Group in the second half of the year (2007: £0.6 million loss).
Taxation
The current tax credit of £40,000 (2007: £16,000 charge) reflects the recognition of an increased deferred tax asset relating to decelerated capital allowances and tax losses.
Dividend
The Board of Directors will propose a final ordinary dividend of 1.00 pence per share, amounting to £0.8 million (2007: £0.6 million). The final ordinary dividend with respect to the year ended 31 March 2008, if approved, will be paid on 30 July 2008 to ordinary shareholders whose names were on the register on 11 July 2008.
Amounts Transferred From Reserves
The amount transferred from reserves is £0.8 million (2007: £1.6 million) after accounting for the previous year's dividend of £0.6 million (2007: £0.6 million) which was paid during the year ended 31 March 2008.
Balance Sheet and Liquidity
Explanations of the most significant items in the Balance Sheet during the year are as follows:
Property, Plant and Equipment
The amount invested in property, plant and equipment during the year was £0.2 million (2007: £1.0 million).
Intangible Assets
The carrying value of goodwill at 31 March 2008 was £6.5 million (2007: £6.5 million). The carrying value of product development costs capitalised in accordance with IAS 38 'Intangible Assets' was £0.1 million (2007: £0.2 million). Intangible assets are tested annually for impairment and no impairment was required.
Trade and Other Receivables
The value of trade and other receivables increased by £1.6 million to £5.4 million at 31 March 2008, compared to the same date last year. This was principally as a result of an increase in the level of trade receivables as a result of higher revenues.
Cash Flows
Cash and cash equivalents reduced by £0.9 million (2007: £1.5 million) during the year due primarily to the investment in property, plant and equipment and dividends paid. Further analysis of this movement is included in the Consolidated Cashflow Statement.
Cash and Cash Equivalents
At 31 March 2008, the Group held cash and short-term deposit balances of £4.3 million (2007: £5.1 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 £1.3 million to £6.4 million (2007: £5.1 million) at 31 March 2008, compared to the same date last year. As a consequence of the growth in revenue, the value of trade payables and taxes have increased.
The value of deferred income at 31 March 2008 was £1.0 million (2007: £1.2 million).
Key Performance Indicators
The Board monitor the Group's progress against its strategic objectives and the financial performance of the Group's operations on a regular basis. Performance is assessed against the strategy and budgets using financial and non-financial measures.
The following details some of the principal Key Performance Indicators (KPIs) used by the Group, their purpose, the basis of calculation and the source of the underlying data. A summary of performance against these KPIs is given below.
| Financial |
| The Group uses the following primary measures to assess the performance of the Group and its propositions. |
| Revenue (Group and DataAuthentication) |
| Revenue and revenue growth are used for internal performance analysis and by investors to assess progress against outlook statements in the market. |
| Operating result |
| Operating result and profit growth is used by the Group for internal performance analysis and by investors to assess progress against outlook statements in the market. |
| Earnings per share |
| Earnings per share is calculated as basic earnings per share from continuing operations. |
| Cash |
| Cash and cash equivalent balances are used by the Group for internal performance analysis and by investors to assess progress against outlook statements. |
| Customers |
| DataAuthentication Live Client Numbers |
| Client based KPIs for the rapidly growing DataAuthentication market are important measures for internal performance analysis and management also believes that it provides useful information for investors regarding the success of the Group's customer acquisition activities. The data used to calculate the KPI is derived from the Group's billing and financial systems for those contracted clients who have begun utilising the services. |
| Transaction Based |
| Underlying Identity Verifications |
| Management believe that DataAuthentication transaction-based measures provide useful information for investors regarding trends in client revenue derived from electronic identity verification services and the extent to which clients have adopted the service. The data used to calculate this KPI is extracted from the Group's billing and financial systems. Underlying identity verifications is the total number of verifications on the Group's URU(TM) and ID3-Check(TM) systems and excludes one-off batch verifications. |
.
Performance Against KPIs
A summary of the Group's progress in achieving its objectives, as measured against KPIs, is set out below.
| Years ended 31 March | |||
| 2008 | 2007 | ||
| Revenue Growth | 30% | 17% | |
| Operating (Loss)/Profit Growth | 55% | (166%) | |
| (Loss)/ Earnings Per Share | (0.5)p | (1.4)p | |
| Cash (£'000) | 4,309 | 5,213 | |
| DataAuthentication Revenue Growth | 57% | 151% | |
| DataAuthentication Live Customer Numbers | 223 | 164 | |
| Underlying Identity Verifications | 5,564,920 | 3,508,006 | |
Group revenue growth remains positive and has increased from 17% to 30% over the year. The Board believes that revenue will continue to grow as the Group continues to derive value from its business opportunities.
The investment in business development in previous years has generated profits in the second half of the year resulting in an improvement in the operating loss being reported. The Group will continue to realise the results of its investment and development strategies in the coming years as increased revenue and profits flow through.
Principal Risks and Uncertainties
Management use a common model to identify and assess the impact of risks to the business under four key headings - financial, strategic, operational and knowledge. For each risk, the likelihood and consequence are identified, management controls are confirmed and results reported. The more significant risks and uncertainties faced by the Group are set out below:
Regulatory risk: legislation in all the markets we serve changes on a regular basis, and interpretation of existing laws can also change to create ever tightening standards, often requiring additional human and financial resources and the provision of new assets and systems. Whilst the Group is committed to respond positively to new regulation and legislation, changes could affect the pricing for, or adversely affect the revenue from, the services the Group offers.
Competitive position: the Group operates in competitive markets and intensified competition could lead to a reduction in the rate at which the Group adds new customers and to a decrease in the size of the Group's market share if clients chose to receive services from other providers.
Non-supply by major supplier: the Group sources some of its data and infrastructure from third party suppliers and partners. The removal from the market of one or more of these third party suppliers or interruption in supply could quickly affect the Group's operations adversely and could result in loss of revenue or additional expenditure for the Group.
Disaster recovery and business continuity: the Group has an understandable reliance on its place of business, IT systems and people and currently operates from a single site. The loss of key components could affect the Group's operations and result in additional expenditure whilst the established business continuity plan is effected following an incident.
Relationships
Other than our shareholders, the Group's performance and value are influenced by other stakeholders, principally our customers, suppliers, employees and our strategic partners. Relationships are managed both on an individual basis and via representative groups. The Group participates in industry groups which give a genuine access to client and supplier groups and decision makers in government and other regulatory bodies.
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.
| CONSOLIDATED INCOME STATEMENT |
| Year ended 31 March 2008 |
| 2008 | 2007 | |||
| £'000 | £'000 | |||
| Note | ||||
| Revenue | 19,365 | 14,952 | ||
| Cost of sales | (9,893) | (7,617) | ||
| Gross profit | 9,472 | 7,335 | ||
| Other operating expenses excluding exceptional items | (10,152) | (8,754) | ||
| Exceptional items | - | (100) | ||
| Operating loss | (680) | (1,519) | ||
| Finance revenue | 242 | 294 | ||
| Loss before tax | (438) | (1,225) | ||
| Income tax credit/(expense) | 40 | (16) | ||
| Loss for the year attributable to equity holders of the parent | (398) | (1,241) | ||
| Loss per share | 1 | |||
| - basic loss per share for the year | (0.5)p | (1.4)p | ||
| - diluted loss per share for the year | (0.5)p | (1.4)p | ||
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Year ended 31 March 2008 |
| Equity share capital | Merger reserve | Capital redemption reserve | Retained earnings | Total equity | |||||||
| £'000 | £'000 | £'000 | £'000 | £'000 | |||||||
| Balance at 1 April 2006 | 5,450 | 6,575 | 3 | 1,422 | 13,450 | ||||||
| Loss for the period | - | - | - | (1,241) | (1,241) | ||||||
| Total income and expense for the period | - | - | - | (1,241) | (1,241) | ||||||
| Exercise of options | 167 | - | - | - | 167 | ||||||
| Cost of share-based payments | - | - | - | 217 | 217 | ||||||
| Equity dividend | - | - | - | (621) | (621) | ||||||
| Balance at 31 March 2007 | 5,617 | 6,575 | 3 | (223) | 11,972 | ||||||
| Loss for the period | - | - | - | (398) | (398) | ||||||
| Total income and expense for the period | - | - | - | (398) | (398) | ||||||
| Exercise of options | 66 | - | - | - | 66 | ||||||
| Cost of share-based payments | - | - | - | 225 | 225 | ||||||
| Equity dividend | - | - | - | (632) | (632) | ||||||
| Balance at 31 March 2008 | 5,683 | 6,575 | 3 | (1,028) | 11,233 |
| COMPANY STATEMENT OF CHANGES IN EQUITY Year ended 31 March 2008 |
| Equity share capital | Merger reserve | Capital redemption reserve | Retained earnings | Total Equity | |||||||
| £'000 | £'000 | £'000 | £'000 | £'000 | |||||||
| Balance at 1 April 2006 | 5,450 | 6,575 | 3 | 3,738 | 15,766 | ||||||
| Loss for the period | - | - | - | (1,241) | (1,241) | ||||||
| Total income and expense for the period | - | - | - | (1,241) | (1,241) | ||||||
| Exercise of options | 167 | - | - | - | 167 | ||||||
| Cost of share-based payments | - | - | - | 217 | 217 | ||||||
| Equity dividend | - | - | - | (621) | (621) | ||||||
| Balance at 31 March 2007 | 5,617 | 6,575 | 3 | 2,093 | 14,288 | ||||||
| Loss for the period | - | - | - | (398) | (398) | ||||||
| Total income and expense for the period | - | - | - | (398) | (398) | ||||||
| Exercise of options | 66 | - | - | - | 66 | ||||||
| Cost of share-based payments | - | - | - | 225 | 225 | ||||||
| Equity dividend | - | - | - | (632) | (632) | ||||||
| Balance at 31 March 2008 | 5,683 | 6,575 | 3 | 1,288 | 13,549 |
| CONSOLIDATED BALANCE SHEET |
| As at 31 March 2008 |
| 2008 | 2007 | ||||
| £'000 | £'000 | ||||
| ASSETS | |||||
| Non-current assets | |||||
| Property, plant and equipment | 987 | 1,108 | |||
| Intangible assets | 6,642 | 6,668 | |||
| Deferred tax asset | 400 | 360 | |||
| 8,029 | 8,136 | ||||
| Current assets | |||||
| Trade and other receivables | 5,351 | 3,752 | |||
| Cash and short-term deposits | 4,309 | 5,213 | |||
| 9,660 | 8,965 | ||||
| TOTAL ASSETS | 17,689 | 17,101 | |||
| EQUITY AND LIABILITIES | |||||
| Capital and reserves | |||||
| Equity share capital | 5,683 | 5,617 | |||
| Merger reserve | 6,575 | 6,575 | |||
| Capital redemption reserve | 3 | 3 | |||
| Retained earnings | (1,028) | (223) | |||
| Total equity attributable to equity holders of the parent | 11,233 | 11,972 | |||
| Current liabilities | |||||
| Trade and other payables | 6,456 | 5,129 | |||
| 6,456 | 5,129 | ||||
| TOTAL LIABILITIES | 6,456 | 5,129 | |||
| TOTAL EQUITY AND LIABILITIES | 17,689 | 17,101 |
| COMPANY BALANCE SHEET |
| As at 31 March 2008 |
| 2008 | 2007 | ||||
| £'000 | £'000 | ||||
| ASSETS | |||||
| Non-current assets | |||||
| Property, plant and equipment | 987 | 1,108 | |||
| Intangible assets | 136 | 162 | |||
| Investments | 9,317 | 9,317 | |||
| Deferred tax asset | 400 | 360 | |||
| 10,840 | 10,947 | ||||
| Current assets | |||||
| Trade and other receivables | 5,367 | 3,768 | |||
| Cash and short-term deposits | 4,309 | 5,213 | |||
| 9,676 | 8,981 | ||||
| TOTAL ASSETS | 20,516 | 19,928 | |||
| EQUITY AND LIABILITIES | |||||
| Capital and reserves | |||||
| Equity share capital | 5,683 | 5,617 | |||
| Merger reserve | 6,575 | 6,575 | |||
| Capital redemption reserve | 3 | 3 | |||
| Retained earnings | 1,288 | 2,093 | |||
| Total equity | 13,549 | 14,288 | |||
| Current liabilities | |||||
| Trade and other payables | 6,967 | 5,640 | |||
| 6,967 | 5,640 | ||||
| TOTAL LIABILITIES | 6,967 | 5,640 | |||
| TOTAL EQUITY AND LIABILITIES | 20,516 | 19,928 |
| CONSOLIDATED CASH FLOW STATEMENT Year ended 31 March 2008 |
| 2008 | 2007 | ||||
| £'000 | £'000 | ||||
| Group loss before tax | (438) | (1,225) | |||
| Adjustments to reconcile Group loss before tax to net cash flows | |||||
| Interest income | (242) | (294) | |||
| Depreciation of property, plant and equipment | 341 | 220 | |||
| Amortisation of intangible fixed assets | 69 | 10 | |||
| Provision against property, plant and equipment | - | 25 | |||
| Loss on disposal of property, plant and equipment | - | 5 | |||
| Share-based payments | 225 | 217 | |||
| Decrease in provisions | - | (108) | |||
| Increase in trade and other receivables | (1,599) | (884) | |||
| Increase in trade and other payables | 1,327 | 1,818 | |||
| Cash consumed from operations | (317) | (216) | |||
| Income tax credit received | - | 41 | |||
| Net cash consumed from operating activities | (317) | (175) | |||
| Cash flows from investing activities | |||||
| Purchase of property, plant and equipment | (220) | (1,027) | |||
| Expenditure on product development | (43) | (172) | |||
| Interest received | 242 | 294 | |||
| Net cash flows from investing activities | (21) | (905) | |||
| Cash flows from financing activities | |||||
| Proceeds from issue of shares | 66 | 167 | |||
| Dividends paid to equity shareholders | (632) | (621) | |||
| Net cash flows from financing activities | (566) | (454) | |||
| Net decrease in cash and cash equivalents | (904) | (1,534) | |||
| Cash and cash equivalents at the beginning of the period | 5,213 | 6,747 | |||
| Cash and cash equivalents at the end of the period | 4,309 | 5,213 | |||
| COMPANY CASH FLOW STATEMENT Year ended 31 March 2008 |
| 2008 | 2007 | ||||
| £'000 | £'000 | ||||
| Company loss before tax | (438) | (1,225) | |||
| Adjustments to reconcile Group loss before tax to net cash flows | |||||
| Interest income | (242) | (294) | |||
| Depreciation of property, plant and equipment | 341 | 220 | |||
| Amortisation of intangible fixed assets | 69 | 10 | |||
| Provision against property, plant and equipment | - | 25 | |||
| Loss on disposal of property, plant and equipment | - | 5 | |||
| Share-based payments | 225 | 217 | |||
| Decrease in provisions | - | (108) | |||
| Increase in trade and other receivables | (1,599) | (884) | |||
| Increase in trade and other payables | 1,327 | 1,818 | |||
| Cash consumed from operations | (317) | (216) | |||
| Income tax credit received | - | 41 | |||
| Net cash consumed from operating activities | (317) | (175) | |||
| Cash flows from investing activities | |||||
| Purchase of property, plant and equipment | (220) | (1,027) | |||
| Expenditure on product development | (43) | (172) | |||
| Interest received | 242 | 294 | |||
| Net cash flows from investing activities | (21) | (905) | |||
| Cash flows from financing activities | |||||
| Proceeds from issue of shares | 66 | 167 | |||
| Dividends paid to equity shareholders | (632) | (621) | |||
| Net cash flows from financing activities | (566) | (454) | |||
| Net decrease in cash and cash equivalents | (904) | (1,534) | |||
| Cash and cash equivalents at the beginning of the period | 5,213 | 6,747 | |||
| Cash and cash equivalents at the end of the period | 4,309 | 5,213 | |||
NOTES TO THE ACCOUNTS
| 1. LOSSES PER ORDINARY SHARE |
Basic
Basic loss per share is calculated by dividing the loss attributable to equity holders of the Company by the basic weighted average number of ordinary shares in issue during the year.
| 2008 pence per share | 2008 £'000 | 2007 pence per share | 2007 £'000 | |||||
| Loss attributable to equity holders of the parent | (0.5) | (398) | (1.4) | (1,241) | ||||
Diluted
Diluted loss per share amounts are calculated by dividing the loss 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.
| 2008 | 2007 | |||
| No. | No. | |||
| Basic weighted average number of shares in issue | 84,264,385 | 83,380,985 | ||
| Dilutive effect of share options | - | - | ||
| Diluted weighted average number of shares in issue | 84,264,385 | 83,380,985 |
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 2008 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).
| 2008 pence per share | 2008 £'000 | 2007 pence per share | 2007 £'000 | |||||
| Loss attributable to equity holders of the Company | (0.5) | (398) | (1.4) | (1,241) | ||||
| 2. POST BALANCE SHEET EVENTS |
On 28 May 2008, GB settled a dispute with a client in relation to back-dated licence revenues which resulted in a payment of £350,000 to GB. This has been treated as a non-adjusting post balance sheet event.
OTHER INFORMATION
| (i) | 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 2008 has been extracted from the draft statutory accounts on which an unqualified audit opinion has been issued. Statutory accounts for the year ended 31 March 2008 will be delivered to the Registrar in due course. The preliminary announcement is prepared on the same basis as set out in the previous year's statutory accounts. Those accounts, upon which the auditors issued an unqualified opinion, have been delivered to the Registrar of Companies. |
| (ii) | The preliminary statement was approved by the Board of Directors of GB Group plc on 28 May 2008. |
| (iii) | The ex-dividend date is 9 July 2008; the record date is 11 July 2008; the payment date is 30 July 2008. |
| (iv) | The AGM will take place on 16 July 2008. |
| (v) | The 2008 interim results announcement is expected to be on 26 November 2008. |
| (vi) | This report will also be available on the GB Group web site: www.gb.co.uk from 29 May 2008. |
| (vii) | The Company intends to dispatch to shareholders printed copies of the full annual report and accounts for the year to 31 March 2008 by 20 June 2008. |