Last checked at 19 Apr 2010 07:00
| Embargoed until 7.00 a.m. | 19 April 2010 |
GB GROUP PLC
("GB" or the "Group")
Trading Update
GB, the UK's leading identity management business, today announces a trading update for the year ended 31 March 2010.
The Group is expected to announce profits significantly better than the revised market expectations given in November. This is despite the difficult market conditions outlined at that time. Profit before interest, tax and share-based payments for the year ended 31 March 2010 is expected to be approximately £1.2 million (2009: £1.2 million1).
Further highlights for the year to 31 March 2010 are as follows:
·; Like-for-like1 revenues are anticipated to be circa £22.2 million slightly behind the same period last year (2009: £23.5 million).
·; The better than expected profitability came principally from increased gross margins in the DataSolutions business and effective cost control across the Group.
·; Net cash balances were £5.3 million at 31 March 2010 (2009: £4.5 million) after the payment of a dividend during the year of 1.15p per share (2009: 1.0p), amounting to £0.98 million, and investment in capital expenditure of £0.5 million.
Towards the end of the last quarter of the financial year, the market for Identity Management has shown some signs of improvement and underlying growth. Whilst it is too early to determine if this will be sustained, our business, with its largely fixed cost base and high proportion of scalable online revenues, remains very well placed to benefit from the recovery in the economy as a whole.
The Group will provide further details of its trading performance at the time of its annual results announcement which it expects to release in late May 2010.
Note 1 Like-for-like revenues in 2009 exclude revenue of £350,000 from a one-off settlement for licence arrears. The profit associated with this settlement was £330,000.
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For further information, please contact:
| GB Group plc | 01244 657333 |
| Richard Law, Chief Executive Dave Wilson, Finance Director |
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| Weber Shandwick Financial Nick Oborne Clare Thomas | 020 7067 0700 |
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| 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™