Published: Thursday April 18, 2013
Written by on Investor News
LONDON – 18th April 2013
GB GROUP PLC
("GB" or the "Group")
As indicated in its pre-close trading statement of 26 March 2013, GB Group, the identity management specialist, provides the following additional information regarding trading for the year to 31 March 2013 in advance of the release of its annual results in early June.
Group Trading Performance
The Board is pleased to report that the Group's strong performance has continued this year and revenues for the year to 31 March 2013 are expected to have increased by approximately 24% to £39.4 million (2012: £31.8 million).
As a result of positive growth both organically and through acquisition, the Group expects to report a 49% increase in adjusted operating profit1 to £5.5 million (2012: £3.7 million) which is ahead of market expectations.
Over the course of the year, deferred revenue in the balance sheet (in respect of amounts invoiced under annual contracts, which will be recognised in future periods) is also expected to have increased by £1.0 million to £5.3 million, representing additional future value for the Group.
Cash balances at 31 March 2013 were £6.3 million (2012: £4.8 million) after the payment of £1.5 million for the final dividend (2012: £1.1 million) and £2.3 million in respect of consideration for an acquisition made during the year.
The Group's DataAuthentication and DataSolutions businesses have grown strongly with DataAuthentication revenues approximately 20% ahead and DataSolutions showing growth of approximately 26% compared to the prior year.
Recent highlights also include:
- through the DataAuthentication business, GB Group entered into a new contract with Equifax under which Equifax will initially provide UK data into GB Group's new ID3 Global platform for international identity verification. We believe that this relationship will be strategic to the future development of ID3 Global as the leading international EIDV service.
- continued investment into the development of the Group's international strategy by increasing GB Group's existing shareholding in the international addressing specialist, Loqate Inc., from 24.4% to circa 27%, following Loqate's signing of partnership contracts with IBM and Oracle2.
- a renegotiation of the commercial relationship with BT, GB Group's partner in URU. The net effect of this re-negotiation is margin enhancing in the year to 31 March 2013 and in future periods.
The acquisition of TMG CRB, made in November 2012, continues to integrate well into the DataAuthentication business, enabling the Group to have access to the growing market of online CRB disclosure checks which will be the platform for our employment screening business.
The Group continues to explore acquisition opportunities which will add further complementary market share or product expertise to GB Group's core positioning and organic growth.
Notice of Results
As indicated above, the Group expects to report its full year results for the year ended 31 March 2013 in early June 2013.
Richard Law, GB Group's CEO, said:
"I'm very pleased with the progress achieved by GB Group over the last year. Our professional and talented team has performed excellently and continues to grow in skill and strength. This, taken together with the positive growth prospects for our markets, means we remain confident for the year ahead.
"Increasingly, commerce is being influenced by the online world and an ever more mobile population. Organisations now trade and interact with many more customers, over longer distances and in situations that are rarely face-to-face presenting new challenges for verifying and maintaining contact with customers. In the year ahead we will continue to focus on making business easier and safer for our clients by investing in our international verification network (ID3 Global) and in widening our capabilities in other areas to strengthen our position in this significant global market.
"The acquisition of TMG CRB in the second half of the year has broadened our service offering and opened an additional complementary market to us and is now contributing strongly to the business."
Note 1: adjusted operating profit means profits before share of results from joint ventures and associates, interest, tax, share based payment charges, amortisation of acquired intangibles, acquisition related costs and non-recurring acquisition integration costs.
Note 2: Loqate was previously an associated investment of Capscan Holdings Limited ("Capscan”). GB Group obtained its interest in Loqate when it purchased the whole of the share capital of Capscan in November 2011.
For further information, please contact:
GB Group plc
Richard Law, Chief Executive
Dave Wilson, Finance Director
Peel Hunt LLP (Nominated Adviser and Broker)
020 7418 8900
020 7653 9850
Who is GB Group?
The most successful organisations recognise the value of understanding your individual identity - who you are, what you need and what you like. GB Group 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 five 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 Engagement 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
- ID PeopleSafe Services, which provides background checks through online verification and authentication of individuals enabling organisations to safeguard, recruit and engage with confidence
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 Group 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®