Overview

Group trading in the first half of the year was positive with revenue broadly in line with market expectations and the loss before tax was significantly lower than market expectations primarily due to improved margins.

This favourable performance was the result of a pleasing second quarter performance from all of the Group's business areas.

GB has maintained its lead in the market for electronic age and identity verification solutions and growth in the Group's DataAuthentication business resumed in the second quarter of the current financial year with transaction volumes ahead of the previous quarter.

Revenue also grew in the Group's traditional business units, DataIntegrity and DataSolutions, as a result of recently developed online services. Accordingly, the Board considers that the future prospects for these business units are much improved.

The Group has adequate cash resources for its requirements and, as at 30 September 2007, cash balances were in line with market expectations at £4.1 million (2006: £5.2 million).

GB believes that its strategy of developing, and investing in, products and services which can displace competing legacy products and services is working, and that its businesses are developing a valuable strategic position in their respective markets.

In conclusion, the Board continues to be optimistic about the future prospects of the Group.

Trading Summary

Unaudited Group revenues increased by 13% to £7.9 million in the six months to 30 September 2007 (six months to 30 September 2006: £7.0 million). Gross margins improved during this period principally as a result of higher levels of revenue generated within the DataAuthentication business unit and the impact of operational gearing. Overheads in the first half of the year increased to fund greater sales, marketing and infrastructure in DataAuthentication but did not increase to the originally planned level and are not expected to increase significantly further in the second half of the financial year. Unaudited Group losses for the six months to 30 September 2007 were £1.0 million (2006: £0.6 million) which is ahead of market expectations.

DataAuthentication

The number and quality of URU clients continues to grow and as at 30 September 2007 totalled 195 (31 May 2007: 174). The number of individual transaction searches (excluding one off batch jobs) has increased to 2.2 million for the six months to 30 September 2007 compared to 1.6 million in the corresponding period last year. Revenue during the period was £2.8 million (2006: £2.4 million).

This increase in individual transaction levels has been generated from both existing and new clients. Existing clients have increased their usage to comply with new legislation around Online Gaming and the European 3rd Money Laundering Directive. This is a trend that is expected to continue as the effects of greater electronic trade, and the regulations to combat crime, combine to drive the market towards electronic age and identity verification.

As indicated in the trading update in July 2007, the shift of the market towards electronic methods has been slower than expected. Despite the second quarter uplift, this continues to be the case overall for the six months to 30 September 2007. However, costs have also been scaled in line with the development of the market and consequently bottom line performance for the six months was in line with market expectations.

DataIntegrity and DataSolutions

Combined revenue from the DataIntegrity and DataSolutions business units in the six months to 30 September 2007 increased to £5.1 million (2006: £4.6 million) which is ahead of market expectations.

Interim results

The Group's Interim results are expected to be released on 27 November 2007.