GB Group reports quarterly profit

Source: GB Group

GB Group Plc, the identity specialists, announces its Interim Management Statement for the period to 12 February 2008.

Overview
At the time of the interim results in November 2007, it was indicated that the Group expected to trade profitably for the remainder of its financial year to 31 March 2008. The Board is pleased to report that the Group moved into profitability as anticipated.

The highlights for the quarter ended 31 December 2007 were as follows:
  • Group revenues increased by 45% compared to the same period last year to £4.8 million (2006: £3.3 million).
  • Revenues from GB's identity verification business, DataAuthentication, doubled to £2.0 million (2006: £1.0 million) compared to the same period last year.
  • DataIntegrity and DataSolutions, providers of identity based marketing services, generated revenues of £2.8 million (2006: £2.2 million), an increase of 27% compared to the same period last year.
  • Group revenues increased strongly during October and November and, with the overhead base substantially fixed for the second half of the year, the Group became profitable in November.
  • Revenues continued to grow in December, traditionally one of GB's strongest months, with a significant proportion of the additional revenue falling to profits. The Group generated profits before taxation in December of approximately £229,000 compared to a loss of approximately £32,000 for the same period last year.
  • Group profits before taxation for the quarter to 31 December 2007 were £74,000 (2006: £300,000 loss).


As a result of the move into profitability, the losses for the nine months to 31 December 2007 reduced to £0.9 million (2006: £1.2 million).

Current Trading

The Group has continued to trade profitability in the final quarter of the financial year. Accordingly, Group revenues and profitability in January 2008 were materially ahead of January 2007.

Cash balances were £3.7 million at 31 January 2008 (27 November 2007: £3.6 million).

Outlook

The Board is pleased that following a period of significant investment in new online products and services, the Group has moved into profitability and believe that this represents an important milestone for the business.

The Board is confident about the Group's prospects.

Commenting on the announcement, Richard Law, CEO, said: "The Group has continued to move towards the online delivery of its solutions, all of which address the issues increasingly faced by businesses in relation to the identity of their customers, in particular identity fraud. GB is now a more efficient business with scaleable operations delivering growth in all areas."

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