Gb Group Regulatory News (GBG)

GB Group PLC

("GB Group" or the "Group")

Pre-Close Trading Statement

GB Group, the identity management specialist, provides the following trading update for the year to 31 March 2012, in advance of the release of its annual results which are scheduled to be announced in early June 2012.

Group Trading Performance

The Board is delighted to report that the Group has achieved a very strong set of results. Group revenues are expected to increase by 27% to around £31.0m (2011: £24.4m). This year-on-year improvement was a consequence of both organic and acquisitive growth.

The Group expects to show an adjusted EBITDA(1) increase of approximately 62% to £3.9m and an adjusted operating profit(2) increase of approximately 84% to £3.5m which are comfortably ahead of market expectations.

Cash balances are expected to be approximately £3.5m as at 31 March 2012 (2011: £6.2m) after payments of £1.1m for the final dividend (in respect of the year ended 31 March 2011) and £3.6m in respect of consideration for acquisitions.

Operational Highlights

The DataAuthentication business, the provider of our Identity Verification Services, continues to perform well with a significant increase in organic growth and improved profitability.

DataSolutions also performed substantially better than last year, due in large part to the acquisitions of Data Discoveries and Capscan and continued strong growth in the ID Tracing Services of the business.

Acquisition

All three acquisitions made during the financial year are all integrating well. In aggregate, synergies are expected to be higher than anticipated at the time of acquisition.

Notice of Results

The Group expects to report its full year results for the year ended 31 March 2012 in early June.

Richard Law, GB Group's CEO, said:

"GB Group has benefited, and will continue to do so, from high recurring revenue, organic growth and margin expansion from its high quality businesses. Our growth is closely linked to that of online business, as companies seek to better understand their customers in this environment. With our growing international capabilities we are now strongly positioned in the emerging cross-border online identity verification market which we believe represents an exceptional opportunity for GB Group. As a result of all these factors, the Board remains confident of future growth."

-Ends-

(1) adjusted EBITDA means earnings before share of results from joint ventures and associates, interest, tax, depreciation, amortisation of acquired intangibles, share based payment charges, acquisition related costs and non-recurring acquisition integration costs.

 (2) 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.

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Editors' Notes

Who are 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 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 four 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 Marketing 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

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' subsidiary companies include:

·; CapscanProvides postcoding/addressing software, International addressing data, census & geodemographic data, lifestyle & commercial data, consumer names data, bureau services and mailsort software.

·; Data DiscoveriesProvides data management services including name & address capture, database cleaning, suppression screening, data enhancement, profiling & analysis, list generation and tracing software.

·; Advanced Checking ServicesProvides a service which verifies any employee's entitlement to drive on business throughout their time with you - replacing flawed manual checks of licences with a fast, accurate and systematic online verification regime.