GB optimistic despite slowdown
THE loss of two clients combined with the impact of the recession has dented revenue at identity management and marketing company GB Group.
But management at the Chester-based business are confident of its prospects and are set to propose an increased dividend on the back of a high number of client renewals.
Pre-tax profit for the year to March 31 was £1.26m, down 9%, on sales of £22.2m, down 7%.
However, GB said like-for-like operating profit before share-based payments was maintained at £1.2m during the period and cash balances increased.
In November the company issued a gloomy outlook citing the loss of contracts with two major clients. But the business held up better than expected after a string of new contract wins.
GB has two main divisions, DataAuthentication which offers an identity verification service aimed at tackling ID fraud, money laundering and under-age gambling, and DataSolutions, which provides clients with information on their customers.
Revenue at DataSolutions, where new clients included Racing UK and the British Film Institute, dipped 6% to £12.5m. DataAuthentication was down 17% at £9.7m.
Chief executive Richard Law said: “We are of the view that markets are uncertain at the present time but believe that GB, with its leading products, services and technology, a strong balance sheet and a particularly high quality and professional team of people, is well placed to take advantage of increased consumer activity that an improvement in the UK economy will bring.”
GB said it had a strong balance sheet with cash and cash equivalents of £5.7m after paying a dividend of £1m during the year.
The board is proposing a dividend of 1.2p a share, up from 1.15p.
