We have previously cringed at GB Group’s strap-line – ‘GB Group – because identity matters’ – (see Identity matters a lot to GB Group profit). However, GB Group’s financial results go to show that for many organisations – both traditional and online businesses - the identity of their customers really does matter to them. The identity management specialists continues to deliver the goods throughout FY11 (to 31st March) and finished the year with revenues up 10% to £24.4 million and underlying operating profit up 46% to £1.9 million. Exceptional items included costs related to the company’s move to aim at the end of August 2010 (see GB ‘aims’ for new identity). Pre-tax profits were also up by 36% to £1.7 million and cash balances increased.
The DataAuthentication business, which focuses on identity verification, suffered in the previous financial year (down 17%) due to the fact that identity verification usually happens when the trading relationship between organisations and their customers begin. A difficult economic environment therefore has an impact on the business. Things turned around in FY11 though, with the business growing 4%. Going forward, it looks like the DataAuthentication business is also set to grow its international revenues as more cross-border transactions take place via the internet.
However, it was the DataSolutions business that turned in the best performance, with revenues up 15%. The company’s tracing and intelligence gathering tool seems to be a really strong magnet for new customers. During the period wins included a multi-year deal with HM Revenue & Customs to enable them to further strengthen their ability to manage fraud.