Online identity authentication specialist GB Group says it made a £374,000 first-quarter pre-tax profit on buoyant turnover.

Bombed-out GB, formerly a customer relationship management concern whose shares once topped £2 in the ‘new economy’ bubble, has told shareholders today that its turnover rose 57 per cent year on year to £5.75 million in the three months to July, generating pre-tax profits of £374,000, against a £665,000 loss a year previously. If the impact of a one-off settlement for licence arrears is stripped out, the company still made £41,000 pre-tax in the first quarter on turnover up 47 per cent to £5.4 million.

Fully listed GB, which cut its loss from £1.2 million to £400,000 in the year to March and showed a £600,000 profit in the second half of the year, had £5 million cash at the year-end, before paying an increased final dividend of 1p a share. Chief executive Richard Law says focusing on identity management has enabled the company ‘to lead in an emerging sector’ with ‘all the appearance of showing substantial and sustained growth’.

Law argues, ‘The ability to prove age and identity electronically and subsequently to manage customers effectively over the internet is a prerequisite for every online business. GB is exceptionally well placed to address this growing market.’

GB shares, which dropped from 50.5p to 19.75 last year, have rallied to 29.5p, valuing the company at £24.7 million.

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GB Group	LSE	£18.42m	22.00p	0.00p
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