REG - 4GLOBAL PLC - Trading Update

4GlobalAnnouncement

15/05/2024 07:00

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RNS Number : 4200O  4GLOBAL PLC  15 May 2024

15 May 2024

 

4GLOBAL PLC

("4GLOBAL", the "Group" or the "Company")

 

Trading Update

 

4GLOBAL, a UK-based data and technology company focused on providing customers
in the sport and fitness sector with business-critical insights about their
customers, operations, and investments, is pleased to announce a trading
update for the year ended 31 March 2024 ("FY23/24").

 

As previously expected, and consistent with the Group's historical second half
revenue weighting, revenue generation in the second half of the financial year
has been strong. As a result, the Group expects to report revenues for FY23/24
up 14% to approximately £6.4m (FY22/23: £5.6m - audited).

 

Due to higher-than-expected revenue generated from higher-margin Solutions
products, (unaudited)¹ adjusted EBITDA(2) for the period is expected to
exceed market expectations(3) - increasing by approximately 30% to c. £1.6m
(FY22/23: £1.2m - audited).

 

The Group had cash balances of £0.2m as of 31 March 2024, reflecting
continued investment in the Group's Solutions and Platform database and the
securing of a number of revenue opportunities late in the period with receipts
due in the next. At the end of April, cash had improved to £0.5m. With
Accounts Receivable of £3.9m, the Group expects further improvement in H1 of
FY24/25.

 

The Group has invested in an exciting pipeline of new Solutions and Platform
products for FY24/25 which is expected to continue to drive revenue growth,
increase recurring revenues and improve margins. The Directors expect revenue
in FY24/25 to maintain a second half weighting as in historical periods.

 

Market guidance for FY24/25 will be given at the time of our final audited
results announcement, expected in July in line with previous years.

 

Eloy Mazon, CEO of 4GLOBAL, said:

 

"This has been a year of significant strategic progress, with substantial
expansion into international markets and the successful migration to higher
margin Solutions and Platform revenue driving double-digit sales growth and an
outperformance of market expectations for profitability.

 

"Supported by a strong pipeline of new products, we are confident FY24/25 will
be characterised by further operational progress and both revenue and margin
growth."

 

(1)All values stated in this announcement referring to FY23/24 are unaudited
and preliminary, pending completion of the audit, and are subject to any
adjustments determined by the auditors.

(2)Adjusted EBITDA is defined as statutory profit from operations before
interest, taxation, depreciation, share based payment expense and exceptional
items.

(3)Market expectations are defined as covering analyst forecasts prior to
publication of this announcement. These were revenues of £6.7m and adjusted
EBITDA of £1.3m.

 

Contacts:

 

 4GLOBAL PLC                                  via Alma

 Eloy Mazon (CEO)

 Spark Advisory Partners - Nominated Adviser  +44 (0)20 3368 3554

 Neil Baldwin

 Canaccord Genuity - Broker                   +44 (0)20 7523 8000

 Bobbie Hilliam

 Alma Strategic Communications                +44 (0)20 3405 0205
 Josh Royston

                                            4global (mailto:4global@almastrategic.com) @almastrategic.com
 Rebecca Sanders-Hewett                       (mailto:4global@almastrategic.com)

 David Ison

 Louisa El-Ahwal

 

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