Trading Update

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 EBITDA² for the period is expected to exceed market expectations³ - 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."

¹All 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.

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

³Market 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 Eloy Mazon (CEO)	via Alma
Spark Advisory Partners - Nominated Adviser Neil Baldwin	[phone]
Canaccord Genuity - Broker Bobbie Hilliam	[phone]
Alma Strategic Communications Josh Royston Rebecca Sanders-Hewett  David Ison Louisa El-Ahwal	[phone] [e-mail]

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

END