4global Regulatory News (4GBL)

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:

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.