GRC.L Regulatory News (GRC)

3 May 2022

GRC International Group PLC

("GRC" or the "Group")

Year-end trading update

GRC International Group PLC (AIM: GRC), the international governance, risk management and compliance company whose main business is cyber defence-in-depth, announces a trading update for the 12 months ended 31 March 2022.

Highlights

· Billings* up 21% to £14.8m (FY21: £12.2m).

• Q4 billings up 25% to £4.5m (FY21: £3.6m). Notably, March 2022 billings highest since end of GDPR peak (May 2018), despite macro-economic headwinds.

· FY22 billings from recurring revenue products accounting for 56% of total billings (FY21: 54%).

· Recurring revenue subscriber base up 41% to 5,089 (FY21: 3,600).

· 57% of transactions from returning existing customers (FY21: 45%).

· H2 revenue growth continues in line with progress made in H1 - Q4 FY22 revenues of not less than £4.0m up 14% (Q4 FY21: £3.5m).

· EBITDA of at least £0.8m (FY21: EBITDA loss £1.1m). H1: £0.4m, H2: at least £0.4m, with Q4: at least £0.3m).

· Year-end cash £2.0m (2021: £0.2m), reflecting January 2022 share placing and exceptionally strong February and March trading and cash performance.

The Group is seeing significant international growth opportunities in the digitally transformed, Cloud-based, increasingly vulnerable, hybrid-working environment as a result of:

· Corporates, large and small, domestic and multinational, having to deal with increasingly complex regulations and enforcement in the Group's three primary geographic markets of UK, EU and US;

· All clients facing escalating nation-state and criminal (serious organised crime) cyber attacks; and

· The significant and deep-seated cyber and compliance skills deficits.

In January 2022, GRC completed a £3m oversubscribed share placing. This is enabling the Group to continue its product investment and business automation programmes, including the development of new features and functionality across all units in the SaaS division, at the same time as making agreed repayments against the deferred HMRC tax liabilities that arose through the pandemic.

The investment in the SaaS division underpins the Group's cyber defence-in-depth offering and is expected to support the Board's expectation of continued double-digit organic billings growth for that division in FY23.

During Q4, the Group's cyber security incident response service achieved CREST accreditation. This, combined with GRC's unique Cyber Safeguard service package, which includes cyber insurance from Hamilton Insurance, enables the Group to support a growing number of customers that are particularly exposed to cyber attacks.

On 1 April 2022, the Group launched a Cloud Security consultancy service to help mid-sized corporate clients ensure that their Cloud infrastructures are securely configured. The service is fully described on the UK website and sold directly to our existing medium and large consultancy clients through our consultancy and professional services teams. Allied with the Group's Microsoft Global Training Partnership, this expands the footprint in the fast-growing Cloud security market.

Alan Calder, Chief Executive Officer, commented:

"Our strong performance in calendar 2021 continued into Q4 of FY22, resulting in our best month of billing, despite the economic and geopolitical headwinds. That strong momentum in Q4 and cash generation have continued into the start of the new financial year.

"Our technology capabilities and our track record, with deep expertise and cyber defence-in-depth model, provide our clients with peace of mind. They know their assets are safe and, equally importantly, comply with the numerous cyber regulations.

"As we have previously stated, our strategy is to grow organically and by acquisition - the latter to deepen and widen our offering. To that end, we are making good progress to execute on our acquisition plans."

* Billings equate to the total value of invoices raised as cash sales through the Group's websites. The figure does not take account of accrued or deferred income adjustments that are required to comply with accounting standards for revenue recognition.

- ENDS -

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014, which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Enquiries:

GRC International Group PLC +44 (0)330 999 0222

Alan Calder, Chief Executive Officer

Christopher Hartshorne, Finance Director

Grant Thornton UK LLP (Nominated Adviser) +44 (0)20 7383 5100

Philip Secrett/Daphne Zhang/Samuel Littler

Dowgate Capital Limited (Broker) +44 (0)20 3903 7715

James Serjeant/David Poutney/Russell Cook/Nicholas Chambers

Meare Consulting +44 (0)7990 858548

Adrian Duffield

About GRC International Group PLC

GRC is an international governance, risk management and compliance company whose main business is cyber defence-in-depth.

A technology business, its proprietary premier brands including the market leader, IT Governance, offer 'Our expertise, your peace of mind' for GRC's wide range of domestic and international corporate customers across all industrial sectors.

GRC's three operating divisions - Software as a Service (SaaS), e-Commerce and Services - offer a wide range of products and services encompassing: IT governance, risk management, compliance with data protection and cyber security regulations, online and in-person training and staff awareness, consultancy, online publishing and distribution as well as software. The Group's capabilities also include products and services to enable corporates to address wider governance issues such as money laundering and bribery.

In addition to its UK business, GRC has operations in the EU and US.