TIDM4GBL
RNS Number : 9356V
4GLOBAL PLC
07 December 2023
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 AMED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
7 December 2023
4GLOBAL PLC
("4GLOBAL", "Group" or the "Company")
Interim Results
"Strong growth and In line with market expectations"
4GLOBAL, a UK-based data, services and software company focused
on the sport, leisure and health, is pleased to announce its
unaudited interim results for the six-month period ended 30
September 2023.
Financial highlights for the period
-- Revenue for the six months was GBP1.8m (H1 22/23): GBP1.4m) an increase
of 26%.
-- Gross profit margin improved to 60% (H1 22/23: 49%), due to internal
operational leverage from higher revenue.
-- Adjusted loss GBP0.6m (H1 22/23: GBP0.8m loss) an improvement of 25%.
-- Total Assets GBP5.2m (2022: GBP3.6m) an increase of 44%
-- Trading in line with market expectations, with significant financial
weighting in H2 in line with previous financial periods.
Post period financial highlights
-- Total annual booked revenue of GBP4.8m (H1 23/24: GBP1.8m, plus GBP3.0m
booked for H2 23/24). In addition, the Company is in late-stage contract
negotiation on a GBP1.0m opportunity which is expected to be signed
in December 2023.
-- GBP0.8m of new contract wins since interim end.
Key new business wins and partnerships - year to date
-- Total new business won in this financial year to date stands at GBP3m
-- Key partnerships:
- Jonas - launch of 4GLOBAL data & insight platform to their existing
customers in September 2023 targeting an initial $1m opportunity pipeline.
To date we have already signed up a number of flagship customers to
our platform and looking at exploiting the existing pipeline.
- TechnoGym - launch of 4GLOBAL data & insight platform to their
existing customers in September 2023. This partnership targets an
opportunity Total Addressable Market ("TAM") of GBP2m of license revenue.
- Mace Group - partnership extended to North America to target world
cup cities with the new combine offering around maximising the social
value and sustainability from hosting the world cup.
- Al-Jassra - significant business wins in the Middle East.
-- Sport England contract variation has seen 4GLOBAL gathering insights
to aid local authorities, leisure providers, and policymakers alike
in making strategic decisions. This contract variation also marks
a significant expansion of 'Moving Communities Place.'
-- Guadalajara convention contract award sees 4GLOBAL assisting in making
investment decisions and assessing whether investments are achieving
the criteria with regards to social impact, thanks to the use of 4GLOBALs
data and social value calculator.
Operational highlights for the period
-- Our data asset (DataHub) grew to 35m unique individuals and over 4bn
datapoints as a result of increasing the number of sport health and
activity data sources being integrated through new customers into
the DataHub; one of the largest datasets of its kind in the world
which enables clients to make critical investment decisions about
their business.
-- Management successfully delivered its first trials using Artificial
Intelligence (AI) tools within DataHub, which has proven to increase
efficiencies in data processing. This enables DataHub to deliver enhanced
insights to its customers in the three key areas of understanding
their customers (identify, attract, retain, improve) operational efficiencies
and the ability to maximise ROI on capital investment (especially
in scaled sport, health and activity facilities).
-- The combination of the growth of the DataHub and the use of AI has
allowed the Company to secure significant new contracts with our middle
east partners (in Qatar and the Kingdom of Saudi Arabia) developing
nationwide sport infrastructure investment plans and new cities development.
-- Similarly in the North American market, the Company continues to build
on strategic partnerships with Jonas to deliver scale business insights
for Jonas' existing clients.
-- Furthermore, the growth of the DataHub dataset and integration with
AI coupled is enabling the Company to open new verticals and data
use cases. In the period, the Company continued to grow in the health
area specifically related to the trend of using physical activity
to treat and prevent certain health conditions.
-- The combination of these factors has allowed the Company to grow its
opportunity pipeline to GBP6.9m.
Eloy Mazon, Chief Executive Officer of 4GLOBAL, commented:
"Trading has been strong and the Board is delighted with the
performance of the business in the first half of the year. There
has been significant growth in revenues in relation to last year's
H1 position (26% increase). This has been a period of expansion and
growth through significant business wins, continuing to build on
the grow foundations in international markets, strengthening the
team and the Company's' commercial partnerships.
"The rise of Artificial Intelligence (AI) and the growth of the
DataHub has generated significant opportunities for us and I was
delighted to see the launch of our first AI insight platform
earlier this year as a pilot for one of our biggest customers prior
to commercial launch in 2024.
"As expected, Group revenue generation profile is significantly
weighted to the second half of the year. The Board is encouraged by
the continued strong demand for the Company's products and, with 4
months to go to the end of the financial year, is confident that it
is trading in line with market expectations for the full year ([1])
."
([1]) Market expectations for the full year stand at total
revenue of GBP6.7m and Adjusted EBITDA of GBP1.3m
For further information contact:
4GLOBAL plc c/o IFC Advisory
Eloy Mazon (CEO)
Spark Advisory Partners - Nominated
Adviser
Neil Baldwin 0203 368 3554
Canaccord Genuity - Broker
Bobbie Hilliam 020 7523 8000
IFC Advisory
Graham Herring / Zach Cohen 0203 934 6630
A copy of the interim accounts is available from the Company's
website www.4global.com.
Chief Executive Statement
For the six months ended 30 September 2023
The current year has started positively and the Board is
particularly encouraged by progress in recent months. The financial
position is strong and international expansion continues with the
activation and launch of our US partnership gathering momentum. The
business is performing comfortably in line with market
expectations.
The six months to 30 September 2023 was a period of growth for
the Group as it delivered a 26% increase in revenue to GBP1.8m (30
September 2022: GBP1.4m) and it has accelerated its investment in
products and platforms which is reflected in the Group's total
contracted work to date together with a total pipeline of
GBP6.9m.
The GBP4.8m of booked revenue to date consists of high margin
contracts which will have a significant impact on the Group's
profitability. The Group has also won new multi-million pound
multi-year agreements, which enhances visibility over revenues in
future financial periods. This combines with the migration of our
existing customers and introduction of new customers to annual
recurring and repeatable revenue (ARRR) contracts. As expected, the
Group's revenue generation profile is weighted to the second half
of the year as it has been in previous periods. The investment made
last year in strengthening the opportunity pipeline internationally
and winning multi-year contracts has resulted in a considerable
growth of our net assets in our balance sheet regarding accounts
receivable that will generate significant cash to the business.
Market trends
The space in which 4GLOBAL operates (Sport & Fitness) has
been evolving over the last few years. The Group has identified
four key market trends that positively impact its business:
-- Client focus and needs are shifting from a software approach to
a focus around data and the actionable insights they can extract
from it. The informed data enables the client to make better decisions
around its customers, business operations and investments in order
to generate new revenue streams.
-- Uncertainty of the macroeconomic environment is driving a greater
reliance and need on making the right decisions at the right time
and to model the future. Customers in this sector see data as
key to generating the insights that drive better decisions.
-- Insight about their business to make better decisions needs to
base on whole sector data and not just the customers data as that
gives them an incomplete picture on which to base decisions. Access
to market wide data is becoming critical to make the right business
decisions.
-- AI is taking an increasingly important role in business and in
particular to the business critical insights it can provide. However,
AI is a tool and it requires large amounts of data to provide
valuable insights; the more data the powerful AI is to businesses.
4GLOBAL has one of the biggest databases of sport participation
(DataHub) in the world and an excellent track record at assisting
customers in drawing insight from their end market data. As a
result, the Group is perfectly positioned to exploit these trends
and deliver on its growth strategy.
Key achievements and highlights
Product development & data asset
Since the beginning of the financial year, the Company's data
asset, known as the DataHub, has experienced growth of 5%. As data
from the North American operation begins to contribute, there is an
expectation that this growth will be further accelerated, expanding
geographical coverage and reinforcing the Company's dominant
position in the market with its comprehensive data set.
In shaping the future landscape, Artificial Intelligence (AI) is
poised to play a pivotal role, particularly in the realm of
actionable insights. The Directors believe that the Company stands
at the forefront of this technological wave, recently successfully
delivered its first trials of AI within DataHub, which have proven
to increase efficiencies in data processing.
This enables DataHub to deliver enhance insights to its
customers in the 3 key areas of understanding their customers
(identify, attract, retain, improve) operational efficiencies and
the ability to maximise ROI on capital investment (specially in
scaled sport, health and activity facilities).
Furthermore, the growth of the DataHub dataset and integration
with AI coupled is enabling the company to open new verticals and
data use cases. In the period, the company continued to grow in the
health area specifically related to the trend of using physical
activity to treat and prevent certain health conditions like
obesity that cost GBP98bn p.a. to the UK.
Commercial partnerships
Central to 4GLOBAL's global expansion strategy are its
commercial partnerships. Earlier this year, the Group unveiled two
pivotal collaborations with Jonas and with TechnoGym, strategically
positioning itself to unlock significant revenue opportunities for
4GLOBAL in the North American and European markets
respectively.
The Jonas partnership, launched to North American customers in
August 2023, has witnessed substantial marketing efforts and
activations. This concerted approach has already yielded positive
results, with new customers actively embracing the Company's
insight solutions. This move aligns with the Company's commitment
to leveraging its data and insight products in unexplored
verticals, opening avenues for fresh revenue streams.
Notably, 4GLOBAL's enduring partnership with Mace Group has
continued to perform well, particularly in the Middle East, where
several live projects and opportunities exist. This success has
prompted an extension of the partnership into the North American
market. Together, the companies are poised to launch new offering
targeting the sports and events sector.
As 4GLOBAL continues its ambitious growth aspirations, it
remains committed to exploring additional commercial partnerships
that will expedite client acquisition and drive revenue in its
targeted markets.
Outlook
The Board anticipates sustained demand for its data, insights,
and services throughout the remainder of the year. The management's
primary focus will persist in strategically activating the
commercial aspects of established partnerships across various
geographies, with particular emphasis on the North America and
Middle East regions.
Our commitment to product development and advancing our data
assets remains unwavering. This approach ensures that the Company
stays at the forefront of innovation, consistently delivering
business-critical data and insightful solutions to meet the
evolving needs of our customers.
As expected, and in previous years, Group revenue generation
profile is significantly weighted to the second half of the year.
The Board is encouraged by the continued strong demand for the
Company's products and - with 4 months to go to the end of the
financial year - is confident that it is trading in line with
market expectations for the full year ([1]) .
([1]) Market expectations for the full year stand at total
revenue of GBP6.7m and Adjusted EBITDA of GBP1.3m
Eloy Mazon
Chief Executive
7(th) December 2023
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 SEPTEMBER 2023
Note
Six months Six months Year to
ended ended
30 September 30 September 31 March
2023 2022 2023
(unaudited) (unaudited) (audited)
GBP GBP GBP
Revenue 1,748,660 1,389,429 5,585,747
Cost of sales (706,048) (704,510) (1,449,008)
Gross profit 1,042,612 684,919 4,136,739
Administrative expenses (1,651,035) (1,474,743) (2,919,874)
Other operating income - 14,000 14,000
Analysed as follows:
Adjusted (loss)/profit
from operations (608,423) (775,824) 1,230,365
Depreciation and amortisation (230,107) (181,462) (372,717)
Share based payment expense (145,592) (208,620) (338,456)
Exceptional items - (54,000) -
-------------------------------- ------- -------------- -------------- -------------
Operating profit/(loss) (984,122) (1,219,906) 529,192
Finance income (19,045) 1,439 1,722
Finance cost 76 (17,736) (24,043)
(Loss)/profit before tax (1,003,091) (1,236,186) 496,921
Tax (charge)/credit (4,352) 103,314 145,133
(Loss)/profit for the period (1,007,443) (1,132,872) 642,054
Other comprehensive income
Exchange differences on
translation of foreign
operations (7,053) 333 (3,053)
Other comprehensive income
for the period (7,053) 333 (3,053)
Total comprehensive income (1,132, 5
for the period (1,014,496) 39) 639,001
-------------- -------------- -------------
Total comprehensive income
attributable to the equity
holders of the company (1,014,496) (1,132,539) 639,001
-------------- -------------- -------------
Basic profit - pence per
share 3 (3.8)p (4.3)p 2.4p
-------------- -------------- -------------
Diluted profit - pence
per share 3 (3.8)p (4.3)p 2.2p
-------------- -------------- -------------
The notes form part of these Condensed Consolidated Financial
Statements.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
Note
As at 30 September 30 September 31 March
2023 2022 2023
(unaudited) (unaudited) (audited)
GBP GBP GBP
Non-current assets
Property, plant and equipment 36,239 218,301 34,401
Right of use assets 376,734 - 595,601
Intangible assets 582,083 197,107 392,180
Deferred tax 266,477 - 190,647
Total non-current assets 1,261,533 415,408 1,212,829
-------------- -------------- -----------
Current assets
Trade and other receivables 3,659,398 1,084,891 3,977,947
Cash and cash equivalents 265,352 2,118,665 1,138,093
3,924,750 3,203,557 5,116,040
-------------- -------------- -----------
Total assets 5,186,283 3,618,965 6,328,869
-------------- -------------- -----------
Equity and Liabilities
Equity
Share capital 263,451 263,451 263,451
Share premium 3,390,330 3,390,330 3,390,330
Merger reserve 676,310 676,310 676,310
Share option reserve 533,837 347,701 388,245
Share warrant reserve 188,266 188,266 188,266
Currency translation reserve (42,429) (31,990) (35,376)
Retained earnings (1,397,423) (2,254,197) (389,890)
-------------- -------------- -----------
Total equity 3,612,342 2,579,871 4,481,246
-------------- -------------- -----------
Non-current liabilities
Borrowings 83,333 133,703 108,832
Lease liability - - 194,060
-------------- -------------- -----------
83,333 133,703 302,892
-------------- -------------- -----------
Current liabilities
Borrowings 50,000 50,130 50,000
Trade and other payables 1,058,238 676,515 1,122,746
Lease liability 382,370 178,746 371,985
-------------- -------------- -----------
Total current liabilities 1,490,608 905,391 1,544,731
-------------- -------------- -----------
Total liabilities 1,573,941 1,039,094 1,847,623
-------------- -------------- -----------
Total equity and liabilities 5,186,283 3,618,965 6,328,869
-------------- -------------- -----------
The notes form part of these Condensed Consolidated Financial
Statements.
The Condensed Consolidated Financial Statements were approved
and authorised for issue by the Board of Directors on 7 December
2023.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 SEPTEMBER 2023
Six months Year to
Six months to
to
30 September 30 September 31 March
2023 2022 2023
(unaudited) (unaudited) (audited)
GBP GBP GBP
Cash flows from operating activities
Profit/(loss) before income tax
for period (1,003,091) (1,236,086) 496,921
Adjustments to reconcile loss
before tax to net cash flows:
Depreciation of tangible assets 196,397 181,462 366,461
Amortisation 33,710 - 6,356
(Profit)/loss on disposal of
fixed assets (1,205) - 1,077
Finance income (76) (1,439) (1,772)
Finance cost 19,045 17,736 24,043
Equity-settled share-based expense/warrants 145,592 208,620 338,456
Decrease/(increase) in trade
and other receivables 268,349 520,729 (2,256,890)
(Decrease)/increase in trade
and other payables (63,991) (223,168) 36,093
Tax received - 103,708 (3,989)
Net cash flows - operating activities (405,270) (428,438) (993,334)
Cash flows from investing activities
Purchase of intangible assets (8,664) (197,107) (22,768)
Purchase of Tangible assets (223,612) (18,905) (398,436)
Interest received 76 1,439 1,772
Net cash - investing activities (232,200) (214,573) 419,432
Cash flows from financing activities
Repayment of shareholder loan
- principal - - (50,400)
Repayment of shareholder loan
- interest - - (22,194)
Repayments of borrowings (25,498) (101,113) (50,000)
Lease liability principal payment (183,675) (175,065) (351,642)
Interest elements of lease payments (13,271) (5,235) (8,958)
Interest paid (5,774) (8,192) (15,521)
Net cash flows - financing activities (228,218) (289,605) 498,715
Net Decrease in cash (865,688) (932,616) (1,911,491)
Effects of exchange rate changes
on cash (7,053) 333 (1,364)
Cash at beginning of period 1,138,093 3,050,948 3,050,948
Cash at the end of period 265,352 2,118,665 1,138,093
Comprising:
Cash and cash equivalents 265,352 2,118,665 1,138,093
Cash at end of period 265,352 2,118,665 1,138,093
The notes form part of these Condensed Consolidated Financial
Statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 SEPTEMBER 2023
Currency
Share Share Merger Share Share translation Retained Total
option warrant
capital premium reserve reserve reserve reserve earnings Equity
GBP GBP GBP GBP GBP GBP GBP GBP
As at 31 March
2022 263,451 3,390,330 676,310 139,080 188,266 (32,323) (1,121,325) 3,503,789
--------- ----------- --------- ---------- --------- ------------- ------------- -------------
(Loss) for the
period - - - (1,132,872) (1,132,872)
Other
comprehensive
charges
- translation
differences - - - - - 333 - 333
Total
comprehensive
income
for the
period - - - - - 333 (1,132,872) (1,132,539)
Transactions
with owners:
Share based
expense - - - 208,621 - - - 208,621
- - - 208,621 - 333 (1,132,872) (923,918)
--------- ----------- --------- ---------- --------- ------------- ------------- -------------
As at 30
September
2022 263,451 3,390,330 676,310 347,701 188,266 (31,990) (2,254,197) 2,579,871
--------- ----------- --------- ---------- --------- ------------- ------------- -------------
Profit for the
period 1,774,926 1,774,926
Other
comprehensive
charges
- translation
differences - - - - - (3,386) - (3,386)
--------- ----------- --------- ---------- --------- ------------- ------------- -------------
Total
comprehensive
income
for the
period - - - - - (3,386) 1,774,926
Transactions
with owners:
Movement on
lapsed share
options (89,291) 89,291 -
Share based
expense - - - 129,835 - - - 129,835
As at 31 March
2023 263,451 3,390,330 676,310 388,245 188,266 (35,376) (389,980) 4,481,246
--------- ----------- --------- ---------- --------- ------------- ------------- -------------
(Loss) for the
period - - - - (1,007,443) (1,007,443)
Other
comprehensive
charges
- translation
differences - - - - - (7,053) - (7,053)
Total
comprehensive
income
for the
period - - - - - (7,053) (1,007,443) (1,014,496)
Transactions
with owners:
Share based
expense - - - 145,592 - - - 145,592
--------- ----------- --------- ---------- --------- ------------- ------------- -------------
- - 145,592 - (7,053) (1,007,443) (868,904)
--------- ----------- --------- ---------- --------- ------------- -------------
As at 30
September
2023 263,451 3,390,330 676,310 533,837 188,266 (42,429) (1,397,423) 3,612,342
--------- ----------- --------- ---------- --------- ------------- ------------- -------------
The notes form part of these Condensed Consolidated Financial
Statements.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
1. General Information
4Global plc is a public limited company incorporated in England
and Wales and was admitted to trading on the AIM Market of the
London Stock Exchange, under the ticker symbol 4GBL on 7 December
2021.
The Company was incorporated and registered in England and Wales
on 22 July 2021 as a public company limited by shares, with the
name 4Global plc and registered number 13523846.
This financial information issued by 4Global plc in compliance
with its reporting obligations under the AIM Rules.
At 30 September 2023 the Company had issued share capital of
26,344,994 Ordinary Share of 1.0 pence.
The address of its registered office is Venture X, 5th Floor
Building 7 Chiswick Park, 566 Chiswick High Road, Chiswick, London,
United Kingdom, W4 5YG. and the registered company number is
13523846. The principal activity of the Company is the provision of
advisory services in the sporting sector at a local, national and
international level.
2. Significant accounting policies
2.1 Basis of preparation
The consolidated financial statements of 4Global PLC were
prepared in accordance with International Financial Reporting
Standards ("IFRS") as adopted by the United Kingdom, IFRIC
interpretations and the Companies Act 2006 applicable to companies
applying IFRS. The interim report has been prepared in accordance
with International Accounting Standard (IAS) 34 (Interim Financial
Reporting). The information in this report has been drawn up using,
in all material respects, the same accounting methods as those
utilised in the Group's annual report and accounts for the year
ended 31 March 2023.
3. Earnings per share
Six Months Six Months Year to
ended ended
30 September 30 September 31 March
2023 2022 2023
Basic earnings per Ordinary (unaudited) (unaudited) (audited)
Share
GBP GBP GBP
Loss for the period (1,007,443) (1,132,872) 642,054
Weighted average number of Ordinary
Shares
in issue 26,344,994 26,344,994 26,344,994
Basic loss per share (pence) (3.8)p (4.3)p 2.4p
-------------- -------------- ------------
Diluted earnings per Ordinary
Share
(Loss)/profit for the period 642,054
Diluted weighted average number
of shares in issue 28,895,722
Diluted loss/profit per share (3.8)p (4.3)p 2.2p
-------------- -------------- ------------
Six Months Six Months Year to
ended ended
30 September 30 September 31 March
2023 2022 2023
Weighted average number of
shares used as a denominator (unaudited) (unaudited) (audited)
Shares in issue at 1 April 2023
and 2022 26,344,994 26,344,994 26,344,994
--------------- --------------- -------------
Adjustments for calculation
of diluted earnings per share
Share options 2,133,752
Warrants 416,971
-------------
2,550,723
28,895,722
-------------
As the Group has reported a loss diluted earnings per share are
equal to basic earnings per share.
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END
IR BRBDDLBGDGXL
(END) Dow Jones Newswires
December 07, 2023 02:00 ET (07:00 GMT)
4global (LSE:4GBL)
過去 株価チャート
から 4 2024 まで 5 2024
4global (LSE:4GBL)
過去 株価チャート
から 5 2023 まで 5 2024
