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.

 

21 December 2022

 

4GLOBAL PLC

 

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

 

Interim Results

 

4GLOBAL, a UK-based data, services and software company focused on major sporting events and the promotion and measurement of physical activity, is pleased to announce its unaudited interim results for the six-month period ended 30 September 2022.

 

The six months to 30 September 2022 have been a period of investment and growth through significant new business wins, laying the foundation for future international growth and strengthening the management team and PLC systems and processes.

 

As expected, Group revenue generation profile is significantly weighted to the second half of the year, as it has been in previous years. As we enter the final quarter of the financial year, management has confidence in meeting full year market expectations.

 

Financial highlights for the period

 

•	Revenue for the six months was £1.4m (2021: £1.3m) an increase of 10%.
•	Adjusted loss £0.8m (2021 profit: £0.2m prior to Company being listed on AIM with significantly different cost base).
•	Robust balance sheet with cash balances of £2.1m (2021: £1.4m).

 

Post period financial highlights

 

•	Revenue at the end of November 2022 stands at £3m (unaudited).
•	In addition to the £1.4m revenue in period, a further £3m has already been booked to date to be delivered in this FY, which consists of significantly higher margin contracts than in the first half.
•	Sales pipeline of £30m of which £7.3m (£6.1m at proposal stage) would fall in the current financial year.

 

Key new business wins and partnerships - year to date:

 

•	Total contracted work to be delivered this and subsequent years stands at £9.1m
•	Multi-year agreement for an initial project amount of £4.0m in the Middle East with MACE
•	Major sporting event in the Middle East with initial project amount of £200k
•	Peru reconstruction programme contract extension for an initial amount of £360k
•	Sport England moving communities increase scoped for a value of £100k
•	UK Active project for a value of £90k
•	England Netball insight modules and datahub for a value of £70k.
•	Other technology contracts for value in excess of £500k
•	Key partnerships agreements with: 1. Jonas - a leading global data software company focused on the Leisure sector owned by Constellation Group PLC 2. MACE - a leading global Construction company 3. Al Jassra Group - an international conglomerate with revenues exceeding £1bn globally 4. Fitness Industry Council of Canada ("FICC") and USA National Fitness Association ("IHRSA") 5. TechnoGym - a global Fitness equipment and data company 6. Les Mills - a leading activity provider

 

Operational highlights

 

•	During the period, the Group has successfully laid the foundations through client and partner agreements to launch the DataHub product in the North American and European market in the first half of next year.
•	The North American launch next year will be underpinned by: 1. Partnership with Jonas, a current UK DataHub partner. Jonas (a Constellation PLC company) will provide access to activity data from 16,000 gyms across the US/Canada and will act as a sales channel for revenue generation. 2. Partnership with FICC and IHRSA - its equivalent in the USA. These organisations provide the Group with a pipeline of end user clients, access to physical activity data and market endorsement.
•	The European Data hub launched in the first half of next year through a partnership with Europe Active, the trade body for gyms and activity facilities across key European markets. The Group is currently tracking over 3,500 facilities and 11 million unique individuals from 14 European countries.
•	The Company hired Kerstin Obenauer as Chief Customer Officer. Kerstin will lead and build sales capability for the Group. Kerstin brings with her a wealth of experience and credibility as well as an extensive network in the international sports data market.
•	During this period, the Group has successfully worked with the England Football Association to deliver and maximise the benefits from the Women Euros tournament and it is currently providing significant operational support to another major football tournament in the Middle East.
•	To underpin its future growth in new international markets, the Group has invested in Salesforce as group wide CRM system, providing a more granular visibility on the sales pipeline and margin management.
•	Further investment has been made into the DataHub product to support the international expansion and the number of data integrations has grown from circa 50 at IPO to more than 75 to date.

 

Eloy Mazon, Chief Executive Officer of 4GLOBAL, commented:

 

"Recent trading has been strong which provides the management with confidence of achieving revenue and profit growth. This year the Group has put in place the key building blocks for accelerating growth within the business. It has a current booked revenue of £4.4m (£1.4m delivered in H1 and £3m to be delivered in H2) with some high margin contracts to be delivered in the second six months of the financial year. In addition, the Company is actively pursuing £30m of new opportunities some of which will fall into this financial year.

 

"Our multimillion-dollar client wins with MACE in the Middle East, Technogym, Al Jassra Group and key partnerships with leading sport/physical activity data partners such as Jonas, IHRSA and FICC in North America provide us with confidence and excitement about the continued international expansion of the 4GLOBAL business."

 

For further information contact

 

4GLOBAL plc Eloy Mazon (CEO)	c/o IFC Advisory
Spark Advisory Partners - Nominated Adviser Neil Baldwin	0203 368 3554
Oberon Capital - Broker Michael Seabrook / Adam Pollock / Chris Crawford	0203 179 5300
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.

 

Company registration number: 13523846

 

 

 

CHIEF EXECUTIVE'S STATEMENT

FOR THE PERIOD ENDED 30 SEPTEMBER 2022

 

The six months to 30 September 2022 was a period of investment for the Group as it delivered a 10% increase in revenue to £1.4m (30 September 2021: £1.3m) and it has accelerated its investment in products and platforms which is reflected in the Group's total contracted work to date of £8.9m - of which £4.4m (£1.4m in H1 plus £3m) will be delivered this financial year - together with a total opportunity pipeline of £30m.

 

The £3m of booked revenue, to be delivered in the second six months of the financial year, consists of high margin contracts which will have a significant impact on the EBITDA line. The Group has also won new multi-million pound multi-year agreements, which enhances visibility over future revenues.

 

As expected, Group revenue generation profile is weighted to the second half of the year as it has been in previous periods. The Group invested significantly in the first half of the financial year, in comparison to the six months ended 30 September 2021, prior to its listing, as it transitioned to being a public company whilst investing in business capabilities and key talent to support its international expansion.

 

This investment, which is showing a return in the order book, pipeline and international expansion, has meant the Group has produced an adjusted loss from operations of £0.8m (30 September 2021 profit: £0.2m¹), which management anticipates recovering in the second half of the year.

 

¹ The cost figure for 30 September 2021 is prior to the company being listed and therefore the cost base is significantly different.

 

Management remains focused on delivering the market expectations' growth for the full year through investment in the core foundations of the DataHub product, international expansion, and in upgrading business capabilities and key talent. Key progress milestones have been met in each area.

 

The Group is developing strategic partnerships which provide a cost-effective entrance into target markets for the full recurring data software and services model that the Company currently operates in the UK. In addition to this, the partnerships also provide a channel to clients as well as a vehicle to accelerate data acquisition and the growth of the core asset; the DataHub. At present, the Group is focus on three core markets: North America, Europe and the Middle East.

 

During the period, 4GLOBAL has accelerated its planned expansion into North America and laid the foundations through client and partner agreements to launch its products and services in the market in the first half of next year. The North American expansion is underpinned by three core partnerships:

 

1.	Jonas - the Group has a long standing successfully commercial relationship with Jonas - part of Constellation Group PLC - in the UK. This relationship has now been extended to the North American market where Jonas is the leading solutions provider to the fitness, leisure and sport sector with over 16,000 sport facilities in their books. These partnerships will allow the Group to significantly accelerate the deployment of its data and software products/solutions in the market to generate revenues and it will add significant amount of data to the DataHub increasing the value of this core asset to the business.
2.	FICC - the relationship between the Group and FICC has gone from strength to strength, and it culminated with the launch of the Social Value Calculator product in the market earlier this year. FICC represents over 6,000 facilities and 6 million members nationwide, this relationship is key to the Group to have direct access to the market, data and the endorsement from FICC.
3.	IHRSA - the Group was delighted to sign a partnership agreement with IRSHA that will drive similar benefits to the relationship with FICC in the USA market which is key to the Group's growth, and it will accelerate the Group's ability to grow the amount of data in the DataHub from this market.

 

Expansion in the European market continues to progress. The European DataHub was launched as part of the project with EuropeActive and it is already tracking over 3,500 facilities and 11 million individuals from 14 countries across the EU. This has allowed the Group to start marketing and selling its products in Europe at the same time that it continues to grow the DataHub and therefore its ability to service more clients, generate revenues and further strengthen its position in the market.

 

In the Middle East, the Group has developed key relationships with Al Jassra Group - an international conglomerate with revenues exceeding £1bn globally - and MACE Group - global infrastructure experts with revenues in excess of £400m. These partnerships have already generated contracts since 30 September 2022 in the region as well as they have generated potential multi-million pound opportunities active tendering opportunities for 4GLOBAL.

 

Since IPO in December 2021, the Group has strengthened the delivery and senior leadership teams, in particular hiring Kerstin Obenauer as Chief Customer Officer. Kerstin was previously UK country director at fitness technology supplier, eGYM, based in Munich, and has over 20 years' experience in the fitness sector.

 

Kerstin brings with her a wealth of experience and credibility as well as an extensive network in European market. She has led the implementation of a new CRM system and customer centric infrastructure yielding new business wins in the year to date with MACE in the Middle East, Qatar and Technogym totalling more than £5m.

 

During the six months ended 30 September 2022, the Group has invested in the development of existing product and new product lines to allow the Company to maximise in the short and medium terms on opportunities in markets in which it currently operates. Since the IPO the Group has increased its number of integrations from circa 50 to more than 75 allowing this way more data to flow into the DataHub and therefore increasing its value to our customers as well as allowing the Group to operate in new geographies.

 

The Group continually reviews its products and develop enhancements that increase its market and offering into target markets.

 

The Group has a robust balance sheet with cash and cash equivalents of £2.1m, £4.4m of contracted work for the current financial year and a strong sales pipeline for the current year of £7.3m (full pipeline value stands at £30m). Management has laid strong foundations to sustain fast growth of its business.

 

Board Change

 

After assisting the Group through its IPO, Roger Taylor decided to resign from the Board in October 2022. Roger brought insight and advice to the Board who would like to thank him for his contribution.

 

Outlook

 

Recent trading has been strong which provides the management with confidence of achieving revenue and profit growth. This year the Group has put in place the key building blocks for driving significant growth within the business. It has a current order book of £4.4m (£1.4m delivered in H1 and £3m to be delivered in H2) with some high margin contracts to be delivered in the second six months of the financial year. In addition, the Company is actively pursuing £30m of new opportunities some of which will fall into this financial year.

 

As a result, the Board is confident about the prospects of the Group and views the future with confidence.

 

Eloy Mazon

Chief Executive

20 December 2022

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30 SEPTEMBER 2022

 

	Note	Six months ended		Six months ended		Year to
		30 September		30 September		31 March
		2022		2021		2022
		(unaudited)		(unaudited)		(audited)
		£		£		£
Revenue		1,389,429		1,262,032		3,639,930
Cost of sales		(704,510)		(354,154)		(1,024,175)
Gross profit		684,919		907,878		2,615,755
Administrative expenses		(1,474,743)		(805,588)		(2,043,103)
Other operating income		14,000		647		647
Analysed as follows:
Adjusted (loss)/profit from operations		(775,824)		204,360		573,299
Depreciation		(181,462)		(70,953)		(196,756)
Share based payment expense		(208,620)		(30,470)		(169,550)
Exceptional items		(54,000)		-		(2,071,782)
Operating profit/(loss)		(1,219,906)		102,937		(1,864,789)
Finance income		1,439		51		73
Finance cost		(17,736)		(11,947)		(23,977)
Profit/(loss) before tax		(1,236,186)		91,041		(1,888,693)
Tax credit		103,314		34,195		242,581
Profit for the period		(1,132,872)		125,236		(1,646,112)
Other comprehensive income
Exchange differences on translation of foreign
operations		333		(796)		(11,058)
Other comprehensive income for the period		333		(796)		(11,058)
Total comprehensive income for the period		(1,132,439)		124,440		(1,657,170)
Total comprehensive income attributable to the equity holders of the company		(1,132,539)		124,440		(1,657,170)
Basic profit - pence per share		(4.3)p		0.57p		(7.1)p
Diluted profit - pence per share		(4.3)p		0.57p		(7.1)p

 

The notes form part of these Condensed Consolidated Financial Statements.

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2022

 

	Note
As at		30 September		30 September		31 March
		2022		2021		2022
		(unaudited)		(unaudited)		(audited)
		£		£		£
Non-current assets
Intangible assets		197,107		-		-
Property, plant and equipment		218,301		221,317		411,360
Total non-current assets		415,408		221,317		411,360
Current assets
Trade and other receivables		1,084,891		1,316,297		1,764,482
Cash and cash equivalents		2,118,665		1,417,840		3,050,948
		3,203,557		2,734,137		4,815,430
Total assets		3,618,965		2,955,454		5,226,790
Equity and Liabilities
Equity
Share capital		263,451		1,097		263,451
Share redemption reserve		-		105		-
Share premium		3,390,330		894,491		3,390,330
Merger reserve		676,310		-		676,310
Share option reserve		347,701		62,243		139,080
Share warrant reserve		188,266				188,266
Currency translation reserve		(31,990)		(22,060)		(32,323)
Retained earnings		(2,254,197)		638,898		(1,121,325)
Total equity		2,579,871		1,574,774		3,503,789
Non-current liabilities
Borrowings		133,703		254,372		158,823
Lease liability		-		140,773		-
		133,703		395,145		158,823
Current liabilities
Borrowings		50,130		50,009		121,814
Trade and other payables		676,515		861,150		1,088,553
Lease liability		178,746		74,376		353,811
Total current liabilities		905,391		985,535		1,564,178
Total liabilities		1,039,094		1,380,680		1,723,001
Total equity and liabilities		3,618,965		2,955,454		5,226,790

 

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 20 December 2022.

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 30 SEPTEMBER 2022

 

		Six months to		Six months to		Year to
		30 September		30 September		31 March
		2022		2021		2022
		(unaudited)		(unaudited)		(audited)
		£		£		£
Cash flows from operating activities
Profit/(loss) before income tax for period		(1,236,086)		91,041		(1,888,693)
Adjustments to reconcile loss before tax to net cash flows:
Depreciation of tangible assets		181,462		71,059		196,723
Loss on disposal of fixed assets		-		-		(9,894)
Other income		-		(647)		-
Finance income		(1,439)		(51)		-
Finance cost		17,736		11,947		23,977
Equity-settled share-based expense/warrants		208,620		30,470		169,550
(Increase)/decrease in trade and other receivables		520,729		(545,947)		390,838
Increase/(decrease) in trade and other payables		(223,168)		192,280		63,587
Tax received		103,708		-		-
Net cash flows - operating activities		(428,438)		(149,848)		(1,053,912)
Cash flows from investing activities
Purchase of intangible assets		(197,107)		(7,306)		(23,773)
Purchase of Tangible assets		(18,905)		-		-
Interest received		1,439		51		73
Net cash - investing activities		(214,573)		(7,255)		(23,700)
Cash flows from financing activities
Issue of share capital		-		1,161,978		3,612,662
Share issuance costs		-		(268,625)		-
(Repayments of)/proceeds from borrowings		(101,113)		(16,666)		(41,168)
Lease liability principal payment		(175,065)		(66,527)		(186,470)
Interest elements of lease payments		(5,235)		(4,873)		(10,780)
Interest paid		(8,192)		(4,671)		(9,445)
Net cash flows - financing activities		(289,605)		800,616		3,364,799
Net increase in cash		(932,616)		643,513		2,287,187
Effects of exchange rate changes on cash		333		(1,015)		(11,581)
Cash at beginning of period		3,050,948		775,342		775,342
Cash at the end of period		2,118,665		1,417,840		3,050,948
Comprising:
Cash and cash equivalents		2,118,665		1,417,840		3,050,948
Cash at end of period		2,118,665		1,417,840		3,050,948

 

The notes form part of these Condensed Consolidated Financial Statements.