16 July 2024
4GLOBAL plc
("4GLOBAL" or "the Company")
Unaudited Preliminary Results
Strong organic growth and EBITDA above market expectations
4GLOBAL, a provider of data and technology for sports, fitness and wellness organisations to optimise operational and investment decisions, announces its unaudited preliminary results for the year ended 31 March 2024 ("FY24").
Financial Results (£'m)
| | Unaudited 2024 | Audited 2023 | Change |
| Revenue | 6.4 | 5.6 | +14% |
| Gross profit | 4.7 | 4.1 | +15% |
| Adj. EBITDA1 | 1.6 | 1.2 | +30% |
| Adj. EBITDA margin | 25% | 22% | 3pp |
| Adj. EBITDA earnings per share | 6.1p | 4.7p | +30% |
| Profit before tax | 0.2 | 0.5 | -60% |
| Earnings per share | (0.9)p | 2.4p | -3.3p |
| Net cash | 0.2 | 1.1 | -0.9m |
| · | Strong organic revenue growth, maintaining historical second half weighting as anticipated. | |
| | o | International revenue grew by 32% to £3.3m (2023: £2.5m) or 52% of total revenue (2023: 45%). |
| | o | ARRR2 grew by 21% to £3.5m (2023: £2.9m) or 55% of overall revenue (2023: 53%) |
| | o | Average revenue per customer increased 5% (2023: 10%). |
| · | Stronger-than-anticipated sales from higher margin Insight Solutions products driving improvement in adj. EBITDA. | |
| · | Agreement with major client debtor to settle outstanding balance over an extended period. Board have confidence the amount will be settled but regard there to be some transactional risk and have made a provision against the balance. | |
| · | Reduction in net cash due in part to the debtor position but also the investment in the product development programme. | |
| · | Post-period, £1.6m of £3.9m accounts receivables as of 31 March 2024 has been received. A further £0.2m is expected in July 2024 with the remaining £2.1m anticipated to be received according to the agreed payment terms. | |
| · | Earnings per share has decreased due to the taxation charge for the year increasing from a credit of £0.1m to a charge £0.4m, due to withholding tax being applied to income generated from overseas clients and deferred tax movements. | |
Strategic Highlights
| · | Strong international expansion, with roughly one third of new customer wins from outside UK: including US Soccer, a FIFA World Cup 2026 city in Mexico, the Saudi Arabian Public Investment Fund (PIF) and the NEOM development in the northwest of Saudi Arabia. |
| · | 16% increase in revenue from existing customers (2023: 2%), demonstrating continued success in expanding customer relationships. |
| · | Appointment of Vice President, North America, to drive growth in the US. |
| · | Multiple new product launches aimed at capitalising on the extensive data we control and the use of AI to drive business critical insights that are ahead of the competition in our key markets. |
| · | Development of AI and machine learning functionality with completion of customer trial. |
| · | Number of data points grew 14% to 4bn (2023: 3.5bn), increasing the Company's competitive advantage through its ability to offer more accurate and diverse insights. |
Current Trading & Outlook
| · | Q1 revenues ahead of last year and good visibility, with £2.5m already secured for FY25. |
| · | Strong international pipeline of higher margin, repeatable and recurring revenue opportunities. |
| · | FY25 revenue will be second half weighted as in previous years due to the seasonality of buying behaviours of our clients. |
Eloy Mazon, 4GLOBAL CEO, said:
"This has been a year of significant organic growth and several important strategic milestones. Our focus on expanding internationally and increasing the proportion of recurring revenue is now delivering tangible results, with new customer wins including PIF and US Soccer illustrative of the calibre of organisation we are attracting.
We have taken great strides as a business in the past few years and, with market-leading offerings and new products in the pipeline to address the wealth of available opportunities, I am excited about what the future holds for 4GLOBAL in FY25 and beyond."
1Adj. EBITDA is Adjusted EBITDA, defined as statutory profit from operations before interest, taxation, depreciation, share based payment expense and exceptional items
2ARRR is annual recurring and repeatable revenue. Recurring revenue is revenue generated from subscriptions, licenses or multi-year recurring fee agreements (typically Insight Solutions and Insight Platforms) and is calculated on all license agreements. Repeatable revenue is revenue generated from multiple opportunities from a client which create a predictable, consistent revenue stream year on year (typically Insight Lab). For the purposes of qualifying as repeatable revenue the client must have a minimum history of three years of generating revenue.
Presentation to Investors
Management will host a live online presentation and Q&A via the Investor Meet Company platform this morning at 11am UK time. The presentation is open to all existing and potential shareholders. Investors can sign up for free and add to meet 4GLOBAL via:
https://www.investormeetcompany.com/4global-plc/register-investor.
Annual Report and AGM
The Company expects to send printed annual reports to shareholders who have requested one and make a copy available on its website by 31 August 2024. A notification will be made at the time of publication. The AGM will be held at the offices of 4GLOBAL, 5th Floor, Building 7 Chiswick Park, 566 Chiswick High Road, Chiswick, London W4 5YG, on 30 September 2024 at 11am.
Contacts
| 4GLOBAL | via Alma |
| Eloy Mazon (CEO) | |
| Keith Sadler (CFO) | |
| | |
| Spark Advisory Partners (Nominated Adviser) | +44 (0)20 3368 3554 |
| Neil Baldwin | |
| | |
| Canaccord Genuity (Broker) | +44 (0)20 7523 8000 |
| Bobbie Hilliam | |
| | |
| Alma Strategic Communications | +44 (0)20 3405 0205 |
| Josh Royston | |
| Rebecca Sanders-Hewett | |
| David Ison | |
| Louisa El-Ahwal | |
About 4GLOBAL
4GLOBAL empowers sports, fitness and wellness organisations to make faster, smarter decisions about their operations, customers and investments through data and actionable insights.
It operates the largest sport participation and facility database in the world, with more than 4 billion data points.
Sourcing data from health & fitness operators, community programmes and other structured activities through its DataHub while drawing on information from GPS location updates and wearable devices, 4GLOBAL's unique combination of data assets provides a holistic view of physical activity patterns.
4GLOBAL is at the forefront of predictive modelling and advanced analytics, with the insights it generates empowering customers to drive efficiencies, improve customer relationships and make more informed strategic decisions.
Its customers span both the public and private sectors, including central and local governments, cities, sporting bodies, trade associations, health & fitness operators and sports clubs.
Key markets include North America, the Middle East and Europe. Its headquarters are in London with offices in Miami and Istanbul.
4GLOBAL was founded in 2002 and listed on AIM in 2021 under the ticker 4GBL.
Chairman's Statement
Robust strategic and commercial progress
The team successfully delivered on its growth ambitions, driving a strong increase in revenue and beating expectations for adjusted EBITDA. This is a particularly impressive achievement given the broader economic environment remains fragile.
What excites me the most, however, is the composition of the growth. This year saw a positive step change in contribution from international projects. The opportunity outside the UK is vast, but gaining traction overseas can be slow and costly for technology companies. Through cultivating a network of carefully selected strategic partners, 4GLOBAL has successfully circumnavigated much of that risk, establishing footholds in key international markets that are now bearing fruit.
Our turnover figure for the year also included a higher proportion of recurring revenues from our Insight Solutions and Insight Platform products, which are now the main growth engines in the business.
Our offering is now organised across three distinct pillars: Insight Lab, Insight Solutions and Insight Platform. These are aligned to the data maturity lifecycle of organisations, with each progressively higher margin and recurring revenue orientated. The Strategy section of the Chief Executive's Statement goes into this development in more detail.
Transitioning from a service model to one built on repeatable/recurring business is a key strategic priority for the business and, while it's not something that happens overnight, this year's results demonstrate encouraging progress. The shift to these agreements means stronger, longer-term relationships with our customers and greater predictability of revenue.
Strengthening the core
The headway the Company is making in these strategic areas is no accident. Over the past 12 months, I have witnessed firsthand a leap forward in terms of the maturity, focus and drive of the business. Significant efforts have been undertaken to refine and future-proof our proposition and optimise our ways of working, underpinned by a growing emphasis on fostering a culture of excellence and accountability in the organisation. These foundational improvements may be less visible to investors but are critically important if we are to capitalise on the wealth of opportunities before us.
Enhancing senior leadership
In January 2024, we appointed 4GLOBAL non-executive director Alexandra Orlando as Vice President, North America. Alexandra has made an immediate, positive impact in her new role. The US is an important growth market for the Company, and I have no doubt she is the right person to lead us on that journey.
In April 2024, Davendra Dabasia joined the Company as a non-executive director. An executive board member of Mace, he brings a great deal of relevant experience to 4GLOBAL as the Company looks to expand into new geographic areas. I look forward to working closely with him.
Also, in April 2024, we appointed Eric Haller as Non-Executive Director, replacing Alexandra on the Board to enable her to focus on her executive role. Eric is exceptionally experienced in maximising the commercial value of data and developing successful data products, having served as Global Executive Vice President and Group Head of Experian DataLabs. His counsel will be invaluable as we look to plot a comparable path.
Looking ahead with confidence
The hard work carried out to enhance the functionality and delivery of products, at the coalface in our markets, and across our internal functions, is now delivering tangible results. However, we are still only scratching the surface in terms of what we can achieve.
While growth will continue to be primarily organic with increasing international and recurring components, we will continue to seek opportunities to supplement it through acquisition where targets meet our strict criteria for investment and are a good strategic fit.
With the paradigm shift towards data-led decision-making in industry building up a head of steam, 4GLOBAL has a uniquely compelling offering at an opportune time. Looking forwards, buoyed by strong prospects and a growing sense of momentum, I am confident we are positioned well to deliver continued, sustainable growth and long-term shareholder value creation.
I would like to personally thank my colleagues across the business for their contributions. They have demonstrated immense determination and creativity in moving 4GLOBAL forwards in the year. Our people are the lifeblood of the business, and we are fortunate to have such a talented pool available to us.
Ian James
Chairman
15 July 2024
Chief Executive's Statement
Overview: Delivery on all fronts and poised for further growth
I'm pleased to report we delivered strong organic growth in the year while navigating a trading environment that remained challenging. 4GLOBAL is now a truly international business, with the majority of revenue, 52%, coming from non-UK markets for the first time.
Encouragingly, we are also on schedule in migrating new and existing customers to higher margin, recurring revenue products.
Much of our success in the year is the product of the sharpening of our strategic focus. We are now firmly committed to allocating resources to the most profitable long-term opportunities and have made good progress in optimising our operations for maximum efficiency.
These are ongoing processes but nonetheless reflect a cultural shift towards higher performance and a relentless pursuit of excellence, which we believe will ultimately deliver better returns for shareholders.
The proof will be in the results we deliver over time but supported by outstanding products, brilliant people, the right organisational infrastructure and a proven strategy, we are moving through the new financial year in a strong position.
Strategy: Supporting customers at every stage of their data journey
4GLOBAL empowers sports, fitness and wellness organisations to make faster, smarter decisions about their operations, customers and investments through data and actionable insights.
Leveraging the Company's network of strategic partners, we are focused on growing our presence in the North American, Middle East and European markets.
Our offering is now aligned to the data maturity lifecycle that our customers typically follow as their understanding of the business-critical insights they can extract from their and market data develops.
Our team of seasoned data and technology professionals are committed to continuously enhancing existing and developing new products to bolster our offerings across these pillars.
| 1. | Insight Lab - 45% of revenue (2023: 55%): Primarily consultative work, 4GLOBAL deploys its dataset, predictive modelling and analytics tools to help organisations answer business-critical questions. Examples include, where to invest in new facilities or how to increase yield per customer at the facility operator level or how to turn an inactive nation into an active one at the government level. |
| | |
| 2. | Insight Solutions - 40% of revenue (2023: 30%): For organisations, many of which have been Insight Lab customers, which want to incorporate 4GLOBAL's products into their own operations. The key benefit being day-to-day decision-making is continuously informed by data-driven insights, meaning better business outcomes. We work closely with organisations on the integration and support them every step of the way, ensuring they are successful in using our technology to maximise the value derived from our data. Higher margin, primarily recurring license sales with an element of lower margin support service revenue. |
| | |
| 3. | Insight Platform - 15% of revenue (2023: 15%): For organisations that have either matured as users of Insight Solutions to the point of having established in-house capability or new customers who want access to our dataset but have pre-existing data expertise and technology infrastructure. Highest margin, exclusively recurring license revenue. |
It is common for customers to be engaged on different pillars across different questions concurrently. In FY24, 74% of customers by revenue were engaged on multiple journeys with us at the same time (2023: 74%). The dynamic and iterative nature of working with data and the scalability of our offerings mean there is no limit to the number of engagements we can have running in parallel with a single customer, presenting significant opportunities for long-term revenue growth across our base.
Year in review: Good progress against strategic objectives
As part of sharpening our strategic focus, we have introduced four new strategic objectives with several KPIs attached to help investors more easily gauge progress:
| 1. | Grow customer base internationally: Leverage partnerships and acquisitions to enter new markets and acquire new customers. |
| 2. | Increase customer lifetime value: Build long-term and progressively more mutually valuable customer relationships. |
| 3. | Transition to repeatable and recurring revenue: Shift to a higher-margin, more predictable sales model |
| 4. | Build for tomorrow: Future-proof 4GLOBAL through continuous innovation and improvement |
In the future, we intend to further diversify revenue through identifying and expanding into new sectors with problems 4GLOBAL can solve.
1. Grow customer base internationally
We generated substantially more revenue outside the UK in the period and enter the new financial year with a growing pipeline of international opportunities.
Our strategy is to enter international markets through partnerships. This approach allows us to minimise entry costs and leverage existing salesforces and customer relationships.
Our target markets are North America and Europe, where we are actively investing in business development, sales and on-the-ground presence; and the Middle East, where we are focused on nurturing our partnerships.
While each region has its own unique dynamics and characteristics, our strategy of focusing only on the highest growth, highest potential sectors and opportunities is the common thread that runs through each of them.
KPIs
|
| 2024 | 2023 | Change |
| Non-UK revenue | £3.3m | £2.5m | 32% |
| As a proportion of total revenue | 52% | 45% | 7pp |
North America
We continued to make good progress in the region in the period, acquiring multiple new customers including US Soccer; Guadalajara Convention and Visitors Bureau in the City of Guadalajara, Mexico, one of the sixteen venues for the 2026 FIFA World Cup; Canadian Tire and Future of Hockey Lab.
Soccer is a particular area of focus, as the fastest growing sport in the US and benefitting from a strong push to increase participation ahead of and beyond the 2026 World Cup.
Signed in the fourth quarter, our relationship with US Soccer, the official nationwide governing body of the sport, has continued to develop from the initial engagement. A large-scale and dynamic organisation that could theoretically benefit from 4GLOBAL's data and technology across various aspects of its business, US Soccer exemplifies the kind of customer we are targeting in the region.
Gym operators continue to be an important target segment for the Company, with previously announced technology partnerships together providing 4GLOBAL access to 40% of facilities in the US. All sales through these partnerships are high-margin, recurring Insight Platform license revenue.
As well as increasing the size of our customer base in the region during FY25, we are well-positioned for continued success in deepening our commercial relationships with those organisations already in our base, consistent with our second strategic objective of increasing customer lifetime value.
Europe
Including the UK, our most mature market. We began the year with an established presence in Europe and continued to make good strategic and commercial advances there.
Gym operators have been a particular focus in the territory, with our previously announced partnership with EuropeActive, the leading non-profit organisation representing the European fitness and physical activity sector, remaining crucial in growing the use of DataHub in mainland Europe and further increasing the volume of data flowing into it. Sales through EuropeActive and other partners such as Technogym, signed in the period, are high-margin, recurring Insight Platform license revenue.
The pipeline of opportunities in Europe remains strong.
Middle East
The work carried out in the year to establish key partnerships and develop a robust understanding of the region's unique market dynamics resulted in the securing of several high-value agreements.
In October 2023, we were awarded a US$0.3m contract to deliver data, insight and knowledge applications to one of 4GLOBAL's long-standing strategic partners in the Middle East. Our success with this organisation serves as a model for future engagements and has opened several doors to potential new revenue opportunities in the region.
We followed this in January 2024 by announcing two contract wins in the Kingdom of Saudi Arabia with a new and existing partner customer for a combined value of £0.8m.
The Middle East remains a key growth market for the business. With the strong progress made there in the period we are confident of growing our presence further.
2. Increase customer lifetime value
Expanding relationships with existing customers is central to our growth strategy. As customers progress through the data maturity lifecycle outlined in the Strategy section above, their desire for more advanced and detailed insights typically increases, in turn increasing demand for our products.
KPIs
|
| 2024 | 2023 | Change |
| Customer retention | 91% | 94% | (3)pp |
| Existing customer revenue | £5.7m | £4.8m | 16% |
| Average revenue per customer | +5% | +10% | (5)pp |
Our consistently high customer retention rates illustrate the value organisations attach to 4GLOBAL's products once they begin their journeys with us. This stems from the indispensable nature of the insights our platform provides, enabling organisations to make timely decisions that accelerate growth.
Sport England case study
The progression through the lifecycle is exemplified in the work we have done over the years with Sport England, the body of government responsible for growing and developing grassroots sport and getting more people active across the country.
A customer since 2021, in November 2023 we announced an expansion in the scope of our partnership with it. Starting with Insight Lab, Sport England engaged us to tackle specific challenges around understanding the impact of Covid on local sports facilities. Through the data-driven insights we provided, the body was able to identify areas of need and opportunities for the National Leisure Recovery Fund.
Sport England then needed to monitor and evaluate the progress of the resulting initiatives, leading to a transition to Solutions, where we supported them in embedding our technology and data into their daily operations and decision-making processes.
As Sport England continued using 4GLOBAL to progress its work on the impact of the pandemic, new operational questions and challenges came to light, prompting an adjacent journey through the lifecycle.
3. Transition to recurring revenue: shift to higher-margin, more predictable sales model
A great deal of work has been undertaken in the year to refine our products and how we deliver them to align better with a recurring revenue model.
As a result, more customers are now moving through the pillars from Insight Lab to Insight Solutions, to Insight Platform, rather than engaging us for traditional lower-margin, one-off consultative work.
This not only increases customer retention and satisfaction but is exponentially more scalable, adds stability to our sales and improves overall financial predictability.
KPIs
|
| 2024 | 2023 | Change |
| ARRR | £3.5m | £2.9m | 21% |
| As a proportion of total revenue | 55% | 53% | 2pp |
4. Build for tomorrow: future-proof 4GLOBAL through continuous innovation and improvement
4GLOBAL has carved out its reputation through a relentless focus on innovation for over a decade. Internally, our commitment to continuing these spans three key areas: our offering, our data asset and our organisation. We will look to introduce KPIs for this strategic objective in the future.
Offering: We are in constant dialogue with our customers to ensure our offering is developed to meet both their current and future needs in a way that is commercially beneficial to us. Consistent with this, our primary focus in the year has been to strengthen our Insight Solutions and Insight Platform offerings and we will continue in a similar vein in FY25.
We also continued to explore AI and machine learning in the period, including the launch of a now complete pilot project with Places Leisure, one of the UK's leading social enterprises in the health and wellbeing sector. The pilot was a success and is informing the development of a new product we expect to launch in FY25.
Data asset: A larger, richer data asset is the core of our competitive advantage. The more data points it comprises, the more accurate and informative the insights generated from it will be. Data points increased 14% to 4bn in the year (2023: 3.5bn) and we intend to continuously augment it through acquiring new data sources and creating proprietary data in the future.
Organisation: With the sharpening of our strategic focus and the growth expected in the coming years, it is vital we have the correct organisational infrastructure to ensure we can scale while continuing to deliver market-leading products and delivering outstanding customer experiences. The appointments of Alexandra Orlando as Vice President, North America, and Davendra Dabasia and Eric Haller as non-executive directors are testament to 4GLOBAL's growing reputation. On top of this, we strengthened our internal processes significantly in the year, a move which has been instrumental in improving efficiency and enabling us to deliver larger, more valuable contracts.
Current Trading & Outlook: Expectation of further sales and margin growth
We have made a promising start to the new financial year, with revenue secured of £2.5m and revenue performance tracking ahead of last year Q1. We expect FY25 to be a year of continued revenue and margin growth with an increasing proportion of international revenue and ARRR. Revenue will be second half weighted as in previous years due to the seasonality of budgets of our client base.
Our confidence is underpinned by a strong international pipeline of strategically and commercially significant projects with both new and existing customers. This pipeline is expected to continue to grow at a healthy rate, supported by several new product launches including those enhanced by AI.
At the same time, we will continue to proactively seek opportunities to accelerate growth through M&A. We will maintain a measured and disciplined approach, only proceeding with companies that can grant access to or bolster our footprint in a high-potential market.
We are excited about our prospects for the year ahead and look forward to keeping shareholders updated.
Eloy Mazon
Chief Executive Officer
15 July 2024
Financial Review
1. Results
Overall revenue grew from £5.6m to £6.4m which representing a 14% increase for the year.
Gross profit tracked revenue growth, increasing 15% to £4.7m (2023: £4.1m) with a margin of 73% as in 2023. As we progress develop our business model we anticipate an improvement in margin.
2. Administrative Expenses
Administrative Expenses for the year ended 31 March 2024 was £3.1m compared to the previous year of £2.9m. As the business is talent focussed, the largest single expense for the Group is wages and salaries. Before capitalisation of development costs, wages and salaries increased from £2.1m to £2.4m with average headcount increasing from 30 to 34.
Depreciation and amortisation increased as a result of a full year charge for amortisation of the products we brought to market in the previous year. Amortisation charge increased from £6,256 to £87,092.
The share-based payment charge fell from £0.34m to £0.26m due to certain options lapsing during the prior year.
The Group has agreed a long-term repayment plan against a significant outstanding receivable totalling £2.2m as at 31 March 2024. The payment plan spans a period of greater than 12 months from the financial year end. As result of the extended settlement period, a discount charge has been recognised in Finance Costs (note 12) for £142,141 (2023: £nil). Although the balance is expected to be repaid in full, as a result of the transactional risk associated with the long-term payment plan, the Group has recognised a provision against the discounted balance of £512,658 (2023: £nil).
3. Finance Charge
The finance charge for the year has increased from £24,043 to £174,525. The difference is primarily due to the requirement to discount an outstanding debtor balance. The debtor balance is for £2.1m and, as this is to be settled over a period greater than 12 months, a discount has been applied as required by IFRS 9. This has been calculated using the Group's weighted average cost of capital and the charge is £142,141. As the balance is settled this will be reversed against the amount held on the balance sheet.
4. Taxation
The taxation charge for the year has increased from a credit of £0.1m to a charge of £0.4m. This charge is due to withholding tax being applied to income generated from overseas clients and, as the Group is profitable, there is no research and development credit. As we grow revenues from these geographic areas this will increase. We will have the opportunity to offset where we can through double taxation treaties. The other charge is for deferred tax which is calculated on the timing differences for the capitalised cost additions to our intangible assets.
5. Statement of Financial Position
The total assets as at 31 March 2024 was £6.1m compared to £6.3m at 31 March 2023, reflecting the retained earnings for the year.
We have capitalised the cost of developing our new products and platforms by £0.9m, the majority of which is the staff costs of bringing the products and platforms to a position where they can be economically utilised. We have begun to amortise the existing products as they are now being utilised by our clients.
During the year we migrated our contract assets to accounts receivable which increased our accounts receivable from £1.4m to £3.8m. The contract assets have been reduced from £2.1m to £1.0m. We have an outstanding balance where we have been negotiating a settlement agreement with the client where the amount will be settled over an extended period of time. This is with a global company with which we are working with in close partnership on a number of assignments and future opportunities. As result of the extended settlement period a discount charge has been made in the current report and accounts for £142,141 in accordance with accounting standards.
6. Cash Flow
The Group utilised £1.0m of cash through the year to 31 March 2024. This in due to the investment in the product and platforms the Group is making for future revenue growth and also an increase in the working capital within Accounts Receivable.
Keith Sadler
Chief Financial Officer
15 July 2024
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2024
| | | | | Note | | | UNAUDITED Year ended 31 March 2024 | | AUDITED Year ended 31 March 2023 |
| |
| | | | | | £ | | £ |
| |
|
|
|
|
|
|
|
|
|
| Revenue | |
| | 6 |
|
| 6,368,255 |
| 5,585,747 |
| | |
| |
|
|
|
|
| |
| Cost of sales |
|
| |
|
|
| (1,686,631) |
| (1,449,008) |
| | |
| |
|
|
|
|
| |
| | |
| |
|
|
|
|
| |
| Gross profit | | | | | | | 4,681,624 | | 4,136,739 |
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| |
|
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|
|
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| | |
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|
|
|
|
| |
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| |
|
|
|
|
| |
| | |
| |
|
|
|
|
| |
| Administrative expenses | |
| | |
|
| (3,081,116) |
| (2,920,374) |
| Other operating income | |
| | 7 |
|
| - |
| 14,000 |
|
| |
| |
|
|
|
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|
| | |
| |
|
|
|
|
|
|
| Analysed as: |
| | | | | |
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| Adjusted profit from operations1 |
| | | | | | 1,600,508 | | 1,230,365 |
| |
| | | | | |
| | |
| Depreciation and amortisation |
| | | | | | (480,180) | | (372,717) |
| Share based payment expense |
| | | | | | (263,171) | | (338,456) |
| Exceptional administrative expenses - provision against long term repayment plan |
| | |
8 | | | (512,658) | | - |
| |
| | | | | |
| | |
| |
| | | | | |
| | |
| Profit from operations |
| | | 9 | | | 344,499 | | 519,192
|
| | |
| |
|
|
|
|
| |
| Finance income | |
| |
|
|
| 77 |
| 1,772 |
| Finance cost |
|
| | 12 |
|
| (174,525) |
| (24,043) |
| | |
| |
|
|
|
|
| |
| | |
| |
|
|
|
|
| |
| Profit before tax | | | | 9 | | | 170,051 | | 496,921 |
| | |
| |
|
|
|
|
| |
| Tax (charges)/credit |
|
| | 13 |
|
| (399,077) |
| 145,133 |
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| |
|
|
|
|
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| | |
| |
|
|
|
|
| |
| (Loss)/Profit for the year |
| | | | | | (229,026) | | 642,054
|
|
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| Other comprehensive income |
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| Exchange differences on translation of foreign operations | |
|
|
| (12,583) |
| (3,053) | ||
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|
|
|
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| Other comprehensive income / (loss) for the year | |
|
| | (12,583) | | (3,053) | ||
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|
|
| |
| | |
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|
|
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| Total comprehensive income / (loss) for the year | |
|
|
| (241,609) |
| 639,001 | ||
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| Total comprehensive income / (loss) attributable to: | |
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| Owners of the Parent Company |
| | | | | | (241,609) | | 639,001
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|
|
| |
| Basic profit/(loss) per share
|
| | | 14 | | | (0.9)p | | 2.4p |
| | | | | | | |
| | |
| Diluted profit/(loss) per share |
| | | 14 | | | (0.9)p | | 2.4p |
| | | | |
|
|
|
|
|
|
Note 1. Adjusted profit from operations is calculated as earnings before interest, taxation, depreciation, amortisation of intangible assets and right of use charge, share based payments and exceptional items.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| | | | Note | | | UNAUDITED As at 31 March 2024 | | AUDITED As at 31 March 2023 |
|
|
| | | | | £ | | £ |
| Assets |
| | | | | | | |
| Non-current assets |
| | | | | | | |
| Property, plant and equipment |
| | 15 |
|
| 29,270 |
| 34,401 |
| Right-of-use assets |
| | 15 |
|
| 218,867 |
| 595,601 |
| Intangible assets |
| | 16 |
|
| 1,198,034 |
| 392,180 |
| Deferred tax |
| | 13 |
|
| - |
| 190,647 |
|
|
| |
|
|
|
|
| |
|
|
| |
|
|
|
|
| |
| | | |
|
|
| 1,446,171 |
| 1,212,829 |
|
|
| |
|
|
|
|
| |
|
|
| |
|
|
|
|
| |
| Current assets | | |
|
|
|
|
| |
| Trade and other receivables |
| | 17 | |
| 4,508,730 |
| 3,977,947 |
| Cash and cash equivalents |
| | 18 |
|
| 148,694 |
| 1,138,093 |
|
|
| |
|
|
|
|
| |
|
|
| |
|
|
|
|
| |
|
|
| |
|
|
| 4,657,424 |
| 5,116,040 |
|
|
| |
|
|
|
|
| |
| |
| |
|
|
|
|
| |
| Total assets |
| | | | | 6,103,595 | | 6,328,869 |
| | | |
|
|
|
|
|
|
| Equity and Liabilities |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Equity | |
|
|
|
|
|
|
|
| Share capital |
|
| 19 |
|
| 263,451 |
| 263,451 |
| Share premium |
|
| 21 |
|
| 3,390,330 |
| 3,390,330 |
| Merger reserve |
|
| |
|
| 676,310 |
| 676,310 |
| Share option reserve |
|
| 20,21 |
|
| 651,416 |
| 388,245 |
| Share warrant reserve |
|
|
|
|
| 188,266 |
| 188,266 |
| Currency translation reserve |
|
|
|
|
| (47,959) |
| (35,376) |
| Retained earnings |
|
| 21 |
|
| (619,006) |
| (389,980) |
| | |
|
|
|
|
|
| |
| | |
|
|
|
|
|
| |
| Total equity | |
| | | | 4,502,808 | | 4,481,246 |
| | |
|
|
|
|
|
|
|
| Non-current liabilities | |
|
|
|
|
|
|
|
| Deferred tax | |
| 13 |
|
| 64,672 |
| - |
| Borrowings | |
| 23 |
|
| 58,333 |
| 108,832 |
| Lease liability | |
| 24 |
|
| - |
| 194,060 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
| | |
|
|
|
| 123,005 |
| 302,892 |
| | |
|
|
|
|
|
| |
| Current liabilities | |
|
|
|
|
|
| |
| Borrowings | |
| 23 |
|
| 50,000 |
| 50,000 |
| Trade and other payables | |
| 22 |
|
| 1,233,722 |
| 1,122,746 |
| Lease liability | |
| 24 |
|
| 194,060 |
| 371,985 |
| | |
|
|
|
|
|
| |
| | |
|
|
|
|
|
| |
| Total current liabilities | |
|
|
|
| 1,477,782 |
| 1,544,731 |
| | |
|
|
|
|
|
|
|
| Total liabilities | |
| | | | 1,600,787 | | 1,847,623 |
| | |
|
|
|
|
|
| |
| | |
|
|
|
|
|
| |
| | |
|
|
|
|
|
| |
| Total equity and liabilities | |
| | | | 6,103,595 | | 6,328,869 |
| | |
|
|
|
|
|
|
|
| The notes form an integral part of the financial statements.
|
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| | | | | | | | | | | | | Currency | | | | |
| | Share | | | Share | | Merger | | Share option | | Share warrant | | translation | | Retained | | Total |
| | capital | | | premium | | reserve | | reserve | | reserve | | reserve | | earnings | | equity |
| | £ | | | £ | | £ | | £ | | £ | | £ | | £ | | £ |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As at 31 March 2022 | 263,451 | | | 3,390,330 | | 676,310 | | 139,080 | | 188,266 | | (32,323) | | (1,121,325) | | 3,503,789 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit for the year | - |
|
| - |
| - |
| - |
| - |
| - |
| 642,054 |
| 642,054 |
| Other comprehensive income - translation differences |
- |
|
|
- |
|
- |
|
- |
|
- |
|
(3,053) |
|
- |
|
(3,053) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income for the year |
- |
|
|
- |
|
- |
|
- |
|
- |
|
(3,053) |
|
642,054 |
|
639,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Transactions with owners: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Movement on lapsed share options | - |
|
| - |
| - |
| (89,291) |
| - |
| - |
| 89,291 |
| - |
| Share-based expense | - |
|
| - |
| - |
| 338,456 |
| - |
| - |
| - |
| 338,456 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| - |
|
| - |
|
|
| 249,165 |
| - |
| - |
| 89,291 |
| 338,456 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AUDITED 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 year | - |
|
| - |
| - |
| - |
| - |
| - |
| (229,026) |
| (229,026) |
| Other comprehensive charges - translation differences |
- |
|
|
- |
|
- |
|
- |
|
- |
|
(12,583) |
|
- |
|
(12,583) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income for the year |
- |
|
|
- |
|
- |
|
- |
|
- |
|
(12,583) |
|
(229,026) |
|
(241,609) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Transactions with owners: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Movement on lapsed share options | - |
|
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| Share based expense | - |
|
| - |
| - |
| 263,171 |
| - |
| - |
| - |
| 263,171 |
| | - |
|
| - |
| - |
| 263,171 |
| - |
| - |
| - |
| 263,171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| UNAUDITED As at 31 March 2024 | 263,451 |
|
| 3,390,330 |
| 676,310 |
| 651,416 |
| 188,266 |
| (47,959) |
| (619,006) |
| 4,502,808 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| | | | | Note | | | UNAUDITED Year ended 31 March 2024 | | AUDITED Year ended 31 March 2023 |
| | | | | | | | £ | | £ |
| Cash flows from operating activities |
| | | | | |
| | |
| |
| | | | | |
| | |
| Profit before income tax for year |
|
|
|
| 170,051 |
| 496,921 | ||
| |
|
|
|
|
|
|
|
|
|
| Adjustments to reconcile profit before tax to net cash flows: |
|
|
|
|
|
| | ||
| Depreciation of tangible assets |
|
|
| 15 |
|
| 393,087 |
| 366,461 |
| Amortisation |
|
|
| 16 |
|
| 87,093 |
| 6,256 |
| Loss on disposal of fixed assets |
|
|
|
|
|
| - |
| 1,077 |
| Finance income |
|
|
|
|
|
| (77) |
| (1,772) |
| Finance cost |
|
|
| 12 |
|
| 174,525 |
| 24,043 338,4563 |
| Equity-settled share-based expense/warrants |
| 9 |
|
| 263,171 |
| 338,456 | ||
| Increase in trade and other receivables |
|
|
|
| (1,004,056) |
| (2,256,890) | ||
| Increase in trade and other payables |
|
|
|
| 110,976 |
| 36,093 | ||
| Tax received / (paid) |
|
|
|
|
|
| 187,374 |
| (3,989) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash flows - operating activities | | | | | 382,144 | | (993,344) | ||
| | | | | | | |
| | |
| | |
|
|
|
|
|
|
|
|
| Cash flows from investing activities |
|
|
|
|
|
|
| ||
| Purchase of tangible assets |
|
|
| 15 |
|
| (11,954) |
| (22,768) |
| Development costs capitalised |
|
|
| 16 |
|
| (892,946) |
| (398,436) |
| Interest received |
|
|
|
|
|
| 77 |
| 1,772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash - investing activities | | | | | | | (904,823) | | (419,432) |
|
|
|
|
|
|
|
|
|
|
|
| | |
|
|
|
|
|
|
|
|
| Cash flows from financing activities |
|
|
|
|
|
|
| ||
| Repayment of shareholder loan - principal | | | | | - | | (50,400) | ||
| Repayment of shareholder loan - interest |
|
|
|
| - |
| (22,194) | ||
| Repayment of borrowings |
|
|
|
|
|
| (50,000) |
| (50,000) |
| Lease liability principal payment |
|
|
| 24 |
|
| (371,985) |
| (351,642) |
| Interest elements of lease payments |
|
|
|
|
| (21,960) |
| (8,958) | |
| Interest paid |
|
|
|
|
|
| (10,923) |
| (15,521) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
| Net cash flows - financing activities | |
| | | (454,868) | | (498,715) | ||
|
|
| | | | | |
| | |
|
|
| | | | | |
| | |
| Net decrease in cash |
| | | | | | (977,547) | | (1,911,491) |
|
|
|
|
|
|
|
|
|
| |
| Effects of exchange rate changes on cash
|
|
|
|
| (11,852) |
| (1,364) | ||
|
|
|
|
|
|
|
|
|
| |
| Cash at beginning of year |
|
|
|
|
|
| 1,138,093 |
| 3,050,948 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
| | |
| Cash at the end of year |
| | | 18 | | | 148,694 | | 1,138,093 |
|
|
| | |
|
|
|
|
|
|
| Comprising: |
| | |
|
|
|
|
|
|
| Cash and cash equivalents |
| | |
|
|
| 148,694 |
| 1,138,093 |
|
|
| | |
|
|
|
|
| |
|
|
| | |
|
|
|
|
| |
| Cash at end of year |
| | | 17 | | | 148,694 | | 1,138,093 |
|
|
| | |
|
|
|
|
|
|
Notes to the financial statements |
| 1. 1. | Corporate information |
| | 4Global PLC is a public limited company incorporated and domiciled in England and Wales. The registered office address and principal place of business is located at 5th Floor, Building 7 Chiswick Park, 566 Chiswick High Road, London, W4 5YG.
The 4GLOBAL Group's principal activity is the provision of advisory services in the sporting sector at a local, national and international level. |
| 2. | Basis of preparation |
| | The financial statements have been prepared in accordance with the requirements of the AIM Rules for Companies, UK Adopted International Accounting Standards in conformity with the requirements of the Companies Act 2006.
The financial statements have been prepared on the historical cost basis, unless accounting standards require an alternative measurement basis. Where there are assets and liabilities calculated on a different basis, this fact is disclosed in either the relevant accounting policy or in the notes to the financial information.
The preparation of the financial statements in compliance with UK Adopted International Accounting Standards requires the use of certain critical accounting estimates and judgements. It also requires management to exercise judgement of the most appropriate application in applying the 4GLOBAL Group's accounting policies. The areas where significant judgements and estimates have been made in preparing the financial information and their effect are disclosed in Note 4. |
| 3. | Going concern |
| | The financial statements have been prepared on the going concern basis. The Group made a profit before tax for the year to 31 March 2024. The Group has cash resources of £0.2m and trade and other receivables of £4.5m. The cash flow for the Group fluctuates based on monthly revenue collections and this is managed within the cash and overdraft facilities which the Group has. The Group has a £100,000 agreed overdraft facility and a further £100,000 informal facility. The Directors have reviewed the 4GLOBAL Group's overall position and outlook and are of the opinion that the 4GLOBAL Group is sufficiently well funded to be able to operate as a going concern for at least the next twelve months from the date of approval of these financial statements. |
| 4. | Critical accounting judgements and key sources of estimation uncertainty |
|
| The preparation of financial statements in conformity with UK Adopted International Financial Reporting Standards in conformity with the requirements of the Companies Act 2006 requires management to make estimates and judgements that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the year-end date and the reported amounts of revenues and expenses during the reporting year.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The significant judgements made by management in applying the 4GLOBAL Group's accounting policies were: |
| | 4.1 | Consultancy revenue |
| | | For contracts spanning the year end the 4GLOBAL Group uses judgement determining the amount of revenue to recognise in each period. This requires estimation of the stage of completion of the project, taking into account time spent during the period and the likely time required to complete the project. |
| | 4.2 | Deferred tax |
| | | Deferred tax assets are recognised where the carrying amount of an asset in the combined statement of financial position differs from its tax base.
Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the difference can be utilised.
|
| | 4.3 | Development costs |
| | | The Group develops a number of products and platforms for its portfolio of offerings to clients. These are internally generated from the technical development team, staff, and external resources. The products and platforms are identified separately, and the staff time is allocated to the programmes for development. Only direct costs are allocated to these products and platforms as required by IAS 38. The economic performance of the product and platforms is assessed to ensure they can be carried on the balance sheet. Once the product or platform is commercially ready for market it is amortised over the anticipated life. The initial products have been allocated a 36 month amortisation life span. At the end of each year the products are reviewed for impairment.
|
| | | |
| | | The key sources of estimation uncertainty were:
|
| | | |
| | 4.4 | Bad debts |
| | | The group currently calculates a "bad debt" provision on trade receivables and contract assets which are past due date and are not specifically provided for. Under IFRS 9 this assessment is required to be calculated based on a forward looking expected credit loss ('ECL') model, for which a simplified approach will be applied. The method uses historic customer data, alongside future economic conditions to calculate expected loss on receivables. See Note 16. |
| | | |
| | 4.5 | Share options and warrants |
| | | Where equity settled share options are awarded to employees, the fair value of the options at the date of grant is charged to the consolidated statement of comprehensive income over the vesting period as an employment expense.
The fair value of the options is measured at the grant date and spread over the vesting period. The fair value is measured based on an option pricing model taking into account the terms and conditions upon which the instruments were granted. |
| | | |
| 5. | Summary of significant accounting policies | |
| | 5.1 | Basis of consolidation |
| | | The financial statements incorporate the financial information of the 4GLOBAL Group. Control is achieved when a company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Where necessary, adjustments are made to the financial information of subsidiaries to bring the accounting policies used into line with those used by other members of the 4GLOBAL Group. All significant inter-company transactions and balances between 4GLOBAL Group entities are eliminated on consolidation. | |||
| | | | |||
| | 5.2 | Revenue |
| ||
| | | Consultancy services |
| | | Consultancy services are provided under fixed-price contracts and contracts specifying an hourly fee. Revenue from providing services is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided because the customer receives and uses the benefits simultaneously. This is determined based on the actual hours spent relative to the total expected hours.
In the case of fixed-price contracts, the customer pays the fixed amount based on a payment schedule. If the services rendered exceed the payment, a contract asset is recognised. If the payments exceed the services provided then a contract liability is recognised.
If the contract includes an hourly fee, revenue is recognised in the amount to which the 4GLOBAL Group has a right to invoice. Customers are invoiced on a monthly basis and consideration is payable when invoiced. |
| | | Subscriptions |
| | | Subscriptions for access to the Datahub are provided under fixed-price contracts. Customers pay in advance on a monthly, quarterly or annual basis and consideration is payable when invoiced. Where access to the Datahub has been invoiced but not paid at the end of the reporting period a trade receivable is created. Where services have been provided but not invoiced a contract asset is created. A contract liability is recognised in respect of the services not yet provided. Revenue is recognised on a straight-line basis over the term of the subscription. |
| | 5.3 | Research expenditure |
| | | The Group undertakes research into future development of products and platforms utilising the data sources that the Group curates. This is separately identified and recorded. The Group makes a claim for enhanced tax relief on this expenditure through HMRC. The expenditure is separately identified in the income statement notes.
|
|
| 5.4 | Foreign currency translation |
| | | Functional and presentational currency |
| | | Items included in the financial statements of each of the 4GLOBAL Group's entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The financial statements are presented in pounds sterling, which is 4Global Group's functional and presentation currency. |
| | | Transactions and balances |
| | | Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each year end foreign currency monetary items are translated using the closing rate. Non‑monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non‑monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at year‑end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement of comprehensive income within 'administrative expenses'. All other foreign exchange gains and losses are presented in the statement of comprehensive income under the heading to which they relate. |
| | | 4GLOBAL Group Companies |
| | | The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
· assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet · income and expenses for each statement of profit or loss and statement of comprehensive income are translated at monthly exchange rates throughout the period, and · all resulting exchange differences are recognised in other comprehensive income.
|
|
| 5.5 | Taxation |
| | | Taxation expense for the year comprises current and deferred tax recognised in the reporting year. Tax is recognised in the statement of comprehensive income. |
| | | Current tax |
| | | Current tax is the amount of tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the year end. |
| | | Deferred tax |
| | | Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences that exist only where it is probable that taxable profits will be generated against which the carrying value of the deferred tax asset can be recovered.
Deferred tax liabilities are recognised for all taxable temporary differences except in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint operations where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.
A deferred tax asset or liability is not recognised if a temporary difference arises on initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. |
| | 5.6 | Warrants |
| | | The 4GLOBAL Group issued warrant certificate to advisers at the time of the IPO and measures the fair value of the equity settled transactions with the advisers at the grant date of the warrant instruments. The fair value is calculated using an appropriate valuation model and requires assumptions regarding dividend yields, risk-free interest rates, share price volatility and expected life of the warrant. The resulting amount is charged to the share premium account and credited to the share warrant reserve. |
| | 5.7 | Property plant and equipment and right-of-use assets |
| | | Property, plant and equipment is recorded at cost less accumulated depreciation and accumulated impairment losses. The initial cost of an asset comprises its purchase price and any costs attributable to bringing the asset into the location and condition necessary for it to be capable of operating in the manner intended by management. Expenditures for routine maintenance and repairs are expensed as incurred, while additions and improvements are capitalised. A right-of-use asset is recognised at the commencement date of the lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date, any initial direct costs incurred and an estimate of costs expected to be incurred for restoring the site or asset. The right-of-use asset is subsequently measured and cost less accumulated depreciation.
Property, plant and equipment is depreciated using the straight-line method over the estimated useful lives or, in the case of certain leased right-of-use assets, the shorter of the expected lease term and estimated useful life:
§ Office equipment - 4 years § Right of use - over the term of the lease
An item of property, plant and equipment is derecognised upon disposal or when no further economic benefits are expected to arise from the use of that asset. Any gain or loss arising on de-recognition of the asset is included in the statement of comprehensive income when the asset is derecognised. |
| | 5.8 | Intangible assets |
| | | The intangible assets are the internally developed products and platforms that the group has generated. The assets are separately identifiable and are capitalised costs of direct resources used to develop the products and platforms, which comprises any external purchase costs and the costs of individuals costs attributable to bringing the asset into the location and condition necessary for it to be capable of operating in the manner intended by management.
Once the product or platform is ready for commercial use it is then amortised using the straight-line method over the estimated useful lives which the management have identified as 36 months.
An intangible asset is derecognised upon disposal or when no further economic benefits are expected to arise from the use of that asset. Any gain or loss arising on de-recognition of the asset is included in the statement of comprehensive income when the asset is derecognised. |
| | 5.9 | Leasing |
| | | The 4GLOBAL Group applies a single recognition and measurement approach for all leases except for short-term leases and leases of low-value assets. At commencement of a lease, the 4GLOBAL Group as lessee recognises a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. The amount of the lease liability recognised is on a discounted basis. The discount rates used on transition were incremental borrowing rates as appropriate for each lease based on factors such as the lease term and payment terms. Where the rate implicit in the lease cannot readily be determined the 4GLOBAL Group used the 4GLOBAL Group's incremental borrowing rate. The 4GLOBAL Group does not have any leases where the 4GLOBAL Group is a lessor.
Lease liabilities are recognised at the present value of future lease payments and subsequently carried at amortised cost using the effective interest method.
|
| | 5.10 | Cash and cash equivalents |
| | | Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly liquid investments in debt securities with original maturities of three months or less. |
| | 5.11 | Financial instruments |
| | | A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial instruments are classified into one of the categories discussed below in accordance with IFRS 9, with reference to the business model for that instrument and the contractual cash flow characteristics.
Financial assets and liabilities are offset and the net amount reported in the financial statements if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.
The accounting policy for each category is as follows: |
| | | Financial assets |
| | | Financial assets comprise cash and cash equivalents and receivables. |
|
| | Receivables primarily consist of trade and other receivables. These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. These assets are initially recognised at transaction price plus transaction costs that are directly attributable to their acquisition or issue and are subsequently carried at amortised cost using the effective interest rate method, adjusted for change in expected credit losses. |
| | | Impairment of financial assets |
| ||
| | |
|
| ||
| | | The IFRS 9 impairment model requires the recognition of 'expected credit losses'. Therefore, it is not necessary for a credit event to have occurred before credit losses are recognised. The impairment model applies to the 4GLOBAL Group's financial assets.
For trade receivables the 4GLOBAL Group has applied the simplified approach permitted by IFRS 9 in calculating expected credit losses. This approach requires expected lifetime losses to be recognised from initial recognition of the receivables. | |||
| | | Financial liabilities |
| | | Financial liabilities include trade and other payables, borrowings and lease liabilities. |
| | | Trade and other payables |
| | | Trade and other payables are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method. |
| | | Borrowings |
| | | Borrowings are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method. |
| | |
Derecognition |
| | | A financial liability is derecognised when the obligation under the liability is discharged or cancelled, or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange is treated as the de-recognition of the original liability and the recognition of a new liability. When the modification is not substantial the difference between the carrying amount of the liability before the modification and the present value of the cash flows after modification is recognised in profit or loss. | |||
| | | Classification of financial instruments issued by the 4GLOBAL Group |
| ||
| | | Financial instruments issued by the 4GLOBAL Group are treated as equity only to the extent that they meet the following two conditions:
· they include no contractual obligations upon the 4GLOBAL Group to deliver cash or other financial assets or to exchange financial assets or financial liabilities with another party under conditions that are potentially unfavourable to the Group; and
· where the instrument will or may be settled in the 4GLOBAL Group's own equity instruments, it is either a non-derivative that includes no obligation to deliver a variable number of the 4GLOBAL Group's own equity instruments or is a derivative that will be settled by the 4GLOBAL Group exchanging a fixed amount of cash or other financial assets for a fixed number of its own equity instruments. |
| | 5.12 | Related party transactions |
| | | The 4GLOBAL Group discloses transactions with related parties which are not wholly owned within the same group. It does not disclose transactions with members of the same group that are wholly owned. Transactions of a similar nature are aggregated unless, in the opinion of the Directors separate disclosure is necessary to understand the effect of the transactions on the financial statements. Mrs E Mazon, trading as Family Paws, invoiced the Group for secretarial and coaching services during the year £30,000 (2023: £30,000). £5,000 was outstanding at 31 March 2024 (2023: £Nil). |
| | 5.13
| Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the 4GLOBAL Group |
| | | The following amendments to standards have become effective for the first time for annual reporting periods commencing on 1 January 2023 and have been adopted in preparing these financial statements:
· Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies; · Amendments to IAS 8 - Definition of Accounting Estimates; and · Amendments to IAS 12 - Deferred Tax related to Assets and Liabilities arising from a Single Transaction.
The adoption of these amendments had no material impact on the financial statements.
At the date of approval of these financial statements, the following amendments to IFRS which have not been applied in these financial statements were in issue, but not yet effective, until annual periods beginning on 1 January 2024:
· Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7); · Non-current Liabilities with Covenants (Amendments to IAS 1); · Amendments to IFSR 16 - Lease liability in sale and leaseback; · Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current; and · Amendments to IAS 21 Lack of Exchangeability*.
*Subject to endorsement by the UK
The adoption of these amendments is not expected to have a material impact on the consolidated and Company financial statements.
|
| | 5.14 | Segment information |
| | | The chief operation decision-maker ("CODM") is considered to be the Board of Directors of the Group. The CODM allocates resources and assesses the performance of the business and other activities at the operating segment level.
|
| 6. | Analysis of revenue | |
| | Analysis of revenue by category | | | | | Year ended 31 March 2024 | | Year ended 31 March 2023 | |
| | | | | | | | £ | | £ |
| | | | | | | | | | |
| | Consultancy | | | | | | 2,544,689 | | 2,264,844 |
| | Data | | | | | | 3,823,566 | | 3,320,903 |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | 6,368,255 | | 5,585,747 |
| | | | | | | | | | |
| | Analysis of revenue by geography | | | Year ended 31 March 2024 | | Year ended 31 March 2023 | |||
| | | | | | | | £ | | £ |
| | | | | | | | | | |
| | Europe | | | | | | 3,184,062 | | 3,218,496 |
| | Americas | | | | | | 658,643 | | 447,207 |
| | Middle East | | | | | | 2,498,128 | | 1,828,108 |
| | Other | | | | | | 27,422 | | 91,936 |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | 6,368,255 | | 5,585,747 |
|
| During the year ended 2024, the 4GLOBAL Group had one (2023: two) customer whose revenues accounted for more than 10%, making up 29.0% (2023: 30.2%).
The 4GLOBAL Group has determined that the 4GLOBAL Group has one operating segment and therefore all revenue above is attributable to that segment.
Outstanding balances at year end are unsecured, interest free and settlement occurs in cash.
Included within trade and other receivables are contract assets as follows: |
| | As at 31 March | | | | | 2024 | | 2023 |
| | | | | | | £ | | £ |
| | | | | | | | | |
| | Contract assets | | | | | 1,035,296 | | 2,136,404 |
| | | | | | | | | |
|
| Contract assets are included within "Trade and other receivables" on the face of the statement of financial position. They arise when the Group has performed services in accordance with the agreement with the relevant client and has obtained right to consideration for these services but such income has not been invoiced at the balance sheet date. Significant changes in contract assets have arisen due to timing differences in the issue of invoices between periods.
Included within trade and other payables are contract liabilities as follows: |
| | As at 31 March | | | | |
2024 | |
2023 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | £ | | £ |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Contract liabilities | | | | | (491,008) | | (365,772) |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| All contract liabilities are recognised as revenue in the subsequent reporting period. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7. | Other operating income |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Other operating income comprises: |
| | | | | | | 2024 | | 2023 | |
| | | | | | | | £ | | £ |
| | | | | | | | | | |
| | Training grant | | | | | | - | | 14,000 |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | - | | 14,000 |
7. | Exceptional administrative expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Exceptional administrative expenses which have been identified separately because of their size are as follows: |
| | | | | | | 2024 | | 2023 | |
| | | | | | | | £ | | £ |
| | | | | | | | | | |
| | Provision against long term repayment plan | | | | | | 512,658 | | - |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | 512,658 | | - |
| | | | | | | | | | |
| | The Group has agreed a long term repayment plan against a significant outstanding receivable totalling £2.2m as at 31 March 2024. The payment plan spans a period of greater than 12 months from the financial year end. As result of the extended settlement period a discount charge has been recognised in Finance Costs (note 12) for £142,141 (2023: £nil). Although the balance is expected to be repaid in full, as a result of the transactional risk associated with the long term payment plan the Group have recognised a provision against the discounted balance of £512,658 (2023: £nil).
| ||||||||
| 9. | Profit from operations and auditor's remuneration |
|
| Profit from operations is stated after charging:
: |
| | 31 March | | | | | | 2024 | | 2023 |
| | | | | | | | £ | | £ |
| | | | | | | | | | |
| | Fees payable to the company's auditors: | | | | | | | ||
| | - Audit fees | | | | 62,700 | | 57,000 | ||
| | Depreciation of property, plant and equipment | | | | 16,354 | | 14,471 | ||
| | Depreciation of right-of-use assets | | | | 376,734 | | 351,990 | ||
| | Amortisation of intangible assets | | | | 87,092 | | 6,256 | ||
| | Equity settled share-based expense | | | | | 263,171 | | 338,455 | |
| | Net loss on foreign currency translation | | | | | | 12,583 | | 3,053 |
| | Short-term lease expense | | | | | | 78,509 | | 34,016 |
| | The Alternative Performance Measures used by management are shown below: |
| | 31 March | | | | | 2024 | | 2023 |
| |||||
| | | | | | | | £ | | £ |
| ||||
| | | | | | | | | | |
| ||||
| | Profit from operations | | | | | | 344,499 | | 519,192 |
| ||||
| | Depreciation and amortisation expense | | | | | | 480,180 | | 372,717 |
| ||||
| | Share based option charge | | | | | | 263,171 | | 338,455 |
| ||||
| | Exceptional administrative expenses - provision against long term repayment plan | | | | | |
512,658 | |
- |
| ||||
| | | | | | | | | | |
| ||||
| | | | | | | | | | |
| ||||
| | Adjusted EBITDA | | | | | | 1,600,508 | | 1,230,364 |
| ||||
|
|
| |||||||||||||
| 10. | Employees | |||||||||||||
|
| Staff costs, including Directors' remuneration, were as follows: |
| | 31 March |
| | | | | 2024 | | 2023 |
| | | | | | | | £ | | £ |
| | | | | | | | | | |
| | Wages and salaries | | | | | | 2,354,701 | | 2,061,263 |
| | Social security costs | | | | | | 272,597 | | 214,900 |
| | Pension costs | | | | | | 59,930 | | 47,166 |
| | Share based payment expense | | | | | | 263,171 | | 338,455 |
| | Employee benefits | | | | | | 16,362 | | 3,878 |
| | Less capitalisation of development costs | | | | | | (749,150) | | (352,675) |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | 2,217,611 | | 2,312,987 |
|
| The average number of employees, including the Directors, during the year was as follows: |
| | 31 March |
| | | | | 2024 | | 2023 |
| | | | | | | | Number | | Number |
| | | | | | | | | | |
| | Directors | | | | | | 5 | | 6 |
| | Administrative staff | | | | | | 2 | | 2 |
| | Technical staff | | | | | | 29 | | 22 |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | 36 | | 30
|
| 11. | Directors' remuneration |
|
| The Directors' aggregate remuneration in respect of qualifying services were: |
|
|
| Salary | Pension | Benefits | Bonus | Total Remuneration 2024 £ | | Total Remuneration 2023 £ | ||||||||
|
| E Mazon | 236,250 | 7,088 | 14,973 | - | 258,311 | | 231,750 | ||||||||
|
| K Sadler | 125,500 | 3,765 | - | - | 129,265 | | 123,300 | ||||||||
|
| I James | 46,250 | 1,388 | - | - | 47,638 | | 61,700 | ||||||||
|
| S Clarke | 30,833 | 925 | - | - | 31,758 | | 41,600 | ||||||||
|
| A Orlando | 41,674 | - | - | - | 41,674 | | 40,000 | ||||||||
|
|
| | | | | | | | ||||||||
| | 31 March |
| | | | | 2024 | | 2023 |
| ||||||
| | | | | | | | £ | | £ |
| ||||||
| | | | | | | | | | |
| ||||||
| | Invoices in year | | | | | | 30,000 | | 30,000 |
| ||||||
| | | | | | | | | | |
| ||||||
| | Outstanding at year end | | | | | | 5,000 | | - |
| ||||||
|
| The remuneration of the highest paid Director was as follows: |
| | 31 March |
| | | | | 2024 | | 2023 |
| | | | | | | | £ | | £ |
| | | | | | | | | | |
| | Wages and salaries | | | | | | 236,250 | | 225,000 |
| | Social security costs | | | | | | 31,347 | | 31,370 |
| | Pension costs | | | | | | 7,088 | | 6,750 |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | 274,685 | | 263,120 |
|
| Key management who comprise the senior management team; the chief operating officer; chief product officer, chief customer officer and global head of services received compensation is shown in the table below, which includes the directors.
Key management compensation is equal to Directors' renumeration.
|
| | 31 March |
| | | | | 2024 | | 2023 |
| | | | | | | | £ | | £ |
| | | | | | | | | | |
| | Wages and salaries | | | | | | 1,091,154 | | 1,024,403 |
| | Social security costs | | | | | | 134,994 | | 131,270 |
| | Pension costs | | | | | | 31,311 | | 28,530 |
| | Benefits | | | | | | 14,973 | | - |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | 1,272,432 | | 1,184,203 |
| 12. | Finance income and costs |
| | 31 March | | | 2024 | | 2023 |
| | | | £ | | £ | |
| | Lease liability interest | | | 21,959 | | 6,789 |
| | Interest on Shareholder loan | | | - | | 789 |
| | Interest on CBILS loan | | | 10,349 | | 7,330 |
| | Finance charge on receivable payment plan | | | 142,141 | | - |
| | Other interest
| | | 76 | | 9,135 |
| | | | | | | |
| | Finance cost recognised in the income statement recognised | | | 174,525 | | 24,043 |
| 13. | Taxation
| |||||||||
| | | | | | | | | | |
|
| | 31 March | | | | | | 2024 | | 2023 |
|
| | | | | | | | £ | | £ |
|
| | Current tax charge | | | | | | | | |
|
| | UK Corporation tax | | | | | | - | | - |
|
| | Adjustments in respect of prior periods | | | | | - | | - |
| |
| | Foreign tax on income for the year | | | | | 143,758 | | (2,128) |
| |
| | | | | | | | | | |
|
| | | | | | | | | | |
|
| | Total current tax | | | | | | 143,758 | | (2,128) |
|
| | | | | | | | | | |
|
| | Adjustment in respect of prior periods | | | | 129,491 | | (228,846) |
| ||
| | Movement on temporary differences | | | | | 125,828 | | 81,585 |
| |
| | | | | | | | | |
| |
| | | | | | | | | | |
|
| | Income tax charge/(credit) | | | | | | 399,077 | | (145,133) |
|
| | | | | | | | | | |
|
| | The tax charge / (credit for) the year can be reconciled to the profit per the statement of comprehensive income as follows: | ||||||||
| | | | | | | | | | |
| | 31 March | | | | | | 2024 | | 2023 |
| | | | | | | | £ | | £ |
| | | | | | | | | | |
| | Profit before tax | | | | | | 170,051 | | 496,921 |
| | | | | | | | | | |
| | | | | | | | | | |
| | Profit before tax multiplied by the | | | | | | | | |
| | UK corporate tax rate of 25% (2023: 19%) | | | | 42,512 | | 94,415 | ||
| | | | | | | | | | |
| | Effects of: | | | | | | | | |
| | Amounts not taxable/deductible for tax purposes | | | 65,648 | | 69,230 | |||
| | Enhanced research and development relief | | | - | | (98,414) | |||
| | Higher rate taxes on overseas earnings | | | | | - | | 304 | |
| | Losses carried forward | | | | | 18,280 | | 8,379 | |
| | Deferred tax at higher rate | | | | | - | | 9,798 | |
| | Provisions for foreign withholding tax | | | | | 143,146 | | - | |
| | | | | | | | | | |
| | Adjustments in respect of prior periods | | | | | 129,491 | | (228,846) | |
| | | | | | | | | | |
| | | | | | | | | | |
| | Income tax charge / (credit) | | | | | | 399,077 | | (145,133) |
| | | | | | | | | | |
|
| The following deferred tax (liabilities) / assets have been recognised: |
| | 31 March | | | | | | 2024 | | 2023 |
|
| | | | | | | | £ | | £ |
|
| | | | | | | | | | |
|
| | At beginning of period | | | | | | 190,647 | | 43,386 |
|
| | | | | | | | | | |
|
| | Movement on temporary timing differences | | | | | (255,319) | | 147,261 | | |
| | | | | | | | | | |
|
| | | | | | | | | | |
|
| | At end of period | | | | | | (64,672) | | 190,647 |
|
| | | | | | | | | | |
|
|
| The above deferred tax (liabilities) / assets comprise temporary differences on the following items: |
| | 31 March | | | | | | 2024 | | 2023 |
| | | | | | | | £ | | £ |
| | | | | | | | | | |
| | Share based payments | | | | | 7,803 | | 7,803 | |
| | Pensions deductible as paid | | | | | 3,089 | | 13,627 | |
| | Losses carried forward - from prior year | | | | | 145,119 | | 228,846 | |
| | Losses carried forward - from current year | | | | | 89,650 | | 45,766 | |
| | Capitalised development costs | | | (299,508) | | (98,045) | |||
|
| Accelerated capital allowances | | | | | (10,826) | | (7,350) | |
| | | | | | | | | | |
| | | | | | | | | | |
| | Deferred tax (liability)/asset | | | | | | (64,672) | | 190,647 |
| | | | | | | | | | |
| 14. | Earnings per share |
| | As at 31 March |
| | | | | 2024 | | 2023 |
| | | | | | | | | | |
| | Net profit/(loss) attributable to ordinary shareholders (£) | | | (241,609) | | 642,054 | |||
| | Basic weighted average number of shares in issue (Number) | | | 26,344,994 | | 26,344,994 | |||
| | Basic profit/(loss) per share (pence per share) | | | | (0.9)p | | 2.4p | ||
| | | | | | | | | | |
| | As at 31 March |
| | | | | 2024 | | 2023 |
| | | | | | | | | | |
| | Net profit attributable to ordinary shareholders (£) | | | (241,609) | | 642,054 | |||
| | | | | | | | | | |
| | | | | | | | | | |
| | Diluted weighted average number of shares in issue (Number) | | | 26,510,327 | | 26,563,191 | |||
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | Diluted profit per share (pence per share) | | | (0.9)p | | 2.4p | |||
| | | | | | | | | | |
| | Shares in issue | | | | | 2024 | | 2023 | ||
| | | | | | | | | | | |
| | Shares in issue 31 March | | | 26,344,994 | | 26,344,994 | ||||
| Weighted average number of shares used as the denominator | ||||||||||
| | The weighted average number of shares used as the denominator in basic earnings per share | | | 26,344,994 | | 26,344,994 | ||||
| | Adjustments for calculation of diluted earnings per share:
| | | | | | ||||
| | Options | | | | | | 105,954
,872 | | 119,257 | |
| | Warrants | | | | | | 59,379 | | 71,940 | |
| | | | | | | | | | | |
| | | | | | | | 26,510,327 | | 26,536,191 | |
| | | | | | | | | | | |
| 15. | Property, plant and equipment |
| | | | | | Right of Use Asset | | Office equipment | | Total |
| | Cost | | | | £ | | £ | | £ |
| | | | | | | | | | |
| | At 1 April 2022 | | | | 470,487 | | 72,538 | | 543,025 |
| | | | | | | | | | |
| | Disposals | | | | (439,987) | | (1,077) | | (441,064) |
| | Additions in year | | | | 565,101
| | 22,768 | | 587,869 |
| | Exchange differences | | | | - | | (1,459) | | (1,459) |
| | | | | | | | | | |
| | As at 31 March 2023 | | | | 595,601
| | 92,770 | | 688,371 |
| | | | | | | | | | |
| | Disposals | | | | - | | (9,997) | | (9,997) |
| | Additions in year | | | | - | | 11,954 | | 11,954 |
| | Exchange differences | | | | - | | (732) | | (732) |
| | | | | | | | | | |
| | | | | | | | | | |
| | As at 31 March 2024 | | | | 595,601 | | 93,995 | | 689,596 |
| | Depreciation | | | | | | | | |
| | As at 1 April 2022 | | | | 87,997 | | 43,668 | | 131,665 |
| | | | | | | | | | |
| | Charge for year | | | | 351,990 | | 14,471 | | 366,461 |
| | Disposals | | | | (439,987) | | - | | (439,987) |
| | Exchange differences | | | | - | | 230 | | 230 |
| | | | | | | | | | |
| | As at 31 March 2023 | | | | - | | 58,369 | | 58,369
|
| | | | | | | | | | |
| | Charge for year | | | | 376,734 | | 16,353 | | 393,087 |
| | Disposals
| | | | - | | (9,997) | | (9,997) |
| | Exchange differences | | | | - | | - | | - |
| | | | | | | | | | |
| | As at 31 March 2024 | | | | 376,734 | | 64,725 | | 441,459 |
| | | | | | | | | | |
| | Net book value | | | | | | | | |
| | As at 31 March 2023 | | | | 595,601 | | 34,401 | | 630,002 |
| | | | | | | | | | |
| | Net book value | | | | | | | | |
| | As at 31 March 2024 | | | | 218,867 | | 29,270 | | 248,137 |
|
| Right of use assets included in the above comprise all land and buildings assets. |
| 16. | Intangible assets |
| | | | | Database platforms |
| | Cost | | | £ |
| | | | | |
| | At 1 April 2022 | | | - |
| | | | | |
| | Capitalised costs in the year for internally generated platforms | | | 398,436 |
| | | | | |
| | At 31 March 2023 | | | 398,436 |
| | | | | |
| | Capitalised costs in the year for internally generated platforms | | | 892,946 |
| | | | | |
| | | | | |
| | As at 31 March 2024 | | | 1,291,382 |
| | | | | |
| | | | | |
| | Amortisation | | | £ |
| | | | | |
| | As at 1 April 2023 | | | - |
| | | | | |
| | Amortisation charge in the year | | | 6,256 |
| | At 31 March 2023 | | | 6,256 |
| | Amortisation charge in the year | | | 87,092 |
| | | | | |
| | As at 31 March 2024 | | | 93,348 |
| | | | | |
| | Net Book Value | | | |
| | | | | |
| | As at 31 March 2023 | | | 392,180 |
| | | | | |
| | As at 31 March 2024 | | | 1,198,034 |
| 17. | Trade and other receivables |
| | As at the year ended 31 March | | | | | 2024 | | 2023 |
| | | | | | | £ | | £ |
| | | | | | | | | |
| | Current | | | | | | | |
| | Trade receivables | | | | | 3,293,684 | | 1,436,966 |
| | Contract assets | | | | | 1,035,296 | | 2,136,404 |
| | Other receivables | | | | | 178,077 | | 214,957 |
| | Current tax receivables | | | | | 1,673 | | 189,620 |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | 4,508,730 | | 3,977,947 |
| | | | | | | | | |
|
| Trade receivables and contract assets do not contain a significant financing component. These financial assets have been reviewed at each year end the following provision for expected credit losses is considered necessary: |
| | As at the year ended 31 March | | | | | 2024 | | 2023 |
| | | | | | | £ | | £ |
| | | |
| | | | | |
| | Gross carrying amount - trade receivables | | | 4,002,127 | | 3,609,741 | ||
| | | | | | | |||
| | Loss allowance | | | | | (566,302) | | (36,371) |
| | Finance charge on receivable payment plan | | | | | (142,141) | | - |
| | | | | | | 3,293,684 | | 3,573,370 |
| | | | | | | | | |
|
| The loss allowances for trade receivables as at 31 March reconcile to the opening loss allowances as follows: |
| | | | | | | 2024 | | 2023 |
|
| | | | | | | £ | | £ |
|
| | | | | | | | | |
|
| | Opening loss allowance at 1 April | | | | | 36,371 | | 12,941 |
|
| | Increase in loss allowance recognised in profit or loss | | | 529,931 | | 23,430 |
| ||
| | | | | | | | | |
|
| | | | | | | | | |
|
| | Closing loss allowance at 31 March | | | | | 566,302 | | 36,371 |
|
| | | | | | | | | |
|
|
| Other receivables include amounts due for sales taxes, prepayments and security deposits held for leases. | ||||||||
|
| The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned above. The 4GLOBAL Group does not hold any collateral as security. |
| 18. | Cash and cash equivalents |
| | As at the year ended 31 March | | | | | 2024 | | 2023 |
| | | | | | | £ | | £ |
| | | | | | | | | |
| | Cash at bank and on hand | | | | | 145,220 | | 1,121,147 |
| | Credit card account | | | | | 3,474 | | 16,946 |
| | Total Cash and cash equivalents | | | | | 148,694 | | 1,138,093 |
|
| Cash at bank and on hand does not earn interest. |
| 19. | Issued share capital |
| | | 2024 | | 2024 | | 2023 | | 2023 |
| | £0.01 Ordinary shares | Number | | £ | | Number | | £ |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | As at 31 March | 26,344,994 | | 263,451 | | 26,344,994 | | 263,451 |
| | | | | | | | | |
| | | | | | | | | |
| | Fully paid ordinary shares carry one vote per share and the right to dividends and to distributions on winding up.
|
|
| 20. | Equity share-based payments | |
| | The movements of share options during the year were as follows: |
| | | | | | | | Number of Share options | | Weighted average share price |
| | 4GLOBAL PLC | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | Outstanding as at 31 March 2023 and 2024 | | | | | | 2,030,472 | | 83p |
| | | | | | | | | | |
|
| Options outstanding at 31 March 2024 had an exercise price of 35.6p - 91.0p. The outstanding options vest upon certain conditions including a change in ownership of 4GLOBAL PLC.
The number of options exercisable as at 31 March 2023 and 2024 is 1,755,072.
The vesting period ranges from 7 December 2021 to 7 December 2023.
The fair value of share options was estimated using the Black-Scholes option-pricing model. The estimated fair values of options granted are based on the following weighted average assumptions: |
| | As at the year ended 31 March | | | 2024 | | 2023 | |||
| | | | | | | | |||
| | Weighted average fair value (£ per option) | | | £0.35 | | £0.39 | |||
| | Weighted average remaining contractual life - years | | 7.8 | | 8.8 | ||||
| | | | | | | | | | |
|
| The estimated fair values of options granted are based on the following weighted average assumptions: |
|
| As at 31 March | | | | | | | | | 2023 |
| | Weighted average share price at date of grant | | | | | | | | | 78p |
| | Weighted average exercise price | | | | | | | | | 83p |
| | Expected life (years) | | | | | | | | | 5 |
| | Expected volatility (%) | | | | | | | | | 44.0 |
| | Risk free interest rate (%) | | | | | | | | | 0.76 |
| | | | | | | | | | | |
|
| The volatility assumption, measured at the standard deviation of expected share price returns, is based on the volatility of a comparable listed company. The charge for equity-settled share-based payments in the relevant years is shown in Note 8. |
| 21. | Reserves |
| | Share premium |
|
| Share premium records the amount above the nominal value received for shares sold, less transaction costs. |
| | Share option reserve |
|
| The share-based payment reserve arises on share options issued by the 4GLOBAL Group to employees of the 4GLOBAL Group. |
| | Merger reserve |
|
| The merger reserve arose on the group reconstruction when a share for share reconstruction took place and is the difference between the issue price and the nominal value of shares issued as consideration for the acquisition of subsidiary undertaking. |
| | Warrant reserve |
|
| The warrant reserve arises on the warrants issued by the 4GLOBAL Group to certain advisers of the 4GLOBAL Group. |
| | Capital redemption reserve |
|
| The capital redemption reserve arises on the repurchase of shares. |
| | Currency translation reserve |
|
| The currency translation reserve arises on the currency translation of subsidiaries where the functional currency differs from the functional currency of the 4GLOBAL Group. |
| | Retained earnings
|
| | The retained earnings reserve represents gains and losses recognised in the consolidated statement of comprehensive income. |
| 22. | Trade and other payables |
| | As at 31 March | | | | | 2024 | | 2023 |
| | | | | | | £ | | £ |
| | Current | | | | | | | |
| | Trade payables | | | | | 278,078 | | 148,331 |
| | Contract liabilities | | | | | 491,008 | | 365,772 |
| | Payroll taxes, pension & social security | | | | | 271,822 | | 344,504 |
| | Other payables | | | | | 192,814 | | 264,139
|
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | 1,233,722 ,122,746 | | 1,122,746 |
| | | | | | | | | |
|
| The carrying values of the trade and other payables approximate to their fair value as at the year-end date. Other payables include accruals for general expenses incurred in the normal course of business that are expected to be settled within 12 months. |
| 23. | Borrowings |
| | As at 31 March | | | | | 2024 | | 2023 |
| | | | | | | £ | | £ |
| | Non-current | | | | | | |
|
| | Borrowings | | | | | 58,333 | | 108,832 |
| | | | | | | | | |
| | | | | | | | | |
| | Current | | | | | | | |
| | Borrowings | | | | | 50,000 | | 50,000 |
| | | | | | | | | |
| | | | | | | | | |
|
| Borrowings includes a loan obtained in May 2020 under the Coronavirus Business Interruption Loan Scheme ("CBILS") of £250,000. The loan is repayable in monthly instalments by April 2026. The rate of interest applicable to the loan is 3.05% plus the Bank of England base rate.
The carrying value of borrowings approximates to their fair value as at the year-end date. |
| 24. | Lease liabilities |
| | | | | | | 2024 | | 2023 |
| | | | | | | £ | | £ |
| | | | | | | | | |
| | As at 1 April | | | | | 566,045 | | 353,811 |
| | | | | | | | | |
| | Additions | | | | | - | | 566,045 |
| | Interest expense | | | | | 21,960 | | 6,782 |
| | Payment of interest | | | | | (21,960) | | (8,951) |
| | Payment of principal | | | | | (371,985) | | (351,642) |
| | | | | | | | | |
| | | | | | | | | |
| | As at 31 March | | | | | 194,060 | | 566,045 |
| | | | | | | | | |
| | | | | | | | | |
|
| The 4GLOBAL Group has lease contracts for land and buildings. The 4GLOBAL Group does not have any leases where the 4GLOBAL Group is a lessor. The weighted average remaining term of all leases is disclosed below. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as security for borrowing purposes. The Right of Use leases have been discounted at the 4GLOBAL Group's incremental borrowing rate of 6.2%.
The 4GLOBAL Group has identified four leases with lease terms of 12 months or less. The 4GLOBAL Group applies the short-term lease recognition exemption for these leases. The expense recognised in respect of these leases is disclosed in Note 8.
| |||||||||
| | | | | | | As at 31 March 2024 | | As at 31 March 2023 |
| |
| | | | | | | £ | | £ |
| |
| | Maturity analysis of leases | | | | | | | |
| |
| | Current | | | | | 194,060 | | 371,985 |
| |
| | 1 to 2 years | | | | | - | | 194,060 |
| |
| | | | | | | | | |
| |
| | | | | | | | | |
| |
| | | | | | | 194,060 | | 566,045 |
| |
| | | | | | | | | |
| |
| | | | | | | | | |
| |
| | | | | | | As at 31 March 2024 | | As at 31 March 2023 |
| |
| | | | | | | Years | | years |
| |
| | | | | | | | | |
| |
| | Weighted average remaining term | | | | | 1 | | 1 |
| |
| | | | | | | | | |
| |
| 25. | Contingent Liabilities |
|
|
|
|
| The Group had a contingent liability as at 31 March 2024 in respect of a Research & Development Tax Credit of £189,620 (2023: £nil) received from HM Revenue & Customs ("HMRC"). The Tax Credit, which relates to the year ended 31 March 2022 tax return, was recognised in the financial statements as an asset as at 31 March 2023 and was received from HMRC during the year ended 31 March 2024. HMRC provided a notice of enquiry in February 2024 and opened an enquiry in relation to the balance. The enquiry remained open at the year end and the Group is in ongoing discussions regarding the enquiry post year end. The full balance of £189,620 is included in the enquiry and is therefore the total estimated value included as a contingent liability, however the Group is confident in defending the full value of the Tax Credit. |
|
|
|
| 26. | Financial instruments |
|
| The 4GLOBAL Group's treasury policy is to avoid transactions of a speculative nature. In the course of trade the 4GLOBAL Group is exposed to a number of financial risks that can be categorised as market, credit and liquidity risks. The Board has identified the risks within each category and considers the impact on the activities of the 4GLOBAL Group as part of their regular meeting routine.
Principal financial instruments
The principal financial instruments used by the 4GLOBAL Group, from which financial instrument risk arises, are as follows:
Trade and other receivables Cash and cash equivalents Trade and other payables Borrowings Lease liabilities
A summary of the financial instruments held by category is provided below: |
| | | | | | | As at 31 March 2024 | | As at 31 March 2023 |
|
| | | | | | | £ | | £ |
|
| | Financial assets at amortised cost | | | | | | | |
|
| | | | | | | | | |
|
| | Cash and cash equivalents | | | | | 148,694 | | 1,138,093 |
|
| | Trade and other receivables | | | | | 4,508,730 | | 3,787,215 |
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| | Total financial assets | | | | | 4,657,424 | | 4,925,308 |
|
| | | | | | | | | |
|
| | | | | | | | | |
|
|
| The fair value of short-term deposits and other financial assets approximates to the carrying amount. | ||||||||
| | | | | | | As at 31 March 2024 | | As at 31 March 2023 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Financial liabilities at amortised cost | | | | | £ | | £ |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Borrowings | | | | | 108,333 | | 158,832 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Trade and other payables | | | | | 488,274 | | 412,470 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Lease liabilities | | | | | 194,060 | | 566,045 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | 790,667 | | 1,137,347 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| The Directors consider that the carrying amounts of all financial assets and financial liabilities recognised in the financial information approximate their fair values (due to their nature and short times to maturity).
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Currency risk
The 4GLOBAL Group's financial risk management objective is broadly to seek to make neither profit nor loss from exposure to currency or interest rate risks. The 4GLOBAL Group is exposed to transactional foreign exchange risk and takes profits and losses as they arise, as in the opinion of the Directors, the cost of hedging against fluctuations would be greater than the related benefit from doing so.
The trade and other payables balances held by the 4GLOBAL Group in currencies other than pounds sterling are as follows:
The trade and other receivables balances held by the 4GLOBAL Group in currencies other than pounds sterling are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | As at 31 March 2024 | | As at 31 March 2023 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | £ | | £ |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Canadian Dollar | | | | | 39,726 | | - |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Euro | | | | | 64,084 | | 106,871 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | New Zealand Dollar | | | | | - | | 2,931 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Saudi Arabian Riyal | | | | | 2,195,937 | | 1,102 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | United States Dollar | | | | | 357,293 | | 143,257 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | 2,657,040 | | 254,161 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| The cash balances held by the 4GLOBAL Group in currencies other than pounds sterling are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | As at 31 March 2024 | | As at 31 March 2023 |
|
| | | | | | | £ | | £ |
|
| | Saudi Arabian Riyal | | | | | 21 | | 21 |
|
| | Euro | | | | | 25,167 | | 48,079 |
|
| | US Dollar | | | | | 13,027 | | 84,737 |
|
| | Turkish Lira | | | | | 5,612 | | 27,961 |
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| | | | | | | 43,827 | | 160,798 |
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| | Foreign currency sensitivity analysis | ||||||||
|
| A 10% movement in the relevant foreign currency exchange rates would increase/(decrease) net assets as shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. |
| | | NZD | | TRY | | USD | | EUR | | SAR |
| |||||||
| | As at 31 March 2023 | £ | | £ | | £ | | £ | | £ |
| |||||||
| | Effect on net assets: | | | | | | | | | |
| |||||||
| | GBP strengthened by 10% | (266) | | (2,542) | | (20,727) | | (14,086) | | (102) |
| |||||||
| | GBP weakened by 10% | 326 | | 3,107 | | 25,333 | | 17,217 | | 125 |
| |||||||
| | | | | | | | | | | |
| |||||||
|
| | NZD | | TRY | | USD | | EUR | | SAR | | AUD | | CAD | ||||
|
| As at 31 March 2024 | £ | | £ | | £ | | £ | | £ | | £ | | £ | ||||
|
| Effect on net assets: |
| | | | | | | | | | | | | ||||
|
| GBP strengthened by 10% | - | | (510) | | (31,792) | | (8,114) | | (199,633) | | 131 | | (3,611) | ||||
|
| GBP weakened by 10% | - | | 624 | | 38,857 | | 9,917 | | 243,995 | | (160) | | 4,414 | ||||
| | | | | | | | | | | | | | |
|
| | Credit risk
Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or fail to pay amounts due causing financial loss to the 4GLOBAL Group. Credit risk within the 4GLOBAL Group arises from cash and cash equivalents, and trade and other receivables. The maximum exposure to credit risk is the carrying amount of these financial instruments.
The 4GLOBAL Group is subject to concentrations of credit risk from cash deposits in excess of insured limits. The 4GLOBAL Group places its cash in financial institutions which are considered high quality financial institutions by management. At times, such cash deposits may be in excess of insured limits. The 4GLOBAL Group does not enter into any derivatives to manage credit risk.
The 4GLOBAL Group calculates expected loss allowances based on the maximum contractual year over which the 4GLOBAL Group is exposed to credit risk. Financial assets are considered to be credit-impaired when there is reasonable and supportable evidence that one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. The 4GLOBAL Group also applies a rebuttable presumption that an asset is credit-impaired when contractual payments are more than 30 days past due. The 4GLOBAL Group has made an assessment of whether trade receivables are credit-impaired as each of the years in question. The 4GLOBAL Group has taken into account the current financial position of counterparties and expected future cash flows together with actual and forecast financial information, in order to estimate the probability of default of each of these financial assets as well as the loss upon default. No provision for expected credit losses has been made.
The contractual cash flows on these financial assets have not been modified or renegotiated in the current or prior year.
If there is evidence that there is no reasonable expectation of recovery and the counterparty is in severe financial difficulties, the financial asset will be written off.
| |||||||||||||
|
| The following table provides an analysis of trade receivables and contract assets that were due, but not impaired, at each financial year end. The Group believes that the balances are ultimately recoverable based on a review of past impairment history and the current financial status of customers. | |||||||||
| | | | | | | As at 31 March 2024 | | As at 31 March 2023 |
| |
| | | | | | | £ | | £ |
| |
| | | | | | | | | |
| |
| | Current 1 - 30 days
| | | | | 3,757,739 | | 1,772,340 |
| |
| | 30 - 60 days
| | | | | 155,978 | | 661,793 |
| |
| | 61 - 90 days
| | | | | 3,390 | | 400,825 |
| |
| | 91 + days
| | | | | 1,120,316 | | 774,783
|
| |
| | Provision for impairment of trade receivables | | | | | (566,302) | | (36,371) |
| |
| | Finance charge on receivable payment plan | | | | | (142,141) | | - |
| |
| | | | | | | | | |
| |
| | | | | | | | | |
| |
| | Total trade receivables and contract assets - net | | | 4,328,980 | | 3,573,370 |
| |||
| | | | | | | | | |
| |
| | | | | | | | | |
| |
|
| The Directors are unaware of any factors affecting the recoverability of outstanding balances at 31 March 2024 and, consequently, no further provisions have been made for bad and doubtful debts. The allowance for bad debts has been calculated using a 12-month lifetime expected credit loss model, as set out below, in accordance with IFRS 9. | |||||||||
| | | As at 31 March 2024 | | | | As at 31 March 2023 | | |
| | | £ | % | £ | | £ | % | £ |
| | | | | | | | | |
| | Current 1 - 30 days
| 3,757,739 | 0% | - | | 1,772,340 | 0% | - |
| | 31 - 60 days
| 155,978 | 0% | - | | 661,793 | 0% | - |
| | 61 - 90 days
| 3,390 | 0% | - | | 400,825 | 0% | - |
| | 91 - 120 days
| 411,837 | 2% | 8,237 | | 203,210 | 0% | - |
| | 121+ days | - | 2% | - | | 535,202 | 2% | 10,704 |
| | | | | | | | | |
Credit Quality of Financial Assets
| | | | | | | As at 31 March 2024 | | As at 31 March 2023 |
|
| | Past due not impaired | | | | | £ | | £ |
|
| | | | | | | | | |
|
| | 31 - 90 days
| | | | | 159,368 | | 1,062,618 |
|
| | Over 91 days - no impairment
| | | | | 411,837 | | 738,412 |
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| | Total past due not impaired | | | | | 571,205 | | 1,801,030
|
|
| | | | | | | | | |
|
| | | | | | | | | |
|
|
| Liquidity risk | ||||||||
|
| The 4GLOBAL Group is exposed to liquidity risk as part of its normal trading cycle. The 4GLOBAL Group's policies ensure sufficient liquidity is available to meet foreseeable needs through the preparation of short and long-term forecasts. The 4GLOBAL Group's requirements are constant throughout the year and relate largely to working capital which is managed through the use of surplus cash. |
|
| The table below summarises the maturity profile of the 4GLOBAL Group's financial liabilities, based on contractual, undiscounted payments: | |||||||||
| | | | Less than 1 year
| |
2 to 5 years | | More than 5 years | |
Total |
|
| | Year ended 31 March 2023 | | £ | | £ | | £ | | £ |
|
| | Borrowings | | 50,000 | | 108,832 | | - | | 158,832 |
|
| | Trade and other payables | | 412,470 | | - | | - | | 412,470 |
|
| | Lease liabilities | | 371,985 | | 194,060 | | - | | 566,045 |
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
| | | | 834,455 | | 302,892 | | - | | 1,137,347 |
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
| | | | Less than 1 year
| |
2 to 5 years | | More than 5 years | |
Total |
|
| | Year ended 31 March 2024 | | £ | | £ | | £ | | £ |
|
| | Borrowings | | 50,000 | | 58,333 | | - | | 108,333 |
|
| | Trade and other payables | | 488,274 | | - | | - | | 488,274 |
|
| | Lease liabilities | | 194,060 | | - | | - | | 194,060 |
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
| | | | 732,334 | | 58,333 | | - | | 790,667 |
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
|
|
Capital risk
The Directors define capital as the total equity of the company. The Directors' objectives when managing capital are to safeguard the 4GLOBAL Group's ability to continue as a going concern in order to provide returns for stockholders and benefits for other stakeholders and to maintain an optimal structure to reduce the cost of capital. In order to maintain an optimal capital structure, the Directors may adjust the amount of dividends paid to stockholders, return capital to stockholders and issue new stock to reduce debt. | |||||||||
| 24. | Net debt reconciliation |
| | | | | | | As at 31 March 2024 | | As at 31 March 2023 |
| | | | | | | £ | | £ |
| | Cash and cash equivalents | | | | | 148,694 | | 1,138,093 |
| | Borrowings - repayable within one year | | | | | (50,000) | | (50,000) |
| | Borrowings - repayable after one year | | | | | (58,333) | | (108,832) |
| | | | | | | | | |
| | Net funds | | | | | 40,361 | | 979,261 |
| | | | | | | | | |
| | | | | | | | | |
| | Cash and liquid investments | | | | | 148,694 | | 1,138,093 |
| | Gross debt - variable interest rates | | | | | (108,333) | | (158,832) |
| | | | | | | | | |
| | | | | | | | | |
| | Net funds | | | | | 40,361 | | 979,261 |
| | | | | | | | | |
| | | | | | | | | |
| 25. | Commitments |
|
| The 4GLOBAL Group has identified a lease contract, which begins on 1 April 2023 that has been accounted for in the Consolidated Statement of Financial Position as a right of use asset and relates to the offices the company occupies in Chiswick, London. No other lease contracts have been identified and not yet commenced as at the end of each year. Consequently, the 4GLOBAL Group has not identified any other material commitments. |
| 26. | Ultimate controlling party |
|
| As at 31 March 2024, the ultimate controlling party of the 4GLOBAL Group is Eloy Mazon by virtue of his 50.5% shareholding in 4GLOBAL PLC. |
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