Source - LSE Regulatory
RNS Number : 9356V
4GLOBAL PLC
07 December 2023
 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

7 December 2023

4GLOBAL PLC

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

Interim Results

 

"Strong growth and In line with market expectations"

 

4GLOBAL, a UK-based data, services and software company focused on the sport, leisure and health, is pleased to announce its unaudited interim results for the six-month period ended 30 September 2023.

 

Financial highlights for the period

 

·

Revenue for the six months was £1.8m (H1 22/23): £1.4m) an increase of 26%.

·

Gross profit margin improved to 60% (H1 22/23: 49%), due to internal operational leverage from higher revenue.

·

Adjusted loss £0.6m (H1 22/23: £0.8m loss) an improvement of 25%.

·

Total Assets £5.2m (2022: £3.6m) an increase of 44%

·

Trading in line with market expectations, with significant financial weighting in H2 in line with previous financial periods.

 

Post period financial highlights

 

·

Total annual booked revenue of £4.8m (H1 23/24: £1.8m, plus £3.0m booked for H2 23/24). In addition, the Company is in late-stage contract negotiation on a £1.0m opportunity which is expected to be signed in December 2023.

·

£0.8m of new contract wins since interim end.

 

Key new business wins and partnerships - year to date

·

Total new business won in this financial year to date stands at £3m

·

Key partnerships:


Jonas - launch of 4GLOBAL data & insight platform to their existing customers in September 2023 targeting an initial $1m opportunity pipeline. To date we have already signed up a number of flagship customers to our platform and looking at exploiting the existing pipeline.


TechnoGym - launch of 4GLOBAL data & insight platform to their existing customers in September 2023. This partnership targets an opportunity Total Addressable Market ("TAM") of £2m of license revenue.


Mace Group - partnership extended to North America to target world cup cities with the new combine offering around maximising the social value and sustainability from hosting the world cup.


Al-Jassra - significant business wins in the Middle East.

·

Sport England contract variation has seen 4GLOBAL gathering insights to aid local authorities, leisure providers, and policymakers alike in making strategic decisions. This contract variation also marks a significant expansion of 'Moving Communities Place.'

·

Guadalajara convention contract award sees 4GLOBAL assisting in making investment decisions and assessing whether investments are achieving the criteria with regards to social impact, thanks to the use of 4GLOBALs data and social value calculator.

·

Our data asset (DataHub) grew to 35m unique individuals and over 4bn datapoints as a result of increasing the number of sport health and activity data sources being integrated through new customers into the DataHub; one of the largest datasets of its kind in the world which enables clients to make critical investment decisions about their business.

·

Management successfully delivered its first trials using Artificial Intelligence (AI) tools within DataHub, which has proven to increase efficiencies in data processing. This enables DataHub to deliver enhanced insights to its customers in the three key areas of understanding their customers (identify, attract, retain, improve) operational efficiencies and the ability to maximise ROI on capital investment (especially in scaled sport, health and activity facilities).

·

The combination of the growth of the DataHub and the use of AI has allowed the Company to secure significant new contracts with our middle east partners (in Qatar and the Kingdom of Saudi Arabia) developing nationwide sport infrastructure investment plans and new cities development.

·

Similarly in the North American market, the Company continues to build on strategic partnerships with Jonas to deliver scale business insights for Jonas' existing clients.

·

Furthermore, the growth of the DataHub dataset and integration with AI coupled is enabling the Company to open new verticals and data use cases. In the period, the Company continued to grow in the health area specifically related to the trend of using physical activity to treat and prevent certain health conditions.

·

The combination of these factors has allowed the Company to grow its opportunity pipeline to £6.9m.

 

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

 

"Trading has been strong and the Board is delighted with the performance of the business in the first half of the year. There has been significant growth in revenues in relation to last year's H1 position (26% increase). This has been a period of expansion and growth through significant business wins, continuing to build on the grow foundations in international markets, strengthening the team and the Company's' commercial partnerships.

 

"The rise of Artificial Intelligence (AI) and the growth of the DataHub has generated significant opportunities for us and I was delighted to see the launch of our first AI insight platform earlier this year as a pilot for one of our biggest customers prior to commercial launch in 2024.

 

"As expected, Group revenue generation profile is significantly weighted to the second half of the year. The Board is encouraged by the continued strong demand for the Company's products and, with 4 months to go to the end of the financial year, is confident that it is trading in line with market expectations for the full year[1]."

 

[1] Market expectations for the full year stand at total revenue of £6.7m and Adjusted EBITDA of £1.3m

 

 

For further information contact:

4GLOBAL plc

Eloy Mazon (CEO)

 

c/o IFC Advisory

Spark Advisory Partners - Nominated Adviser

Neil Baldwin

 

0203 368 3554

Canaccord Genuity - Broker

Bobbie Hilliam

 

020 7523 8000

IFC Advisory

Graham Herring / Zach Cohen

0203 934 6630

A copy of the interim accounts is available from the Company's website www.4global.com.


Chief Executive Statement

For the six months ended 30 September 2023

 

The current year has started positively and the Board is particularly encouraged by progress in recent months. The financial position is strong and international expansion continues with the activation and launch of our US partnership gathering momentum. The business is performing comfortably in line with market expectations.

The six months to 30 September 2023 was a period of growth for the Group as it delivered a 26% increase in revenue to £1.8m (30 September 2022: £1.4m) and it has accelerated its investment in products and platforms which is reflected in the Group's total contracted work to date together with a total pipeline of £6.9m.

The £4.8m of booked revenue to date consists of high margin contracts which will have a significant impact on the Group's profitability. The Group has also won new multi-million pound multi-year agreements, which enhances visibility over revenues in future financial periods. This combines with the migration of our existing customers and introduction of new customers to annual recurring and repeatable revenue (ARRR) contracts. As expected, the Group's revenue generation profile is weighted to the second half of the year as it has been in previous periods. The investment made last year in strengthening the opportunity pipeline internationally and winning multi-year contracts has resulted in a considerable growth of our net assets in our balance sheet regarding accounts receivable that will generate significant cash to the business.

Market trends

The space in which 4GLOBAL operates (Sport & Fitness) has been evolving over the last few years. The Group has identified four key market trends that positively impact its business:

·

Client focus and needs are shifting from a software approach to a focus around data and the actionable insights they can extract from it. The informed data enables the client to make better decisions around its customers, business operations and investments in order to generate new revenue streams.

·

Uncertainty of the macroeconomic environment is driving a greater reliance and need on making the right decisions at the right time and to model the future. Customers in this sector see data as key to generating the insights that drive better decisions.

·

Insight about their business to make better decisions needs to base on whole sector data and not just the customers data as that gives them an incomplete picture on which to base decisions. Access to market wide data is becoming critical to make the right business decisions.

·

AI is taking an increasingly important role in business and in particular to the business critical insights it can provide. However, AI is a tool and it requires large amounts of data to provide valuable insights; the more data the powerful AI is to businesses.

4GLOBAL has one of the biggest databases of sport participation (DataHub) in the world and an excellent track record at assisting customers in drawing insight from their end market data. As a result, the Group is perfectly positioned to exploit these trends and deliver on its growth strategy.

Key achievements and highlights

Product development & data asset

Since the beginning of the financial year, the Company's data asset, known as the DataHub, has experienced growth of 5%. As data from the North American operation begins to contribute, there is an expectation that this growth will be further accelerated, expanding geographical coverage and reinforcing the Company's dominant position in the market with its comprehensive data set.

In shaping the future landscape, Artificial Intelligence (AI) is poised to play a pivotal role, particularly in the realm of actionable insights. The Directors believe that the Company stands at the forefront of this technological wave, recently successfully delivered its first trials of AI within DataHub, which have proven to increase efficiencies in data processing.

This enables DataHub to deliver enhance insights to its customers in the 3 key areas of understanding their customers (identify, attract, retain, improve) operational efficiencies and the ability to maximise ROI on capital investment (specially in scaled sport, health and activity facilities).

Furthermore, the growth of the DataHub dataset and integration with AI coupled is enabling the company to open new verticals and data use cases. In the period, the company continued to grow in the health area specifically related to the trend of using physical activity to treat and prevent certain health conditions like obesity that cost £98bn p.a. to the UK.

 

Commercial partnerships

Central to 4GLOBAL's global expansion strategy are its commercial partnerships. Earlier this year, the Group unveiled two pivotal collaborations with Jonas and with TechnoGym, strategically positioning itself to unlock significant revenue opportunities for 4GLOBAL in the North American and European markets respectively.

The Jonas partnership, launched to North American customers in August 2023, has witnessed substantial marketing efforts and activations. This concerted approach has already yielded positive results, with new customers actively embracing the Company's insight solutions. This move aligns with the Company's commitment to leveraging its data and insight products in unexplored verticals, opening avenues for fresh revenue streams.

Notably, 4GLOBAL's enduring partnership with Mace Group has continued to perform well, particularly in the Middle East, where several live projects and opportunities exist. This success has prompted an extension of the partnership into the North American market. Together, the companies are poised to launch new offering targeting the sports and events sector.

As 4GLOBAL continues its ambitious growth aspirations, it remains committed to exploring additional commercial partnerships that will expedite client acquisition and drive revenue in its targeted markets.

Outlook

 

The Board anticipates sustained demand for its data, insights, and services throughout the remainder of the year. The management's primary focus will persist in strategically activating the commercial aspects of established partnerships across various geographies, with particular emphasis on the North America and Middle East regions.

 

Our commitment to product development and advancing our data assets remains unwavering. This approach ensures that the Company stays at the forefront of innovation, consistently delivering business-critical data and insightful solutions to meet the evolving needs of our customers.

 

As expected, and in previous years, Group revenue generation profile is significantly weighted to the second half of the year. The Board is encouraged by the continued strong demand for the Company's products and - with 4 months to go to the end of the financial year - is confident that it is trading in line with market expectations for the full year[1].

 

[1] Market expectations for the full year stand at total revenue of £6.7m and Adjusted EBITDA of £1.3m

 

Chief Executive

7th December 2023

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023

 

 



Note








Six months ended


Six months ended


Year to



30 September


30 September


31 March



2023


2022


2023



(unaudited)


(unaudited)


(audited)



£


£


£

Revenue


1,748,660


1,389,429


5,585,747








Cost of sales


(706,048)


(704,510)


(1,449,008)








Gross profit


1,042,612


684,919


4,136,739








Administrative expenses


(1,651,035)


(1,474,743)


(2,919,874)

Other operating income


-


14,000


14,000








Analysed as follows:







Adjusted (loss)/profit from operations


(608,423)


(775,824)


1,230,365








Depreciation and amortisation


(230,107)


(181,462)


(372,717)

Share based payment expense


(145,592)


(208,620)


(338,456)

Exceptional items


-


(54,000)


-








Operating profit/(loss)


(984,122)


(1,219,906)


529,192








Finance income


(19,045)


1,439


1,722

Finance cost


76


(17,736)


(24,043)








(Loss)/profit before tax


(1,003,091)


(1,236,186)


496,921








Tax (charge)/credit


(4,352)


103,314


145,133








(Loss)/profit for the period


(1,007,443)


(1,132,872)


642,054








Other comprehensive income







Exchange differences on translation of foreign







operations


(7,053)


333


(3,053)








Other comprehensive income for the period


(7,053)


333


(3,053)








Total comprehensive income for the period


(1,014,496)


(1,132,539)


639,001








Total comprehensive income attributable to the equity holders of the company


(1,014,496)


(1,132,539)


639,001








Basic profit - pence per share

3

(3.8)p


(4.3)p


2.4p















Diluted profit - pence per share

3

(3.8)p


(4.3)p


2.2p








 

The notes form part of these Condensed Consolidated Financial Statements.

 

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2023

 

 



Note






As at


30 September


30 September


31 March



2023


2022


2023



(unaudited)


(unaudited)


(audited)



£


£


£

Non-current assets







Property, plant and equipment


36,239


218,301


34,401

Right of use assets


376,734


-


595,601

Intangible assets


582,083


197,107


392,180

Deferred tax


266,477


-


190,647

Total non-current assets


1,261,533


415,408


1,212,829



 





Current assets


 





Trade and other receivables


3,659,398


1,084,891


3,977,947

Cash and cash equivalents


265,352


2,118,665


1,138,093



3,924,750


3,203,557


5,116,040



 





Total assets


5,186,283


3,618,965

 

6,328,869








Equity and Liabilities







Equity







Share capital


263,451


263,451


263,451

Share premium


3,390,330


3,390,330


3,390,330

Merger reserve


676,310


676,310


676,310

Share option reserve


533,837


347,701


388,245

Share warrant reserve


188,266


188,266


188,266

Currency translation reserve


(42,429)


(31,990)


(35,376)

Retained earnings


(1,397,423)


(2,254,197)


(389,890)

Total equity


3,612,342


2,579,871


4,481,246








Non-current liabilities







Borrowings


83,333


133,703


108,832

Lease liability


-


-


194,060

 

 


83,333


133,703


302,892

Current liabilities







Borrowings


50,000


50,130


50,000

Trade and other payables


1,058,238


676,515


1,122,746

Lease liability


382,370


178,746


371,985

Total current liabilities


1,490,608


905,391


1,544,731



 





Total liabilities


1,573,941


1,039,094

 

1,847,623



 





Total equity and liabilities


5,186,283


3,618,965

 

6,328,869

 

The notes form part of these Condensed Consolidated Financial Statements.

 

The Condensed Consolidated Financial Statements were approved and authorised for issue by the Board of Directors on 7 December 2023.

 

 

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023

 

 

 

 


Six months to

 

Six months to


Year to

 

 

30 September

 

30 September


31 March

 

 

2023

 

2022


2023

 

 

(unaudited)

 

(unaudited)


(audited)

 

 

£

 

£


£

Cash flows from operating activities

 


 




Profit/(loss) before income tax for period

 

(1,003,091)

 

(1,236,086)


496,921


 

 

 




Adjustments to reconcile loss before tax to net cash flows:

 

 

 




Depreciation of tangible assets

 

196,397

 

181,462


366,461

Amortisation

 

33,710

 

-


6,356

(Profit)/loss on disposal of fixed assets

 

(1,205)

 

-


1,077

Finance income

 

(76)

 

(1,439)


(1,772)

Finance cost

 

19,045

 

17,736


24,043

Equity-settled share-based expense/warrants

 

145,592

 

208,620


338,456

Decrease/(increase) in trade and other receivables


268,349

 

520,729


(2,256,890)

(Decrease)/increase in trade and other payables


(63,991)

 

(223,168)


36,093

Tax received


-

 

103,708


(3,989)



 

 




 


 

 




Net cash flows - operating activities


(405,270)

 

(428,438)


(993,334)

 


 

 




 


 

 




Cash flows from investing activities


 

 




Purchase of intangible assets


(8,664)

 

(197,107)


(22,768)

Purchase of Tangible assets


(223,612)

 

(18,905)


(398,436)

Interest received


76

 

1,439


1,772



 

 




 


 

 




Net cash - investing activities


(232,200)

 

(214,573)


419,432

 


 

 




 


 

 




Cash flows from financing activities


 

 




Repayment of shareholder loan - principal


-

 

-


(50,400)

Repayment of shareholder loan - interest


-

 

-


(22,194)

Repayments of borrowings


(25,498)

 

(101,113)


(50,000)

Lease liability principal payment


(183,675)

 

(175,065)


(351,642)

Interest elements of lease payments


(13,271)

 

(5,235)


(8,958)

Interest paid


(5,774)

 

(8,192)


(15,521)



 

 




 


 

 




Net cash flows - financing activities


(228,218)

 

(289,605)


498,715

 


 

 




 


 

 




Net Decrease in cash


(865,688)

 

(932,616)


(1,911,491)




 




Effects of exchange rate changes on cash


(7,053)

 

333


(1,364)

Cash at beginning of period


1,138,093

 

3,050,948


3,050,948



 

 






 

 




Cash at the end of period


265,352

 

2,118,665


1,138,093

 

 

 

 





 

 

 




Comprising:

 

 

 




Cash and cash equivalents

 

265,352

 

2,118,665


1,138,093


 

 

 





 

 

 




Cash at end of period

 

265,352

 

2,118,665


1,138,093


 

 

 




 

The notes form part of these Condensed Consolidated Financial Statements.


 


CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023

 

 













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

(Loss) for the period

-

-




-



(1,132,872)

(1,132,872)

Other comprehensive charges - translation differences

 

-


 

-


 

-


 

-


 

-


 

333


 

-


 

333

Total comprehensive income for the period

-


-


-


-


-


333


(1,132,872)


(1,132,539)

















Transactions with owners:
















Share based expense

-


-


-


208,621


-


-


-


208,621


-


-


-


208,621


-


333


(1,132,872)


(923,918)

As at 30 September 2022

263,451


3,390,330


676,310


347,701


188,266


(31,990)


(2,254,197)


2,579,871

Profit for the period













1,774,926


1,774,926

Other comprehensive charges - translation differences

 

-


 

-


 

-


 

-


 

-


 

(3,386)


 

-


 

(3,386)

Total comprehensive income for the period

-


-


-


-


-


(3,386)


1,774,926



Transactions with owners:
















Movement on lapsed share options







(89,291)






89,291


-

Share based expense

-


-


-


129,835


-


-


-


129,835

As at 31 March 2023

263,451


3,390,330


676,310


388,245


188,266


(35,376)


(389,980)


4,481,246

















(Loss) for the period

-


-






-


-


(1,007,443)


(1,007,443)

Other comprehensive charges - translation differences

 

-


 

-


 

-


 

-


 

-


(7,053)


-


(7,053)

Total comprehensive income for the period

-


-


-


-


-


(7,053)


(1,007,443)


(1,014,496)

 

 
















Transactions with owners:
















Share based expense

-


-


-


145,592


-


-


-


145,592


-




-


145,592


-


(7,053)


(1,007,443)


(868,904)

















As at 30 September 2023

263,451

 

3,390,330

 

676,310

 

533,837

 

188,266

 

(42,429)

 

(1,397,423)

 

3,612,342

 

The notes form part of these Condensed Consolidated Financial Statements.

 

 

 


 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023

 

 

1. General Information

 

4Global plc is a public limited company incorporated in England and Wales and was admitted to trading on the AIM Market of the London Stock Exchange, under the ticker symbol 4GBL on 7 December 2021.

 

The Company was incorporated and registered in England and Wales on 22 July 2021 as a public company limited by shares, with the name 4Global plc and registered number 13523846.

 

This financial information issued by 4Global plc in compliance with its reporting obligations under the AIM Rules.

 

At 30 September 2023 the Company had issued share capital of 26,344,994 Ordinary Share of 1.0 pence.

 

The address of its registered office is Venture X, 5th Floor Building 7 Chiswick Park, 566 Chiswick High Road, Chiswick, London, United Kingdom, W4 5YG. and the registered company number is 13523846. The principal activity of the Company is the provision of advisory services in the sporting sector at a local, national and international level.

 

2. Significant accounting policies

 

2.1 Basis of preparation

 

The consolidated financial statements of 4Global PLC were prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the United Kingdom, IFRIC interpretations and the Companies Act 2006 applicable to companies applying IFRS. The interim report has been prepared in accordance with International Accounting Standard (IAS) 34 (Interim Financial Reporting). The information in this report has been drawn up using, in all material respects, the same accounting methods as those utilised in the Group's annual report and accounts for the year ended 31 March 2023.

 

3. Earnings per share

 



 

 






Six Months ended

 

Six Months ended


Year to



30 September

 

30 September


31 March



2023

 

2022


2023


Basic earnings per Ordinary Share

(unaudited)

 

(unaudited)


(audited)


 

 

 





 

£

 

£


£


Loss for the period

(1,007,443)

 

(1,132,872)


642,054


Weighted average number of Ordinary Shares

 

 





in issue

26,344,994

 

26,344,994


26,344,994



 

 





Basic loss per share (pence)

(3.8)p

 

(4.3)p


2.4p



 

 

 




Diluted earnings per Ordinary Share

 

 

 





 

 

 




(Loss)/profit for the period

 

 

 


642,054


Diluted weighted average number of shares in issue

 

 

 


28,895,722



 

 

 




Diluted loss/profit per share

(3.8)p

 

(4.3)p


2.2p



 

 

 



 

 



 

 






Six Months ended

 

Six Months ended


Year to



30 September

 

30 September


31 March



2023

 

2022


2023


Weighted average number of shares used as a denominator

 

(unaudited)

 

 

(unaudited)


 

(audited)


 

 

 





Shares in issue at 1 April 2023 and 2022

26,344,994


26,344,994


26,344,994



 

 





Adjustments for calculation of diluted earnings per share

 

 





Share options

 

 



2,133,752


Warrants

 

 



416,971



 

 



2,550,723



 

 






 

 



28,895,722



 

 

 



 

As the Group has reported a loss diluted earnings per share are equal to basic earnings per share.

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