REG - 4GLOBAL PLC - Interim Results
21/12/2021 07:00
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RNS Number : 2445W 4GLOBAL PLC 21 December 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
21 December 2021
4GLOBAL PLC
("4GLOBAL" or the "Company")
Interim Results
4GLOBAL, a UK-based data, services and software company focused on major
sporting events and the promotion and measurement of physical activity, is
pleased to announce its unaudited interim results for the six month period
ended 30 September 2021.
Financial Highlights
• Revenue for the six months was £1.3 million (Six months to 30 September 2020:
£0.9 million) an increase of 36.2%
• Gross profit margin improved from 62.7% to 71.9% reflecting an increase in the
proportion of subscription revenues which now represent 34.2% (six months to
30 September 2020: 30.6%) of the Group's revenue
• Operating profit of £0.1 million compared to a small loss for the comparable
period last year
• Earnings per share has increased from 0.14p to 0.57p
• Strong balance sheet and cash position after being strengthened by the IPO
fundraising
Operational Highlights
• £4 million contract with Sport England to license 4Global's platform to
evaluate, channel and manage funding into sport in the whole of England
through its local and city authorities.
$0.5 million contract with the Peruvian government with approximately 20% to
be delivered within this financial year.
• 4GLOBAL has secured contracts with:
Europe Active - which will allow us to farm data from activity providers in
Europe increasing further our already incredibly large database
DCMS - focusing on the social impact from the Birmingham 2022 Commonwealth
Games, jointly with KPMG, this involves the use of our platform to provide
on-going advice to DCMS over the next two years
Neom Project - in Saudi Arabia we have secured four additional contracts
providing the on-going use of our platform to assist in building the most
active and healthiest city in the world.
Multiple contracts with activity providers - to advise them on the recovery
of the sector and inform their re-opening strategy
• The Group has been retained by the City of Los Angeles to help understand how
to maximise the transformational power of the LA2028 games & Euros
2020 to assist the Football Association ("FA") in maximising the impact and
success of the European Championships
• Through the use of 4GLOBAL's platform, data and know-how, the Group have been
assisting Tokyo 2020 (ensuring their readiness to maximise the impact and
success of the delayed games) and ARCC G2G (aided the Peruvian Government on
the reconstruction of Northern Peru arising from El Niño to create active
communities)
• Increased headcount to support delivery of all client work and sales efforts
Eloy Mazon, Chief Executive Officer of 4GLOBAL, commented:
"I am delighted to present our first set of interim results since we joined
AIM at the beginning of December 2021, and I would like to welcome our new
shareholders and thank my colleagues and our advisers who have worked
tirelessly to successfully transition 4GLOBAL into a quoted Company.
"Our strong project pipeline provides us with good visibility on subscription
revenues and together with our existing opportunities, we are optimistic about
the Company's prospects. We view the future for 4GLOBAL with increasing
optimism. We are operating in an exciting high growth market where there is
increasing activity, and we look forward to updating shareholders with our
progress over the next few months."
For further information please contact:
4GLOBAL c/o IFC Advisory
Eloy Mazon (CEO)
Spark Advisory Partners - Nominated Adviser 0203 368 3554
Neil Baldwin
Oberon Capital - Broker 0203 179 5300
Michael Seabrook, Robert Hayward, Chris Crawford
IFC Advisory 0203 934 6630
Graham Herring / Zach Cohen 07793 839 024
A copy of the interim accounts is available from the Company's website
www.4global.com (http://www.4global.com) .
CHIEF EXECUTIVE STATEMENT
FOR THE PERIOD ENDED 30 SEPTEMBER 2021
I am delighted to present the Company's interim results for the Group for the
six months ended 30 September 2021. This is our first set of interim results
since we joined AIM at the beginning of December 2021 and I would like to
welcome our new shareholders and also to thank my colleagues and our advisers
who have worked tirelessly to successfully transition 4GLOBAL into a listed
company. The IPO was completed on 7 December when we were admitted to AIM
alongside a £4 million fundraising.
Revenue for the six months was £1.3 million (Six months to 30 September 2020:
£0.9 million) an increase of 36.2%. Although we split our revenue between
consultancy and subscription revenues we see these revenues as complementary.
We have shown growth in both our revenue streams, with consultancy up 29.1% to
£0.83 million and subscription revenues up 52.4% at £0.43 million for the
six months ended 30 September 2021.
In addition, our gross profit margin improved from 62.7% to 71.9% reflecting
an increase in the proportion of subscription revenues which now represent
34.2% (six months to 30 September 2020: 30.6%) of the Group's revenue. This is
also in line with our strategy to migrate to a more balanced split between
consulting and subscription revenues, the latter commanding higher margins.
Operating profit was £0.1 million compared to a small loss for the comparable
period last year. Earnings per share increased from 0.14p to 0.57p.
In line with our stated dividend policy of retaining earnings for capital
growth no dividend has been declared.
Operational Review
We are delighted with the performance of the Group during the first half of
the financial year. During the period we acquired a number of new clients and
also secured new contracts with existing clients for which we will continue to
deliver our services in the second half of this financial year and in some
cases into next financial year and beyond. Key highlights include:
Europe Active - we have secured a contract with Europe Active which will allow
us to farm data from activity providers in Europe further enhancing our large
database.
Department of Culture, Media & Sport ("DCMS")- 4GLOBAL was awarded a
contract to support DCMS jointly with KPMG. The contract involves the use of
our technology platform, data and know-how to provide on-going advice to DCMS
over the next two years. Our work focuses on the social impact from the
Birmingham 2022 Commonwealth Games.
Multiple contracts with activity providers to advise them, using our
platform, on the recovery of the sector and inform their re-opening strategy.
This was only possible due to the huge amount of data we have.4GLOBAL is the
only provider - to our knowledge - of this type of analysis worldwide.
Neom Project - Our relationship with the City of Neom in Saudi Arabia goes
from strength to strength and this year we have secured four additional
contracts which see 4GLOBAL providing the on-going use of our platform, data
and know how to assist in building the most active and healthiest city in the
world.
City of Los Angeles - 4GLOBAL has been retained to support the City Mayor's
office to help them understand how to maximise the transformational power of
the LA2028 games, as informed by our platform, data and know-how.
Lima Legacy Company - the Lima Legacy Company has licensed our platform to
help them maximise the social value generated from the 2019 PanAm games and
improve the return on investment from the Games.
Euros 2020 (took place in 2021) - 4GLOBAL has been retained to assist the FA
in maximising the impact and success of the Euros.
Tokyo 2020 (took place in 2021) - We assisted the City of Tokyo and the
Organising Committee in ensuring their readiness to maximise the impact and
success of the delayed games.
ARCC Government to Goverment - 4GLOBAL provided assistance to the Peruvian
Goverment through our platform, data and know-how on the reconstruction of
Northern Peru arising from El Niño to create active communities.
In addition to these contract wins we have strengthened our team increasing
headcount to support delivery of all client work and sales efforts.
As well as completing the IPO in the second half of the year, we have signed
two additional significant contracts since the half year end. Our initial work
with Sport England has enabled us to secure a £4 million contract over four
years to license our platform to evaluate, channel and manage funding into
sport in the whole of England through its local and city authorities. The
second contract, recently announced, is with the Peruvian government for
approximately $0.5 million with 20% to be delivered within this financial
year.
Outlook
The second six months have begun favourably and we are trading in line with
management expectations.
Our strong project pipeline provides us with good visibility on subscription
revenues and together with our existing opportunities we are optimistic about
the Company's future prospects.
Eloy Mazon
Chief Executive
21 December 2021
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 SEPTEMBER 2021
Note Period to Year to Period to
30 31 30
September March September
2021 2021 2020
(unaudited) (audited) (unaudited)
£ £ £
Revenue 1,262,032 2,678,774 926,357
Cost of sales (354,154) (851,346) (346,183)
Gross profit 907,878 1,827,428 580,174
Administrative expenses (805,588) (1,498,579) (636,554)
Other operating income 647 54,959 47,643
Operating profit/(loss) 102,937 383,808 (8,737)
Finance income 51 41 28
Finance cost (11,947) (27,323) (12,319)
Profit/(loss) before tax 91,041 356,526 (21,028)
Tax credit 34,195 39,525 50,806
Profit for the period 125,236 396,051 29,778
Other comprehensive income
Exchange differences on translation of foreign
operations (796) (16,277) (4,036)
Other comprehensive income for the period (796) (16,277) (4,036)
Total comprehensive income for the period 124,440 379,774 25,742
Total comprehensive income attributable to
the equity holders of the company 124,440 379,774 25,742
Basic profit - pence per share 0.57 1.81 0.14
Diluted profit - pence per share 0.57 1.81 0.14
The notes form an integral part of these Condensed Consolidated Financial
Statements.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2021
Note 30 31 30
September March September
2021 2021 2020
(unaudited) (audited) (unaudited)
£ £ £
Non-current assets
Property, plant and equipment 221,317 285,070 352,804
Current assets
Trade and other receivables 1,316,297 1,896,559 611,371
Cash and cash equivalents 1,417,840 775,342 796,668
2,734,137 2,671,901 1,408,039
Total assets 2,955,454 2,956,971 1,760,843
Equity and Liabilities
Equity
Share capital 1,097 1,097 1,050
Share redemption reserve 105 105 -
Share premium 894,491 894,491 -
Share-based payment reserve 62,243 31,773 -
Currency translation reserve (22,060) (21,264) (9,023)
Retained earnings 638,898 513,662 197,389
Total equity 1,574,774 1,419,864 189,416
Non-current liabilities
Borrowings 254,372 273,458 301,867
Lease liability 140,773 147,273 132,126
395,145 420,731 433,993
Current liabilities
Borrowings 50,009 45,833 16,168
Trade and other payables 861,150 936,140 906,117
Lease liability 74,376 134,403 215,149
Total current liabilities 985,535 1,116,376 1,137,434
Total liabilities 1,380,680 1,537,107 1,571,427
Total equity and liabilities 2,955,454 2,956,971 1,760,843
The notes form an integral part of these Condensed Consolidated Financial
Statements.
The Condensed Consolidated Financial Statements were approved and authorised
for issue by the Board of Directors on 21 December 2021 and were signed on its
behalf by:
Eloy Mazon Keith Sadler
Director Director
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 SEPTEMBER 2021
Period to Year to Period to
30 31 30
September March September
2021 2021 2020
(unaudited) (audited) (unaudited)
£ £ £
Cash flows from operating activities
Profit/(loss) before income tax for period 91,041 356,526 (21,028)
Adjustments to reconcile loss before tax to net cash flows:
Depreciation of tangible assets 71,059 142,127 72,745
Other income (647) (7,117) (3,558)
Finance income (51) (41) (28)
Finance cost 11,947 23,417 12,319
Equity-settled share-based payments 30,470 33,063 -
(Increase)/decrease in trade and other receivables (545,947) 460,523 728,881
Increase/(decrease) in trade and other payables 192,280 (557,473) (319,339)
Tax received - 133,660 -
Net cash flows - operating activities (149,848) 584,685 469,992
Cash flows from investing activities
Purchase of intangible assets (7,306) (4,936) (2,941)
Interest received 51 41 28
Net cash - investing activities (7,255) (4,895) (2,913)
Cash flows from financing activities
Issue of share capital 1,161,978 - -
Share issuance costs (268,625) - -
(Repayments of)/proceeds from borrowings (16,666) 250,000 250,000
Payments for shares bought back - (50,000) -
Lease liability principal payment (66,527) (129,895) (64,296)
Interest elements of lease payments (4,873) (13,705) (7,505)
Interest paid (4,671) (83) -
Net cash flows - financing activities 800,616 56,317 178,199
Net increase in cash 643,513 636,107 645,278
Effects of exchange rate changes on cash (1,015) (15,930) (3,775)
Cash at beginning of period 775,342 155,165 155,165
Cash at the end of period 1,417,840 775,342 796,668
Comprising:
Cash and cash equivalents 1,417,840 775,342 796,668
Cash at end of period 1,417,840 775,342 796,668
The notes form an integral part of these Condensed Consolidated Financial
Statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 SEPTEMBER 2021
Share-
Capital based Currency
Note Share redemption Share payment translation Retained Total
capital reserve premium reserve reserve earnings equity
£ £ £ £ £ £ £
At 1 April 2021 1,097 105 894,491 31,773 (21,264) 513,662 1,419,864
Profit for the period - - - - - 125,236 125,236
Other comprehensive income - - - - (796) - (796)
Total comprehensive income for the period - - - - (796) 125,236 124,440
Transactions with owners:
Share-based payments - - - 30,470 - - 30,470
Total transactions with owners - - - 30,470 - - 30,470
At 30 September 2021 1,097 105 894,491 62,243 (22,060) 638,898 1,574,774
The notes form an integral part of these Condensed Consolidated Financial
Statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2021
Share-
Capital based Currency
Share redemption Share payment translation Retained Total
Note capital reserve premium reserve reserve earnings equity
£ £ £ £ £ £ £
At 1 April 2020 1,050 - - - (4,987) 167,611 163,674
Profit for the year - - - - - 396,051 396,051
Other comprehensive income for the year - - - - (16,277) - (16,277)
Total comprehensive income for the year - - - - (16,277) 396,051 379,774
Transactions with owners:
Repurchase of shares (105) 105 - - - (50,000) (50,000)
Issue of shares, net of costs 135 - 885,192 - - - 885,327
-
Share-based payments - - - 33,063 - - -
Exercise of share options 17 - 9,299 (1,290) - - 8,026
Total transactions with owners 47 105 894,491 31,773 - (50,000) 876,416
At 31 March 2021 1,097 105 894,491 31,773 (21,264) 513,662 1,419,864
The notes form an integral part of these Condensed Consolidated Financial
Statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
Share-
Capital based Currency
Note Share redemption Share payment translation Retained Total
capital reserve premium reserve reserve earnings equity
£ £ £ £ £ £ £
At 1 April 2020 1,050 - - - (4,987) 167,611 163,674
Profit for the period - - - - - 29,778 29,778
Other comprehensive income - - - - (4,036) - (4,036)
Total comprehensive income for the period - - - - (4,036) 29,778 25,742
At 30 September 2020 1,050 - - - (9,023) 197,389 189,416
The notes form an integral part of these Condensed Consolidated Financial
Statements.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2021
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.
On 11 November 2021 the Company allotted 21,938,300 ordinary shares, pursuant
to a share sale and purchase agreement, to the shareholders of 4GLOBAL
Consulting Limited and 4GLOBAL Consulting Limited became a wholly owned
subsidiary undertaking of the Company.
This financial information, issued by 4GLOBAL plc in compliance with its
reporting obligations under the AIM Rules for Companies, is financial
information of 4GLOBAL Consulting Limited, its wholly owned subsidiary
undertaking, which was acquired after the reporting date.
At 30 September 2021 the Company had issued share capital of 1 Ordinary Share
of £1.
The address of its registered office is Venture X, 5(th) 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 Consulting Limited, as
included in the admission document at 31 March 2021 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, including the
interim financial information of 4Global Consulting Limited, 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
admission document.
3. Revenue
Analysis of revenue by category Period to 30 Year to 31 Period to 30
September March September
2021 2021 2020
(unaudited) (audited) (unaudited)
£ £ £
Consultancy 830,040 1,919,719 658,669
Subscriptions 431,992 759,055 267,688
1,262,032 2,678,774 926,357
Analysis of revenue by geography Period to 30 Year to 31 Period to 30
September March September
2021 2021 2020
(unaudited) (audited) (unaudited)
£ £ £
Europe 707,614 1,569,280 470,123
South America 442,745 358,413 116,985
Middle East 83,476 727,508 328,426
Other 28,197 23,573 10,823
1,262,032 2,678,774 926,357
4. Pro forma earnings per share
As detailed in note 6, 21,938,300 shares in the Company were issued to the
shareholders of 4GLOBAL Consulting Limited under a share purchase agreement.
Information on earnings per share in the financial information of 4GLOBAL
Consulting Limited is presented as if the share purchase agreement had taken
place at the start of the reporting period and reflects, on a pro-forma basis,
the number of shares in the Company issued to shareholders in 4GLOBAL
Consulting Limited.
Period to Year to Period to
30 31 30
September March September
2021 2021 2020
Basic earnings per Ordinary Share (unaudited) (audited) (unaudited)
£ £ £
Profit for the period 125,236 396,051 29,778
Weighted average number of Ordinary Shares 21,938,300 21,938,300 21,938,300
in issue
Basic earnings per share (pence) 0.57 1.81 0.14
It is considered that diluted earnings per share are equal to basic earnings
per share.
5. Share-based payments
The following table shows the movements in the share-based payment reserve
during the period:
WAEP
Number £
Outstanding at 1 April 2021 44,268
Granted during the period -
Exercised during the period -
At 30 September 2021 44,268 £8.98
Subsequent to the period end, 41,514 of the options were waived in exchange
for £1,000,000 in consideration. The remaining 2,754 options were surrendered
for nil consideration. On admission of the shares of Company to trading on
AIM, 2,305,872 new share options in the Company were granted with a weighted
average exercise price of 77.77 pence.
6. Events after the financial reporting date
On 11 November 2021 the Company allotted 21,938,300 ordinary shares, pursuant
to a share sale and purchase agreement, to the shareholders of 4GLOBAL
Consulting Limited and 4GLOBAL Consulting Limited became a wholly owned
subsidiary undertaking of the Company.
On 7 December 2021 the Company allotted and issued 4,024,729 placing shares,
10,989 fee shares and 370,876 subscription shares to raise gross proceeds of
£4 million and its issued share capital was admitted to trading on the AIM
market under the ticker symbol 4GBL.
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