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RNS Number : 3701K 4GLOBAL PLC 21 December 2022
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
21 December 2022
4GLOBAL PLC
("4GLOBAL", "Group" or the "Company")
Interim Results
4GLOBAL, a UK-based data, services and software company focused on major
sporting events and the promotion and measurement of physical activity, is
pleased to announce its unaudited interim results for the six-month period
ended 30 September 2022.
The six months to 30 September 2022 have been a period of investment and
growth through significant new business wins, laying the foundation for future
international growth and strengthening the management team and PLC systems and
processes.
As expected, Group revenue generation profile is significantly weighted to the
second half of the year, as it has been in previous years. As we enter the
final quarter of the financial year, management has confidence in meeting full
year market expectations.
Financial highlights for the period
• Revenue for the six months was £1.4m (2021: £1.3m) an increase of 10%.
• Adjusted loss £0.8m (2021 profit: £0.2m prior to Company being listed on AIM
with significantly different cost base).
• Robust balance sheet with cash balances of £2.1m (2021: £1.4m).
Post period financial highlights
• Revenue at the end of November 2022 stands at £3m (unaudited).
• In addition to the £1.4m revenue in period, a further £3m has already been
booked to date to be delivered in this FY, which consists of significantly
higher margin contracts than in the first half.
• Sales pipeline of £30m of which £7.3m (£6.1m at proposal stage) would fall
in the current financial year.
Key new business wins and partnerships - year to date:
• Total contracted work to be delivered this and subsequent years stands at
£9.1m
• Multi-year agreement for an initial project amount of £4.0m in the Middle
East with MACE
• Major sporting event in the Middle East with initial project amount of £200k
• Peru reconstruction programme contract extension for an initial amount of
£360k
• Sport England moving communities increase scoped for a value of £100k
• UK Active project for a value of £90k
• England Netball insight modules and datahub for a value of £70k.
• Other technology contracts for value in excess of £500k
• Key partnerships agreements with:
1. Jonas - a leading global data software company focused on the Leisure
sector owned by Constellation Group PLC
2. MACE - a leading global Construction company
3. Al Jassra Group - an international conglomerate with revenues exceeding
£1bn globally
4. Fitness Industry Council of Canada ("FICC") and USA National Fitness
Association ("IHRSA")
5. TechnoGym - a global Fitness equipment and data company
6. Les Mills - a leading activity provider
Operational highlights
• During the period, the Group has successfully laid the foundations through
client and partner agreements to launch the DataHub product in the North
American and European market in the first half of next year.
• The North American launch next year will be underpinned by:
1. Partnership with Jonas, a current UK DataHub partner. Jonas (a
Constellation PLC company) will provide access to activity data from 16,000
gyms across the US/Canada and will act as a sales channel for revenue
generation.
2. Partnership with FICC and IHRSA - its equivalent in the USA. These
organisations provide the Group with a pipeline of end user clients, access to
physical activity data and market endorsement.
• The European Data hub launched in the first half of next year through a
partnership with Europe Active, the trade body for gyms and activity
facilities across key European markets. The Group is currently tracking over
3,500 facilities and 11 million unique individuals from 14 European countries.
• The Company hired Kerstin Obenauer as Chief Customer Officer. Kerstin will
lead and build sales capability for the Group. Kerstin brings with her a
wealth of experience and credibility as well as an extensive network in the
international sports data market.
• During this period, the Group has successfully worked with the England
Football Association to deliver and maximise the benefits from the Women Euros
tournament and it is currently providing significant operational support to
another major football tournament in the Middle East.
• To underpin its future growth in new international markets, the Group has
invested in Salesforce as group wide CRM system, providing a more granular
visibility on the sales pipeline and margin management.
• Further investment has been made into the DataHub product to support the
international expansion and the number of data integrations has grown from
circa 50 at IPO to more than 75 to date.
Eloy Mazon, Chief Executive Officer of 4GLOBAL, commented:
"Recent trading has been strong which provides the management with confidence
of achieving revenue and profit growth. This year the Group has put in place
the key building blocks for accelerating growth within the business. It has a
current booked revenue of £4.4m (£1.4m delivered in H1 and £3m to be
delivered in H2) with some high margin contracts to be delivered in the second
six months of the financial year. In addition, the Company is actively
pursuing £30m of new opportunities some of which will fall into this
financial year.
"Our multimillion-dollar client wins with MACE in the Middle East,
Technogym, Al Jassra Group and key partnerships with leading sport/physical
activity data partners such as Jonas, IHRSA and FICC in North America provide
us with confidence and excitement about the continued international expansion
of the 4GLOBAL business."
For further information contact
4GLOBAL plc 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 / Adam Pollock / Chris Crawford
IFC Advisory 0203 934 6630
Graham Herring / Zach Cohen
A copy of the interim accounts is available from the Company's website
www.4global.com.
Company registration number: 13523846
CHIEF EXECUTIVE'S STATEMENT
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
The six months to 30 September 2022 was a period of investment for the Group
as it delivered a 10% increase in revenue to £1.4m (30 September 2021:
£1.3m) and it has accelerated its investment in products and platforms which
is reflected in the Group's total contracted work to date of £8.9m - of which
£4.4m (£1.4m in H1 plus £3m) will be delivered this financial year -
together with a total opportunity pipeline of £30m.
The £3m of booked revenue, to be delivered in the second six months of the
financial year, consists of high margin contracts which will have a
significant impact on the EBITDA line. The Group has also won new
multi-million pound multi-year agreements, which enhances visibility over
future revenues.
As expected, Group revenue generation profile is weighted to the second half
of the year as it has been in previous periods. The Group invested
significantly in the first half of the financial year, in comparison to the
six months ended 30 September 2021, prior to its listing, as it transitioned
to being a public company whilst investing in business capabilities and key
talent to support its international expansion.
This investment, which is showing a return in the order book, pipeline and
international expansion, has meant the Group has produced an adjusted loss
from operations of £0.8m (30 September 2021 profit: £0.2m(1)), which
management anticipates recovering in the second half of the year.
(1) The cost figure for 30 September 2021 is prior to the company being listed
and therefore the cost base is significantly different.
Management remains focused on delivering the market expectations' growth for
the full year through investment in the core foundations of the DataHub
product, international expansion, and in upgrading business capabilities and
key talent. Key progress milestones have been met in each area.
The Group is developing strategic partnerships which provide a cost-effective
entrance into target markets for the full recurring data software and services
model that the Company currently operates in the UK. In addition to this, the
partnerships also provide a channel to clients as well as a vehicle to
accelerate data acquisition and the growth of the core asset; the DataHub. At
present, the Group is focus on three core markets: North America, Europe and
the Middle East.
During the period, 4GLOBAL has accelerated its planned expansion into North
America and laid the foundations through client and partner agreements to
launch its products and services in the market in the first half of next year.
The North American expansion is underpinned by three core partnerships:
1. Jonas - the Group has a long standing successfully commercial relationship
with Jonas - part of Constellation Group PLC - in the UK. This relationship
has now been extended to the North American market where Jonas is the leading
solutions provider to the fitness, leisure and sport sector with over 16,000
sport facilities in their books. These partnerships will allow the Group to
significantly accelerate the deployment of its data and software
products/solutions in the market to generate revenues and it will add
significant amount of data to the DataHub increasing the value of this core
asset to the business.
2. FICC - the relationship between the Group and FICC has gone from strength to
strength, and it culminated with the launch of the Social Value Calculator
product in the market earlier this year. FICC represents over 6,000 facilities
and 6 million members nationwide, this relationship is key to the Group to
have direct access to the market, data and the endorsement from FICC.
3. IHRSA - the Group was delighted to sign a partnership agreement with IRSHA
that will drive similar benefits to the relationship with FICC in the USA
market which is key to the Group's growth, and it will accelerate the Group's
ability to grow the amount of data in the DataHub from this market.
Expansion in the European market continues to progress. The European DataHub
was launched as part of the project with EuropeActive and it is already
tracking over 3,500 facilities and 11 million individuals from 14 countries
across the EU. This has allowed the Group to start marketing and selling its
products in Europe at the same time that it continues to grow the DataHub and
therefore its ability to service more clients, generate revenues and further
strengthen its position in the market.
In the Middle East, the Group has developed key relationships with Al Jassra
Group - an international conglomerate with revenues exceeding £1bn globally -
and MACE Group - global infrastructure experts with revenues in excess of
£400m. These partnerships have already generated contracts since 30 September
2022 in the region as well as they have generated potential multi-million
pound opportunities active tendering opportunities for 4GLOBAL.
Since IPO in December 2021, the Group has strengthened the delivery and senior
leadership teams, in particular hiring Kerstin Obenauer as Chief Customer
Officer. Kerstin was previously UK country director at fitness technology
supplier, eGYM, based in Munich, and has over 20 years' experience in the
fitness sector.
Kerstin brings with her a wealth of experience and credibility as well as an
extensive network in European market. She has led the implementation of a new
CRM system and customer centric infrastructure yielding new business wins in
the year to date with MACE in the Middle East, Qatar and Technogym totalling
more than £5m.
During the six months ended 30 September 2022, the Group has invested in the
development of existing product and new product lines to allow the Company to
maximise in the short and medium terms on opportunities in markets in which it
currently operates. Since the IPO the Group has increased its number of
integrations from circa 50 to more than 75 allowing this way more data to flow
into the DataHub and therefore increasing its value to our customers as well
as allowing the Group to operate in new geographies.
The Group continually reviews its products and develop enhancements that
increase its market and offering into target markets.
The Group has a robust balance sheet with cash and cash equivalents of £2.1m,
£4.4m of contracted work for the current financial year and a strong sales
pipeline for the current year of £7.3m (full pipeline value stands at £30m).
Management has laid strong foundations to sustain fast growth of its business.
Board Change
After assisting the Group through its IPO, Roger Taylor decided to resign from
the Board in October 2022. Roger brought insight and advice to the Board who
would like to thank him for his contribution.
Outlook
Recent trading has been strong which provides the management with confidence
of achieving revenue and profit growth. This year the Group has put in place
the key building blocks for driving significant growth within the business. It
has a current order book of £4.4m (£1.4m delivered in H1 and £3m to be
delivered in H2) with some high margin contracts to be delivered in the second
six months of the financial year. In addition, the Company is actively
pursuing £30m of new opportunities some of which will fall into this
financial year.
As a result, the Board is confident about the prospects of the Group and views
the future with confidence.
Eloy Mazon
Chief Executive
20 December 2022
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
Note Six months ended Six months ended Year to
30 September 30 September 31 March
2022 2021 2022
(unaudited) (unaudited) (audited)
£ £ £
Revenue 1,389,429 1,262,032 3,639,930
Cost of sales (704,510) (354,154) (1,024,175)
Gross profit 684,919 907,878 2,615,755
Administrative expenses (1,474,743) (805,588) (2,043,103)
Other operating income 14,000 647 647
Analysed as follows:
Adjusted (loss)/profit from operations (775,824) 204,360 573,299
Depreciation (181,462) (70,953) (196,756)
Share based payment expense (208,620) (30,470) (169,550)
Exceptional items (54,000) - (2,071,782)
Operating profit/(loss) (1,219,906) 102,937 (1,864,789)
Finance income 1,439 51 73
Finance cost (17,736) (11,947) (23,977)
Profit/(loss) before tax (1,236,186) 91,041 (1,888,693)
Tax credit 103,314 34,195 242,581
Profit for the period (1,132,872) 125,236 (1,646,112)
Other comprehensive income
Exchange differences on translation of foreign
operations 333 (796) (11,058)
Other comprehensive income for the period 333 (796) (11,058)
Total comprehensive income for the period
(1,132,439) 124,440 (1,657,170)
Total comprehensive income attributable to the equity holders of the company (1,132,539) 124,440 (1,657,170)
Basic profit - pence per share (4.3)p 0.57p (7.1)p
Diluted profit - pence per share (4.3)p 0.57p (7.1)p
The notes form part of these Condensed Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2022
Note
As at 30 September 30 September 31 March
2022 2021 2022
(unaudited) (unaudited) (audited)
£ £ £
Non-current assets
Intangible assets 197,107 - -
Property, plant and equipment 218,301 221,317 411,360
Total non-current assets 415,408 221,317 411,360
Current assets
Trade and other receivables 1,084,891 1,316,297 1,764,482
Cash and cash equivalents 2,118,665 1,417,840 3,050,948
3,203,557 2,734,137 4,815,430
Total assets 3,618,965 2,955,454 5,226,790
Equity and Liabilities
Equity
Share capital 263,451 1,097 263,451
Share redemption reserve - 105 -
Share premium 3,390,330 894,491 3,390,330
Merger reserve 676,310 - 676,310
Share option reserve 347,701 62,243 139,080
Share warrant reserve 188,266 188,266
Currency translation reserve (31,990) (22,060) (32,323)
Retained earnings (2,254,197) 638,898 (1,121,325)
Total equity 2,579,871 1,574,774 3,503,789
Non-current liabilities
Borrowings 133,703 254,372 158,823
Lease liability - 140,773 -
133,703 395,145 158,823
Current liabilities
Borrowings 50,130 50,009 121,814
Trade and other payables 676,515 861,150 1,088,553
Lease liability 178,746 74,376 353,811
Total current liabilities 905,391 985,535 1,564,178
Total liabilities 1,039,094 1,380,680 1,723,001
Total equity and liabilities 3,618,965 2,955,454 5,226,790
The notes form part of these Condensed Consolidated Financial Statements.
The Condensed Consolidated Financial Statements were approved and authorised
for issue by the Board of Directors on 20 December 2022.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
Six months to Six months to Year to
30 September 30 September 31 March
2022 2021 2022
(unaudited) (unaudited) (audited)
£ £ £
Cash flows from operating activities
Profit/(loss) before income tax for period (1,236,086) 91,041 (1,888,693)
Adjustments to reconcile loss before tax to net cash flows:
Depreciation of tangible assets 181,462 71,059 196,723
Loss on disposal of fixed assets - - (9,894)
Other income - (647) -
Finance income (1,439) (51) -
Finance cost 17,736 11,947 23,977
Equity-settled share-based expense/warrants 208,620 30,470 169,550
(Increase)/decrease in trade and other receivables 520,729 (545,947) 390,838
Increase/(decrease) in trade and other payables (223,168) 192,280 63,587
Tax received 103,708 - -
Net cash flows - operating activities (428,438) (149,848) (1,053,912)
Cash flows from investing activities
Purchase of intangible assets (197,107) (7,306) (23,773)
Purchase of Tangible assets (18,905) - -
Interest received 1,439 51 73
Net cash - investing activities (214,573) (7,255) (23,700)
Cash flows from financing activities
Issue of share capital - 1,161,978 3,612,662
Share issuance costs - (268,625) -
(Repayments of)/proceeds from borrowings (101,113) (16,666) (41,168)
Lease liability principal payment (175,065) (66,527) (186,470)
Interest elements of lease payments (5,235) (4,873) (10,780)
Interest paid (8,192) (4,671) (9,445)
Net cash flows - financing activities (289,605) 800,616 3,364,799
Net increase in cash (932,616) 643,513 2,287,187
Effects of exchange rate changes on cash 333 (1,015) (11,581)
Cash at beginning of period 3,050,948 775,342 775,342
Cash at the end of period 2,118,665 1,417,840 3,050,948
Comprising:
Cash and cash equivalents 2,118,665 1,417,840 3,050,948
Cash at end of period 2,118,665 1,417,840 3,050,948
The notes form part of these Condensed Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
Capital Currency
Share redemption Share Merger Share option Share warrant translation Retained Total
capital reserve premium reserve reserve reserve reserve earnings Equity
£ £ £ £ £ £ £ £ £
As at 31 March 2021 - restated 1,097 105 894,491 - 31,773 - (21,264) 485,206 1,391,407
(Loss) for the year - - - - (1,646,112) (1,646,112)
Other comprehensive charges - translation differences
- - - - - - (11,058) - (11,058)
Total comprehensive income for the year
- - - - - - (11,058) (1,583,869) (1,623,383)
Transactions with owners:
Issue of shares, net of costs 262,354 (105) 2,684,105 676,310 - - - - 3,622,664
Deferred tax on share options - - - - - - - 1,259 1,259
Share based expense - - - - 169,550 - - - 169,550
Share options cancelled fair value adjustment
- - - - - - - (23,921) (23,921)
Share options waived - - - - (62,243) - - - (62,243)
Issue of warrants - - (188,266) - - 188,266 - - -
262,354 - 3,390,330 676,310 107,307 188,266 - (22,662) 3,707,309
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 year - - - - - (1,132,872) (1,132,872)
Other comprehensive charges - translation differences
- - - - - - 333 - 333
Total comprehensive income for the year
- - - - - - 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
The notes form part of these Condensed Consolidated Financial Statements.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
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.
At 30 September 2022 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, 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 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
2022 The comparative information for the six months to 30 September 2021 is
for 4 Global Consulting Limited and as presented in the Company's Admission
Document in December 2021.
3. Revenue
Analysis of revenue by category Six Months ended Six Months ended Year to
30 September 30 September 31 March
2022 2021 2022
(unaudited) (unaudited) (audited)
£ £ £
Consultancy services revenue 630,933 830,040 2,087,249
Technology revenue 758,498 431,992 1,552,681
1,389,431 1,262,032 3,639,930
Analysis of revenue by geography Six Months ended Six Months ended Year to
30 September 30 September 31 March
2022 2021 2022
(unaudited) (unaudited) (audited)
£ £ £
Europe 1,092,698 707,614 2,351,970
South America 142,050 442,745 890,608
Middle East 154,601 83,476 362,383
Other - 28,197 34,969
1,389,431 1,262,032 3,639,930
4. Earnings per share
To prepare the company for its listing a 200:1 share split took place during
the year 31 March 2022 which increased the number of shares in issue to
21,938,400 at the time of the share split. In December 2021 the Company listed
on AIM and issued a further 4,406,594 ordinary shares.
Six Months ended Six Months ended Year to
30 September 30 September 31 March
2022 2021 2022
Basic earnings per Ordinary Share (unaudited) (unaudited) (audited)
£ £ £
Profit for the period (1,236,186) 125,236 (1,646,112)
Weighted average number of Ordinary Shares
in issue 26,344,994 21,938,400 23,314,706
Basic earnings per share (pence) (4.7)p 0.57p (7.1)p
Six Months ended Six Months ended Year to
30 September 30 September 31 March
2022 2021 2022
Weighted average number of shares used as a denominator
(unaudited) (unaudited) (audited)
Shares in issue at 1 April 2022 and 2021 26,344,994 109,692 109,692
Share split 1:200 21,938,400 21,938,400 21,938,400
Weighted number of shares issued in the period 4,406,594 - 1,376,306
26,344,994 21,938,400 23,314,706
Adjustments for calculation of diluted earnings per share
Share options 1,876,285 - 720,190
Warrants 339,289 - 130,232
2,215,574 - 850,422
28,560,568 21,938,400 24,165,128
As the Group has reported a loss 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:
Number £
Outstanding at 1 April 2022 2,305,872 78p
Granted during the period - -
Exercised during the period - -
At 30 September 2022 2,305,872 78p
On admission of the Company, 2,305,872 new share options in the Company were
granted with a weighted average exercise price of 77.77 pence.
4GLOBAL PLC
DIRECTORS, SECRETARY AND ADVISERS
Directors Ian James (Non-executive Chairman)
Eloy Mazon (Chief Executive Officer)
Keith Sadler (Chief Financial Officer)
Steven Clarke (Non-executive Director)
Alexandra Orlando (Non-executive Director)
Roger Taylor (Non-executive Director) (resigned 1 October 2022)
Company Secretary Keith Sadler
Registered office Venture X
5(th) Floor, Building 7, Chiswick Park
566 Chiswick High Road, Chiswick
London, W4 5YG
Website address www.4global.com (http://www.4global.com)
Nominated advisor SPARK Advisory Partners Limited
5 St John's Lane
London
EC1M 4BH
Broker Oberon Capital
65 Curzon Street
London
W1J 8PE
Independent auditor Crowe U.K. LLP
55 Ludgate Hill
London
EC4M 7JW
Legal Advisers to the Company Fladgate LLP
16 Great Queen Street
London
WC2B 5DG
Registrars Neville Registrars Limited
Neville House
Steelpark Road
Halesowen
B62 8HD
Public Relations Adviser to the IFC Advisory Limited
Company Birchin Court
20 Birchin Lane
London
EC3V 9DU
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