REG - 4GLOBAL PLC - Trading Update and Contract Wins

4GlobalAnnouncement

17/03/2022 07:00

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RNS Number : 0512F  4GLOBAL PLC  17 March 2022

17 March 2022

4GLOBAL PLC

("4GLOBAL" or the "Company")

Trading Update and Contract Wins

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 a positive trading update for the year ending 31 March
2022 and significant new contract wins.

4GLOBAL experienced strong trading in the second half and the Company has
achieved revenue growth of approximately 35% for the year ending 31 March
2022, which is in-line with market expectations, with adjusted EBIT and EBITDA
expected to be significantly ahead of expectations* for the period, subject to
audit.

The interim results for the six months to 30 September 2021 (announced on 21
December 2021) highlighted the Company's strong project pipeline with good
visibility on subscription revenues. Progress has continued in final quarter
of the financial year with the award of a £225k project from a major sporting
event taking place this year. 4GLOBAL will be assisting and supporting the
delivery stages of the event and stakeholder management. This role is expected
to place 4GLOBAL at the centre of stakeholder coordination and management at
tournament, event rights owner and governmental levels.

The Company is also delighted to be awarded a contract to provide assistance
with the forthcoming Commonwealth Games in Birmingham this summer. 4GLOBAL is
providing support to manage the delivery of security operations for the entire
event. This role will provide assurances that the correct planning has been
undertaken to date, validating security strategies and testing operational
plans. The contract value is estimated at £130k with revenues expected to
accrue in the financial year 2022/23.

Further to the announcement on 17 January 2022, the Company is also pleased to
report that it has won a number of licence contracts with both local
authorities and operators for the use of 4GLOBAL's Social Value Calculator
("SVC"). The SVC enables leisure providers to measure and provide evidence of
the social value created from investment in sport and physical activity
enabling clients to calculate and estimate of the monetary value arising from
investment.

As part of the UK's Euro 2028 bid, 4GLOBAL has been appointed to assist the
Department for Digital, Culture, Media and Sport ("DCMS"). The contract value
is estimated at around £260k to be completed in the year ending 31 March
2022. The UK Government plans to invest circa £200m on new grassroot football
facilities in Scotland, Northern Ireland and Wales and 4GLOBAL's team has been
appointed to assist in evaluating where there is the greatest demand and
highest return on investment can be predicted. The Company will be deploying
its data, technology and know-how to advise on this project.

Eloy Mazon, Chief Executive Officer of 4GLOBAL commented:

"We are delighted by the current trading performance of the Company and our
unique business model is demonstrating again its value to governments, cities
and local authorities, sporting federations and activity providers across the
globe. The recent listing of the Company on AIM in December 2021 has added
significant credibility to our business, resulting in an enhanced pipeline of
new opportunities, which is at the highest point in the Company's history. As
a result of strong recurring revenues, new business wins and healthy pipeline
of opportunities, the Board is optimistic about the future prospects for the
Company."

*Broker research note dated 2 November 2021 - turnover of £3.6m and
(adjusted) EBIT expectations (before exceptional costs associated with the
Company's IPO in December 2021) of £316k and (adjusted) EBITDA of £325k for
the year ending 31 March 2022

 

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, Chris Crawford

 IFC Advisory                                   0203 934 6630
 Graham Herring / Zach Cohen                    07793 839 024

 

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About 4GLOBAL

4GLOBAL is a UK-based data, services and software company focused on major
sporting events and the promotion and measurement of physical activity. The
Company uses its proprietary data and software solutions to convert data into
actionable insight which enables clients to promote sports participation, to
reduce physical inactivity and to achieve economic, social and healthcare
outcomes.

The Company works with, and supports, a range of clients including governments
(e.g. the U.K. Government and Sport England), cities and local authorities
(e.g. Neom, Saudi Arabia, and Manchester, UK), sporting federations and
activity providers (e.g. The Gym Group), to address the problem of physical
inactivity, to produce significant and measurable health, social and economic
benefits.

Historically, 4GLOBAL has used major sporting events as a catalyst to help
address the issue of physical inactivity issue. Physical inactivity, the key
problem addressed by the technology offering, is a global phenomenon. Across
the globe, physical inactivity has yet to be met with concerted government
action. Addressing this issue is an essential element of 4GLOBAL's potential
growth. Its relationships with governments, and public and international
sports bodies, makes 4GLOBAL ideally placed to provide a solution.

Over time, the role that these sports and sporting events play at national and
city (or in the U.K. at local authority) level has evolved. 4GLOBAL management
identified the London 2012 Olympics as a transformational point. Since then,
increasing emphasis has been placed on leaving a "legacy" once the event has
ended - economic legacy (in terms of transformation and regeneration of host
cities), social legacy (in terms of improving local/national health, crime
reduction, education improvements) and participatory legacy (to increase the
participation in sport by the host country's population). 4GLOBAL's management
realised that measurement and monitoring of these outcomes requires relevant
data. As a consequence, the Company has built the Sport
Intelligence platform, which tracks and manages activity data that has been
collected and stored on the Company's DataHub, its GDPR-compliant database.

The Directors believe that demand for its offerings will continue to increase.
This is driven by underlying growth in key channels to market, such as a
long-standing relationship with the U.K. Government, and increased development
of proprietary models that highlight the social return of investment in sport,
rising health and social cost pressures, regulatory and technology change and
continuing consolidation in the sports and technology services industry.

The Group also has a vision to capitalise on the transformation in the role of
sport towards a wider public purpose around health and wellbeing through the
promotion of physical activity, which in turn produces health benefits to
people and society. In this way, and through its proprietary sports
participation data platform, Sport Intelligence, the Company differentiates
itself from more generalist sports and/or health technology and services
businesses.

 

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