REG - 4GLOBAL PLC - Trading Update

4GlobalAnnouncement

19/03/2025 07:00

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RNS Number : 1744B  4GLOBAL PLC  19 March 2025

 

4GLOBAL plc

("4GLOBAL" or the "Group")

 

Trading Update

 

4GLOBAL (AIM: 4GBL), a provider of data and technology for sports, fitness and
wellness organisations to optimise operational and investment decisions,
announces an update on trading for the year ending 31 March 2025 ("FY25").

 

Strategic Transition

 

As previously communicated, this financial year marked a significant strategic
transition for 4GLOBAL, with the Group successfully shifting its market focus
from the Middle East to North America.

 

Given the scale of this transition delivery schedules in the final weeks of
the financial year have been affected, with certain contracts originally
expected in FY25 now anticipated to fall in FY26. As a result, the Board
expects FY25 revenue to be between £5.1m and £5.3m and adjusted EBITDA(1,2)
to be between £0.9m and £1.0m(3).

 

The Board stated in the interim results that an additional provision for the
outstanding Middle East debt would be considered in H2. Following extensive
efforts to recover it, the Board has determined a full provision in FY25 to be
the most prudent course of action, enabling the Group to allocate more
resources to its core growth markets going forward.

 

At the year-end, the Group expects to report cash between £0.2m and £0.5m.
Certainty around the timing of receipts has improved with the transition in
geographical markets and the establishment of strong commercial relationships
with new customers. Securing new multi-year contracts will further enhance
cash visibility for FY26.

 

Geographic Performance

 

The strategic transition from the Middle East to North America is driving
long-term improvements in revenue and margin, with a growing proportion of
higher margin, recurring and repeatable contracts.

 

At the end of February 2025, revenue from North America had increased 145%
year-on-year to approximately £1.6 million, reflecting strong demand and the
Group's growing commercial traction in the region. This growth has exceeded
internal expectations, providing further validation of the Group's decision to
prioritise the region.

 

Growth in North America has offset some of the planned reduction in the Middle
East, where FY25 revenue is expected to decrease by 84% from £2.5m to £0.4
million following the Group's previously announced decision to implement a
stricter commercial mandate.

 

The Group's home markets remain strong with recurring contracts and
relationships with key partners in the region, with FY25 revenue from the UK
and Europe expected to remain in line with the prior year at approximately
£3.1 million.

 

In H2 of FY25 to date, the Group has secured multi-year contracts in North
America, the UK and Europe worth over £5 million in total(4), reflecting
strong demand, an effective go-to-market strategy and providing greater
visibility over future revenue.

 

Shift Towards Recurring Revenue and Scalable Solutions

 

Alongside the shift in geographic focus, the Group has continued its
transition towards higher margin, recurring and repeatable revenue Insight
Solutions and Insight Platform products.

 

In FY24, revenue was 60% data-driven and 40% consultancy-driven. At the end of
February 2025, data-driven revenue had increased to 81%, reflecting a
significantly reduced reliance on lower margin, project-based work in line
with the Group's long-term strategic focus on more predictable, higher quality
revenue streams.

 

Outlook

 

The Group will continue to expand in its core markets - North America and
Europe - where key client relationships have been established and significant
opportunities exist to drive revenue and profit growth.

 

Innovation will remain at the forefront of the business. The recently
announced launch of SportPulse has expanded the Group's addressable market,
while Insight.OS enhances the accessibility of the Group's data asset,
accelerates sales cycles and reduces on-boarding times.

 

Working capital is anticipated to continue to improve following the strategic
transition to North America. The region offers a substantial market
opportunity and attractive commercial terms with greater payment
predictability.

 

Eloy Mazon, CEO of 4GLOBAL, commented:

 

"While the timing of contract signings and delivery schedules at the end of
the year, alongside the provision against the Middle East debtor has affected
FY25, the underlying momentum in the business is clear, and we remain
confident in our direction.

 

"This has been a pivotal year for 4GLOBAL, and I am incredibly proud of the
pace and scale of progress achieved by our teams during this transition.
Successfully entering and rapidly gaining traction in North America while
pivoting away from the Middle East is a major strategic achievement. The
strong revenue growth in North America, alongside the establishment of
relationships with key anchor clients and a growing pipeline of multi-year
contracts, reinforces the demand for our solutions and positions us for
long-term, sustainable growth.

 

"Our offering is now more defined, targeted, and scalable, with a growing
proportion of high-margin, recurring revenue. The foundation we have built
also enables us to serve a much larger addressable market. The opportunity
ahead is substantial, and we are well-positioned to capitalise on it."

( )

(1)Adjusted EBITDA is defined as statutory profit from operations before
interest, taxation, depreciation, share based payment expense, foreign
exchange losses and exceptional items (i.e. bad debt provisions)

(2)Figures included in this RNS are unaudited

(3)Analyst forecasts for the year ending 31 March 2025 prior to this
announcement were £7.6m in revenue, £1.9m in adjusted EBITDA and £1m in
cash at year-end

(4)Booked revenue for FY26 and subsequent years

 

Contacts

 

   4GLOBAL                                       via Alma
   Eloy Mazon (CEO)
   Stuart Wooller (Group Finance Director)

   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
   Rebecca Sanders-Hewett                        4global@almastrategic.com (mailto:4global@almastrategic.com)
   David Ison
   Louisa El-Ahwal
   Josh Royston
   Will Ellis Hancock

 

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.

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