REG - GRC Intnl.Group PLC - Trading Update

Grc InternationalAnnouncement

03/05/2022 07:00

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RNS Number : 9334J  GRC International Group PLC  03 May 2022

3 May 2022

 

GRC International Group PLC

("GRC" or the "Group")

 

Year-end trading update

 

GRC International Group PLC (AIM: GRC), the international governance, risk
management and compliance company whose main business is cyber
defence-in-depth, announces a trading update for the 12 months ended 31 March
2022.

 

Highlights

·           Billings* up 21% to £14.8m (FY21: £12.2m).

•      Q4 billings up 25% to £4.5m (FY21: £3.6m). Notably, March
2022 billings highest since end of GDPR peak (May 2018), despite
macro-economic headwinds.

·           FY22 billings from recurring revenue products
accounting for 56% of total billings (FY21: 54%).

·           Recurring revenue subscriber base up 41% to 5,089
(FY21: 3,600).

·           57% of transactions from returning existing customers
(FY21: 45%).

·         H2 revenue growth continues in line with progress made in H1 -
Q4 FY22 revenues of not less than £4.0m up 14% (Q4 FY21: £3.5m).

·        EBITDA of at least £0.8m (FY21: EBITDA loss £1.1m). H1:
£0.4m, H2: at least £0.4m, with Q4: at least £0.3m).

·      Year-end cash £2.0m (2021: £0.2m), reflecting January 2022
share placing and exceptionally strong February and March trading and cash
performance.

 

The Group is seeing significant international growth opportunities in the
digitally transformed, Cloud-based, increasingly vulnerable, hybrid-working
environment as a result of:

·           Corporates, large and small, domestic and
multinational, having to deal with increasingly complex regulations and
enforcement in the Group's three primary geographic markets of UK, EU and US;

·           All clients facing escalating nation-state and criminal
(serious organised crime) cyber attacks; and

·           The significant and deep-seated cyber and compliance
skills deficits.

 

In January 2022, GRC completed a £3m oversubscribed share placing. This is
enabling the Group to continue its product investment and business automation
programmes, including the development of new features and functionality across
all units in the SaaS division, at the same time as making agreed repayments
against the deferred HMRC tax liabilities that arose through the pandemic.

 

The investment in the SaaS division underpins the Group's cyber
defence-in-depth offering and is expected to support the Board's expectation
of continued double-digit organic billings growth for that division in FY23.

 

During Q4, the Group's cyber security incident response service achieved CREST
accreditation. This, combined with GRC's unique Cyber Safeguard service
package, which includes cyber insurance from Hamilton Insurance, enables the
Group to support a growing number of customers that are particularly exposed
to cyber attacks.

 

On 1 April 2022, the Group launched a Cloud Security consultancy service to
help mid-sized corporate clients ensure that their Cloud infrastructures are
securely configured. The service is fully described on the UK website and sold
directly to our existing medium and large consultancy clients through our
consultancy and professional services teams. Allied with the Group's Microsoft
Global Training Partnership, this expands the footprint in the fast-growing
Cloud security market.

 

Alan Calder, Chief Executive Officer, commented:

 

"Our strong performance in calendar 2021 continued into Q4 of FY22, resulting
in our best month of billing, despite the economic and geopolitical headwinds.
That strong momentum in Q4 and cash generation have continued into the start
of the new financial year.

 

"Our technology capabilities and our track record, with deep expertise and
cyber defence-in-depth model, provide our clients with peace of mind. They
know their assets are safe and, equally importantly, comply with the numerous
cyber regulations.

 

"As we have previously stated, our strategy is to grow organically and by
acquisition - the latter to deepen and widen our offering. To that end, we are
making good progress to execute on our acquisition plans."

 

* Billings equate to the total value of invoices raised as cash sales through
the Group's websites. The figure does not take account of accrued or deferred
income adjustments that are required to comply with accounting standards for
revenue recognition.

 

-               ENDS  -

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation (EU) No.
596/2014, which is part of UK law by virtue of the European Union (withdrawal)
Act 2018. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

 

Enquiries:

 

GRC International Group
PLC
+44 (0)330 999 0222

Alan Calder, Chief Executive Officer

Christopher Hartshorne, Finance Director

 

Grant Thornton UK LLP (Nominated
Adviser)
+44 (0)20 7383 5100

Philip Secrett/Daphne Zhang/Samuel Littler

 

Dowgate Capital Limited
(Broker)
+44 (0)20 3903 7715

James Serjeant/David Poutney/Russell Cook/Nicholas Chambers

 

Meare
Consulting
+44 (0)7990 858548

Adrian Duffield

 

 

About GRC International Group PLC

 

GRC is an international governance, risk management and compliance company
whose main business is cyber defence-in-depth.

 

A technology business, its proprietary premier brands including the market
leader, IT Governance, offer 'Our expertise, your peace of mind' for GRC's
wide range of domestic and international corporate customers across all
industrial sectors.

 

GRC's three operating divisions - Software as a Service (SaaS), e-Commerce and
Services - offer a wide range of products and services encompassing: IT
governance, risk management, compliance with data protection and cyber
security regulations, online and in-person training and staff awareness,
consultancy, online publishing and distribution as well as software. The
Group's capabilities also include products and services to enable corporates
to address wider governance issues such as money laundering and bribery.

 

In addition to its UK business, GRC has operations in the EU and US.

 

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