REG - GRC Intnl.Group PLC - Trading Update

Grc InternationalAnnouncement

10/05/2023 07:00

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RNS Number : 8576Y  GRC International Group PLC  10 May 2023

 10 May 2023

 

GRC International Group PLC

 

Year-end trading update

 

GRC International Group PLC (AIM: GRC, "GRC" or the "Group"), 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 2023 ("FY23").

 

Highlights

·           Revenue expected to be £14.5m - £15.0m (FY22:
£13.9m).

•       Annualised Recurring Revenue ('ARR') increased by 7% in one
month to £6.7m at the end of March.

•       Contracted and recurring revenues expected to account for over
60% of total revenues.

·           Q4 billings* up 23% on Q3 to £4.3m (Q3: £3.5m).
Notably, Q4 included the signing of several significant multi-year contracts,
with an aggregate value of £5.0m.

·           Gross margin expected to increase to 61% (FY22: 59%).

·           EBITDA expected to be £0.3m - £0.6m (FY22: £0.9m)
impacted by economic headwinds and wider macro uncertainties in Q3.

·           Year-end cash £0.1m (2022: £2.0m). Facility headroom
at the period end circa £0.5m (FY22: £0.5m).

 

The Group saw strong positive momentum through Q4 of FY23 across all areas of
the business, despite experiencing the widely reported effects in Q3 of the
economic headwinds in the UK economy from uncertainty in the financial
markets, inflationary pressures and staff shortages.

 

Q4 saw the highest levels of training course attendance and training revenue
for the Group across all delivery options since the end of the GDPR boom as
well as a number of significant multi-year contract signings.

 

The improved revenue performance was supported by ongoing investment in staff
capability and product quality, resulting in improvements in the Group NPS
(Net Promoter Score) score from 39 in FY22 to 53 (+50 is 'excellent') in FY23
and an initial TrustPilot rating of 4.5 (also 'excellent').  Service quality
is one of the Group's key competitive differentiators.

 

The Group also continued to invest in the development of its websites and
software-as-a-service platforms, whilst at the same time substantially
reducing the HMRC liabilities deferred during the pandemic in line with its
agreements, utilising the funds raised from the successful share placing in
January 2022.

 

Alan Calder, Chief Executive Officer, commented:

 

"Our solid performance in H1 of FY23 continued into Q4, resulting in revenue
growth and continued margin improvements.  However, the economic and
geopolitical headwinds materially impacted our Q3 performance.

 

"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. In the current financial market conditions, our primary focus is
on organic growth and, in particular, in positioning our Cyber Comply platform
at the heart of our service offering.

 

"With our recurring revenue activities continuing to perform strongly and the
good momentum in Q4  continued into the start of the new financial year, we
are looking forward with increasing confidence.

 

"Trading to the end of April 2023 is in line with our expectations."

 

* 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.

 

Note: the FY23 numbers detailed above are unaudited and actual outturn for the
financial year will be determined during the audit process to be completed
during the Summer

 

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

 

Singer Capital Markets (Nominated Adviser and Joint Broker)
                +44 (0)20 7496 3000

Phil Davies, James Fischer

 

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

James Serjeant, 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, US and
Asia-Pacific regions.

 

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