4GLOBAL plc (LON:4GBL), a UK-based data, services and software company focused on major sporting events and the promotion and measurement of physical activity, has announced 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. 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. 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
