16 July 2024
4GLOBAL
plc
("4GLOBAL" or "the Company")
Unaudited Preliminary
Results
Strong organic growth and
EBITDA above market expectations
4GLOBAL, a provider of data and
technology for sports, fitness and wellness organisations to
optimise operational and investment decisions, announces its
unaudited preliminary results for the year ended 31 March 2024
("FY24").
Financial Results (£'m)
|
|
Unaudited
2024
|
Audited
2023
|
Change
|
|
Revenue
|
6.4
|
5.6
|
+14%
|
|
Gross profit
|
4.7
|
4.1
|
+15%
|
|
Adj. EBITDA1
|
1.6
|
1.2
|
+30%
|
|
Adj. EBITDA margin
|
25%
|
22%
|
3pp
|
|
Adj. EBITDA earnings per
share
|
6.1p
|
4.7p
|
+30%
|
|
Profit before tax
|
0.2
|
0.5
|
-60%
|
|
Earnings per share
|
(0.9)p
|
2.4p
|
-3.3p
|
|
Net cash
|
0.2
|
1.1
|
-0.9m
|
|
·
|
Strong organic revenue growth,
maintaining historical second half weighting as
anticipated.
|
|
|
o
|
International revenue grew by 32%
to £3.3m (2023: £2.5m) or 52% of total revenue (2023:
45%).
|
|
|
o
|
ARRR2 grew by 21% to
£3.5m (2023: £2.9m) or 55% of overall revenue (2023:
53%)
|
|
|
o
|
Average revenue per customer
increased 5% (2023: 10%).
|
|
·
|
Stronger-than-anticipated sales
from higher margin Insight Solutions products driving improvement
in adj. EBITDA.
|
|
·
|
Agreement with major client debtor
to settle outstanding balance over an extended period. Board have
confidence the amount will be settled but regard there to be some
transactional risk and have made a provision against the
balance.
|
|
·
|
Reduction in net cash due in part
to the debtor position but also the investment in the product
development programme.
|
|
·
|
Post-period, £1.6m of £3.9m
accounts receivables as of 31 March 2024 has been received. A
further £0.2m is expected in July 2024 with the remaining £2.1m
anticipated to be received according to the agreed payment
terms.
|
|
·
|
Earnings per share has decreased
due to the taxation charge for the year increasing from a credit of
£0.1m to a charge £0.4m, due to withholding tax being applied to
income generated from overseas clients and deferred tax
movements.
|
Strategic Highlights
|
·
|
Strong international expansion,
with roughly one third of new customer wins from outside UK:
including US Soccer, a FIFA World Cup 2026 city in Mexico, the
Saudi Arabian Public Investment Fund (PIF) and the NEOM development
in the northwest of Saudi Arabia.
|
|
·
|
16% increase in revenue from
existing customers (2023: 2%), demonstrating continued success in
expanding customer relationships.
|
|
·
|
Appointment of Vice President,
North America, to drive growth in the US.
|
|
·
|
Multiple new product launches
aimed at capitalising on the extensive data we control and the use
of AI to drive business critical insights that are ahead of the
competition in our key markets.
|
|
·
|
Development of AI and machine
learning functionality with completion of customer
trial.
|
|
·
|
Number of data points grew 14% to
4bn (2023: 3.5bn), increasing the Company's competitive advantage
through its ability to offer more accurate and diverse
insights.
|
Current Trading & Outlook
|
·
|
Q1 revenues ahead of last year and
good visibility, with £2.5m already
secured for FY25.
|
|
·
|
Strong international pipeline of
higher margin, repeatable and recurring revenue
opportunities.
|
|
·
|
FY25 revenue will be second half
weighted as in previous years due to the seasonality of buying
behaviours of our clients.
|
Eloy Mazon, 4GLOBAL CEO, said:
"This has been a year of significant organic growth and
several important strategic milestones. Our focus on expanding
internationally and increasing the proportion of recurring revenue
is now delivering tangible results, with new customer wins
including PIF and US Soccer illustrative of the calibre of
organisation we are attracting.
We have taken great strides as a business in the past few
years and, with market-leading offerings and new products in the
pipeline to address the wealth of available opportunities, I am
excited about what the future holds for 4GLOBAL in FY25 and
beyond."
1Adj. EBITDA is Adjusted
EBITDA, defined as statutory profit from operations before
interest, taxation, depreciation, share based payment expense and
exceptional items
2ARRR is annual recurring
and repeatable revenue. Recurring revenue is revenue generated from
subscriptions, licenses or multi-year recurring fee agreements
(typically Insight Solutions and Insight Platforms) and is
calculated on all license agreements. Repeatable revenue is revenue
generated from multiple opportunities from a client which create a
predictable, consistent revenue stream year on year (typically
Insight Lab). For the purposes of qualifying as repeatable revenue
the client must have a minimum history of three years of generating
revenue.
Presentation to Investors
Management will host a live online
presentation and Q&A via the Investor Meet Company platform
this morning at 11am UK time. The presentation is open to all
existing and potential shareholders. Investors can sign up for free
and add to meet 4GLOBAL via:
https://www.investormeetcompany.com/4global-plc/register-investor.
Annual Report and AGM
The Company expects to send
printed annual reports to shareholders who have requested one and
make a copy available on its website by 31 August 2024. A
notification will be made at the time of publication. The AGM will
be held at the offices of 4GLOBAL, 5th Floor, Building 7 Chiswick
Park, 566 Chiswick High Road, Chiswick, London W4 5YG, on 30
September 2024 at 11am.
Contacts
|
4GLOBAL
|
via Alma
|
|
Eloy Mazon (CEO)
|
|
|
Keith Sadler (CFO)
|
|
|
|
|
|
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
|
|
Josh Royston
|
4global@almastrategic.com
|
|
Rebecca Sanders-Hewett
|
|
|
David Ison
|
|
|
Louisa El-Ahwal
|
|
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.
www.4global.com
Chairman's Statement
Robust strategic and commercial progress
The team successfully delivered on
its growth ambitions, driving a strong increase in revenue and
beating expectations for adjusted EBITDA. This is a particularly
impressive achievement given the broader economic environment
remains fragile.
What excites me the most, however,
is the composition of the growth. This year saw a positive step
change in contribution from international projects. The opportunity
outside the UK is vast, but gaining traction overseas can be slow
and costly for technology companies. Through cultivating a network
of carefully selected strategic partners, 4GLOBAL has successfully
circumnavigated much of that risk, establishing footholds in key
international markets that are now bearing fruit.
Our turnover figure for the year
also included a higher proportion of recurring revenues from our
Insight Solutions and Insight Platform products, which are now the
main growth engines in the business.
Our offering is now organised
across three distinct pillars: Insight Lab, Insight Solutions and
Insight Platform. These are aligned to the data maturity lifecycle
of organisations, with each progressively higher margin and
recurring revenue orientated. The Strategy section of the Chief
Executive's Statement goes into this development in more
detail.
Transitioning from a service model
to one built on repeatable/recurring business is a key strategic
priority for the business and, while it's not something that
happens overnight, this year's results demonstrate encouraging
progress. The shift to these agreements means stronger, longer-term
relationships with our customers and greater predictability of
revenue.
Strengthening the core
The headway the Company is making
in these strategic areas is no accident. Over the past 12 months, I
have witnessed firsthand a leap forward in terms of the maturity,
focus and drive of the business. Significant efforts have been
undertaken to refine and future-proof our proposition and optimise
our ways of working, underpinned by a growing emphasis on fostering
a culture of excellence and accountability in the organisation.
These foundational improvements may be less visible to investors
but are critically important if we are to capitalise on the wealth
of opportunities before us.
Enhancing senior leadership
In January 2024, we appointed
4GLOBAL non-executive director Alexandra Orlando as Vice President,
North America. Alexandra has made an immediate, positive impact in
her new role. The US is an important growth market for the Company,
and I have no doubt she is the right person to lead us on that
journey.
In April 2024, Davendra Dabasia
joined the Company as a non-executive director. An executive board
member of Mace, he brings a great deal of relevant experience to
4GLOBAL as the Company looks to expand into new geographic areas. I
look forward to working closely with him.
Also, in April 2024, we appointed
Eric Haller as Non-Executive Director, replacing
Alexandra on the Board to enable her to focus on her executive
role. Eric is exceptionally experienced in maximising the commercial value of data and developing
successful data products, having served as Global Executive Vice President and Group Head of Experian
DataLabs. His counsel will be invaluable as we look to plot
a comparable path.
Looking ahead with confidence
The hard work carried out to
enhance the functionality and delivery of products, at the coalface
in our markets, and across our internal functions, is now
delivering tangible results. However, we are still only scratching
the surface in terms of what we can achieve.
While growth will continue to be
primarily organic with increasing international and recurring
components, we will continue to seek opportunities to supplement it
through acquisition where targets meet our strict criteria for
investment and are a good strategic fit.
With the paradigm shift towards
data-led decision-making in industry building up a head of steam,
4GLOBAL has a uniquely compelling offering at an opportune time.
Looking forwards, buoyed by strong prospects and a growing sense of
momentum, I am confident we are positioned well to deliver
continued, sustainable growth and long-term shareholder value
creation.
I would like to personally thank
my colleagues across the business for their contributions. They
have demonstrated immense determination and creativity in moving
4GLOBAL forwards in the year. Our people are the lifeblood of the
business, and we are fortunate to have such a talented pool
available to us.
Ian James
Chairman
15 July 2024
Chief Executive's Statement
Overview: Delivery on all fronts and poised for further
growth
I'm pleased to report we delivered
strong organic growth in the year while navigating a trading
environment that remained challenging. 4GLOBAL is now a truly
international business, with the majority of revenue, 52%, coming
from non-UK markets for the first time.
Encouragingly, we are also on
schedule in migrating new and existing customers to higher margin,
recurring revenue products.
Much of our success in the year is
the product of the sharpening of our strategic focus. We are now
firmly committed to allocating resources to the most profitable
long-term opportunities and have made good progress in optimising
our operations for maximum efficiency.
These are ongoing processes but
nonetheless reflect a cultural shift towards higher performance and
a relentless pursuit of excellence, which we believe will
ultimately deliver better returns for shareholders.
The proof will be in the results
we deliver over time but supported by outstanding products,
brilliant people, the right organisational infrastructure and a
proven strategy, we are moving through the new financial year in a
strong position.
Strategy: Supporting customers at every stage of their data
journey
4GLOBAL empowers sports, fitness
and wellness organisations to make faster, smarter decisions about
their operations, customers and investments through data and
actionable insights.
Leveraging the Company's network
of strategic partners, we are focused on growing our presence in
the North American, Middle East and European markets.
Our offering is now aligned to the
data maturity lifecycle that our customers typically follow as
their understanding of the business-critical insights they can
extract from their and market data develops.
Our team of seasoned data and
technology professionals are committed to continuously enhancing
existing and developing new products to bolster our offerings
across these pillars.
|
1.
|
Insight Lab - 45% of revenue (2023: 55%):
Primarily consultative work, 4GLOBAL deploys its
dataset, predictive modelling and analytics tools to help
organisations answer business-critical questions. Examples include,
where to invest in new facilities or how to increase yield per
customer at the facility operator level or how to turn an inactive
nation into an active one at the government level.
|
|
|
|
|
2.
|
Insight Solutions - 40% of revenue (2023:
30%): For organisations, many of
which have been Insight Lab customers, which want to incorporate
4GLOBAL's products into their own operations. The key benefit being
day-to-day decision-making is continuously informed by data-driven
insights, meaning better business outcomes. We work closely with
organisations on the integration and support them every step of the
way, ensuring they are successful in using our technology to
maximise the value derived from our data. Higher margin, primarily
recurring license sales with an element of lower margin support
service revenue.
|
|
|
|
|
3.
|
Insight Platform - 15% of revenue (2023: 15%): For
organisations that have either matured as users of Insight
Solutions to the point of having established in-house capability or
new customers who want access to our dataset but have pre-existing
data expertise and technology infrastructure. Highest margin,
exclusively recurring license revenue.
|
It is common for customers to be
engaged on different pillars across different questions
concurrently. In FY24, 74% of customers by revenue were engaged on
multiple journeys with us at the same time (2023: 74%). The dynamic
and iterative nature of working with data and the scalability of
our offerings mean there is no limit to the number of engagements
we can have running in parallel with a single customer, presenting
significant opportunities for long-term revenue growth across our
base.
Year in review: Good progress against strategic
objectives
As part of sharpening our
strategic focus, we have introduced four new strategic objectives
with several KPIs attached to help investors more easily gauge
progress:
|
1.
|
Grow customer base internationally: Leverage partnerships and acquisitions to enter new markets
and acquire new customers.
|
|
2.
|
Increase customer lifetime value: Build long-term and progressively more mutually valuable
customer relationships.
|
|
3.
|
Transition to repeatable and recurring
revenue: Shift to a higher-margin,
more predictable sales model
|
|
4.
|
Build for tomorrow:
Future-proof 4GLOBAL through continuous innovation and
improvement
|
In the future, we intend to
further diversify revenue through identifying and expanding into
new sectors with problems 4GLOBAL can solve.
1. Grow customer base
internationally
We generated substantially more
revenue outside the UK in the period and enter the new financial
year with a growing pipeline of international
opportunities.
Our strategy is to enter
international markets through partnerships. This approach allows us
to minimise entry costs and leverage existing salesforces and
customer relationships.
Our target markets are North
America and Europe, where we are actively investing in business
development, sales and on-the-ground presence; and the Middle East,
where we are focused on nurturing our partnerships.
While each region has its own
unique dynamics and characteristics, our strategy of focusing only
on the highest growth, highest potential sectors and opportunities
is the common thread that runs through each of them.
KPIs
|
|
2024
|
2023
|
Change
|
|
Non-UK revenue
|
£3.3m
|
£2.5m
|
32%
|
|
As a proportion of total
revenue
|
52%
|
45%
|
7pp
|
North America
We continued to make good progress
in the region in the period, acquiring multiple new customers
including US Soccer; Guadalajara Convention and Visitors Bureau in
the City of Guadalajara, Mexico, one of the sixteen venues for the
2026 FIFA World Cup; Canadian Tire and Future of Hockey
Lab.
Soccer is a particular area of
focus, as the fastest growing sport in the US and benefitting from
a strong push to increase participation ahead of and beyond the
2026 World Cup.
Signed in the fourth quarter, our
relationship with US Soccer, the official nationwide governing body
of the sport, has continued to develop from the initial engagement.
A large-scale and dynamic organisation that could theoretically
benefit from 4GLOBAL's data and technology across various aspects
of its business, US Soccer exemplifies the kind of customer we are
targeting in the region.
Gym operators continue to be an
important target segment for the Company, with previously announced
technology partnerships together providing 4GLOBAL access to 40% of
facilities in the US. All sales through these partnerships are
high-margin, recurring Insight Platform license revenue.
As well as increasing the size of
our customer base in the region during FY25, we are well-positioned
for continued success in deepening our commercial relationships
with those organisations already in our base, consistent with our
second strategic objective of increasing customer lifetime
value.
Europe
Including the UK, our most mature
market. We began the year with an established presence in Europe
and continued to make good strategic and commercial advances
there.
Gym operators have been a
particular focus in the territory, with our previously announced
partnership with EuropeActive, the leading non-profit organisation
representing the European fitness and physical activity sector,
remaining crucial in growing the use of DataHub in mainland Europe
and further increasing the volume of data flowing into it. Sales
through EuropeActive and other partners such as Technogym, signed
in the period, are high-margin, recurring Insight Platform license
revenue.
The pipeline of opportunities in
Europe remains strong.
Middle East
The work carried out in the year
to establish key partnerships and develop a robust understanding of
the region's unique market dynamics resulted in the securing of
several high-value agreements.
In October 2023, we were awarded a
US$0.3m contract to deliver data, insight and knowledge
applications to one of 4GLOBAL's long-standing strategic partners
in the Middle East. Our success with this organisation serves as a
model for future engagements and has opened several doors to
potential new revenue opportunities in the region.
We followed this in January 2024
by announcing two contract wins in the Kingdom of Saudi Arabia with
a new and existing partner customer for a combined value of
£0.8m.
The Middle East remains a key
growth market for the business. With the strong progress made there
in the period we are confident of growing our presence
further.
2. Increase customer
lifetime value
Expanding relationships with
existing customers is central to our growth strategy. As customers
progress through the data maturity lifecycle outlined in the
Strategy section above, their desire for more advanced and detailed
insights typically increases, in turn increasing demand for our
products.
KPIs
|
|
2024
|
2023
|
Change
|
|
Customer retention
|
91%
|
94%
|
(3)pp
|
|
Existing customer
revenue
|
£5.7m
|
£4.8m
|
16%
|
|
Average revenue per
customer
|
+5%
|
+10%
|
(5)pp
|
Our consistently high customer
retention rates illustrate the value organisations attach to
4GLOBAL's products once they begin their journeys with us. This
stems from the indispensable nature of the insights our platform
provides, enabling organisations to make timely decisions that
accelerate growth.
Sport England case study
The progression through the
lifecycle is exemplified in the work we have done over the years
with Sport England, the body of government responsible for growing
and developing grassroots sport and getting more people active
across the country.
A customer since 2021, in November
2023 we announced an expansion in the scope of our partnership with
it. Starting with Insight Lab, Sport England engaged us to tackle
specific challenges around understanding the impact of Covid on
local sports facilities. Through the data-driven insights we
provided, the body was able to identify areas of need and
opportunities for the National Leisure Recovery Fund.
Sport England then needed to
monitor and evaluate the progress of the resulting initiatives,
leading to a transition to Solutions, where we supported them in
embedding our technology and data into their daily operations and
decision-making processes.
As Sport England continued using
4GLOBAL to progress its work on the impact of the pandemic, new
operational questions and challenges came to light, prompting an
adjacent journey through the lifecycle.
3. Transition to recurring
revenue: shift to higher-margin, more predictable sales
model
A great deal of work has been
undertaken in the year to refine our products and how we deliver
them to align better with a recurring revenue model.
As a result, more customers are
now moving through the pillars from Insight Lab to Insight
Solutions, to Insight Platform, rather than engaging us for
traditional lower-margin, one-off consultative work.
This not only increases customer
retention and satisfaction but is exponentially more scalable, adds
stability to our sales and improves overall financial
predictability.
KPIs
|
|
2024
|
2023
|
Change
|
|
ARRR
|
£3.5m
|
£2.9m
|
21%
|
|
As a proportion of total
revenue
|
55%
|
53%
|
2pp
|
4. Build for tomorrow:
future-proof 4GLOBAL through continuous innovation and
improvement
4GLOBAL has carved out its
reputation through a relentless focus on innovation for over a
decade. Internally, our commitment to continuing these spans three
key areas: our offering, our data asset and our organisation. We
will look to introduce KPIs for this strategic objective in the
future.
Offering: We are in constant
dialogue with our customers to ensure our offering is developed to
meet both their current and future needs in a way that is
commercially beneficial to us. Consistent with this, our primary
focus in the year has been to strengthen our Insight Solutions and
Insight Platform offerings and we will continue in a similar vein
in FY25.
We also continued to explore AI
and machine learning in the period, including the launch of a now
complete pilot project with Places Leisure, one of the UK's leading
social enterprises in the health and wellbeing sector. The pilot
was a success and is informing the development of a new product we
expect to launch in FY25.
Data asset: A larger, richer
data asset is the core of our competitive advantage. The more data
points it comprises, the more accurate and informative the insights
generated from it will be. Data points increased 14% to 4bn in the
year (2023: 3.5bn) and we intend to continuously augment it through
acquiring new data sources and creating proprietary data in the
future.
Organisation: With the
sharpening of our strategic focus and the growth expected in the
coming years, it is vital we have the correct organisational
infrastructure to ensure we can scale while continuing to deliver
market-leading products and delivering outstanding customer
experiences. The appointments of Alexandra Orlando as Vice
President, North America, and Davendra Dabasia and Eric Haller as
non-executive directors are testament to 4GLOBAL's growing
reputation. On top of this, we strengthened our internal processes
significantly in the year, a move which has been instrumental in
improving efficiency and enabling us to deliver larger, more
valuable contracts.
Current Trading & Outlook: Expectation of further sales
and margin growth
We have made a promising start to
the new financial year, with revenue secured of £2.5m and revenue performance tracking ahead of last year
Q1. We expect FY25 to be a year of continued revenue and margin
growth with an increasing proportion of international revenue and
ARRR. Revenue will be second half weighted as in previous years due
to the seasonality of budgets of our client base.
Our confidence is underpinned by a
strong international pipeline of strategically and commercially
significant projects with both new and existing customers. This
pipeline is expected to continue to grow at a healthy rate,
supported by several new product launches including those enhanced
by AI.
At the same time, we will continue
to proactively seek opportunities to accelerate growth through
M&A. We will maintain a measured and disciplined approach, only
proceeding with companies that can grant access to or bolster our
footprint in a high-potential market.
We are excited about our prospects
for the year ahead and look forward to keeping shareholders
updated.
Eloy Mazon
Chief Executive Officer
15 July 2024
Financial Review
1. Results
Overall revenue grew from £5.6m to
£6.4m which representing a 14% increase for the year.
Gross profit tracked revenue
growth, increasing 15% to £4.7m (2023: £4.1m) with a margin of 73%
as in 2023. As we progress develop our business model we anticipate
an improvement in margin.
2. Administrative Expenses
Administrative Expenses for the
year ended 31 March 2024 was £3.1m compared to the previous year of
£2.9m. As the business is talent focussed, the largest single
expense for the Group is wages and salaries. Before capitalisation
of development costs, wages and salaries increased from £2.1m to
£2.4m with average headcount increasing from 30 to 34.
Depreciation and amortisation
increased as a result of a full year charge for amortisation of the
products we brought to market in the previous year. Amortisation
charge increased from £6,256 to £87,092.
The share-based payment charge
fell from £0.34m to £0.26m due to certain options lapsing during
the prior year.
The Group has agreed a long-term
repayment plan against a significant outstanding receivable
totalling £2.2m as at 31 March 2024. The payment plan spans a
period of greater than 12 months from the financial year end. As
result of the extended settlement period, a discount charge has
been recognised in Finance Costs (note 12) for £142,141 (2023:
£nil). Although the balance is expected to be repaid in full, as a
result of the transactional risk associated with the long-term
payment plan, the Group has recognised a provision against the
discounted balance of £512,658 (2023: £nil).
3. Finance Charge
The finance charge for the year
has increased from £24,043 to £174,525. The difference is primarily
due to the requirement to discount an outstanding debtor balance.
The debtor balance is for £2.1m and, as this is to be settled over
a period greater than 12 months, a discount has been applied as
required by IFRS 9. This has been calculated using the Group's
weighted average cost of capital and the charge is £142,141. As the
balance is settled this will be reversed against the amount held on
the balance sheet.
4. Taxation
The taxation charge for the year
has increased from a credit of £0.1m to a charge of £0.4m. This
charge is due to withholding tax being applied to income generated
from overseas clients and, as the Group is profitable, there is no
research and development credit. As we grow revenues from these
geographic areas this will increase. We will have the opportunity
to offset where we can through double taxation treaties. The other
charge is for deferred tax which is calculated on the timing
differences for the capitalised cost additions to our intangible
assets.
5. Statement of Financial Position
The total assets as at 31 March
2024 was £6.1m compared to £6.3m at 31 March 2023, reflecting the
retained earnings for the year.
We have capitalised the cost of
developing our new products and platforms by £0.9m, the majority of
which is the staff costs of bringing the products and platforms to
a position where they can be economically utilised. We have begun
to amortise the existing products as they are now being utilised by
our clients.
During the year we migrated our
contract assets to accounts receivable which increased our accounts
receivable from £1.4m to £3.8m. The contract assets have been
reduced from £2.1m to £1.0m. We have an outstanding balance where
we have been negotiating a settlement agreement with the client
where the amount will be settled over an extended period of time.
This is with a global company with which we are working with in
close partnership on a number of assignments and future
opportunities. As result of the extended settlement period a
discount charge has been made in the current report and accounts
for £142,141 in accordance with accounting standards.
6. Cash Flow
The Group utilised £1.0m of cash
through the year to 31 March 2024. This in due to the investment in
the product and platforms the Group is making for future revenue
growth and also an increase in the working capital within Accounts
Receivable.
Keith Sadler
Chief Financial Officer
15 July 2024
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
For the year ended 31 March
2024
|
|
|
|
|
Note
|
|
|
UNAUDITED
Year ended 31 March
2024
|
|
AUDITED
Year
ended 31 March 2023
|
|
|
|
|
|
|
|
|
£
|
|
£
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
6
|
|
|
6,368,255
|
|
5,585,747
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
(1,686,631)
|
|
(1,449,008)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
|
4,681,624
|
|
4,136,739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative expenses
|
|
|
|
|
|
|
(3,081,116)
|
|
(2,920,374)
|
|
Other operating income
|
|
|
|
7
|
|
|
-
|
|
14,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysed as:
|
|
|
|
|
|
|
|
|
|
|
Adjusted profit from
operations1
|
|
|
|
|
|
|
1,600,508
|
|
1,230,365
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortisation
|
|
|
|
|
|
|
(480,180)
|
|
(372,717)
|
|
Share based payment
expense
|
|
|
|
|
|
|
(263,171)
|
|
(338,456)
|
|
Exceptional administrative expenses
- provision against long term repayment plan
|
|
|
|
8
|
|
|
(512,658)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit from operations
|
|
|
|
9
|
|
|
344,499
|
|
519,192
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income
|
|
|
|
|
|
|
77
|
|
1,772
|
|
Finance cost
|
|
|
|
12
|
|
|
(174,525)
|
|
(24,043)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
9
|
|
|
170,051
|
|
496,921
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax (charges)/credit
|
|
|
|
13
|
|
|
(399,077)
|
|
145,133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/Profit for the
year
|
|
|
|
|
|
|
(229,026)
|
|
642,054
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translation
of foreign operations
|
|
|
|
|
(12,583)
|
|
(3,053)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income / (loss)
for the year
|
|
|
|
|
(12,583)
|
|
(3,053)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income / (loss)
for the year
|
|
|
|
|
(241,609)
|
|
639,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income / (loss)
attributable to:
|
|
|
|
|
|
|
|
|
Owners of the Parent
Company
|
|
|
|
|
|
|
(241,609)
|
|
639,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic profit/(loss) per
share
|
|
|
|
14
|
|
|
(0.9)p
|
|
2.4p
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted profit/(loss) per
share
|
|
|
|
14
|
|
|
(0.9)p
|
|
2.4p
|
|
|
|
|
|
|
|
|
|
|
|
Note 1. Adjusted profit from
operations is calculated as earnings before interest, taxation,
depreciation, amortisation of intangible assets and right of use
charge, share based payments and exceptional items.
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
|
|
|
|
Note
|
|
|
UNAUDITED
As at
31 March
2024
|
|
AUDITED
As
at
31 March
2023
|
|
|
|
|
|
|
|
£
|
|
£
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
15
|
|
|
29,270
|
|
34,401
|
|
Right-of-use assets
|
|
|
15
|
|
|
218,867
|
|
595,601
|
|
Intangible assets
|
|
|
16
|
|
|
1,198,034
|
|
392,180
|
|
Deferred tax
|
|
|
13
|
|
|
-
|
|
190,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,446,171
|
|
1,212,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Trade and other
receivables
|
|
|
17
|
|
|
4,508,730
|
|
3,977,947
|
|
Cash and cash
equivalents
|
|
|
18
|
|
|
148,694
|
|
1,138,093
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,657,424
|
|
5,116,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
6,103,595
|
|
6,328,869
|
|
|
|
|
|
|
|
|
|
|
|
Equity and Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
19
|
|
|
263,451
|
|
263,451
|
|
Share premium
|
|
|
21
|
|
|
3,390,330
|
|
3,390,330
|
|
Merger reserve
|
|
|
|
|
|
676,310
|
|
676,310
|
|
Share option reserve
|
|
|
20,21
|
|
|
651,416
|
|
388,245
|
|
Share warrant reserve
|
|
|
|
|
|
188,266
|
|
188,266
|
|
Currency translation
reserve
|
|
|
|
|
|
(47,959)
|
|
(35,376)
|
|
Retained earnings
|
|
|
21
|
|
|
(619,006)
|
|
(389,980)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
|
|
4,502,808
|
|
4,481,246
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
Deferred tax
|
|
|
13
|
|
|
64,672
|
|
-
|
|
Borrowings
|
|
|
23
|
|
|
58,333
|
|
108,832
|
|
Lease liability
|
|
|
24
|
|
|
-
|
|
194,060
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
123,005
|
|
302,892
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
|
23
|
|
|
50,000
|
|
50,000
|
|
Trade and other payables
|
|
|
22
|
|
|
1,233,722
|
|
1,122,746
|
|
Lease liability
|
|
|
24
|
|
|
194,060
|
|
371,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
|
|
|
1,477,782
|
|
1,544,731
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
1,600,787
|
|
1,847,623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity and
liabilities
|
|
|
|
|
|
6,103,595
|
|
6,328,869
|
|
|
|
|
|
|
|
|
|
|
|
The notes form an integral part of
the financial statements.
|