TIDMGRC
RNS Number : 3093X
GRC International Group PLC
04 May 2021
GRC International Group plc ("GRC" or the "Group")
Trading Update
GRC, a leading supplier of IT governance, cyber security, risk
management and compliance products and services, is pleased to
announce the following trading update in respect to its trading
performance in Q4 FY21.
Significant H2 performance improvements
The Group saw significant improvements in performance across all
areas of its business in H2 of FY21 (12 months ended 31 March
2021), culminating with strong Q4 billings* that generated positive
EBITDA and positive cash flow for the quarter, following only a
small EBITDA loss in Q3.
The performance improvement started at the end of November 2020
and continues through into the new calendar year.
H1 FY21 H2 FY21 Change
Total billings GBP5.6m GBP6.7m +20%
Total billings per FTE** GBP39k GBP46k +18%
Cyber security billings GBP3.5m GBP4.5m
+29%
Recurring & contracted billings GBP3.0m GBP3.6m +20%
Website billings GBP1.5m GBP2.5m +67%
Website visits 1.7m 1.9m +12%
(The 'Cyber security', 'Recuring and contracted' and 'Website'
categories in the table above are non-exclusive. An invoice or web
sale can feature in more than one category.)
The March 2021 total monthly billings figure was the strongest
achieved by the Group in the two years since March 2019.
45% of transactions in the quarter were from new customers, with
the balance from returning existing customers.
15 months after launching the first Group subscription service,
there are now a cumulative 3,600 subscribers to recurring revenue
Lines of Business in Vigilant Software, GRC e-Learning, IASME Cyber
Essentials, ITGP Toolkits, and GRCI Law, with a combined rolling
annual churn rate of only 2.2%.
Q4 performance
The H2 performance improvement was particularly driven by
growing demand and activity through February and March.
-- Billings per business day increased from GBP51k in Q3 to GBP60k in Q4.
-- Website traffic and transactions in March 2021 increased by
12% and 13% respectively on February 2021.
-- March's web traffic was the best month since July 2018, just
after the end of the peak GDPR period.
Q4 Notable contract wins included the Royal Mail, PwC, Open
University, NHS, Government Internal Audit Agency, Ely Cathedral,
BBC, Rightmove, Mazars, HM Treasury, Langham Hospitality Group, IPG
MediaBrands, Unicef, and SipChem.
Cash and available finance facilities
The Group ended the financial year with net cash of GBP0.2m,
ahead of expectations, reflecting lower capital expenditure and a
deferral of certain HM Revenue & Customs (HMRC) liabilities due
for repayment in FY22.
The Group's pre-existing facility headroom available at the half
year on 30 September 2020 of circa GBP600k, being the aggregation
of two separate facilities, is still undrawn.
The Group will report its Preliminary Results for FY21 later in
the summer.
*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.
**FTE stands for Full Time Equivalent employee.
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
Dowgate Capital Limited (Broker) +44 (0) 20 3903 7715
James Serjeant / David Poutney
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.
About GRC International Group plc
GRC International Group plc was admitted to trading on the
London Stock Exchange's AIM market in March 2018.
GRC provides a comprehensive suite of products and services to
address the IT governance, risk management and compliance
requirements of organisations seeking to address a wide range of
data protection and cyber security regulation. The Company provides
a range of services and products through three divisions: Training,
Consultancy, and Publishing and Distribution.
The Group has an international customer base which is expected
to grow as GRC expands its geographical footprint. Since admission
to AIM, the Group has expanded internationally with operations now
established in Ireland, the US and Northern Europe
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