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4GLOBAL exceeds market expectations with 30% profit surge in FY23/24, shares gain

11:34, 15th May 2024
Victor Parker
Vox Newswire
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4GLOBAL (4GBLFollow | 4GBL, a data and technology company focused on the sport and fitness sector, issued a trading update for FY23/24 ended March 31, 2024.

4GLOBAL expects revenues of £6.4m, up 14% from last year's £6.4m. Due to higher than expected sales from the higher-margin Solutions arm, EBITDA for the period is expected to exceed market forecast - increasing by c. 30% to £1.6m from £1.2m LY.

The group had cash balances of £0.2m as of March 31, 2024, reflecting continued investment in its Solutions and Platform database, and significantly H2-weighted revenue opportunities, resulting in receipts due in the next reporting period.

4GBL will issue new market guidance at the time of its final audited results, expected in July.

Eloy Mazon, CEO of 4GLOBAL, commenting: "This has been a year of significant strategic progress, with substantial expansion into international markets and the successful migration to higher margin Solutions and Platform revenue driving double-digit sales growth and an outperformance of market expectations for profitability."

 

View from Vox

4GLOBAL reports a successful FY23/24 with a 14% increase in revenues and 30% rise in profits, exceeding market expectations. Markets welcomed the news, sending 4GBL shares 13% higher on Wednesday. The positive full-year figures carry momentum from H1's impressive YOY performance that saw revenues rise 26%, gross profit margin improve to 60% from 49%, adjusted loss narrow by 25% to £0.6m, and assets rise by 44% to £5.2m.

As previously expected and consistent with the group's historical record, revenue generation was significantly H2-weighted. Management expects FY24/25 financial performance to maintain its H2 weighting and deliver further operational progress with both revenue and margin growth, supported by a strong pipeline of new products. Most recently, the group announced two contracts in Saudi Arabia worth £800k, with the majority of work scheduled to complete this year.

4GBL made significant investments in its Solutions and Platform pipeline of products in FY23/24, expected to continue driving recurring revenues in FY24/25. The low cash balance, a result of heavy investment during the period, should improve over the next year as well. It reached £0.5m at the end of April, and with accounts receivable of £3.9m, further growth is expected in H1 2024/25.

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