TIDMGRC
RNS Number : 9903Q
GRC International Group PLC
02 November 2021
GRC International Group plc ("GRC" or the "Group")
Trading Update
GRC International Group plc (AIM: 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 of its trading performance in H1 FY22 (6 months ending
30 September 2021).
Continued growth in billings* delivers EBITDA positive H1
The Group saw the strong positive momentum which it reported
through H2 FY21 continue across all areas of the business in H1
FY22, notwithstanding the economic headwinds in the UK economy from
the on-going impact of COVID-19, rising energy prices, inflationary
pressures and staff shortages.
As a result, billings* in H1 FY22 were up 26% on the comparative
period.
The improved H1 FY22 performance generated positive EBITDA for
the period, the first time that the Group has reported an EBITDA
positive 6-month period since the first set of results it reported
after it was admitted to trading on AIM in March 2018.
The resulting cash flow was sufficient to reduce the previously
reported deferred HMRC liabilities resulting from the Government's
COVID-19 initiatives by approximately half.
The Group also saw its recurring revenue continue to perform
strongly, with recurring revenue billings accounting for 55% of
total billings in the period. Benefiting from an increase of 31% in
the 3,600 subscribers at year end FY21 (31 March 2021), there are
now a cumulative 4,720 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 4%.
H1 FY21
to H1
H1 FY21 H2 FY21 H1 FY22 FY22
GBP'000 GBP'000 GBP'000 %<DELTA>
---------------------------- ---------- ---------- ---------- ---------
Total billings* 5,583 6,670 7,061 +26%
Total billings per
FTE** 39 47 48 +23%
Cyber Security billings*** 3,568 4,485 5,008 +40%
Recurring & contracted
billings*** 3,012 3,636 3,900 +29%
Website billings*** 1,731 2,271 2,671 +54%
No. No. No. %<DELTA>
---------------------------- ---------- ---------- ---------- ---------
Website visits 1,688,059 1,938,710 2,048,780 +21%
(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 EBITDA positive half year result evidences the success of
the Group's recovery from the COVID-19 impacted prior year
performance, with higher billings* and improved levels of client
delivery delivered on an almost unchanged headcount.
57% of transactions in the period were from returning existing
customers, with the balance from new customers.
GRC's previous acquisitions (being the domain, web platform,
customer list and goodwill of www.gdpr.co.uk in August 2018 and
Data Quality Management Group Limited in March 2019) continue to
perform strongly and integration into the Group on an operational
level has proved successful.
Cash and available finance facilities
The Group ended the half year on 30 September 2021 with cash of
GBP0.1m, ahead of management forecasts, after repayment of certain
deferred HMRC liabilities (as referred to above), with the majority
of the balance expected to be paid down by the end of the financial
year on 31 March 2022.
The Group's facility headroom available at the half year end on
30 September 2021 was circa GBP0.5m.
Outlook
Trading through to the end of October has been in line with
management expectations and the Board will provide a further update
at the time of the Interim Results in December.
* 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.
*** Non-exclusive - invoice or web sales feature in more than one category
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
Lukas Girzadas
Dowgate Capital Limited (Broker) +44 (0) 20 3903 7715
James Serjeant
David Poutney
Russell Cook
Nicholas Chambers
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 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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END
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