TIDMGRC
RNS Number : 8576Y
GRC International Group PLC
10 May 2023
10 May 2023
GRC International Group PLC
Year-end trading update
GRC International Group PLC (AIM: GRC, "GRC" or the "Group"),
the international governance, risk management and compliance
company whose main business is cyber defence-in-depth, announces a
trading update for the 12 months ended 31 March 2023 ("FY23").
Highlights
-- Revenue expected to be GBP14.5m - GBP15.0m (FY22: GBP13.9m).
-- Annualised Recurring Revenue ('ARR') increased by 7% in one
month to GBP6.7m at the end of March.
-- Contracted and recurring revenues expected to account for over 60% of total revenues.
-- Q4 billings* up 23% on Q3 to GBP4.3m (Q3: GBP3.5m). Notably,
Q4 included the signing of several significant multi-year
contracts, with an aggregate value of GBP5.0m.
-- Gross margin expected to increase to 61% (FY22: 59%).
-- EBITDA expected to be GBP0.3m - GBP0.6m (FY22: GBP0.9m)
impacted by economic headwinds and wider macro uncertainties in
Q3.
-- Year-end cash GBP0.1m (2022: GBP2.0m). Facility headroom at
the period end circa GBP0.5m (FY22: GBP0.5m).
The Group saw strong positive momentum through Q4 of FY23 across
all areas of the business, despite experiencing the widely reported
effects in Q3 of the economic headwinds in the UK economy from
uncertainty in the financial markets, inflationary pressures and
staff shortages.
Q4 saw the highest levels of training course attendance and
training revenue for the Group across all delivery options since
the end of the GDPR boom as well as a number of significant
multi-year contract signings.
The improved revenue performance was supported by ongoing
investment in staff capability and product quality, resulting in
improvements in the Group NPS (Net Promoter Score) score from 39 in
FY22 to 53 (+50 is 'excellent') in FY23 and an initial TrustPilot
rating of 4.5 (also 'excellent'). Service quality is one of the
Group's key competitive differentiators.
The Group also continued to invest in the development of its
websites and software-as-a-service platforms, whilst at the same
time substantially reducing the HMRC liabilities deferred during
the pandemic in line with its agreements, utilising the funds
raised from the successful share placing in January 2022.
Alan Calder , Chief Executive Officer, commented:
"Our solid performance in H1 of FY23 continued into Q4,
resulting in revenue growth and continued margin improvements.
However, the economic and geopolitical headwinds materially
impacted our Q3 performance.
"Our technology capabilities and our track record, with deep
expertise and cyber defence-in-depth model, provide our clients
with peace of mind. They know their assets are safe and, equally
importantly, comply with the numerous cyber regulations.
"As we have previously stated, our strategy is to grow
organically and by acquisition. In the current financial market
conditions, our primary focus is on organic growth and, in
particular, in positioning our Cyber Comply platform at the heart
of our service offering.
" With our recurring revenue activities continuing to perform
strongly and the goo d momentum in Q4 continued into the start of
the new financial year, we are looking forward with increasing
confidence.
"T rading to the end of April 2023 is in line with our
expectations."
* 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.
Note: the FY23 numbers detailed above are unaudited and actual
outturn for the financial year will be determined during the audit
process to be completed during the Summer
ENDS
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.
Enquiries:
GRC International Group PLC +44 (0)330 999 0222
Alan Calder, Chief Executive Officer
Christopher Hartshorne, Finance Director
Singer Capital Markets (Nominated Adviser and Joint Broker) +44
(0)20 7496 3000
Phil Davies, James Fischer
Dowgate Capital Limited (Joint Broker) +44 (0)20 3903 7715
James Serjeant, Russell Cook, Nicholas Chambers
Meare Consulting
+44 (0)7990 858548
Adrian Duffield
About GRC International Group PLC
GRC is an international governance, risk management and
compliance company whose main business is cyber defence in
depth.
A technology business, its proprietary premier brands including
the market leader, IT Governance, offer 'Our expertise, your peace
of mind' for GRC's wide range of domestic and international
corporate customers across all industrial sectors.
GRC's three operating divisions - Software as a Service (SaaS),
E-Commerce and Services - offer a wide range of products and
services encompassing: IT governance, risk management, compliance
with data protection and cyber security regulations, online and
in-person training and staff awareness, consultancy, online
publishing and distribution, as well as software. The Group's
capabilities also include products and services to enable
corporates to address wider governance issues, such as money
laundering and bribery.
In addition to its UK business, GRC has operations in the EU, US
and Asia-Pacific regions.
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END
TSTSSEFAUEDSESI
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