TIDMGRC
RNS Number : 9334J
GRC International Group PLC
03 May 2022
3 May 2022
GRC International Group PLC
("GRC" or the "Group")
Year-end trading update
GRC International Group PLC (AIM: GRC), 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 2022.
Highlights
-- Billings* up 21% to GBP14.8m (FY21: GBP12.2m).
-- Q4 billings up 25% to GBP4.5m (FY21: GBP3.6m). Notably, March
2022 billings highest since end of GDPR peak (May 2018), despite
macro-economic headwinds.
-- FY22 billings from recurring revenue products accounting for
56% of total billings (FY21: 54%).
-- Recurring revenue subscriber base up 41% to 5,089 (FY21: 3,600).
-- 57% of transactions from returning existing customers (FY21: 45%).
-- H2 revenue growth continues in line with progress made in H1
- Q4 FY22 revenues of not less than GBP4.0m up 14% (Q4 FY21:
GBP3.5m).
-- EBITDA of at least GBP0.8m (FY21: EBITDA loss GBP1.1m). H1:
GBP0.4m, H2: at least GBP0.4m, with Q4: at least GBP0.3m).
-- Year-end cash GBP2.0m (2021: GBP0.2m), reflecting January
2022 share placing and exceptionally strong February and March
trading and cash performance.
The Group is seeing significant international growth
opportunities in the digitally transformed, Cloud-based,
increasingly vulnerable, hybrid-working environment as a result
of:
-- Corporates, large and small, domestic and multinational,
having to deal with increasingly complex regulations and
enforcement in the Group's three primary geographic markets of UK,
EU and US;
-- All clients facing escalating nation-state and criminal
(serious organised crime) cyber attacks; and
-- The significant and deep-seated cyber and compliance skills deficits.
In January 2022, GRC completed a GBP3m oversubscribed share
placing. This is enabling the Group to continue its product
investment and business automation programmes, including the
development of new features and functionality across all units in
the SaaS division, at the same time as making agreed repayments
against the deferred HMRC tax liabilities that arose through the
pandemic.
The investment in the SaaS division underpins the Group's cyber
defence-in-depth offering and is expected to support the Board's
expectation of continued double-digit organic billings growth for
that division in FY23.
During Q4, the Group's cyber security incident response service
achieved CREST accreditation. This, combined with GRC's unique
Cyber Safeguard service package, which includes cyber insurance
from Hamilton Insurance, enables the Group to support a growing
number of customers that are particularly exposed to cyber
attacks.
On 1 April 2022, the Group launched a Cloud Security consultancy
service to help mid-sized corporate clients ensure that their Cloud
infrastructures are securely configured. The service is fully
described on the UK website and sold directly to our existing
medium and large consultancy clients through our consultancy and
professional services teams. Allied with the Group's Microsoft
Global Training Partnership, this expands the footprint in the
fast-growing Cloud security market.
Alan Calder , Chief Executive Officer, commented:
"Our strong performance in calendar 2021 continued into Q4 of
FY22, resulting in our best month of billing, despite the economic
and geopolitical headwinds. That strong momentum in Q4 and cash
generation have continued into the start of the new financial
year.
"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 - the latter to deepen and widen our
offering. To that end, we are making good progress to execute on
our acquisition plans."
* 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.
- 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
Grant Thornton UK LLP (Nominated Adviser) +44 (0)20 7383
5100
Philip Secrett/Daphne Zhang/Samuel Littler
Dowgate Capital Limited (Broker) +44 (0)20 3903 7715
James Serjeant/David Poutney/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 and
US.
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