18th Sep 2018 11:31
LONDON (Alliance News) - Shares in GRC International Group PLC rose Tuesday after the recently listed company said annual revenue more than doubled due to implementation of the EU's General Data Protection Regulation.
The company, which provides governance, risk management and compliance products and services, said revenue in the first annual period to the end of March as public company soared to GBP15.7 million from GBP6.8 million recorded in the comparative year-earlier period. Pretax profit, however, fell to GBP355,346 from GBP710,164 due to sharply higher costs.
Underlying earnings before interest, taxes, depreciation and amortisation - a important profit measure for the company - increased 55% to GBP1.7 million from GBP1.1 million. Operating expenses, including exceptional charges, totalled GBP9.2 million versus GBP3.4 million.
GRC, which listed on AIM on March 5 by raising GBP5 million, said strong momentum in the business since the initial public offering has continued and further significant progress is expected over the course of 2019 financial year.
"We have observed a solid performance in the new financial year, in part due to benefits realised from the implementation deadline of the EU's GDPR regulation on 25th May 2018. Operations are now established in Ireland, the US and Northern Europe, and we expect to see an interesting pipeline of possible acquisition targets develop," said Chief Executive Alan Calder.
"It is against this backdrop that we expect to deliver further significant progress in the new financial year to 31 March 2019," Calder added.
GRC has decided to conserve cash for further expansion and potential acquisitions and, as a result, no dividend has been declared in respect financial 2018.
GRC shares were up 10% to 275.00 pence on Tuesday.
Related Shares:
GRC.L