Trading Update

4GLOBAL plc

("4GLOBAL" or the "Group")

Trading Update

4GLOBAL (AIM: 4GBL), a provider of data and technology for sports, fitness and wellness organisations to optimise operational and investment decisions, announces an update on trading for the year ending 31 March 2025 ("FY25").

Strategic Transition

As previously communicated, this financial year marked a significant strategic transition for 4GLOBAL, with the Group successfully shifting its market focus from the Middle East to North America.

Given the scale of this transition delivery schedules in the final weeks of the financial year have been affected, with certain contracts originally expected in FY25 now anticipated to fall in FY26. As a result, the Board expects FY25 revenue to be between £5.1m and £5.3m and adjusted EBITDA1,2 to be between £0.9m and £1.0m3.

The Board stated in the interim results that an additional provision for the outstanding Middle East debt would be considered in H2. Following extensive efforts to recover it, the Board has determined a full provision in FY25 to be the most prudent course of action, enabling the Group to allocate more resources to its core growth markets going forward.

At the year-end, the Group expects to report cash between £0.2m and £0.5m. Certainty around the timing of receipts has improved with the transition in geographical markets and the establishment of strong commercial relationships with new customers. Securing new multi-year contracts will further enhance cash visibility for FY26.

Geographic Performance

The strategic transition from the Middle East to North America is driving long-term improvements in revenue and margin, with a growing proportion of higher margin, recurring and repeatable contracts.

At the end of February 2025, revenue from North America had increased 145% year-on-year to approximately £1.6 million, reflecting strong demand and the Group's growing commercial traction in the region. This growth has exceeded internal expectations, providing further validation of the Group's decision to prioritise the region.

Growth in North America has offset some of the planned reduction in the Middle East, where FY25 revenue is expected to decrease by 84% from £2.5m to £0.4 million following the Group's previously announced decision to implement a stricter commercial mandate.

The Group's home markets remain strong with recurring contracts and relationships with key partners in the region, with FY25 revenue from the UK and Europe expected to remain in line with the prior year at approximately £3.1 million.

In H2 of FY25 to date, the Group has secured multi-year contracts in North America, the UK and Europe worth over £5 million in total4, reflecting strong demand, an effective go-to-market strategy and providing greater visibility over future revenue.

Shift Towards Recurring Revenue and Scalable Solutions

Alongside the shift in geographic focus, the Group has continued its transition towards higher margin, recurring and repeatable revenue Insight Solutions and Insight Platform products.

In FY24, revenue was 60% data-driven and 40% consultancy-driven. At the end of February 2025, data-driven revenue had increased to 81%, reflecting a significantly reduced reliance on lower margin, project-based work in line with the Group's long-term strategic focus on more predictable, higher quality revenue streams.

Outlook

The Group will continue to expand in its core markets - North America and Europe - where key client relationships have been established and significant opportunities exist to drive revenue and profit growth.

Innovation will remain at the forefront of the business. The recently announced launch of SportPulse has expanded the Group's addressable market, while Insight.OS enhances the accessibility of the Group's data asset, accelerates sales cycles and reduces on-boarding times.

Working capital is anticipated to continue to improve following the strategic transition to North America. The region offers a substantial market opportunity and attractive commercial terms with greater payment predictability.

Eloy Mazon, CEO of 4GLOBAL, commented: 

"While the timing of contract signings and delivery schedules at the end of the year, alongside the provision against the Middle East debtor has affected FY25, the underlying momentum in the business is clear, and we remain confident in our direction.

"This has been a pivotal year for 4GLOBAL, and I am incredibly proud of the pace and scale of progress achieved by our teams during this transition. Successfully entering and rapidly gaining traction in North America while pivoting away from the Middle East is a major strategic achievement. The strong revenue growth in North America, alongside the establishment of relationships with key anchor clients and a growing pipeline of multi-year contracts, reinforces the demand for our solutions and positions us for long-term, sustainable growth.

"Our offering is now more defined, targeted, and scalable, with a growing proportion of high-margin, recurring revenue. The foundation we have built also enables us to serve a much larger addressable market. The opportunity ahead is substantial, and we are well-positioned to capitalise on it."

1Adjusted EBITDA is defined as statutory profit from operations before interest, taxation, depreciation, share based payment expense, foreign exchange losses and exceptional items (i.e. bad debt provisions)

2Figures included in this RNS are unaudited

3Analyst forecasts for the year ending 31 March 2025 prior to this announcement were £7.6m in revenue, £1.9m in adjusted EBITDA and £1m in cash at year-end

4Booked revenue for FY26 and subsequent years

Contacts

About 4GLOBAL

4GLOBAL empowers sports, fitness and wellness organisations to make faster, smarter decisions about their operations, customers and investments through data and actionable insights.

It operates the largest sport participation and facility database in the world, with more than 4 billion data points.

Sourcing data from health & fitness operators, community programmes and other structured activities through its DataHub while drawing on information from GPS location updates and wearable devices, 4GLOBAL's unique combination of data assets provides a holistic view of physical activity patterns. 

4GLOBAL is at the forefront of predictive modelling and advanced analytics, with the insights it generates empowering customers to drive efficiencies, improve customer relationships and make more informed strategic decisions.

Its customers span both the public and private sectors, including central and local governments, cities, sporting bodies, trade associations, health & fitness operators and sports clubs.

Key markets include North America, the Middle East and Europe. Its headquarters are in London with offices in Miami and Istanbul.

4GLOBAL was founded in 2002 and listed on AIM in 2021 under the ticker 4GBL.