5
June 2024
GRC International Group
PLC
("GRC" or the
"Group")
Year-end trading
update
GRC International Group PLC (AIM:
GRC), an integrated cyber security and privacy solutions business,
announces a trading update for the for 12 months ended 31 March
2024 ('FY24').
Highlights[1]
·
Revenue expected to be up 4% to £15.3m (FY23:
£14.7m).
o Contracted and
recurring revenue expected to be up 3% to £11.0m (FY23:
£10.7m).
o Annualised
Recurring Revenue ('ARR') expected to be £11.0m (FY23:
£10.9m).
·
Gross Margin expected to increase to 62% (FY23:
61%).
o Continued Gross
Margin improvement from 52% in FY21 to 62% in FY24
·
Underlying EBITDA[2] expected to be
not less than £1.0m (FY23: £0.3m) up 330%.
·
Year-end cash of £0.2m (FY23: £0.1m).
o Total
borrowings at 31 March 2024 (excluding capitalised lease
obligations) of £1.7m (FY23: £1.3).
·
Quality and customer satisfaction improved further: NPS score
now 59 (FY23:53). Note: 50+ is 'excellent', 70+ is 'world
class'.
The Group has made progress against the
short-term objectives set out for investors in September
2023:
- Completed phase 1 of
the restructure - merged Vigilant Software and GRC e-Learning into
IT Governance Ltd.
o FY24
Consultancy, training revenue both increased 3% on prior
year.
o EBITDA
improvements.
o Annualised cost
savings now running at £1.6m+.
- Completed first phase
of investment into CyberComply development.
o FY24 Software
revenue up 20% notwithstanding the 6-month redevelopment
pause.
o To improve
customer acquisition and retention the website improvements are
expected to go live from Q1 in FY25.
- Launched Digital
Operational Resilience Act ('DORA') and EuroPrivacy product
suites.
o Sales of DORA
products and services have improved as we ended FY24 and commenced
FY25.
- Developed and
deployed initial AI tools into marketing and operations.
The Board are pleased with the Group's
significant growth and improvement in performance over the last 4
years.
Alan
Calder, Chief Executive Officer,
commented:
"Encouragingly, FY24 was a
third year of progress in improving revenue, margins and
productivity. This progress, combined with the early benefits of
the Q4 streamlining and re-structure, led to a significant
improvement in underlying EBITDA in FY24 and generated ongoing cost
savings.
CyberComply, our cyber security and compliance
platform, is key to the Group's strategy for growth and
in the current financial market conditions, our
primary focus remains on organic growth and, in particular, in
positioning our Cyber Comply platform at the heart of our service
offering. Our continued investment in CyberComply and
in our technology infrastructure should enable us to accelerate
customer acquisition while improving retention and customer
lifetime value ('CLV').
While we anticipate the UK General Election will
affect short term sales, trading in April was in line with
expectations."
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
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 IT Governance, offer 'Our expertise, your peace
of mind' for GRC's wide range of domestic and international
corporate customers across many 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.