GRC ends year strongly as high demand continues
Governance, risk management and compliance provider GRC International said in a trading update on Tuesday that billings for the financial year just ended were up 21% to £14.8m.
The AIM-traded firm said fourth quarter billings were ahead 25% to £4.5m, with March billings the highest since the end of the GDPR peak in May 2018, despite macroeconomic headwinds.
It said billings from recurring revenue products for the year ended 31 March accounted for 56% of total billings, up from 54%.
The company’s recurring revenue subscriber base was up 41% to 5,089, while 57% of transactions were from returning existing customers, compared to 45% in the prior year.
GRC said second-half revenue growth continued in line with the progress made in the first half, with fourth quarter revenues up 14% to at least £4.0m.
EBITDA was set to be at least £0.8m, swinging from a loss of £1.1m.
The firm reported cash at year-end of £2.0m, up from £0.2m, reflecting its January share placing and an “exceptionally strong” February and March trading and cash performance.
Looking ahead, the board said it was seeing “significant” international growth opportunities in a “digitally-transformed, cloud-based, increasingly-vulnerable, hybrid-working environment”.
It said that was the result of corporates of all sizes needing to deal with “increasingly complex” regulations and enforcement in the company’s three primary geographic markets of the UK, the EU and the United States.
“Our strong performance in calendar 2021 continued into the fourth quarter of 2022, resulting in our best month of billing, despite the economic and geopolitical headwinds,” said chief executive officer Alan Calder.
“That strong momentum in the fourth quarter 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.”
Calder said the company’s strategy was to “grow organically and by acquisition”, with the latter to “deepen and widen” its offering.
“To that end, we are making good progress to execute on our acquisition plans.”
At 1157 BST, shares in GRC International Group were up 7.14% at 30p.
Important Legal Notice about News Sources: Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news and we may not share the views of the author or publisher. We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.
The value of investments can fall and you may get back less than you invested.