4GLOBAL PLC (AIM:4GBL) chief executive Eloy Mazon told investors he’s confident in the direction of the company, as it is navigating a strategic shift from the Middle East to North America.
"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,” Mazon said in a statement.
"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.”
4Global, in a trading update for the year ended 31 March, noted that certain contracts expected before the end of the last financial year will now fall into the new trading period.
The sports data and tech company said it now expects to report revenue between £5.1 million and £5.3 million for the year just closed, with earnings (adjusted EBITDA) anticipated between £0.9 million and £1 million.
Revenue from North America increased 145% year-on-year to £1.6 million, which was ahead of the company’s own expectations. At the same time, there was an 84% decline in Middle East revenue, which fell from £2.5 million to £0.4 million.
Business in the UK and Europe remained stable, with revenue seen at around £3.1 million.
4Global highlighted that it had secured multi-year contracts worth over £5 million in North America, the UK, and Europe during the second half. And, the strategic shift is expected to result in higher-margin, recurring revenue, with data-driven income rising to 81% of the mix from 60% last year.
“Successfully entering and rapidly gaining traction in North America while pivoting away from the Middle East is a major strategic achievement,” Mazon said.
He added: "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."