4GLOBAL PLC (AIM:4GBL) earlier this week update on its performance and strategic direction, with CEO Eloy Mazon highlighting a shift toward high-margin, scalable growth.
The company reported 145% revenue growth in North America, reaching £1.6 million by February. Mazon described this as a major achievement in a challenging market, attributing success to a strategic, measured approach that ensured the right infrastructure and go-to-market strategy.
At the same time, it significantly reduced its focus on the Middle East, to prioritize core markets in North America, the UK, and Europe, where the company sees the strongest growth potential.
Here, we take a closer look at what Eloy had to say.
Proactive: Joining me is 4GLOBAL CEO Eloy Mazon. Eloy, very good to speak with you again. What's behind the revised revenue guidance, and how should investors interpret it?
Eloy Mazon: Hi Stephen, good morning, and thanks for inviting me here today. Context is key here.
This year was a significant transition for the business as we shifted focus to North America, a market that is famously difficult to break into.
However, we’ve made outstanding progress, as you would have seen from the RNS.
We’ve approached this expansion strategically and in a measured way to ensure we have the right infrastructure, offering, and go-to-market strategy. Our revenue growth shows that this approach is working.
Establishing a foothold in a new market takes time and resources. At the same time, we’ve taken a more selective approach in the Middle East, which has required significant effort from our team and business.
If I may use an analogy, we’ve been building a runway while flying the plane. Some deals we hoped to conclude this financial year have taken longer, but they are still in play. These contracts are high-margin, recurring revenue agreements that will strengthen our business in the long term.
While revising revenue expectations isn’t ideal, the overall trajectory of our business remains overwhelmingly positive. We are gaining real traction in North America, with a rapidly growing pipeline and strong commercial momentum. Despite the numbers changing, we are excited about the direction of travel and are more confident than ever about the long-term future of the business.
Proactive: Eloy, can you tell us about performance by region?
Eloy Mazon: North America has been a standout performer. We’ve achieved 145% growth in the region, with revenue reaching £1.6 million by the end of February. That is a significant achievement for a company in its first year in a new market.
We’ve focused on where the real opportunities are, and I’m grateful to our team for their hard work. Beyond the sales we’ve already secured, we’ve established key anchor client relationships and signed several lucrative multi-year contracts. The pipeline is growing, and we expect further expansion.
In the Middle East, revenue declined from £2.5 million to £400,000 this year. This was expected and the result of a conscious decision to move away from lower-margin business and concentrate on core markets—North America and Europe—where we see the most growth potential.
In the UK and Europe, revenue remained stable at £3.1 million by the end of February. While North America has been the focus, this remains our home market, and we continue to see strong long-term growth potential.
The key takeaway is that we have successfully shifted towards higher-value markets, in line with our strategy. The multi-year contracts we signed in the second half of the year, worth more than £5 million, provide good revenue visibility for the next financial year and beyond. While our commercial progress in North America is still building, the trajectory is very encouraging.
Proactive: Your revenue mix has changed significantly. What does this shift mean for the business?
Eloy Mazon: When we first entered the market, our revenue was more evenly split between consultancy and data-driven contracts. Consultancy revenue is manpower-intensive, project-based, and offers less revenue visibility, which is not ideal.
From day one, our strategic priority has been to shift towards a scalable, license-based model where customers pay for ongoing access to our data insights. This transition is now evident in our financials. Our repeatable, high-margin revenue has increased from 60% to 81% of total revenue.
This makes our business far more resilient and predictable. These changes, which we’ve been implementing for years, have positioned us well for the future. Investors can expect greater stability, improved cash flow, and more sustainable long-term growth.
Proactive: Moving forward, what's the bigger picture for investors?
Eloy Mazon: We are now set up for sustainable, long-term growth. This has been a transitional year where we built the right infrastructure, refined our model, and positioned ourselves in the right markets.
We now operate in markets with strong long-term demand. The pipeline is growing, and our offering is well-aligned with industry trends. The most challenging phase of our transition is now behind us, though there is still work to do.
Breaking into a new market is never easy, especially while restructuring operations in another region. However, we’ve navigated these transitions well and are now focused on accelerating growth.
Cash flow and revenue predictability are improving, particularly in North America, where payment terms are attractive. From the start, we have been clear that our strategy is not about chasing short-term targets but about building a high-quality, scalable, and resilient business that delivers long-term value for shareholders. The opportunity ahead is exciting, and we are confident in the path forward.
Proactive: Eloy, I hope you’ll keep us posted on your progress.