4Global to quit Aim, warns on profits

(Sharecast News) - 4Global is to quit Aim and go private, the sports data specialist announced on Wednesday, after failing to raise enough capital to fund long-term growth plans. Shares in the business - which also warned on profits - had plunged 44% to 12.34p as at 1215 BST.

4Global said that having recently reviewed plans to grow the company, it no longer believed that a listing on Aim was in shareholders' best interests.

In particular, it flagged the costs of being a listed firm - which it called "disproportionately high compared with the benefits" - a lack of liquidity and its struggling share price, which has negatively impact its market value.

The stock reached a high of 95p shortly after debuting in December 2021, at 89p. But within weeks it had fallen back and has failed to trade above its debut price ever since.

4Global also said attempts to raise sufficient additional equity capital had failed, and refinancing deadlines were due later this year.

The firm, which was founded in 2002, also warned that annual revenues and adjusted earnings would come in below expectations.

Updating on trading in March, 4Global had said revenues would likely come in between £5.1m and £5.3m, and earnings before interest, tax, appreciation around £900,000 to £1.0m.

However, it now expects to post revenues of £4.5m in the year to 31 March, and EBITDA of £500,000.

Trading had been "volatile", it said, with macroeconomic factors affecting the timing of contracts.

However, it noted that two contracts - with Sport England and UK Sport - had been secured since the year end, and that booked revenues for the current year was up 24% as a result, at £3.1m.

Shareholders will be able to vote on the plans to delist at a meeting on 25 June. Should the resolution pass, the last day of trading will likely be 4 July. It will then re-register as a private company on 28 July.