GRC International Group (GRC)

Sector:

IT Services

Index:

FTSE AIM All-Share

 27.50p
   
  • Change Today:
      0.000p
  • 52 Week High: 47.00p
  • 52 Week Low: 24.00p
  • Currency: UK Pounds
  • Shares Issued: 107.83m
  • Volume: 0
  • Market Cap: £29.65m

GRC International shares plunge after H1 revenues fall

By Sean Farrell

Date: Wednesday 18 Dec 2019

LONDON (ShareCast) - (Sharecast News) - GRC International lost more than a fifth of its value on Wednesday after the IT governance and risk management company posted a 20% drop in first-half revenue caused by falling demand for data protection services.
Revenue for the six months to the end of September fell to £7.1m from £8.9m a year earlier as sales of privacy-related services more than halved. Gross profit fell 22% to £4m while the underlying earnings loss narrowed to £1.4m from £1.8m as the company cut staff numbers.

The AIM-listed company blamed a sharp fall in work related to the EU's data protection rule, known as GDPR, and customer concerns about Brexit and the economy for the revenue decline.

Privacy revenue fell to £2.27m from £4.84m a year earlier, more than offsetting an increase in cyber security revenue to £4.45m from £3.67m. Excluding its acquisition of GDPR-focused consultancy DQM in March, GRC cut 120 jobs during the year leaving it with a headcount of 160 at the end of September.

GRC shares fell 28% to 17p at 0810 GMT. The company floated on AIM in March 2018 at a price of 70p a share.

Chief executive Alan Calder said: "As we expected, H1 revenues were lower than last year's Q1 peak in GDPR-driven performance. The period was also negatively affected by customers' ongoing worries about Brexit and the overall macro-economic malaise.

"We continued to improve marketing and sales skills and processes, while continuing to drive down both direct and indirect costs. We successfully focused on increasing cyber security revenue, countering the continued decline in GDPR work, which we believe has now reached its nadir."

The company said it was still in discussions with DQM management about a deferred payment for the group of about £3.7m. Though DQM has traded profitably, GRC is considering selling the business or raising equity or debt funding.



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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

GRC Market Data

Currency UK Pounds
Share Price 27.50p
Change Today 0.000p
% Change 0.00 %
52 Week High 47.00p
52 Week Low 24.00p
Volume 0
Shares Issued 107.83m
Market Cap £29.65m

GRC Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
8.07% below the market average8.07% below the market average8.07% below the market average8.07% below the market average8.07% below the market average
36.84% below the sector average36.84% below the sector average36.84% below the sector average36.84% below the sector average36.84% below the sector average
Price Trend
47.93% below the market average47.93% below the market average47.93% below the market average47.93% below the market average47.93% below the market average
26.61% below the sector average26.61% below the sector average26.61% below the sector average26.61% below the sector average26.61% below the sector average
Income Not Available
Growth
50.52% below the market average50.52% below the market average50.52% below the market average50.52% below the market average50.52% below the market average
64.36% below the sector average64.36% below the sector average64.36% below the sector average64.36% below the sector average64.36% below the sector average

GRC Dividends

No dividends found

Trades for --2022

Time Volume / Share Price
0 @ 0.000p

GRC Key Personnel

CEO Alan Calder
Finance Director Christopher Hartshorne

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