LONDON (ShareCast) - (Sharecast News) - Risk management and compliance-focussed cybersecurity specialist GRC International said in a trading update on Wednesday that it expected revenue to be between £14.5m and £15m for the financial year, up from the £13.9m it reported for 2022.
The AIM-traded firm also disclosed that contracted and recurring revenues would account for more than 60% of its total revenues for the 12 months ended 31 March.

It said its annualised recurring revenue (ARR) increased by 7% in just one month, to £6.7m at the end of March.

Fourth quarter billings were also up, by 23% compared to the third quarter to reach £4.3m, with several significant multi-year contracts signed, amounting to £5m.

The gross margin was also expected to rise, to 61% from 59% in the 2022 financial year.

However, GRC's EBITDA was expected to be between £0.3m and £0.6m, which would be lower than the £0.9m it earned in the 2022 period due to economic headwinds and macroeconomic uncertainties in the third quarter.

Cash at year-end totalled £0.1m, down from the £2.0m it had at the end of 2022, while the facility headroom was around £0.5m, the same as it was a year earlier.

"Our solid performance in the first half continued into the fourth quarter, resulting in revenue growth and continued margin improvements," said chief executive officer Alan Calder.

"However, the economic and geopolitical headwinds materially impacted our third quarter performance.

"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 its clients knew their assets were safe and, equally importantly, complied with numerous cyber regulations.

"As we have previously stated, our strategy is to grow organically and by acquisition.

"In the current financial market conditions, our primary focus is on organic growth and, in particular, in positioning our Cyber Comply platform at the heart of our service offering.

"With our recurring revenue activities continuing to perform strongly and the good momentum in the fourth quarter continued into the start of the new financial year, we are looking forward with increasing confidence."

Alan Calder said trading to the end of April was in line with the board's expectations.

At 1204 BST, shares in GRC International were flat at 14p.

Reporting by Josh White for Sharecast.com.

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