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SMALL CAP SHARE IDEAS: Winner of London 2012 4Global

Almost 10 years have passed since London hosted the Olympics. So get ready for endless replays of Super Saturday (4 August 2012) in which Great Britain won three gold medals in the space of 44 minutes.

The immediate return of the games was tangible: 53 individual and team gongs and fourth place in the medal table.

It also laid the groundwork for world dominance in events like cycling and rowing (although the field seems to be catching up with us in both). More difficult to determine was the social and economic legacy.

A little-known data analytics specialist named 4Global he did exactly that while working with the organizing committee to plan the 30th Olympiad and, more importantly, measure its impact.

4Global by Eloy Mazon advises cities, governments, event organizers and sports entities on the social, economic, financial, participation and health impact of sport

4Global by Eloy Mazon advises cities, governments, event organizers and sports entities on the social, economic, financial, participation and health impact of sport

Eloy Mazon, founder and CEO of 4Global, cites London as the turning point for the business.

From there, he worked the Rio Games four years later, the Commonwealth Games in Glasgow, the Sochi Winter Olympics…the list goes on.

4Global’s growth over the decade from London also coincided with a trend towards closer scrutiny of high-profile events.

‘People started asking ‘why are we hosting these big events and why shouldn’t we spend the US$15 billion it costs to host an Olympic Games somewhere else?’ Mazon said.

“And then you had the change from an entertainment sport to a force for transformation.”

In other words, there was a desire to know if the event would be a good investment or a waste of time, effort and money. 4Global developed the means to analyze the impact of a large or small sports project with unerring precision.

“Fast forward to now, our approach is to work with two sets of clients,” Mazon said.

‘One is the public sector with a focus on how to get people more active because it leads to massive health benefits and therefore health savings for the cities and governments involved.

“The other is the private sector, which also wants people to get active, but for a different reason, for commercial gain.”

Today, 4Global advises cities, governments, event organizers and sports organizations on the social, economic, financial, participation and health impact of sport.

Its customer base falls into four broad categories: private companies, such as health care companies and insurers, governments, cities, and sports federations.

It generates income from only two sources: services and technology. The former represents just under 60 percent of turnover.

The initiatives you are involved in can range from very specific, such as addressing inactivity, to helping devise the strategy for a major sporting event.

The initiatives you are involved in can range from very specific, such as addressing inactivity, to helping devise the strategy for a major sporting event.

The initiatives you are involved in can range from very specific, such as addressing inactivity, to helping devise the strategy for a major sporting event.

Then there’s the technology business, which accounts for about 40 percent of revenue. Its cloud-based Sports Intelligence product is powered by the company’s DataHub, which has information on the physical activity of 21 million people.

It details visits to 2,500 sports facilities such as gyms and sports centers. And you also have access to information contained in customer relationship management systems and results from fitness apps and wearable technologies.

Putting all this together to make sense was the hard part, Mazon said.

The [sports] space is very rich in data but very poor in information. There was no perception at all, no standardization.

‘The [sports] space is very rich in data but very poor in information. There was no perception at all, no standardization. So the data was largely unusable,” he explained.

What 4Global did was organize and standardize the material it has collected over the years, so it now offers end-user actionable intelligence.

All of this is done anonymously and in a way that complies with the GDPR requirements governing the use and storage of data. This technology offering is sold as a software-as-a-service (SaaS) product with a high and valuable recurring revenue base.

Chief executive Mazon believes that 4Global has the potential to dominate the sports data field in the same way that Experian, a £30bn behemoth generating £4.4bn in annual revenue, has cornered the sports data market. credit rating information.

This is a great ambition. For now, however, the focus is on deploying the growth capital generated from the December listing on AIM, which brought in £4m.

This will allow you to accelerate your organic growth plans while financing your international expansion and acquisition strategy.

Shares, at 76 pence, have stopped boiling a bit since they were listed, although this probably has more to do with the sectoral shift from tech stocks to defensive ones.

Certainly, the withdrawal appears to be in stark contrast to 4Global’s operational and financial performance.

Its recent trading update revealed that underlying earnings (EBITDA) for the year to March 31 would be “significantly ahead” of market expectations.

And Mazon is optimistic. ‘We are starting the [new financial] year in a very strong position in terms of income’, he said.

“The pipeline is probably the best that has ever existed, which gives us a lot of confidence.”

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