TIDMSKL
RNS Number : 7396N
Skillcast Group PLC
27 September 2023
The information contained within this announcement is deemed by
the Company to constitute inside information pursuant to Article 7
of EU Regulation 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 as amended.
27 September 2023
Skillcast Group PLC
("Skillcast", the "Group" or the "Company")
Results for the six months ended 30 June 2023
Skillcast (AIM: SKL), the provider of SaaS compliance platforms
and off-the-shelf e-learning courseware, is pleased to announce
strong growth in recurring subscription revenue in its unaudited
results for the six months ended 30 June 2023.
Highlights
6 months to 6 months 12 Months Change
30 June 2023 to 30 June to 31 December (H1 23 v
2022 2022 H1 22)
(unaudited) (unaudited) (audited)
(H1 23) (H1 22)
------------------------------ ---- -------------- -------------- ---------------- ----------
Revenue GBP5.2m GBP4.5m GBP9.8m +15%
Gross margin (%) 66.5% 69.8% 70.1% -3.3pps
Annualised recurring revenue
(ARR)* GBP8.1m GBP6.4m GBP6.8m +27%
(LBITDA)/EBITDA -GBP0.7m -GBP0.2m -GBP0.3m -354%
Basic (loss)/EPS (pence) -0.863p -0.162p -0.460p -432%
Dividend per share (pence) 0.168p 0.168p 0.447p 0%
Cash in bank GBP7.6m GBP7.5m GBP7.7m +2%
(Cash burn) / Free cash
flow -GBP0.1m -GBP0.4m GBP0.3m +80%
------------------------------------ -------------- -------------- ---------------- ----------
-- Revenue growth of 15% (H1 22: 20%) driven by a 23% increase
in subscription revenues predominantly from new customers
o Subscription revenues increased to 75% of total revenues (H1
22: 70%)
o ARR* increased 27% YoY to GBP8.1m in June 2023 (June 22:
GBP6.4m) and +20% year to date
-- Gross margin fell 3.3 percentage points to 66.5% (H1 22:
69.8%) due to one-off cloud transitional costs.
-- LBITDA of -GBP0.7m as investment continues following IPO in
December 2021, with average headcount increasing 20% over the past
12 months to 114 (June 22: 95). Key growth roles now filled
-- Interim dividend declared of GBP150,000, in line with last
year as per our stated policy. This represents 0.168 pence per
share (H1 22: 0.168 pence per share)
-- Cash in bank up at GBP7.6m at 30 June 2023 (30 June 2022: GBP7.5m) despite trading loss
-- Cash burn of only GBP0.1m in H1 23 with upfront cash from
growing sales offsetting trading losses
Current Trading and Outlook
Trading since the period end continues to be encouraging, with
the rate of year-on-year ARR growth accelerating to further support
future subscription revenues. In the second half of the year, we
look forward to complementing our existing technology offerings by
launching Skillcast Basic: our low-cost, e-commerce plan for small
companies.
We expect the increase in overheads to continue to slow now that
we have filled all identified key management and growth roles. We
plan to increase prices at the end of the year to offset continuing
inflationary pressure and remain on track with our long term plans
set out at the time of the IPO in 2021.
Vivek Dodd, Chief Executive Officer, said:
"I am delighted with the pick-up in our ARR growth, which was
20% for the first half of the year alone. We have continued to
increase organically the recurring portion of our total revenues
from 63% in H1 21, to 70% in H1 22, and 75% in H1 23.
"Our increased focus on value for money and data-led compliance
is finding favour with compliance departments, and we are
continuing investments in products and marketing to bring
innovative solutions to market. We will shortly launch a low-cost
e-commerce offer in H2 23 to help small businesses provide
compliance e-learning to their staff.
"Trading in the second half of the year has started well, and
the sales pipeline remains strong. We have declared an interim
dividend in line with last year of GBP150,000 (0.168 pence per
share) and will review our dividend policy after we have returned
to profitability."
*Further details on the calculation of ARR are set out in the
Financial Review below
Enquiries:
Skillcast Group plc +44 (0)20 7929 5000
Richard Amos, Chairman
Vivek Dodd, Chief Executive Officer
Richard Steele, Chief Financial Officer
Allenby Capital Limited (Nominated Adviser
& Broker) +44 (0)20 3328 5656
James Reeve, Piers Shimwell (Corporate Finance)
Jos Pinnington, Tony Quirke (Sales and broking)
Background
Our Purpose
Skillcast enables businesses to build ethical and resilient
workplaces. Our vision is to be a leading provider of compliance
platform and digital training courseware for staff compliance.
Who we are
The Group is headquartered in the City of London, with an
operations hub on the island of Malta. We develop content and
technology to help companies with staff compliance. We have 120+
employees, many of whom have been with the Group for over a
decade.
What we do
Skillcast provides time-saving and cost-effective "SaaS"
(Software as a Service) solutions, including:
-- 100+ off-the-shelf (OTS) e-learning courses that cover topics
including Anti Money Laundering (AML); Bribery and Corruption;
Diversity; Equality and Inclusion (DEI); Environmental, Social and
Governance (ESG); GDPR; Health and Safety; Modern Slavery; Risk
Management; and Senior Managers & Certification Regime (SMCR)
for the financial services industry.
-- A feature-rich compliance platform that helps companies to
digitise, automate and consolidate various staff compliance
processes including training, policy attestations, declarations,
disclosures, surveys, submissions and approvals.
-- Bespoke content consultancy to further personalise, adapt or
gamify to meet clients' requirements.
-- Award-winning customer service to help employees obtain the
optimum learning experience and provide companies with efficient
and insightful learning management.
-- Free access to a host of webinars, events and
SkillcastConnect community portal, which bring together compliance
professionals for peer group networking.
Our customers
Over 1,000 companies use Skillcast's SaaS (Software as a
Service) products consultancy services to support over 1 million
employees to meet their compliance requirements. Originally
targeting the financial services industry, 45% of revenues now come
from other sectors, including retail, manufacturing, transport and
real estate.
Investing for growth
The corporate compliance market is large, resilient, fragmented
and growing, and the directors believe Skillcast is well-positioned
to thrive. The Group boosted its already strong balance sheet at
the time of its AIM admission in December 2021 and is investing in
its products, technology, commercial teams and organisational
structure.
S tr a t egic and operational progress
Our focus in 2023, as in previous years, is on growing the
subscription business measured through the size of our ARR book. We
believe Skillcast has a tremendous growth opportunity as companies
seek to digitise their staff compliance to reduce costs, improve
employee experience and reduce the risk of breaches in the face of
ever-growing regulations.
Our business model of recurring annual subscriptions provides a
stable base we can build upon with product upsells and new customer
acquisitions. Our investments over the past year enabled us to
start 2023 with a flurry of new product launches.
Product
In February 2023, we launched our FastTrack product, which, when
added to our off-the-shelf ("OTS") courses, enables experienced
employees to demonstrate their compliance understanding with a
pre-assessment and opt for a shorter version of the course. This
improves employee acceptance of compliance training and saves staff
time while ensuring full compliance.
In March 2023, we launched our Global Compliance and Global Risk
courses. Compliance is generally a nationally focussed activity
reflecting the rule of law. These global libraries open up the
market for multinational companies, particularly in Europe, that
need their courses to be based on global best practices and be
available in multiple languages.
In April 2023, we launched our new micro-learning Compliance
Bites: a library of short, engaging videos on key compliance topics
designed to improve employee retention.
In the coming months, we will launch a new self-service plan to
supply compliance training to small UK businesses. We already serve
this market segment, but we believe that we can substantially
increase our penetration in this underserved segment with the new
service plan that will be more affordable, easy to manage and
customised for industry sectors.
Technology
Migration of our application to Microsoft Azure was completed on
time and budget in March 2023 and has enhanced our service's speed,
reliability and security, helping us maintain our reputation as
trustworthy custodians of our customers' data. It also provides the
scalability we need to support future growth in the customer
base.
We have invested in cyber risk prevention, implementing enhanced
monitoring and protection software across our IT ecosystem. In
Autumn 2023, we expect to be able to certify as Type 1 SOC 2
compliant.
We are increasing our use of AI in our products and in
operational areas. We use AI to improve the efficiency of our
product development in areas including coding and translations. We
recently implemented an AI based sales pipeline tool and plan to
implement an AI service tool for our Customer Success team in the
near future.
Commercial
We continue to invest in our marketing and sales operations and
are pleased with the continuing growth we are seeing in
subscription revenues and ARR. We continue to attract new clients
and were particularly pleased to secure two large clients with
annual subscription revenues in excess of GBP70,000 in the period.
We are seeing up sales from our new products, supporting our 104%
net retention rate in H1 23.
Scalable infrastructure
We are seeing the benefits of our enhanced governance and
support roles following our IPO. Our first-ever strategy day in
November 2022 helped deliver our 2023 operating plan, which we
monitor through a financial and OKR reporting framework.
Outlook
Trading since the period end continues to be encouraging, with
the rate of year-on-year ARR growth accelerating to further support
future subscription revenues. In the second half of the year, we
look forward to complementing our existing technology offerings by
launching Skillcast Basic: our low-cost, e-commerce plan for small
companies.
We expect the increase in overheads to continue to slow now that
we have filled all identified key management and growth roles. We
plan to increase prices at the end of the year to offset continuing
inflationary pressure and remain on track with our long term plans
set out at the time of the IPO in 2021.
Financial Review
Revenue
Total revenues of GBP5.2 million were 15% up on the comparable
period last year (H1 22: GBP4.5 million), driven by
software-as-a-service ("SaaS") subscription revenues. Subscription
revenues typically accrue from 12-month contracts, invoiced up
front, for our library of compliance e-learning courses and
associated compliance products. During H1 23, subscription revenue
growth helped increase the proportion of revenues from
subscriptions to 75% (H1 22: 70%) of total revenues. Total
revenue-generating clients in H1 23 increased by 26% to 1,059 (H1
22: 841). The top 10 clients accounted for 22% of revenues in the
period (H1 22: 23%).
Subscription ("SaaS") revenues grew 23% to GBP3.9 million (H1
22: GBP3.1 million), driven by a 26% increase in new clients
predominantly buying our core compliance e-learning libraries and
Learning Management System ("LMS") feature on our compliance
platform. We were encouraged to see higher demand for other
features on our compliance platform, such as Policy Hub growing at
a faster 35% growth on H1 22 to represent 11% of subscription sales
(H1 22: 10%).
Annual recurring revenue ("ARR"), our key performance indicator
to measure subscription sales progress, grew by 27% to GBP8.1
million over the past 12 months (June 2022: GBP6.4 million) and by
20% since the start of the year (December 2022: GBP6.8 million).
83% of the ARR growth in the period was derived from new clients,
including two large clients with an annual contract value of over
GBP70,000 each. Average ARR per new account increased by 23% to
GBP6,629 (H1 22: GBP5,396), and by 7% to GBP5,797, excluding these
two large accounts. Net retention rate increased to 104% (H1 23:
95%), helped by a price rise, which contributed 4%, and reduced
churn of 3% (H1 22: 7%).
Revenue from professional services was GBP1.3 million, which was
essentially in line with the same period last year. Our strategy
remains to maintain this revenue stream steady at approximately the
same absolute level as in previous years.
Gross profit
Gross profit margin decreased by 3.3 percentage points to 66.5%
in H1 23 (H1 22: 69.8%) as a result of the one-off transitional
higher cloud computing costs incurred during the migration of all
clients to Microsoft Azure, which was completed in March 2023. We
have subsequently signed a new fixed contract with Azure which will
start to see cost reductions in H2 23.
Investing for growth
Overheads grew by 26% or GBP0.9 million in the period (H1 22:
50% or GBP1.3 million) to GBP4.3 million (H1 22: GBP3.4 million) as
the Group continued to invest to drive future growth as intended.
The majority of this investment was in people.
In H1 23, total employment costs (including employees in
operations included in the cost of goods sold), increased by GBP1.0
million or 29% to GBP4.4 million (H1 22: GBP3.4 million), and the
average headcount increased by 20% to 114 (H1 22: 95). On 30 June
2023, our headcount was 121 (30 June 2022: 99). The biggest area of
growth was in the sales and marketing function with an average of
nine more heads during the period. Average employment costs per
employee were 7% higher in H1 23 compared to H1 22.
Non-people-related overheads were GBP1.9 million and increased
by GBP0.4 million or 24% on the same period last year (H1 22:
GBP1.5 million). Marketing activity costs increased 107% compared
to the same period last year. Other increases were predominantly
driven by increases in revenue, headcount or inflation.
EBITDA
Due to the ongoing investment, the Group delivered an LBITDA of
GBP0.7 million in H1 23 (H1 22: LBITDA: GBP0.2 million). This
profit performance reflects the intended investment programme,
which is supported by the fundraising in December 2021.
Tax
The Group reported a loss before tax of GBP0.8 million in the
period and consequently was not liable for any corporation tax in
either its UK or Malta jurisdictions.
The Group had unutilised tax losses carried forward of GBP1.3
million as of 31 December 2022 (2021: GBP0.7 million) due
predominantly to research and development credits. These will
increase in 2023 due to trading losses and an expected research and
development claim. Given the varying degrees of uncertainty as to
the timescale of the utilisation of these losses, the Group has not
recognised the potential deferred tax assets associated with these
losses.
In Malta, a withholding tax rebate of GBP0.1 million, due to
Inmarkets Group Ltd with regards to dividends declared by Inmarkets
International Ltd for 2021, was reflected as a tax credit in H1 22.
No such dividends were declared in H1 23.
EPS
The basic loss per share was 0.863 pence on 89.5 million shares.
(H1 22: 0.162 pence).
Dividend
With a business that is backed by recurring revenues that
provide strong cash generation, the Board is committed to paying
dividends. The Board, therefore, declared an interim dividend of
GBP150,000 consistent with the previous year, or 0.168 pence per
issued ordinary share. The interim dividend will be paid on 27
October 2023 to shareholders on the register on 6 October 2023.
It is the Board's stated policy to maintain the total aggregate
annual dividend of at least GBP400,000, consistent with previous
years, for the current year. The Board will review its policy when
the Company has returned to profitability.
Balance sheet and cash flow
Net assets at 30 June 2023 were GBP5.9 million, GBP0.7 million
less than at 31 December 2022 and GBP1.3 million less than at 30
June 2022 due to the retained losses accumulated from the
accelerated investments and dividends paid.
There was a small operating cash burn in H1 23 of GBP0.1 million
(H1 22: GBP0.3m) as cash receipts paid upfront from higher
subscription sales offset trading losses. This cash burn, which is
relatively small in comparison to the cash resources of the Group
was planned as part of the growth strategy and was due in part to
the investment programme we are undertaking. The Group had GBP7.6m
cash at bank at 30 June 2023 (30 June 2023: GBP7.7m) and has no
bank debt.
The Group does not capitalise any intellectual property on
either the content or technology of its products. It has two
right-of-use assets totalling GBP0.5 million at 30 June 2023,
representing its leased offices in London and Malta.
Trade and other receivables at 30 June 2023 of GBP3.7 million
were GBP0.3 million lower than 30 June 2022. Trade debtors of
GBP2.3 million were GBP0.2 million lower than at 30 June 2022
despite the revenue growth and debtor days fell from 76 at 30 June
2022 to 63 days at 30 June 2023. Other receivables of GBP1.5
million 30 June 2023 are in line with 30 June 2022. GBP0.6 million
of this balance relates to tax rebate due from the Maltese
government. During the period GBP0.2 million was received.
Current liabilities of GBP5.8 million at 30 June 2023 were
GBP1.1 million higher than at 30 June 2022 primarily due to an
increase in contractual liabilities relating to deferred income.
Deferred income of GBP4.2 million at 30 June 2023 was GBP0.8
million or 24% higher than 30 June 2022 due to SaaS contracts and
incomplete professional services projects.
Alternative Performance Measures
*Annual Recurring Revenue (ARR)
ARR is also used to assess the performance and the trend of
subscription revenue. ARR is calculated by multiplying the Monthly
Recurring Revenue ("MRR") by twelve. MRR is defined as the
subscription revenue that was recognised in a month, excluding any
retrospective upward adjustments that arise at the end of the
contract where there have been more subscribers than a client
originally contracted for, less any contract losses (Churn), or
downward adjustments arising on contract renewal. The Directors
consider that the ARR, derived from software-as-a-service (SaaS)
sales, is a key measure of the performance of the business. The ARR
increased 27% to GBP8.1 million on the year (June 22: GBP6.4
million) and 20% since December 2022 (GBP6.8 million).
Skillcast Group
PLC
Consolidated statement of profit or loss and other comprehensive
income
For the period
ended 30
June 2023
Unaudited Unaudited Audited
Six months Six months Twelve months
to to to
30 June 30 June 31 December
2023 2022 2022
Note GBP GBP GBP
Revenue 4 5,150,205 4,484,085 9,830,431
Cost of sales (1,722,934) (1,352,211) (2,942,092)
Gross profit 3,427,271 3,131,874 6,888,339
Administrative
expenses (4,294,662) (3,407,561) (7,442,068)
Operating
profit (867,391) (275,687) (553,729)
----------------------------------------- ----------------------------------------- -------------------------------------------
EBITDA 3 (749,261) (165,094) (316,314)
Other income - - 3,013
Finance income 106,169 838 15,996
Finance expense (10,614) (10,339) (21,307)
Profit before
tax (771,836) (285,188) (556,027)
Income tax
rebate - 139,983 144,237
Profit after
tax and total
comprehensive
income (771,836) (145,205) (411,790)
========================================= ========================================= ===========================================
EPS basic 7 -0.863p -0.162p -0.460p
-----
EPS diluted -0.863p -0.162p -0.460p
---------------- ----- ----------------------------------------- ----------------------------------------- -------------------------------------------
Skillcast
Group PLC
Consolidated
statement of
financial
position
As at 30 June
2023
Unaudited as Unaudited Audited
at as at as at
30 June 31 December
30 June 2023 2022 2022
Note GBP GBP GBP
Assets
Non-current
assets
Property,
plant and
equipment 240,681 275,656 254,288
Right-of-use
assets 540,268 513,732 616,024
Deferred tax
assets 11,999 4,745 11,999
792,948 794,133 882,311
Current
assets
Trade and
other
receivables 3,734,275 4,015,601 3,330,574
Cash and cash
equivalents 7,622,847 7,453,752 7,704,003
11,357,122 11,469,353 11,034,577
TOTAL ASSETS 12,150,070 12,263,486 11,916,888
======================================== ============================ ============================
Issued
capital and
reserves
attributable
to owners
Share capital 5 89,459 89,459 89,459
Share Option
Reserve 291,175 108,973 223,331
Share Premium
Paid 3,490,541 3,490,541 3,490,541
Retained
earnings 2,040,860 3,479,165 2,812,695
5,912,035 7,168,138 6,616,026
Liabilities
Current
liabilities
Trade and
other
payables 1,433,235 1,098,682 1,199,370
Contract
liability 4,229,174 3,405,292 3,437,764
Current lease
liabilities 153,187 186,369 188,586
Income tax
payable 16,321 16,320 16,320
5,831,918 4,706,662 4,842,040
Non-current
liabilities
Long-term
lease
liabilities 406,118 388,686 458,822
406,118 388,686 458,822
Total
liabilities 6,238,035 5,095,349 5,300,862
TOTAL EQUITY
AND
LIABILITIES 12,150,070 12,263,486 11,916,888
======================================== ============================ ============================
Skillcast
Group PLC
Consolidated
statement of
changes in
equity
Share Share
Share Premium Option Retained Total
capital Paid Reserve earnings equity
GBP GBP GBP GBP GBP
01 January
2022 89,459 3,490,541 17,000 3,624,369 7,221,369
Comprehensive
Income for
the period
Profit/(Loss) (145,204) (145,204)
Total
comprehensive
Income
for the year - - - (145,204) (145,204)
Total
contributions
by and
distributions
to owners
Share Option
Reserve 0 91,973 91,973
Dividends - -
Total
contributions
by and
distributions
to owners - - 91,973 - 91,973
30 June 2022 89,459 3,490,541 108,973 3,479,165 7,168,138
Comprehensive
Income for
the period
Profit/(Loss) (266,586) (266,586)
Total
comprehensive
Income
for the
period - - - (266,586) (266,586)
Total
contributions
by and
distributions
to owners
Share Option
Reserve 114,358 114,358
Dividends -
Prior Year (249,592) (249,592)
Dividends -
Current Year (150,292) (150,292)
Total
contributions
by and
distributions
to owners - - 114,358 (399,884) (285,526)
31 December
2022 89,459 3,490,541 223,331 2,812,695 6,616,026
01 January
2023 89,459 3,490,541 223,331 2,812,695 6,616,026
Comprehensive
Income for
the period
Profit/(Loss) (771,836) (771,836)
-------------------------- -------------------------- -------------------------- -------------------------- --------------------------
Total
comprehensive
Income
for the year - - - (771,836) (771,836)
Total
contributions
by and
distributions
to owners
Share Option
Reserve 67,844 67,844
Dividends
-------------------------- -------------------------- -------------------------- -------------------------- --------------------------
Total
contributions
by and
distributions
to owners - - 67,844 - 67,844
30 June 2023 89,459 3,490,541 291,175 2,040,859 5,912,034
Skillcast Group
PLC
Consolidated
statement of
cash flows
Unaudited Unaudited Audited
as at as at as at
30 June 31 December
30 June 2023 2022 2022
GBP GBP GBP
Cash flows from
operating
activities
Profit before tax (771,836) (285,188) (556,027)
Adjustments
for:
Depreciation of property,
plant and equipment 42,374 41,808 88,405
Amortisation of
right-of-use
assets 75,756 68,785 149,010
Finance income (106,169) (838) (15,996)
Share based payment 67,844 91,973 206,331
Finance expense 10,614 10,339 21,307
Sale of
property, plant
and
equipment - - -
(681,417) (73,121) (106,970)
(Increase)/ decrease in
trade
and other receivables (403,701) (216,777) 468,248
Increase in trade and
other
payables 1,025,275 26,240 159,399
Cash generated
from
operations A (59,843) (263,659) 520,677
Income taxes paid 2 (19,831) (22,831)
Net cash flows from
operating
activities (59,841) (283,490) 497,846
Investing
activities
Purchases of property,
plant
and equipment (28,767) (40,767) (65,995)
Interest received 106,169 838 15,996
Net cash
from/(used in)
investing
activities B 77,402 (39,929) (49,999)
Financing
activities
Principal paid
on lease
liabilities C (88,103) (68,616) (178,779)
Dividends paid - - (399,884)
Interest paid
on lease
liabilities D (10,614) (10,339) (21,307)
Net cash (used in)
financing
activities (98,717) (78,955) (599,970)
Net decrease in cash and
cash equivalents (81,156) (402,374) (152,123)
Cash and cash equivalents
at beginning of period 7,704,003 7,856,126 7,856,126
Cash and cash equivalents
at end of period 7,622,847 7,453,752 7,704,003
===================================== ============================= ==================================
Free cash flow A+B+C+D (81,158) (382,543) 270,592
Skillcast Group PLC
Notes to the consolidated financial statements
For the period ended 30 June 2023
1 GENERAL INFORMATION
Skillcast Group PLC ('Company') is registered in the United Kingdom
with registration number 12305914 and is limited by shares. Its registered
office is at 80 Leadenhall Street, London, England, EC3A 3DH. The
Company is the ultimate parent of Inmarkets Ltd, Inmarkets Group Ltd,
Inmarkets International Ltd.
This report and financial statements reflect the consolidated activities
and transactions of the Company and other group companies ('Group')
and is non-statutory. It is prepared to present the mid-year trading
performance and position.
The Company is primarily involved in providing management services
to other entities in the group. The Group provides software and content
subscriptions and related professional services to enable companies
to transform their staff compliance. Operating from its two bases,
in London and Malta, the Group helps companies across a broad spectrum
of industry sectors in the UK, EU and in the rest of the world, to
train their staff and demonstrate compliance with various laws, regulations,
and standards that are relevant for their business.
The accounting year end of the Company and Group is 31 December. This
unaudited interim report and financial statements presents activities
and transactions for the six months to 30 June 2023.
2 Basis of preparation and statement of compliance
The condensed interim financial statements have been prepared in accordance
with the requirements of the AIM Rules for Companies. As permitted,
the Company has chosen not to adopt IAS 34 "Interim Financial Statements"
in preparing this interim financial information. The condensed interim
financial statements should be read in conjunction with the annual
financial statements for the year ended 31 December 2022, which have
been prepared in accordance with International Accounting Standards
in conformity with the Companies Act 2006. The unaudited interim financial
information does not constitute statutory accounts within the meaning
of the Companies Act 2006. This interim report, which has neither
been audited nor reviewed by independent auditors, was approved by
the Board of Directors on 26 September 2023.
Statutory accounts for the year ended 31 December 2022 were approved
by the Board of Directors on 23 April 2023 and delivered to the Registrar
of Companies.
The Group's forecast and projections and strong cash balance support
the preparation of the interim financial statements on a going concern
basis under historical cost convention.
The interim financial statements have been presented in pounds sterling.
The accounting policies used in preparing the interim statements are
the same as those applied to the latest audited annual financial statements.
3 EBITDA
EBITDA is not defined or recognised under IAS. EBITDA is defined by
the Group as 'earning before interest, tax, depreciation and amortisation'.
EBITDA is presented below as 'operating profit' plus all depreciation
and amortisation added back.
Unaudited Unaudited Audited
as at as at as at
30 June 30 June 31 December
2023 2022 2022
GBP GBP GBP
Operating profit (867,391) (275,687) (553,729)
Depreciation 42,374 41,808 88,405
Amortisation 75,756 68,785 149,010
EBITDA (749,261) (165,094) (316,314)
Due to nature of calculation of EBITDA the reported figures
may not be comparable to other companies with similar measures.
4 Revenue
Unaudited Unaudited Audited
as at as at as at
30 June 30 June 31 December
2023 2022 2022
GBP GBP GBP
Major product
lines
Software as a Service
(SaaS) subscriptions
(i) 3,847,301 3,139,216 6,689,710
Professional services
(ii) 1,302,904 1,344,869 3,140,721
5,150,205 4,484,085 9,830,431
(i) SaaS subscriptions - The Group provides right of access of content
to the customer over time for the subscription period ranging from
6 to 12 months. The revenue recognition is deferred for the remaining
period of subscription. This revenue includes subscriptions to: (a)
Skillcast Portal - the Group's integrated compliance management application
that comes with a broad range of tools, namely SELMS, Policy Hub,
Compliance Declarations, Surveys, Compliance Registers, Training 360,
Events Management and SMCR 360; and (b) the Skillcast OTS course libraries,
namely Essentials, FCA Compliance, Insurance Compliance and Risk.
(ii) Professional services - The Group provides customised and standard
content to its clients provided under fixed-price contracts. This
non-recurring revenue includes: (a) bespoke e-learning development
projects for large corporates; (b) translations of those bespoke courses;
(c) customisation of OTS courses for subscription clients; and (d)
other content and technology consultancy.
Unaudited Unaudited Audited
as at as at as at
30 June 30 June 31 December
2023 2022 2022
GBP GBP GBP
Geographic
split
UK 4,102,369 3,582,827 7,627,351
Europe 599,722 577,581 1,344,694
Rest of world 448,114 323,676 858,386
5,150,205 4,484,083 9,830,431
Non-current
assets in
which they are
based are
shown below:
Property,
plant and
equipment
UK 192,478 108,239 197,744
Malta 48,203 74,081 56,544
240,681 182,321 254,287
Right of use
assets
UK 312,800 415,376 465,188
Malta 227,468 98,357 117,329
540,268 513,733 582,517
5 Equity - issued capital
Unaudited Unaudited Audited
as at as at as at
30 June 30 June 31 December
2023 2022 2022
Number 89,459,460 89,459,460 89,459,460
Par value per share
(GBP) 0.10p 0.10p 0.10p
Total (GBP) 89,459 89,459 89,459
Ordinary shares entitle the holder to participate in dividends and
the proceeds on the winding up of the Company in proportion to the
number of, and amounts paid, on the shares held. On a show of hands,
every member present at a meeting in person or by proxy shall have
one vote and upon a poll, each share shall have one vote.
6 Related party
transactions
Enterprise FD Limited liability company registered
Ltd in England and Wales.
Company registration number
is 11201000.
Provides services to the Group. Chris
Backhouse was both a director of Enterprise
FD Ltd and was a member of the key management
personnel of the Group up until he resigned
16/05/2022.
Monad IKE Limited liability company registered
in Greece.
Company registration number is 153449133000
Provides services to the Group. Morten
Damsleth is both a director of Monad
IKE and a member of the key management
personnel of the Group.
Thruvision Limited liability company registered
Ltd. in England and Wales.
Company registration number
is 10940081.
Client of the Group purchasing an annual
subscription. Richard Amos was both
a Non-Executive Director of Skillcast
Group PLC. and a Director of Thruvision
Group plc, the ultimate holding company
of Thruvision Ltd
Unaudited Unaudited Audited
as at as at as at
30 June 30 June 31 December
2023 2022 2022
GBP GBP GBP
Group expenditure with
Enterprise FD Ltd 0 44,154 55,190
Group expenditure with
Monad IKE 82,013 88,649 139,493
Group revenue with
Thruvision Ltd. 2,486 0 0
7 Earnings per share
Earnings per share (EPS) is calculated on the basis of profit attributable
to equity shareholders divided by the weighted average number of shares
in issue for the year.
Diluted earnings per share has been calculated on the same basis as
above, except that the weighted average number of ordinary shares
that would be issued on the conversion of the dilutive potential ordinary
shares as calculated using the treasury stock method (arising from
the Company's share option scheme and warrants) into ordinary shares
has been added to the denominator.
Unaudited Unaudited Audited
as at as at as at
30 June 30 June 31 December
2023 2022 2022
GBP GBP GBP
Profit (Loss) before
tax (771,836) (285,188) (556,027)
Tax - 139,983 144,237
---------------------------------------- --------------------------------------------- ------------------------------------------
Profit (Loss) after tax (771,836) (145,205) (411,790)
Non-recurring - - -
expenditure
Adjusted earnings (771,836) (145,205) (411,790)
---------------------------------------- --------------------------------------------- ------------------------------------------
Weighted
average number
of ordinary
shares
Basic 89,459,460 89,459,460 89,459,460
Effect of dilutive
potential ordinary
shares 4,245,657 4,445,370 3,843,507
Diluted average number
of shares 93,705,117 93,904,830 93,302,967
---------------------------------------- --------------------------------------------- ------------------------------------------
Earnings per
share:
Basic -0.863p -0.162p -0.460p
Diluted N/A N/A N/A
Basic and diluted earnings per share of -0.863p (30/06/2022: -0.162p)
has been impacted by interest, tax, depreciation, amortisation, non-core
operating expenses.
8 Dividends
Unaudited Unaudited Audited
as at as at as at
30 June 30 June 31 December
2023 2022 2022
Pence GBP Pence GBP Pence GBP
per per per
share share share
Dividend declared -
Final 2021 0.279p 249,592
Dividend declared -
Interim 2022 0.168p 150,292
During the period under review, the Group generated a loss before tax of (GBP771,836). The
Group's policy is to at least maintain dividend payments at historic levels.
The Shareholders passed a resolution at the AGM on 20 June 2023 for
a final dividend of 0279p per share to be paid on 21 July 2023 to
shareholders on the register at the close of business on 30 June 2023.
In combination with the interim dividend paid during 2022 this represented
a total dividend for the year 2022 of GBP399,884 or 0.447p per share
based upon the number of shares currently in issue.
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END
IR FLFVRAAIRFIV
(END) Dow Jones Newswires
September 27, 2023 02:00 ET (06:00 GMT)
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