Full Year Trading Update

Skillcast Group PLC

31 January 2024

 

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.

31 January 2024

Skillcast Group plc

("Skillcast", the "Group", or the "Company")

Full Year Trading Update

Strong growth in ARR - increasing by 37%

Skillcast Group plc, the provider of SaaS compliance platforms and off-the-shelf e-learning, is pleased to announce a trading update for the year ended 31 December 2023, a further year of strong growth in annualised recurring revenue ("ARR")*.

The Group's revenue for 2023 is expected to be c. £11.3 million, 15% higher than the previous year (2022: £9.8 million). The revenue growth is entirely organic and driven by strong growth in recurring subscription revenues, which increased by 28% to £8.5 million (2022: £6.7 million). Recurring subscription revenues represented 76% of total Group revenues in 2023 (2022: 68%). Professional services revenues were 12% below the previous year at £2.8 million (2022: £3.1 million).

The ARR* grew by 37% from £6.8 million in December 2022 to £9.3 million in December 2023, driven by new customer acquisition and sales of new products. This, combined with a strong pipeline of new business, means that the Group is well positioned to continue to achieve its revenue objectives over the next year.

LBITDA is expected to be no higher than £0.8 million (2022 LBITDA: £0.3 million).

The Group's net cash position at 31 December 2023 was £7.2 million (31 December 2022 net cash: £7.7 million). This represents c. 8p per ordinary share in the Company.

The Company expects to announce its full year results and recommend a final dividend for the year ended 31 December 2023 in April 2024.

Vivek Dodd, CEO of Skillcast, said:

"We are delighted with our performance in 2023. Our SaaS subscriptions ARR growth rate accelerated from 16% in 2022 to 37% in 2023. This validates our two-year plan to accelerate our technology and sales investment since our IPO in December 2021.  We now have the products and key personnel to sustain growth and return to profitability in the second half of 2024. We look forward to sharing more when we announce our full-year results in April."

* ARR is calculated by annualising revenue recognised in a given month from all client subscriptions on annual contracts

For further information, please contact:

Skillcast Group plc Richard Amos, Chairman Vivek Dodd, CEO Richard Steele, CFO	[phone]
Allenby Capital Limited (Nominated Adviser and Broker) James Reeve / Piers Shimwell (Corporate Finance) Jos Pinnington / Tony Quirke (Corporate Broking and Sales)	[phone]

About Skillcast Group plc

Skillcast helps companies build ethical, inclusive, and resilient workplaces. It provides content and technology to digitise and streamline compliance processes and manage them from a single compliance portal. Its product range includes a Learning management system with comprehensive off-the-shelf compliance course libraries, a Policy hub, Staff declarations, Anonymous surveys, CPD tracking, and compliance registers for gifts, expenses, PA dealing, whistleblowing.

 

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