REG - Skillcast Group PLC - Full Year Trading Update

SkillcastAnnouncement

24/02/2022 07:00

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RNS Number : 6293C  Skillcast Group PLC  24 February 2022

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.

 

24 February 2022

 

Skillcast Group plc

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

 

Full Year Trading Update

 

Skillcast Group plc, a provider of e-learning and digital compliance
transformation, is pleased to announce a positive trading update for the year
ended 31 December 2021.

 

The Board expects, subject to completion of the 2021 audit, the Group's
revenue for 2021 to be not less than £8.3 million (2020: £7.3 million), and
adjusted EBITDA* to be not less than £1.1 million (2020: £1.2 million). The
revenue growth is underpinned by strong growth in recurring subscription
revenue as well as a stable performance from professional services.

 

The Group uses annualised recurring revenue ("ARR")** as a key performance
indicator to measure the size of the Group's subscription business. During
2021, the Group's ARR grew by 29% from £4.5 million in December 2020 to £5.8
million in December 2021. Overall, recurring revenue increased to over 62% of
total revenue in 2021 (2020: 56%), driven by new client acquisitions and net
retention of the Group's content and software-as-a-service (SaaS) subscription
base.

 

The Group's earnings were supported by an increase in professional services
revenue late in the year. This revenue typically fluctuates and, although it
declined in the first half of the year due to COVID-19 lockdowns, the full
year professional services revenue is expected to be not less than £3.1
million (2020: £3.2 million).

 

The Group's net cash position on 31 December 2021 was £7.8 million, including
the net proceeds of the successful £3.5 million placing for the Company at
the time of its admission to AIM (31 December 2020 net cash: £3.8 million).

 

Vivek Dodd, CEO of Skillcast, said: "We are pleased with the subscription and
professional services revenue that we achieved in 2021. We have the
technology, content and award-winning client service to help companies build
ethical, inclusive and resilient workplaces. Our admission to trading on AIM
is helping us to attract talent, win clients and strengthen our leadership in
the field of digital compliance transformation."

 

*Earnings before interest, tax, depreciation, amortisation and adding back
leasehold depreciation and reinstating the related rental charge (reversing
the IFRS 16 leasehold depreciation)

** 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                                          +44 (0) 207 929 5000

 Richard Amos, Chairman

 Vivek Dodd, CEO

 Chris Backhouse, CFO

 Allenby Capital Limited (Nominated Adviser and Broker)       +44 (0) 203 328 5656

 James Reeve / Piers Shimwell (Corporate Finance)

 Tony Quirke / Jos Pinnington (Corporate Broking and Sales)

 

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