REG - Skillcast Group PLC - Full Year Trading Update

SkillcastAnnouncement

26/01/2023 07:00

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RNS Number : 8861N  Skillcast Group PLC  26 January 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.

 

26 January 2023

 

Skillcast Group plc

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

 

Full Year Trading Update

 

Skillcast Group plc, the provider of content and technology for digital
compliance transformation, is pleased to announce a positive trading update
for the year ended 31 December 2022.

 

The Group's revenue for 2022 is expected to be c. £9.8 million, 17% higher
than the previous year (2021: £8.4 million). The revenue increase is driven
by strong growth in recurring subscription revenues, which increased by 26% to
£6.7 million (2021: £5.3 million). Recurring subscription revenues
represented 68% of total Group revenues in 2022 (2021: 62%). Professional
services revenues were in line with the previous year at £3.1 million.

 

The Group made substantial progress through the year on the investment plans
set out at the time of the Company's admission to AIM in December 2021,
including technology upgrades to enhance scalability and resilience, and
hiring plans to drive future growth.  The Directors believe that the Group
now has the team largely in place to deliver on its growth plans over the
medium term.  All of these development costs have been fully expensed in the
year and, as a result, adjusted EBITDA* has fallen and is expected to be in
line with market expectations at not less than -£0.5 million (2021: £1.2
million).

The Group's net cash position at 31 December 2022 was £7.7 million (31
December 2021 net cash: £7.9 million). This represents c. 8.6p per ordinary
share in the Company.

 

Annualised recurring revenue ("ARR")** grew by 16% from £5.8 million in
December 2021 to £6.7 million in December 2022, driven by new customer
acquisition. This, combined with the expected impact of the 10% price rise
that took effect from 1 January 2023 and a strong pipeline of new business,
means that the Group is well positioned to continue to achieve its objectives
over the next year.

 

Vivek Dodd, CEO of Skillcast, said:

 

"We are pleased with our performance in 2022, our first full year as a public
company. More and more companies realise the value of our award-winning
e-learning and digital compliance products and how we can help save them time
and money while assisting them in building ethical, inclusive and resilient
workplaces. We are also delighted with the new talent we have recruited to
help us scale up. We enter 2023 with a strong sales and product pipeline and
are confident of meeting market expectations for the year ahead."

 

*Earnings before interest, tax, depreciation and amortisation. In 2021 EBITDA
was adjusted for £0.9m of IPO costs

** 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

 Richard Steele, CFO

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

 James Reeve / Piers Shimwell (Corporate Finance)

 Jos Pinnington (Corporate Broking and Sales)

 

 

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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