REG - Skillcast Group PLC - Interim Results
28/09/2022 07:01
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220928:nRSb9018Aa&default-theme=true
RNS Number : 9018A Skillcast Group PLC 28 September 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.
28 September 2022
Skillcast Group PLC
("Skillcast", the "Group" or the "Company")
Results for the six months ended 30 June 2022
Skillcast (AIM: SKL), the provider of content and technology for digital
compliance transformation, is pleased to announce its unaudited results for
the six months ended 30 June 2022.
Highlights
6 months to 30 June 2022 6 months to 30 June 2021 12 Months to 31 December 2021 Change (H1 22 v H1 21)
(unaudited) (unaudited) (audited)
(H1 22) (H1 21)
Revenue £4.5m £3.7m £8.4m +20%
Gross margin (%) 69.8% 69.1% 70.5% +0.7pps
Annualised recurring revenue (ARR)* £6.3m £5.0m £5.8m +26%
Adjusted EBITDA* -£0.2m +£0.6m £1.2m n/a
Basic (loss)/EPS (pence) -0.16p +0.28p +0.47p n/a
Dividend per share (pence) 0.168p 0.188p 0.447p
Cash in bank £7.5m £4.6m £7.9m +61%
(Cash burn) / Free cash flow -£0.3m +£1.3m +£1.3m n/a
· Revenue growth of 20% (H1 21: 4%) driven by 33% increase in
subscription revenues predominantly from new customers
· ARR* increased 26% to £6.3m in the 12 months to June 2022 (June 21:
£5.0m)
· Adjusted EBITDA* of -£0.2m as IPO proceeds start to be invested with
average headcount increasing 32% over the past 12 months to 95 (June 21: 72)
· Interim dividend declared of £150,000, in line with last year as per
our stated policy. This represents 0.168 pence per share (H1 21: 0.188 pence
per share)
· Cash in bank up at £7.5m at 30 June 2022 following £3.5m IPO
proceeds (30 June 2021: £4.6m)
· Cash burn of £0.3m in H1 22 due in part to planned headcount
investments for future growth.
Current trading and outlook
Trading since the period end has continued to increase on the prior year. In
response to rising inflation that is impacting all businesses, we have
implemented a 10% price increase from 1 June. This has been implemented for
new business immediately and for subscription renewals will feed in
progressively from 1 January 2023.
The strong growth in revenue that we achieved in the first half of the year
was partly due to the significant increase in ARR that we signed in the latter
part of last year. Despite the challenging market conditions that currently
exist we have continued to grow ARR during the first half of this year,
demonstrating the strength and resilience of our proposition in the
non-discretionary corporate compliance and e-learning market. We expect this
trend to continue and remain confident in achieving full year expectations.
Vivek Dodd, Chief Executive Officer of Skillcast, said:
"Skillcast enables companies to digitise and consolidate their compliance
processes, thereby reducing costs, improving their employee experience and
helping build more ethical, inclusive and resilient workplaces. With companies
facing inflationary pressures as well as regulatory demands, the need for this
compliance transformation is greater than ever.
"We are pleased with the 33% growth in our subscription revenue over H1 21,
which raised the total revenue growth to 20% and meant that subscription
revenue as a proportion of total revenue increased to 70% (H1 21: 63%).
"Since our IPO in December 2021, we have made substantial improvements to our
content and technology products and have maintained our 4.9/5.0 customer
service rating. We have successfully attracted and retained top talent in key
roles.
"Trading in the second half of the year has started in line with our
expectations, and the pipeline of new prospective customers is strong.
Although the macroeconomic outlook in the UK and the EU remains uncertain, we
continue to see opportunities to grow by offering cost-saving, risk-reducing
compliance solutions."
*Further details on the calculation of adjusted EBITDA and 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)
Strategic and operational progress
Skillcast operates in a $10 billion market for governance, risk and compliance
software. Corporate compliance is undergoing a structural shift as companies
digitise staff training and other compliance processes. Skillcast is helping
companies of all sizes and business sectors to digitise and consolidate their
workflows. Our Skillcast Portal streamlines their user and administrator
experience and consolidates all their data in one place, thereby reducing the
risk of violations whilst reducing their costs.
Our subscription products include course libraries, a learning management
system, a policy hub, staff declarations and surveys, online compliance
registers, a register for recording offline activities and continuing
professional development ("CPD"). Our products integrate with several
third-party HR software, digital identity platforms and collaboration apps.
Unlike many of our competitors, our courses and technology are highly
customisable, and we were proud to receive the platinum award for customer
service from Feefo for the third year in a row in 2022.
Our strategy is to grow our recurring subscription-based revenues through a
focus on supporting existing clients and acquiring similar new customers. We
are very pleased with the progress we have made by growing subscription
revenues by 33% in H1 22 compared to the same period in FY2021 and that ARR*
at 30 June 2022 is 26% higher than at 30 June 2021. A significant part of the
growth in ARR was generated in H2 21 which was in part responsible for the
growth in subscription revenue in the first half this year. In the six month
period to 30 June 2022, ARR grew 8% on the level at 31 December 2021. The
growth in ARR over the last six months came from a combination of new client
wins in H1 22 growing our active, revenue generating client base to 841 (30
June 2021: 601; 31 December 2021: 790), coupled with upsells to existing
clients from both more active users and new products. An example of this is
our SMCR 360 product, launched in 2021 which helps financial firms manage all
aspects of compliance with the Senior Managers and Certification Regime
("SM&CR"), and which contributed its first meaningful revenues in H1 22.
Our second revenue stream is providing professional services to develop
bespoke e-learning compliance courses. Our strategy is to maintain our
revenues and important client relationships, and we achieved this in H1 22
with revenues of £1.4 million (H1 21: £1.4 million).
We are using the proceeds of our IPO to invest in growth. In H1 22, the
average number of employees was 95, up 32% (H1 21: 72) despite the well
documented talent acquisition and retention challenges in the technology
sector. The largest area of headcount growth was in our sales and marketing
team, which grew by 47%, primarily due to increases in the subscription sales
team. Marketing activity increased with the introduction of our webinar
series, as well as live, in-person events for compliance leaders that are
proving hugely popular post-COVID.
We have increased the investment in both the content and technology of our
products and have made good progress in H1 22 in migrating the platforms our
clients use to access our products. We expect all clients to have migrated by
the end of 2022.
Richard Steele joined the Group as its first full time CFO in May 2022
replacing Chris Backhouse. Following the IPO in December 2021, the Board
recognised both the need and opportunity to invest further in the finance
function. Richard has over 30 years experience in commercial finance roles.
The Board wish to thank Chris Backhouse for his support over the past four
years and in particular during the IPO process.
ESG is at the core of what we offer and stand for. Our products help our
clients build a culture of respect, inclusivity, integrity and compliance with
laws, regulations and standards. We also help them reduce energy consumption
and CO(2) emissions by digitising many activities that previously required
travel. We have substantially reduced our carbon footprint due to travel, by
moving to a hybrid working model and the use of virtual meetings and webinars
in our sales and marketing.
Current Trading and Outlook
Trading since the period end has continued to increase on the prior year. In
response to rising inflation that is impacting all businesses, we have
implemented a 10% price increase from 1 June. This has been implemented for
new business immediately and for subscription renewals will feed in
progressively from 1 January 2023.
The strong growth in revenue that we achieved in the first half of the year
was partly due to the significant increase in ARR that we signed in the latter
part of last year. Despite the challenging market conditions that currently
exist we have continued to grow ARR during the first half of this year,
demonstrating the strength and resilience of our proposition in the
non-discretionary corporate compliance and e-learning market. We expect this
trend to continue and remain confident in achieving full year expectations.
Financial Review
Revenue
Total revenues of £4.5 million were 20% up on the comparable period last year
(H1 21: £3.7 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 22, subscription revenue growth
helped grow the proportion of revenues from subscriptions to 70% (H1 21: 63%)
of total revenues. Total revenues from non-financial service sectors grew 28%
on the comparable period last year to account for 44% of total revenues (H1
21: 41%). Total revenue-generating clients in H1 22 increased by 40% to 841
(H1 21: 601). The top 10 clients accounted for 25% of revenues in the period
(H1 21: 33%).
Subscription ("SaaS") revenues grew 33% to £3.1 million (H1 21: £2.4
million). The growth in subscription revenues was driven by a combination of
new clients and product upsells/more users. In H1 22, 84% (H1 21: 88%) of
subscription revenues were derived from our core e-learning libraries and
Learning Management System ("LMS"), which grew 27% on the year. We were
encouraged to see a higher, 75% growth in the balance of our subscription
revenues from our compliance products, increasing their mix of subscription
revenues to 16% (H1 22: 12%). For example, revenues from our Policy Hub
product increased by 109% on the prior year.
Annual recurring revenue ("ARR"), our key performance indicator to measure
subscription sales progress, grew by 26% to £6.3 million over the past 12
months (June 2021: £5.0 million) and by 8% since the start of the year
(December 2021: £5.8 million). New sales lifted ARR by 13% from December 21,
offset by a net retention rate of 95%, which included 7% churn.
Revenue from professional services was £1.4m, which was 1% below the same
period last year, in line with our strategy to maintain these lower margin
revenues at consistent absolute levels.
Gross profit
Gross profit margin increased by 1% to 70% in H1 22 (H1 21: 69%) as a result
of the higher mix of subscription revenues which, with no bespoke work, yield
typically higher margins.
Investing for growth
Adjusted overheads (which exclude IPO-related costs in the prior year of
£173k) grew by £1.3 million to £3.4 million (H1 21: £2.1 million) in the
period as the Group invested to drive growth as intended. The majority of this
investment was in people. In H1 22 total employment costs, increased by £1.1
million or 43% to £3.5 million (H1 21: £2.4 million), and the average
headcount increased 32% to 95 (H1 21: 72). The biggest area of growth was in
the sales and marketing function with an average of 8 more heads during the
period.
EBITDA
As anticipated, and due to the increased investment, the Group delivered an
adjusted loss in EBITDA of £0.2 million in H1 22 (H1 21: +£0.6 million).
This profit performance reflects the intended investment programme, which is
supported by the fundraise in December 2021.
Tax
The Group reported a loss before tax of £285,000 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 approximately £0.7
million as of 31 December 2021 (2020: £0.6 million) due predominantly to
research and development credits. It is expected these will increase in 2022
through trading losses and further 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 £139,983, due to Inmarkets Group Ltd
with regards to dividends declared by Inmarket International Ltd for 2021, is
reflected as a tax credit in H1 22.
EPS
Following the share issue in December 2021 at the time of the IPO, no ordinary
shares were issued in H1 22, and the basic loss per share was -0.162 pence on
89.5m shares. (H1 21: earnings per share +0.280 pence). Adjusted diluted
loss per share was -0.162 pence (H1 21: earnings per share +0.497 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 £150,000 consistent with the previous year,
or 0.168 pence per issued ordinary share. The interim dividend will be paid on
28 October 2022 to shareholders on the register on 7 October 2022.
It is the Board's stated policy to maintain the total aggregate annual
dividend at least at £400,000, consistent with previous years, for the
foreseeable future.
Balance sheet and cash flow
Net assets at 30 June 2022 were £7.2 million, in line with 31 December 2021
and £3.5 million higher than 30 June 3021 due primarily to the IPO proceeds
received in December 2021.
There was a small operating cash burn in H1 22 of £0.3 million compared to a
cash generation of £1.3 million in H1 21 due primarily to the reduction in
profits. 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 £7.5m
cash at bank at 30 June 2022 (30 June 2021: £4.6m) 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 of £0.5 million
at 30 June 2022, representing its leased offices in London and Malta.
Net trade receivables at 30 June 2022 of £2.5 million were £0.7 million or
41% higher than 30 June 2021. Other receivables of £1.5 million include a
£1.0 million Maltese withholding tax rebate. Trade payables of £1.1 million
at 30 June 2022 were in line with the previous year. Deferred income of £3.4
million at 30 June 2022 was £1.2 million or 54% higher than 30 June 2021 due
to a combination of new/renewed SaaS contracts and incomplete professional
services projects.
Alternative Performance Measures
*Adjusted EBITDA
The Group elected to adjust its EBITDA from continuing operations for
non-recurring costs in connection with its IPO in December 2021. It also
elected to adjust EBITDA by reversing the IFRS treatment of depreciation of
property leases and the share-based payment charges. The Group now accepts
these are both recurring items and no longer elects to adjust for them.
H1 22 H1 21 2021 2021
£'000 £'000 £'000 £'000
Unaudited Unaudited Re-stated Audited
EBITDA from continuing operations (165) 380 360 360
IPO costs 0 173 876 876
Reversal of IFRS treatment of depreciation of property lease (198)
Share-based payment 17
Adjusted EBITDA (165) 553 1,237 1,056
*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 26% to £6.3 million on the
year (June 21: £5.0 million) and 8% since December 2021 (£5.8 million).
Skillcast Group PLC
Consolidated statement of profit or loss and other comprehensive income
For the period ended 30 June 2022
Unaudited Unaudited Audited
Six months to Six months to Twelve months to
30 June 2022 30 June 2021 31 December 2021
Note £ £ £
Revenue 4 4,484,085 3,735,951 8,408,056
Cost of sales (1,352,211) (1,156,136) (2,476,708)
Gross profit 3,131,874 2,579,815 5,931,348
Administrative expenses (3,407,561) (2,278,675) (5,853,792)
Operating profit (275,687) 301,140 77,556
EBITDA 3 (165,095) 379,929 360,345
Adjustment items 3 173,428 876,477
Adjusted EBITDA 3 (165,095) 553,357 1,236,822
Other income - 1,650 1,650
Finance income 838 - 393
Finance expense (10,339) (4,035) (18,953)
(Loss)/profit before tax (285,188) 298,755 60,646
Income tax expense 139,983 (74,454) 316,984
Total comprehensive (loss)/income (145,205) 224,301 377,630
EPS basic 7 -0.162 0.280 0.467
EPS basic adjusted -0.162 0.497 1.552
Skillcast Group PLC
Consolidated statement of financial position
As at 30 June 2022
Unaudited as at Unaudited as at Audited as at
30 June 2022 30 June 2021 31 December 2021
Note £ £ £
Assets
Non-current assets
Property, plant and equipment 275,656 276,697
176,840
Right-of-use assets 513,732 582,517
213,626
Deferred tax assets 4,745 5,112 4,745
794,133 863,959
395,578
Current assets
Trade and other receivables 4,015,601 3,798,823
2,429,654
Cash and cash equivalents 7,453,752 7,856,126
4,637,801
11,469,353 11,654,949
7,067,455
TOTAL ASSETS 12,263,486 12,518,908
7,463,033
Issued capital and reserves attributable to owners
Share capital 5 89,459 2,000 89,459
Share Option Reserve 108,973 17,000
-
Share Premium Paid 3,490,541 3,490,541
-
Retained earnings 3,479,165 3,624,369
3,699,039
7,168,138 7,221,369
3,701,039
Liabilities
Current liabilities
Trade and other payables 1,098,682 1,440,550
1,096,051
Contract liability 3,405,292 3,037,184
2,233,599
Current lease liabilities 186,369 85,624 182,366
Income tax payable 16,320 176,134
234,036
4,706,662 4,836,234
3,649,310
Non-current liabilities
Long-term lease liabilities 388,686 461,305
112,684
388,686 461,305
112,684
Total liabilities 5,095,348 5,297,539
3,761,994
TOTAL EQUITY AND LIABILITIES 12,263,486 12,518,908
7,463,033
Skillcast Group PLC
Consolidated statement of changes in equity
Share capital Share Premium Paid Share Option Reserve Retained earnings Total equity
£ £ £ £ £
01 January 2021 2,000 - - 3,874,738
3,876,738
Comprehensive Income for the period
Profit - - - 224,301 224,301
Total comprehensive Income for the year - - - 224,301 224,301
Contributions by and distributions to owners
Dividends - - - (400,000) (400,000)
Total contributions by and distributions to owners - - - (400,000) (400,000)
30 June 2021 2,000 - - 3,699,039
3,701,039
01 July 2021 2,000 - - 3,699,039
3,701,039
Comprehensive Income for the period
Profit 153,330 153,330
Total comprehensive Income for the period - - - 153,330 153,330
Total contributions by and distributions to owners
Capitalisation of Profit and Loss 78,000 - - (78,000) -
Shares issued on admission to AIM 9,459 3,490,541 - - 3,500,000
Share Option Reserve - - 17,000 - 17,000
Dividends - - - (150,000) (150,000)
Total contributions by and distributions to owners 87,459 3,490,541 17,000 (228,000) 3,367,000
31 December 2021 89,459 3,490,541 17,000 3,624,369
7,221,369
01 January 2022 89,459 3,490,541 17,000 3,624,369
7,221,369
Comprehensive Income for the period
Profit (145,204) (145,204)
Total comprehensive Income for the year - - - (145,204) (145,204)
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
Skillcast Group PLC
Consolidated statement of cash flows
Unaudited Unaudited
Six months to Six months to Audited
30 June 2022 30 June 2021 31 December 2021
£ £ £
Cash flows from operating activities
(Loss) / profit before tax 298,755
60,646
(285,188)
Adjustments for:
Depreciation of property, plant and equipment 41,808 29,063
84,668
Amortisation of right-of-use assets 68,785 49,727
198,121
Finance income (838) (393)
-
Share based payment 91,973
- 17,000
Finance expense 10,339 4,035
18,953
Sale of property, plant and equipment (1,650) (1,650)
-
379,930
377,345
(73,121)
(Increase)/ decrease in trade and other receivables 1,044,695
(216,777) (324,474)
Increase in trade and other payables 26,240 308,525 1,456,609
Cash generated from operations 1,733,150 1,509,480
(263,659)
Income taxes paid (19,831) (344,532) (10,629)
Net cash flows from operating activities (283,490) 1,388,618 1,498,851
Investing activities
Purchases of property, plant and equipment (40,767) (87,150) (242,612)
Sale of property, plant and equipment 1,650
- 1,650
Interest received
838 - 393
Net cash used in investing activities (39,929) (85,500) (240,569)
Free cash flow (323,419) 1,303,118 1,258,282
Financing activities
Principal paid on lease liabilities (68,616) (61,086) (133,007)
Dividends paid (400,000) (550,000)
-
Share issue
- -
3,500,000
Interest paid on lease liabilities (10,339) (4,035) (18,953)
Net cash (used in)/from financing activities (78,955) (465,121) 2,798,040
Net increase in cash and cash equivalents 837,997 4,056,322
(402,374)
Cash and cash equivalents at beginning of period 7,856,126 3,799,804 3,799,804
Cash and cash equivalents at end of period 7,453,752 4,637,801 7,856,126
.
Skillcast Group PLC
Notes to the consolidated financial statements
For the period ended 30 June 2022
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 are
non-statutory. It is prepared to present the mid-year trading performance and
position. This report and financial statements reflect the Group after its
restructuring which took place in November 2019 and which involved; the
incorporation of Skillcast Group Ltd, its positioning at the head of the
Group, the transfer of ownership of Inmarkets Ltd from Inmarkets Group Ltd to
Skillcast Group Ltd, and the swap of the shares of Inmarkets Group Ltd with
the shares of Skillcast Group Ltd. This report reflects a restructuring of the
group and presents a consolidated position as if Skillcast Group PLC had been
incorporated and the head of the Group since the earliest comparative
presented.
Up to the 28 July 2021 the Company was a private limited company. On the 28
July 2021 the Company re-registered as a public company as Skillcast Group
PLC. The Company did this in preparation of admission to the AIM market of the
London Stock Exchange. On 1 December 2021 the Company's ordinary shares were
admitted in trading on AIM. On 22 July 2022 the Group published its Annual
Report for the year to 31 December 2021. This is the first interim report
and financial statements since admission to AIM.
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 2022.
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 2021, 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 27 September 2022
Statutory accounts for the year ended 31 December 2021 were approved by the
Board of Directors on xx 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 and adjusted EBITDA
EBITDA is not defined or recognised under IAS. EBITDA is defined by the Group
as 'earnings before interest, tax, depreciation and amortisation'. EBITDA is
presented below as 'operating profit' plus all depreciation added back.
The Group also presents 'adjusted EBITDA' as the directors believe it presents
a more meaningful measure of performance. The Group incurred certain
administrative expenses in anticipation of the Placing and Admission so as to
deliver the anticipated growth in the business post-Admission. Had the
decision to undertake the Placing and Admission not been taken by the Group,
then such expenditure would not have been incurred. In calculating 'adjusted
EBITDA' such 'non-recurring expenditure' has been added back to EBITDA.
3 EBITDA and adjusted EBITDA - Continued
Unaudited as at Unaudited as at Audited as at
30 June 2022 30 June 2021 31 Dec. 2021
£ £ £
Operating profit (275,687) 301,140 77,556
Depreciation 110,592 78,789 282,789
EBITDA (165,095) 379,929 360,345
Non-recurring expenditure - 173,428 876,477
Adjusted EBITDA (165,095) 553,357 1,236,822
Due to nature of calculation of EBITDA and adjusted EBITDA the reported
figures may not be comparable to other companies with similar measures.
4 Revenue
Unaudited as at Unaudited as at Audited as at
30 June 2022 30 June 2021 31 Dec. 2021
£ £ £
Major product lines
Software as a Service (SaaS) subscriptions (i) 3,117,216 2,350,079 5,227,229
Professional services (ii) 1,366,869 1,385,870 3,180,827
4,484,085 3,735,949 8,408,056
(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 as at Unaudited as at Audited as at
30 June 2022 30 June 2021 31 Dec. 2021
£ £ £
Geographic split
UK 3,582,827 2,935,169 5,716,503
Europe 577,581 529,508 1,693,379
Rest of world 323,676 271,272 998,176
4,484,083 3,735,949 8,408,058
Non-current assets in which they are based are shown below:
Property, plant and equipment
UK 108,239 100,047 205,003
Malta 74,081 76,793 71,694
182,321 176,840 276,697
Right of use assets
UK 415,376 62,847 465,188
Malta 98,357 150,779 117,329
513,733 213,626 582,517
5 Equity - issued capital
Unaudited as at Unaudited as at Audited as at
30 June 2022 30 June 2021 31 Dec. 2021
Number 89,459,460 20,000,000 89,459,460
Par value per share (GBP) 0.10p 0.01p 0.10p
Total (GBP) 89,459 2,000 89,459
All the shares in the Company are fully paid up. On 28 July 2021 the Company
re-registered as a public company. Prior to re-registration the company's
shares were reclassified as Ordinary Shares, and the company capitalised
£78,000 of retained profit in order to meet the minimum capital value for
these shares required of a public company. The shares were also consolidated
into 1 share for every 10 in issue. On 1 December 2021 9,459,460 additional
shares were issued upon the Company's admission to the Alternative Investment
Market.
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 Ltd Limited liability company registered in England and Wales.
Company registration number is 11201000.
Provides services to the Group. Chris Backhouse is both a director of
Enterprise FD Ltd and a member of the key management personnel of the Group,
see note 6.
Vivek Dodd Independent Contractor located in Czech Republic.
Provided services to the Group. Vivek Dodd is both a director and owns more
than 50% of the shares in the parent company.
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.
Unaudited as at Unaudited as at Audited as at
30 June 2022 30 June 2021 31 Dec. 2021
£ £ £
Group expenditure with Enterprise FD Ltd 44,154 64,426 152,130
Vivek Dodd 0 48,000 72,000
Monad IKE 88,649 87,209 138,190
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 have 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 as at Unaudited as at Audited as at
30 June 2022 30 June 2021 31 Dec. 2021
£ £ £
Profit (Loss) before tax 298,755 60,646
(285,188)
Tax 139,983 (74,454) 316,984
Profit (Loss) after tax (145,205) 224,301 377,630
Non-recurring expenditure - 173,428 876,477
Adjusted earnings 397,729 1,254,107
(145,205)
Weighted average number of ordinary shares
Basic 80,000,000 80,788,288
89,459,460
Effect of dilutive potential ordinary shares 4,445,370 - 402,500
Diluted average number of shares 80,000,000 81,190,788
93,904,830
Earnings per share:
Basic -0.162p 0.280p 0.467p
Diluted -0.162p 0.280p 0.465p
Adjusted earnings - Basic -0.162p 0.497p 1.552p
Adjusted earnings - Diluted -0.162p 0.497p 1.545p
*For comparative purposes the earnings per share for 30/06/2021 as stated
above have been calculated after taking into account the capitalisation of the
reserves as set out in note 16 of last year's Annual Report.
Basic and diluted earnings per share of -0.162p (30/06/2021: 0.280p) has been
impacted by interest, tax, depreciation, amortisation, non-core operating
expenses. Tax on adjusted earnings is the same figure as that shown on the
consolidated statement of comprehensive income given that the majority of the
adjusting items in the earnings per share calculation above are also adjusted
for when calculating the Company's tax expense.
8 Dividends
Unaudited as at Unaudited as at Audited as at
30 June 2022 30 June 2021 31 Dec. 2021
Pence per £ Pence per £ Pence per £
share share share
Dividend declared - Final 2020 0.500p 400,000 0.500p 400,000
Dividend declared - Interim 2021 0.188p 150,000
During the period under review, the Group generated a loss before tax of
(£285,188). The Group's policy is to at least maintain dividend payments.
Shareholders passed a resolution at the AGM on 22 June 2022 for a final
dividend of 0.279p per share to be paid on 21 July 2021 to shareholders on the
register at the close of business on 1 July 2022. In combination with the
interim dividend paid during 2021 this represented a total dividend for the
year 2021 of £400,000 (2020: £400,000) or 0.447p per share based upon the
number of shares currently in issue.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR FLFVRAVIDFIFRecent news on Skillcast
See all newsREG - Skillcast Group PLC - Results for the 12 months ended 31 December 2023
AnnouncementREG - Skillcast Group PLC - Notice of Results and Investor Presentation
AnnouncementREG - Skillcast Group PLC - Full Year Trading Update
AnnouncementRCS - Skillcast Group PLC - Investor presentation
AnnouncementREG - Skillcast Group PLC - Director Declaration
Announcement