REG - Skillcast Group PLC - Interim Results
27/09/2023 07:00
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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 30 June 2023 6 months to 30 June 2022 12 Months to 31 December 2022 Change (H1 23 v H1 22)
(unaudited) (unaudited) (audited)
(H1 23) (H1 22)
Revenue £5.2m £4.5m £9.8m +15%
Gross margin (%) 66.5% 69.8% 70.1% -3.3pps
Annualised recurring revenue (ARR)* £8.1m £6.4m £6.8m +27%
(LBITDA)/EBITDA -£0.7m -£0.2m -£0.3m -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 £7.6m £7.5m £7.7m +2%
(Cash burn) / Free cash flow -£0.1m -£0.4m £0.3m +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 £8.1m in June 2023 (June 22: £6.4m) 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 -£0.7m 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 £150,000, 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 £7.6m at 30 June 2023 (30 June 2022: £7.5m)
despite trading loss
· Cash burn of only £0.1m 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 £150,000 (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.
Strategic 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 £70,000 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 £5.2 million were 15% up on the comparable period last year
(H1 22: £4.5 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 £3.9 million (H1 22: £3.1
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 £8.1 million over the past 12
months (June 2022: £6.4 million) and by 20% since the start of the year
(December 2022: £6.8 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 £70,000 each. Average ARR per new account increased by 23% to
£6,629 (H1 22: £5,396), and by 7% to £5,797, 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 £1.3 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 £0.9 million in the period (H1 22: 50% or £1.3
million) to £4.3 million (H1 22: £3.4 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 £1.0 million or 29% to £4.4 million
(H1 22: £3.4 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 £1.9 million and increased by £0.4 million
or 24% on the same period last year (H1 22: £1.5 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 £0.7 million
in H1 23 (H1 22: LBITDA: £0.2 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 £0.8 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 £1.3 million as of 31
December 2022 (2021: £0.7 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 £0.1 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 £150,000 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 £400,000, 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 £5.9 million, £0.7 million less than at 31
December 2022 and £1.3 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 £0.1 million (H1 22:
£0.3m) 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
£7.6m cash at bank at 30 June 2023 (30 June 2023: £7.7m) 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 £0.5
million at 30 June 2023, representing its leased offices in London and Malta.
Trade and other receivables at 30 June 2023 of £3.7 million were £0.3
million lower than 30 June 2022. Trade debtors of £2.3 million were £0.2
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
£1.5 million 30 June 2023 are in line with 30 June 2022. £0.6 million of
this balance relates to tax rebate due from the Maltese government. During the
period £0.2 million was received.
Current liabilities of £5.8 million at 30 June 2023 were £1.1 million higher
than at 30 June 2022 primarily due to an increase in contractual liabilities
relating to deferred income. Deferred income of £4.2 million at 30 June 2023
was £0.8 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 £8.1 million on the
year (June 22: £6.4 million) and 20% since December 2022 (£6.8 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 to Six months to Twelve months to
30 June 2023 30 June 2022 31 December 2022
Note £ £ £
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 at Unaudited as at Audited as at
30 June 2023 30 June 2022 31 December 2022
Note £ £ £
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 capital Share Premium Paid Share Option Reserve Retained earnings Total equity
£ £ £ £ £
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 as at Unaudited as at Audited as at
30 June 2023 30 June 2022 31 December 2022
£ £ £
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 as at Unaudited as at Audited as at
30 June 2023 30 June 2022 31 December 2022
£ £ £
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 as at Unaudited as at Audited as at
30 June 2023 30 June 2022 31 December 2022
£ £ £
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 as at Unaudited as at Audited as at
30 June 2023 30 June 2022 31 December 2022
£ £ £
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 as at Unaudited as at Audited as at
30 June 2023 30 June 2022 31 December 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 Ltd Limited liability company registered 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 Ltd. Limited liability company registered 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 as at Unaudited as at Audited as at
30 June 2023 30 June 2022 31 December 2022
£ £ £
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 as at Unaudited as at Audited as at
30 June 2023 30 June 2022 31 December 2022
£ £ £
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 as at Unaudited as at Audited as at
30 June 2023 30 June 2022 31 December 2022
Pence per £ Pence per £ Pence 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
(£771,836). 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 £399,884 or 0.447p per share based upon the number of shares
currently in issue.
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