REG - Skillcast Group PLC - Results for the six months ended 30 June 2024
18/09/2024 07:00
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RNS Number : 5898E Skillcast Group PLC 18 September 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.
18 September 2024
Skillcast Group PLC
("Skillcast", the "Group" or the "Company")
Results for the six months ended 30 June 2024
Skillcast (AIM: SKL), the provider of SaaS compliance platforms and
off-the-shelf e-learning courseware, is pleased to announce a continued growth
in recurring subscription revenue and encouraging progress in its planned
return to profitability in its unaudited results for the six months ended 30
June 2024 ("H1 24").
Highlights
6 months to 30 June 2024 6 months to 30 June 2023 12 Months to 31 December 2023 Change (H1 24 v H1 23)
(unaudited) (unaudited) (audited)
(H1 24) (H1 23)
Total revenue £6.4m £5.2m £11.3m +24%
Subscription revenue £5.2m £3.8m £8.5m +35%
Gross margin (%) 71.7% 66.5% 69.7% +5.2pps
Annualised recurring revenue (ARR)* £10.3m £8.2m £9.3m +27%
EBITDA £0.03m -£0.75m -£0.62m N/A
Basic (loss)/EPS (pence) -0.009p -0.863p -0.733p N/A
Dividend per share (pence) 0.168p 0.168p 0.447p 0%
Cash in bank £8.3m £7.6m £7.2m +10%
Free cash flow * £1.1m -£0.1m -£0.1m N/A
· Revenue growth of 24% (H1 23: 23%) driven by a 35% increase in
subscription revenues from new customers and upsells to existing customers.
o Subscription revenues increased to 81% of total revenues (H1 23: 75%)
o ARR* increased 27% YoY to £10.3m in June 2024 (June 23: £8.2m) and +11%
year to date
· Gross margin grew 5.2 percentage points to 71.7% (H1 23: 66.5%) due
to productivity gains and one-off cloud transitional costs in the prior year.
· EBITDA of £31k (H1 23: -£0.7m) reflects the operational gearing
impact of the revenue growth. Overhead costs were up only 9% compared to 26%
in H1 23. Average headcount increased by 5% over the past 12 months to 120
(June 23: 114). Key growth roles are 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 23: 0.168 pence
per share).
· Cash in bank increased to £8.3m at 30 June 2024 (30 June 2023:
£7.6m).
· Free cash flow* of £1.1m (H1 23: -£0.1m) reflecting upfront cash
from growing subscription sales.
Current Trading and Outlook
ARR continues to grow in the second half of the year and drive subscription
revenues in line with expectations.
Revenues from non-strategic professional services continue to be slower than
last year. We have made decisions in H2 to reduce or redeploy headcount in
this area though the impact will not occur until the next financial year.
We continue to control costs and, with the benefit of operational gearing,
remain on track to grow profits in line with expectations.
Vivek Dodd, Chief Executive Officer, said:
"I am pleased with our continued ARR growth, which has been supported by
upsells of our new Premium package and new client acquisitions. This has
helped subscription revenues grow to 81% of total revenues (H1 23: 75%).
"I am delighted at our breakeven in the first half, a £0.8m EBITDA
improvement on H1 23, as costs grew by 9% while revenues grew by 24%. Now that
our core investment phase is complete, we are focused on ARR growth to drive
profitability.
"We remain confident that we will be profitable in the second half of the year
and beyond. Our cash position remains very strong, and we have declared an
interim dividend of £150,000."
*Further details on the calculation of ARR and Free Cash Flow are set out in
the Alternative Performance Measures section of 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.
· Multi-format courses and tools to suit all learning requirements from
comprehensive courses, shorter refresher courses to minimise time for
knowledgeable users and bite-sized animated videos to embed learning at the
point of need.
· A flexible learning management system (LMS) platform for clients to
deliver and track compliance e-learning programmes that allow full corporate
branding, integration to HR staff records, and dashboard reporting.
· Add on "RegTech" tools to manage all compliance needs, including
declarations, registers, surveys, policies, offline training tracking
(Training 360) and full SMCR management (SMCR 360)
· Bespoke content consultancy to further personalise, adapt or gamify
to meet clients' requirements.
· Skillcast structures its offer into three plans to meet the different
needs of organisations. Skillcast Basic is a low cost, self-serve e-commerce
to organisations of up to 50 employees; Skillcast Standard is a flexible offer
allowing organisations to add new products and services at any time; Skillcast
Premium includes the full suite of our products and services to create
comprehensive user learning journeys to achieve compliance objectives.
· Award-winning customer service to help employees obtain the optimum
learning experience and provide companies with efficient and insightful
learning management.
Our customers
Over 1,200 companies use Skillcast's SaaS products and consultancy services to
support over 1.2 million employees to meet their compliance requirements.
Originally targeting the financial services industry, 40% of revenues now come
from other sectors, including retail, manufacturing, transport and real
estate.
Returning to profitability
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 has accelerated investment in its products, technology,
commercial teams and organisational structure during 2022 and 2023. In 2024
and beyond it intends to return to profitability through continued
subscription revenue growth and productivity improvements.
Strategic and operational progress
Our focus in 2024 remains on growing the subscription business, as measured by
our ARR book, and on return to profitability after the completion of our
post-IPO investment phase. 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 four strategic objectives for 2024 are:
1.Supporting new ARR growth with enhanced marketing initiatives
In January 2024, we appointed our first Head of Marketing. Following an audit
of current procedures, a marketing plan has been developed aimed at improving
traffic and sales leads. This includes a web redesign due to be completed in
December 2024 and improvements to paid search.
In April 2024, we obtained Cyber Essentials Plus accreditation with the
National Cyber Security Centre. This both reassures existing customers of our
cyber security level and helps to attract new business, particularly in the
public sector where it is often a requirement. In June 2024, we achieved SOC 2
Type 1 compliance and launched our Trust Centre (trust.skillcast.com) to
further evidence our commitment to ensuring we operate in a robust
environment. We expect to achieve SOC Type 2 accreditation by December 2024.
In June 2024, we appointed a Solutions Architect and released our Sandbox
environment, which enables prospects to try out features in a live working
environment to aid sales of our digital compliance solutions to clients.
2. Supporting net retention of existing subscription clients with enhanced
customer success
In January 2024 we launched Skillcast Premium: an all-inclusive service bundle
that includes e-learning and all our compliance management "regtech" products
to support upsells. Customers on our Premium Plan accounted for 3% of our ARR
by the end of H1.
In April 2024, we migrated our customer support to a new AI-based platform to
enable us to provide faster response times, chat-based support and gain
insights to drive further customer experience and productivity improvements.
In March 2024, we began to roll out new standard terms of service to our
annual subscription contracts with automatic renewals. Approximately 95% of
clients coming up for renewal so far have accepted our terms of service. This
will be complete by March 2025.
3. Developing additional revenue streams
In December 2023, we released Skillcast Basic, our self-serve, cost-effective
compliance e-learning solution for small businesses with up to 50 users. We
started marketing this product in February 2024, and we are encouraged by
performance in the period. Based on initial buyers' reactions, we believe that
this product opens a significant serviceable market for Skillcast.
In June 2024, we appointed our first Partnership Manager. We believe there is
potential to drive sales through referrals, other platform providers and
resellers.
Our in-house technical department is developing the incorporation of
AI-enabled enhancements to our courses and platform to enhance the user
learning experience, which we expect to start testing in H2 2024 for launch in
2025.
4. Implementing infrastructure for scalable growth
In April 2024, we improved our employee benefits plan by adding private
medical, life assurance and enhanced pension plans for all employees. This has
been well received and will help us sustain our high employee retention rate.
In June 2024, we reviewed our professional services provision in light of
lower market demand for such services which remains a lower strategic priority
than the subscription business. We have reduced the size of the professional
services team and implemented changes to refocus our offering on areas of our
strengths such as adaptive content, diagnostics and user analytics.
We continue to monitor risks and enhance our risk management framework. We
have developed and reviewed all our polices and used our Policy Hub tool to
efficiently and effectively raise staff awareness.
Outlook
ARR continues to grow in the second half of the year and drive subscription
revenues in line with expectations.
Revenues from non-strategic professional services continue to be slower than
last year. We have made decisions in H2 to reduce or redeploy headcount in
this area though the impact will not occur until the next financial year.
We continue to control costs and with the benefit of operational gearing
remain on track to grow profits in line with expectations.
Financial Review
Revenue
Total revenues of £6.4 million were 24% up on the comparable period last year
(H1 23: £5.2 million), driven by 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 24, subscription revenue growth helped increase the proportion of
revenues from subscriptions to 81% (H1 23: 76%) of total revenues. Total
revenue-generating clients in H1 24 increased by 12% to 1,190 (H1 23: 1,059).
The top 10 clients accounted for 16% of revenues in the period (H1 23: 22%).
SaaS revenues grew 35% to £5.2 million (H1 23: £3.8 million), driven by a
15% increase in new clients predominantly buying our standard compliance
e-learning libraries and Learning Management System ("LMS") feature on our
compliance platform.
Annual recurring revenue ("ARR"), our key performance indicator to measure
subscription sales progress, grew by 27% to £10.3 million over the past 12
months (June 2023: £8.1 million) and by 11% since the start of the year
(December 2023: £9.3 million). All of the net ARR growth in the period was
derived from new clients. Average ARR per new account increased by 14% to
£7,692 (H1 23: £6,740), supported by a 7% annual price rise. Net retention
rate was 100% (H1 23: 104%) due predominantly to an increase in churn of 6%
(H1 23: 3%).
Revenue from professional services was £1.2 million, 9% below the same period
last year (H1 23: £1.3m).
Gross profit
Gross profit margin increased by 5.2 percentage points to 71.7% in H1 24 (H1
23: 66.5%), primarily due to greater productivity within the content and
customer service teams, their costs on the year increasing by 11% compared to
with revenues increasing 24%. In addition, the prior year included one-off
transitional higher cloud computing costs incurred during the migration of all
clients to Microsoft Azure, which was completed in March 2023.
Returning to profitability
Overheads growth rates continued to reduce, increasing by 9% or £0.4 million
in the period (H1 23: 26% or £0.9 million) to £4.7 million (H1 23: £4.3
million). The majority of this investment was in people. All identified key
growth roles are now in place.
In H1 24, total employment costs (including employees in operations included
in the cost of sales), increased by £0.2 million or 5% to £4.6 million (H1
23: £4.4 million), and the average headcount increased by 5% to 120 (H1 23:
114). On 30 June 2024, our headcount was 121 (30 June 2023: 120).
Non-people-related overheads were £1.2 million and increased by £0.3 million
or 31% on the same period last year (H1 23: £0.9 million) with marketing
activity costs representing approximately half of this increase. Other
increases were predominantly driven by increases in revenue, headcount or
inflation.
EBITDA
The Group delivered a modest EBITDA of £31,208 in H1 24 and a significant
£0.8m improvement on the same period last year (H1 23: LBITDA: £0.7
million).
Tax
The Group reported a profit before tax of £40,876 and a tax charge of
£48,945.
No corporation tax was due on the small taxable profits generated in the
period which were offset by unutilised tax losses carried forward of £0.6
million as of 31 December 2023. A corporation tax liability of £87,836 is
recognised at 30 June 2024. £80,363 of this balance is due to prior year
corporation tax falling due in Inmarkets ltd in 2021.
EPS
The basic loss per share was 0.009 pence on 89.5 million shares. (H1 23: 0.863
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
25 October 2024 to shareholders on the register on 4 October 2024.
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 dividend policy when the Company has
returned to full annual profitability.
Balance sheet and cash flow
Despite modest profits the Group generated Free Cash Flow of £1.1m. The Group
generally has a negative working capital cycle due to the upfront cash profile
of subscription sales. £0.6m of this was generated from an increase in
deferred revenue from cash receipts paid upfront from higher subscription
sales. The Group had £8.3m cash at bank at 30 June 2024 (30 June 2023:
£7.6m) 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 totalling £0.4
million at 30 June 2024, representing its leased offices in London and Malta.
Trade and other receivables at 30 June 2024 of £4.2 million were £0.5
million higher than 30 June 2023. Trade debtors of £2.8 million were £0.5
million or 23% higher than at 30 June 2023 in line with revenue growth. Debtor
days increased from 63 at 30 June 2023 to 64 days at 30 June 2024. Other
receivables of £1.4 million at 30 June 2024 are in line with 30 June 2023.
£0.6 million of this balance relates to tax rebate due from the Maltese
government. The rebate claim for £0.5m has been filed and is expected to be
received before the end of the financial year.
Current liabilities of £7.3 million at 30 June 2024 were £1.5 million higher
than at 30 June 2023 primarily due to a £0.9m increase in contractual
liabilities relating to deferred income and a higher VAT liability. Deferred
income of £5.1 million at 30 June 2024 was £0.9 million or 21% higher than
30 June 2023 due to SaaS contracts and work in progress professional services
projects.
Net assets at 30 June 2024 were £5.7 million, with no movement since 31
December 2023 and £0.2 million less than at 30 June 2023 due to the retained
profits accumulated and increases in the share option reserve, less dividends
paid.
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 £10.3 million on
the year (June 23: £8.2 million) and 11% since December 2023 (£9.3 million).
Free Cash Flow (FCF)
Free cash flow is defined as net cash inflows from operations less net cash
used in investing activities less principal paid on lease liabilities and less
interest paid.
Skillcast Group PLC
Consolidated statement of profit and loss and other comprehensive income
For the period ended 30 June 2024
Unaudited Unaudited Audited
Six months to Six months to Twelve months to
30 June 2024 30 June 2023 31 December 2023
Note £ £ £
Revenue 4 6,378,006 5,150,205 11,301,700
Cost of sales (1,806,943) (1,722,934) (3,429,372)
Gross profit 4,571,063 3,427,271 7,872,328
Administrative expenses (4,665,253) (4,294,662) (8,759,363)
Operating loss (94,190) (867,391) (887,035)
EBITDA/(LBITDA) 3 31,208 (749,261) (625,325)
Finance income 154,417 106,169 258,752
Finance expense (19,351) (10,614) (19,680)
Profit/(loss) before tax 40,876 (771,836) (647,963)
Income tax (48,945) - (7,473)
Profit/(loss) after tax and total comprehensive income (8,069) (771,836) (655,436)
EPS basic 7 -0.009p -0.863p -0.733p
Skillcast Group plc
Consolidated statement of financial position
As at 30 June 2024
Unaudited as at Unaudited as at Audited as at
30 June 2024 30 June 2023 31 December 2023
Note £ £ £
Assets
Non-current assets
Property, plant and equipment 298,441 240,681 323,762
Right-of-use assets 384,559 540,268 459,923
Deferred tax assets 30,853 11,999 11,999
713,853 792,948 795,684
Current assets
Trade and other receivables 4,194,790 3,734,275 4,239,768
Cash and cash equivalents 8,349,304 7,622,847 7,221,681
12,544,094 11,357,122 11,461,449
TOTAL ASSETS 13,257,947 12,150,070 12,257,133
Issued capital and reserves attributable to owners
Share capital 5 89,459 89,459 89,459
Share Option Reserve 386,711 291,175 355,029
Share Premium Paid 3,490,541 3,490,541 3,490,541
Retained earnings 1,749,307 2,040,860 1,757,376
5,716,018 5,912,035 5,692,405
Liabilities
Current liabilities
Trade and other payables 1,935,518 1,433,235 1,570,820
Contract liability 5,115,863 4,229,174 4,501,025
Current lease liabilities 140,114 100,483 118,674
Income tax payable 87,836 16,321 23,794
7,279,331 5,779,213 6,214,313
Non-current liabilities
Long-term lease liabilities 262,598 458,822 350,415
262,598 458,822 350,415
Total liabilities 7,541,929 6,238,035 6,564,728
TOTAL EQUITY AND LIABILITIES 13,257,947 12,150,070 12,257,133
Skillcast Group PLC
Consolidated statement of changes in equity
Share capital Share Premium Paid Share Option Reserve Retained earnings Total equity
£ £ £ £ £
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
Comprehensive Income for the period
Profit/(Loss) 116,400 116,400
Total comprehensive Income for the period - - - 116,400 116,400
Total contributions by and distributions to owners
Share Option Reserve 63,854 63,854
Dividends - Prior Year (249,591) (249,591)
Dividends - Current Year (150,292) (150,292)
Total contributions by and distributions to owners - - - 63,854 - (399,883) - (336,029)
31 December 2023 89,459 3,490,541 355,029 1,757,376 5,692,405
01 January 2024 89,459 3,490,541 355,029 1,757,376 5,692,405
Comprehensive Income for the period
Profit/(Loss) (8,069) (8,069)
Total comprehensive Income for the year - - - (8,069) (8,069)
Total contributions by and distributions to owners
Share Option Reserve 31,682 31,682
Dividends
Total contributions by and distributions to owners - - 31,682 - 31,682
30 June 2024 89,459 3,490,541 386,711 1,749,307 5,716,018
Skillcast Group PLC
Consolidated statement of cash flows
Unaudited as at Unaudited as at Audited as at
30 June 2024 30 June 2023 31 December 2023
£ £ £
Cash flows from operating activities
Profit before tax 40,876 (771,836) (647,963)
Adjustments for:
Depreciation of property, plant and equipment 43,510 42,374 105,609
Amortisation of right-of-use assets 81,888 75,756 156,101
Finance income (154,417) (106,169) (258,752)
Share based payment 31,682 67,844 131,698
Finance expense 19,351 10,614 19,680
62,890 (681,417) (493,627)
(Increase)/ decrease in trade and other receivables 44,978 (403,701) (909,194)
Increase in trade and other payables 979,536 1,025,275 1,434,714
Cash generated from operations 1,087,404 (59,843) 31,893
Income taxes paid (3,757) 2 -
Net cash flows from operating activities 1,083,647 (59,841) 31,893
Investing activities
Purchases of property, plant and equipment (24,713) (28,767) (175,084)
Interest received 154,417 106,169 258,752
Net cash used in investing activities 129,704 77,402 83,668
Financing activities
Principal paid on lease liabilities (66,377) (88,103) (178,319)
Dividends paid - - (399,884)
Interest paid (19,351) (10,614) (19,680)
Net cash used in financing activities (85,728) (98,717) (597,883)
Net increase in cash and cash equivalents 1,127,623 (81,156) (482,322)
Cash and cash equivalents at beginning of period 7,221,681 7,704,003 7,704,003
Cash and cash equivalents at end of period 8,349,304 7,622,847 7,221,681
Free cash flow 1,127,623 (81,156) (82,438)
Notes to the consolidated financial statements
For the period ended 30 June 2024
1 GENERAL INFORMATION
Skillcast Group PLC ('Company') is registered in the United Kingdom with
registration number 12305914 and is limited by shares and registered on the
London AIM stock exchange. 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 2024.
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 2023, 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 September 17,
2024.
Statutory accounts for the year ended 31 December 2023 were approved by the
Board of Directors on 24 April 2024 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 added
back.
Unaudited as at Unaudited as at Audited as at
30 June 2024 30 June 2023 31 December 2023
£ £ £
Operating loss (94,190) (867,391) (887,035)
Depreciation 43,510 42,374
105,609
Amortisation 81,888 75,756
156,101
EBITDA (LBITDA) 31,208 (749,261) (625,325)
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 2024 30 June 2023 31 December 2023
£ £ £
Major product lines
Software as a Service (SaaS) subscriptions (i) 5,197,164 3,847,301
8,547,389
Professional services (ii) 1,180,842 1,302,904
2,754,311
6,378,006 5,150,205 11,301,700
(i) SaaS subscriptions - The Group provides right of access of subscriptions
to its content and technology products to the customer over time for the
subscription periods that are typically twelve months. The revenue is
recognised evenly over the 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 LMS,
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 2024 30 June 2023 31 December 2023
£ £ £
Geographic split
UK 5,055,834 4,102,369
8,913,470
Europe 646,231 599,722
942,870
Rest of world 675,941 448,114
1,445,360
Total revenue 6,378,006 5,150,205 11,301,700
5 Equity - issued capital
Unaudited as at Unaudited as at Audited as at
30 June 2024 30 June 2023 31 December 2023
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
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.
PsyPotential Ltd. Limited liability company registered in Malta.
Company registration number is C 86668
Provides services to the Group. Sharon Mulligan is both a director of
PsyPotential 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.
Purchased services from the Group. Richard Amos is both a Non-Executive
director of Thruvision Ltd. and a Non-Executive Director of the Group.
Unaudited as at Unaudited as at Audited as at
30 June 2024 30 June 2023 31 December 2023
£ £ £
Group expenditure with Monad IKE 84,318 82,013 136,834
Group expenditure with PsyPotential Ltd. 13,068 0 27,585
Group revenue with Thruvision Ltd. 13,586 2,486 2,486
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 2024 30 June 2023 31 December 2023
£ £ £
Profit (Loss) before tax 40,876 (771,836) (647,963)
Tax (48,945) (7,473)
-
Profit (Loss) after tax (8,069) (771,836) (655,436)
Non-recurring expenditure
- - -
Adjusted earnings (8,069) (771,836) (655,436)
Weighted average number of ordinary shares 89,459,460 89,459,460 89,459,460
Earnings per share:
Basic -0.009p -0.863p -0.733p
Basic and diluted earnings per share of -0.009p (30/06/2023: -0.863p) 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 2024 30 June 2023 31 December 2023
Pence per £ Pence per £ Pence per £
share share share
Dividend declared - Final 2022 0.279p 249,592
Dividend declared - Interim 2023 0.168p 150,292
During the period under review, the Group generated a profit before tax of
£40,876. The Group's policy is to at least maintain dividend payments at
historic levels.
The Shareholders passed a resolution at the AGM on 25 June 2024 for a final
dividend of 0.279p per share to be paid on 25 July 2024 to shareholders on the
register at the close of business on 30 June 2024. In combination with the
interim dividend paid during 2023 this represented a total dividend for the
year 2023 of £399,884 or 0.447p per share based upon the number of shares
currently in issue.
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