REG - Skillcast Group PLC - Results for the six months ended 30 June 2025
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RNS Number : 9656Z Skillcast Group PLC 19 September 2025
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.
19 September 2025
Skillcast Group PLC
("Skillcast", the "Group" or the "Company")
Results for the six months ended 30 June 2025
Skillcast (AIM: SKL), the Governance, Risk and Compliance ("GRC") software and
e-learning provider, is pleased to announce continued growth in recurring
subscription revenue and profitability in its unaudited results for the six
months ended 30 June 2025 ("H1 25").
Highlights
6 months to 30 June 2025 6 months to 30 June 2024 12 Months to 31 December 2024 Change (H1 25 v H1 24)
(unaudited) (unaudited) (audited)
(H1 25) (H1 24)
Total revenue £7.5m £6.4m £13.2m +18%
Subscription revenue £6.4m £5.2m £11.0m +23%
Gross margin (%) 75.5% 71.7% 73.6% +3.8pps
Annualised recurring revenue (ARR)* £12.8m £10.4m £11.6m +23%
EBITDA £0.7m £0.03m £0.5m +2074%
EBITDA margin (%) 9.0% -0.5% 3.8% +9.5pps
Rule of 40* 32% 27% 29% +5pps
Basic EPS (pence) 0.636p (0.009)p 0.572p N/A
Dividend per share (pence) 0.202p 0.168p 0.517p +20%
Cash in bank £11.5m £8.3m £9.1m +38%
Free cash flow * £2.2m £1.0m £2.0m +126%
· Revenue growth of 18% (H1 24: 24%) driven by a 23% increase in
subscription revenues
o Subscription revenues increased to 85% of total revenues (H1 24: 81%)
o Professional services revenues were 7% below the prior year at £1.1
million (H1 24: £1.2 million).
· ARR* increased 23% YoY to £12.8 million as at June 2025 (June 24:
£10.4 million) and +10% year to date:
o £1.1m ARR growth from new clients in H1 25 in line with H1 24
o Net retention of 100% with lower, 3% price rises (H1 24: 7%), which are
being welcomed by clients and supporting the lower annualised churn of 7% in
the period (H1 24: 12%)
o Average ARR per client (excluding Core Compliance) +12%
o CoreCompliance accounting for 1.2% of ARR (June 2024: 0.3%).
· Gross margin grew 3.8 percentage points to 75.5% (H1 24: 71.7%) due
to a reduced professional services cost base:
o SaaS margins increased by 0.5% to 79.5% (H1 24: 79.0%)
o Professional services margins increased to 51.7% (H1 24: 41.7%).
· EBITDA rose to £0.7 million (H1 24: £0.03 million) representing 9%
of revenues reflecting the continued operational gearing impact of the revenue
growth with overhead costs increasing 9% on H1 24. Average headcount increased
by 3% over the past 12 months to 123 (June 24: 120) in volume-based roles.
· Interim dividend declared of £180,000, a 20% increase on last year
and broadly in line with subscription revenue growth as per our stated policy.
This represents 0.202 pence per share (H1 24: 0.168 pence per share).
· Cash in bank increased to £11.5 million at 30 June 2025 (30 June
2024: £8.3 million).
· Free cash flow* of £2.2 million (H1 24: £1.0 million) reflecting
upfront cash from growing subscription sales, a return to profitability and
accelerating cash flow from auto-renewal terms introduced last year.
Current Trading and Outlook
ARR continues to grow in the second half of the year and drive subscription
revenues in line with expectations.
The market demand for our GRC content and software remains resilient. While
revenues from non-strategic Professional Services have limited visibility, the
continued growth in subscription revenues reduces their impact, and we remain
confident of meeting current market expectations.
Vivek Dodd, Chief Executive Officer, said:
"Our H1 2025 performance demonstrates the resilience of the GRC market and our
value proposition. In this period, we achieved 23% organic growth in ARR and
improved our EBITDA margin to 9% as we progressed further towards meeting the
Rule of 40*.
"Skillcast is seen as a trusted partner by over 1,400 companies, mainly in the
UK, for simplifying their staff compliance, cutting costs and building
resilience. We see opportunities to grow in our core and adjacent markets and
continue to look for suitable acquisitions to supplement organic growth.
"Our cash position remains strong, and we have declared an interim dividend of
£180,000 that is +20% higher than last year and broadly in line with our
subscription revenue growth."
*Further details on the calculation of ARR, Rule of 40 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
Cavendish (Nominated Adviser & Broker) +44 (0)20 7220 0500
Jonny Franklin-Adams / Isaac Hooper (Corporate Finance)
Sunila de Silva (Corporate broking)
Background
Our Purpose
Skillcast enables businesses to build ethical and resilient workplaces and
make compliance simple.
Who we are
Skillcast Group Plc (AIM: SKL) is headquartered in the City of London and has
an operations hub on the island of Malta. It is a leading provider of
governance, risk, and compliance (GRC) content and software to help companies
create compliant and resilient workplaces.
What we do
The Group provides a cloud-based, software-as-a-service (SaaS) portal for
managing GRC. It combines learning content, activity tracking, policy
management, and a range of compliance declarations and submissions. Skillcast
supports firms in simplifying their staff compliance and meeting complex
regulatory obligations cost-effectively, and helps them reduce risk from
compliance breaches. The Group has grown entirely organically, building and
maintaining all its technology and content IP in-house, allowing it to deliver
customisable solutions.
The Group offers three subscription plans for its Managed Portal Services:
Standard, Enhanced and Premium, to meet the different needs of organisations.
These plans include a dedicated Customer Success Manager to deliver
award-winning customer service, and the Enhanced and Premium include Aida -
our AI-powered compliance assistant.
For mid-size and large companies with existing compliance portals, Skillcast
offers Remote Services to enhance their portals with off-the-shelf content and
additional functionality.
Additionally, the Group offers CoreCompliance, a pre-configured, self-serve,
ecommerce compliance solution for small UK businesses.
Over 80% of our revenues are recurring with low churn, long-term customer
relationships, and a high gross margin. In the four years 2021-2024 since the
IPO, these recurrent subscription revenues have grown by a CAGR of 26%, and
the Group returned to profitability in 2024, as guided.
Our customers
Skillcast serves over 1,400 clients, including FTSE 100 companies, global
financial institutions, and small to mid-sized businesses in the UK. The
majority of our clients operate in regulated sectors such as financial
services and insurance.
Investment case
Skillcast is a leading provider of GRC SaaS solutions to companies, mainly in
the UK. Such companies are subject to many regulations that require them to
educate, record, monitor, and analyse employee activities. Consequently, they
turn to digital platforms, such as those provided by Skillcast, to comply with
these obligations and demonstrate compliance with regulators, customers, and
stakeholders.
The Group's management estimates the total addressable market (TAM) for GRC
platforms to be over £1.6 billion based on the company demographics data from
the UK Government Department of Business and Trade and its prices for relevant
business segments. Just over half of this TAM exists in small companies with
less than 50 employees, which the Group targets with its CoreCompliance
solution. The remaining TAM exists in mid-size and large companies that the
Group can serve with Managed Portal Services and Remote Services.
The Group's management expects to increase its penetration in both market
segments, aided by the quality and breadth of its current offering and
innovations like Aida - its AI-powered compliance assistant.
The Group benefits from a business-to-business model with low churn. The
overwhelming majority of its contracts are annual and invoiced upfront. It
aims to offset churn and downsells with upsells to the retained customer,
giving it a typical net retention rate of over 100%. This results in high
revenue visibility, strong cash flow, and accreting ARR.
In the years following the Group's IPO in December 2021, we proactively
increased overheads ahead of revenue to improve marketing, product development
and corporate governance. That phase ended in 2024, and we are now benefitting
from operational gearing inherent in our SaaS business model. The Directors
expect this operational gearing to increase EBITDA margins further with
revenue growth as we strive to meet the Rule of 40. The corporate compliance
market is large, resilient, and growing, but fragmented. The Directors believe
Skillcast is well-positioned to thrive with multiple opportunities for organic
growth in our core and adjacent markets.
Strategic and operational progress
Our focus in H2 2025 remains on growing the subscription business, as measured
by our ARR book, and improving profitability.
Our business model of recurring annual subscriptions provides a stable base we
can build upon with product upsells and new customer acquisitions.
After successful trials in H1 25, Aida, our AI assistant, is currently being
rolled out to existing subscribers of our Enhanced and Premium Plans. Aida
enables users to access relevant, concise information by asking the AI
assistant specific questions rather than reviewing lengthy courses or
policies. Users receive answers relying exclusively on their employer's
company policies, e-learning courses, and external statutory documents curated
by Skillcast. In addition, they receive hyperlinks for instant access to the
relevant sources.
We increased our spending on marketing activity by 35% during this period. In
March 2025, we launched our revamped and rebranded website with notable
increases in engagement and domain authority, supported by increased digital
PR activity and a higher share of voice. Search behaviours are changing, and
the Group continues to adapt to the move in traffic from SEO to AEO.
On the product side, an improved UI/UX and content authoring tool is being
developed for rollout later this year. We continue to add courses to our
off-the-shelf libraries to help our clients respond to new regulatory
obligations, such as Failure To Prevent Fraud (FTPF), that come into effect in
September this year. In Q4 2025, we will launch an EU Compliance library to
improve the product fit with our subscription clients in the EU.
Our Premium Plan, launched in FY24, now represents 7.4% of ARR (H1 24: 2.9%,
FY24), and our Enhanced Plan, launched in FY25, represents 1.1% of ARR (H1 24:
nil). The sale of these plans to new clients and upgrades by our existing
clients supported a 12% increase in ARR per account (excluding CoreCompliance)
in the period to £10,620 (H1 24: £9,520).
Our CoreCompliance offering for small businesses launched in FY24 now accounts
for 1.2% of ARR (H1 24: 0.3%).
While organic subscription growth remains our core strategy, we remain
interested in acquiring other digital compliance GRC/learning providers in
adjacent verticals, provided they meet our strict criteria for product fit and
valuation. We have recently engaged advisors to assist in finding suitable
targets.
Outlook
ARR continues to grow in the second half of the year and drive subscription
revenues in line with expectations.
The market demand for our GRC content and software remains resilient. While
revenues from non-strategic Professional Services have limited visibility, the
continued growth in subscription revenues reduces their impact, and we remain
confident of meeting current market expectations.
Financial Review
Revenue
Total revenues of £7.5 million were 18% up on the comparable period last year
(H1 24: £6.4 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 25, subscription revenue growth helped increase the proportion of
revenues from subscriptions to 85% (H1 24: 81%) of total revenues. Total
revenue-generating clients excluding Core Compliance in H1 25 increased by 7%
to 1,263 (H1 24: 1,178). The top 10 clients accounted for 17% of revenues in
the period (H1 24: 16%).
SaaS revenues grew 23% to £6.4 million (H1 24: £5.2 million), driven by an
8% increase in new clients (excluding CoreCompliance). 44% of SaaS revenues
included our bespoke GRC technology with the balance derived from e-learning
courses (H1 24: 43%).
Annual recurring revenue ("ARR"), our key performance indicator to measure
subscription sales progress, grew by 23% to £12.8 million over the past 12
months (June 2024: £10.3 million) and by 10% since the start of the year
(December 2024: £11.6 million). All of the net ARR growth in the period was
derived from new clients.
Net retention in the period was 100% (H1 24: 100%). Annualised churn on the
period was 7%, a significant reduction on the prior year period (H1 24: 12%).
Downsells were consistent with the prior year and upsells were lower partly
due to a 2025 price rise of 3% compared to 7% in 2024.
Average ARR per account (excluding CoreCompliance) increased by 12% to
£10,629 (H1 24: £9,522) from 9% net more clients.
ARR was supported by our three "new" packages.
Our premium plan, launched in 2024 which included all our GRC software and
enhanced learning tools grew 217% on the same period last year to 7.4% of ARR
(H1 24: 2.9%).
Our enhanced learning plan, launched in early 2025 represented 1.2% of ARR.
CoreCompliance, our self-serve e-commerce offer for small businesses launched
in 2024 grew to 1.2% of ARR (H1 24: 0.3%). Client numbers grew 327% to 141 (H1
24: 33) and average ARR per client increased 21% to £1,053 (H1 24: £870).
Revenue from professional services was £1.1 million in the period, 7% below
the same period last year (H1 24: £1.2m).
Gross profit
Gross profit margin increased by 3.8 percentage points to 75.5% in H1 25 (H1
24: 71.7%), due to lower costs in Professional Services. In 2024 a decision
was made to reduce or redeploy headcount in response to declining Professional
Services revenue. The cost benefit of this is now being seen with gross profit
margins in H1 25 of 52% (H1 24: 42%), SaaS margins of 79.5% were 0.5% above
the same period last year (H1 24: 79.0%).
Overhead costs
Overheads increased by 9% or £0.5 million in the period (H1 24: 9% or £0.4
million) to £5.1 million (H1 24: £4.7 million). 72% of overheads are people
costs which increased 9% on the previous year, with the remaining increase in
marketing activity which increased 35% to represent 7% of revenues.
No research and development costs are capitalised and expenditure remained
consistent with the previous period at 9% of revenues.
In H1 25, total employment costs (including employees in operations included
in the cost of sales), increased by £0.3 million or 7% to £4.9 million (H1
24: £4.6 million), and the average headcount increased by 3% to 123 (H1 24:
120). Average cost per headcount increased 5% to £40k in the period (H1 24:
£38k). Total headcount at 30 June 2025 was 125 (30 June 2024: 121). The
largest area of increased headcount was in the client support team offset by
planned reductions in the Professional Services team.
EBITDA
The Group delivered EBITDA of £0.7 million (H1 24: LBITDA: £0.03 million),
representing 9% of revenues due to continued improvements in operational
gearing, and £0.2m more than in the full prior year (2024: £0.5 million).
Rule of 40
The increase in profitability saw our Rule of 40 performance (the sum of ARR
growth rate and EBITDA margin) increase to 32% for the period (H1 24: 27%).
Tax
The Group reported a profit before tax of £0.7 million and a tax charge of
£0.14 million with an effective tax rate of 20%.
EPS
The basic earnings per share was 0.636 pence on 89.5 million shares. (H1 24:
-0.009 pence). Diluted earnings per share adjusted for unexercised share
options under the treasury stock method was 0.631 pence on 89.9 million
shares. (H1 24: not applicable).
Dividend
With a business that is backed by recurring revenues that provide strong cash
generation, the Board is committed to paying dividends. It is the Board's
stated policy to broadly increase dividends in line with subscription revenue
growth rates. The Board, therefore, declared an interim dividend of £180,000,
20% higher than the previous year, or 0.202 pence per issued ordinary share.
The interim dividend will be paid on 24 October 2025 to shareholders on the
register on 3 October 2025.
Balance sheet
The Group had £11.5m cash at bank at 30 June 2025 (30 June 2024: £8.3m) 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
£0.2 million at 30 June 2025, representing its leased offices in London and
Malta and £0.2m of property plant and equipment including office and IT
equipment.
Trade and other receivables at 30 June 2025 of £3.5 million were £0.7
million lower than 30 June 2024. Trade debtors of £2.7 million were £0.2
million or 7% lower than at 30 June 2024 despite continued revenue growth.
Debtor days reduced from 64 at 30 June 2024 to 52 days at 30 June 2025. The
introduction of widely accepted auto-renewal standard terms and increased
process automation helped to deliver the improvement. Other receivables of
£0.8 million at 30 June 2025 were £0.6m below 30 June 2024 of £1.4m. £0.5
million of this reduction relates to a tax rebate paid by the Maltese
government. A further £0.2m remains due and is expected to be received before
the end of the financial year.
Current liabilities of £9.0 million at 30 June 2025 were £1.7 million higher
than at 30 June 2024 primarily due to a £1.4m increase in contractual
liabilities relating to deferred income. Deferred income of £6.5 million at
30 June 2025 was £1.4 million or 28% higher than 30 June 2024 due to SaaS
contracts and work in progress relating to professional services projects.
Net assets at 30 June 2025 were £6.4 million, an increase of £0.7m since 31
December 2024 and £0.6 million since at 30 June 2024 due to the retained
profits accumulated less dividends, all paid in the second half of the
financial year.
Cash flow
Free Cash Flow in the period increased by £1.2 million to £2.2 million (H1
24: £1.0 million). The Group generally has a negative working capital cycle
due to the upfront cash profile of subscription sales. £0.8m of Free Cash
Flow was generated from an increase in deferred revenue from cash receipts
paid upfront from higher subscription sales. A further £0.7m (H1 24: £nil)
was generated through Profit Before Tax and a further £0.8m (H1 24: £nil)
from a reduction in trade and other receivables including the £0.5m Maltese
government tax rebate.
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 23% to £12.8 million on
the year (June 24: £10.4 million) and 10% since December 2024 (£11.6
million).
Rule of 40
The Rule of 40 is a SaaS company performance metric based on the sum of the
ARR growth rate and the EBITDA margin. Achieving the target of 40% for this
sum is considered as an appropriate performance measure by Directors as the
Group balances growth with profitability.
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 or loss and other comprehensive income
For the period ended 30 June 2025
Unaudited Unaudited Audited
Six months to Six months to Twelve months to
30 June 2025 30 June 2024 31 December 2024
Note £ £ £
Revenue 4 7,501,916 6,378,006 13,240,009
Cost of sales (1,840,003) (1,806,943) (3,495,768)
Gross profit 5,661,913 4,571,063 9,744,241
Administrative expenses (5,104,161) (4,665,253) (9,499,526)
Operating profit/(loss) 557,752 (94,190) 244,715
Profit before interest, tax, depreciation & amortisation (EBITDA) 3 673,749 31,208
499,958
Other income (16,225) -
400
Finance income 176,405 154,417
328,330
Finance expense (6,141) (19,351) (24,806)
Profit before tax 711,791 40,876
548,639
Income tax (143,089) (48,945) (37,270)
Profit after tax and total comprehensive income 568,702 (8,069) 511,369
EPS basic 7 0.636p (0.009)p 0.572p
EPS diluted 7 0.631p N/A 0.569p
Skillcast Group PLC
Consolidated statement of financial position
As at 30 June 2025
Unaudited as at Unaudited as at Audited as at
30 June 2025 30 June 2024 31 December 2024
Note £ £ £
Assets
Non-current assets
Property, plant and equipment 246,465 298,441 265,146
Right-of-use assets 233,832 384,559 309,196
Deferred tax assets 84,611 30,853 84,611
564,908 713,853 658,953
Current assets
Trade and other receivables 3,535,892 4,194,790 4,330,686
Cash and cash equivalents 11,499,347 8,349,304 9,115,118
15,035,239 12,544,094 13,445,804
TOTAL ASSETS 15,600,147 13,257,947 14,104,757
Issued capital and reserves attributable to owners
Share capital 5 89,459 89,459 89,459
Share Option Reserve 427,979 386,711 388,731
Share Premium Paid 3,490,541 3,490,541 3,490,541
Retained earnings 2,437,563 1,749,307 1,868,861
6,445,542 5,716,018 5,837,592
Liabilities
Current liabilities
Trade and other payables 2,180,044 1,935,518 2,200,156
Contract liability 6,547,533 5,115,863 5,684,309
Current lease liabilities 132,825 140,114 184,964
Income tax payable 168,078 87,836 35,414
9,028,480 7,279,331 8,104,843
Non-current liabilities
Long-term lease liabilities 126,125 262,598 162,322
126,125 262,598 162,322
Total liabilities 9,154,605 7,541,929 8,267,165
TOTAL EQUITY AND LIABILITIES 15,600,147 13,257,947 14,104,757
Skillcast Group PLC
Consolidated statement of changes in equity
Share capital Share Premium Paid Share Option Reserve Retained earnings Total equity
£ £ £ £ £
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
Comprehensive Income for the period
Profit/(Loss) 519,438 519,438
Total comprehensive Income for the period - - - 519,438 519,438
Total contributions by and distributions to owners
Share Option Reserve 2,020 2,020
Dividends - Prior Year (249,592) (249,592)
Dividends - Current Year (150,292) (150,292)
Total contributions by and distributions to owners - - - 2,020 - (399,884) - (397,864)
31 December 2024 89,459 3,490,541 388,731 1,868,861 5,837,592
Comprehensive Income for the period
Profit/(Loss) 568,702 568,702
Total comprehensive Income for the year - - - 568,702 568,702
Total contributions by and distributions to owners
Share Option Reserve 39,248 39,248
Dividends
Total contributions by and distributions to owners - - 39,248 - 39,248
30 June 2025 89,459 3,490,541 427,979 2,437,563 6,445,542
Skillcast Group PLC
Consolidated statement of cash flows
Unaudited 6 months to Unaudited 6 months to Audited 12 months to
30 June 2025 30 June 2024 31 December 2024
£ £ £
Cash flows from operating activities
Profit/ (loss) before tax 711,791 40,876 548,639
Adjustments for:
Depreciation of property, plant and equipment 39,908 43,510 102,051
Amortisation of right-of-use assets 75,364 81,888 150,728
Finance income (176,405) (154,417) (328,330)
Share based payment 39,248 31,682 33,702
Finance expense 6,141 19,351 24,806
Unrealised foreign exchange (gain)/ loss (6,189) - 4,670
689,858 62,890 536,266
Changes in working capital
(Increase)/ decrease in trade and other receivables 794,794 44,978 (90,918)
Increase in trade and other payables, including contract liabilities 843,112 979,536 1,812,620
Cash generated from operations 2,327,764 1,087,404 2,257,968
Income taxes paid (10,425) (3,757) (98,263)
Net cash flows from operating activities 2,317,339 1,083,647 2,159,705
Cash flow from investing activities
Purchases of property, plant and equipment (21,228) (24,713) (43,435)
Interest received 176,405 154,417 328,330
Net cash generated/(used) in investing activities 155,177 129,704 284,895
Cash flow financing activities
Principal paid on lease liabilities (88,335) (66,377) (121,803)
Dividends paid - - (399,884)
Interest paid on lease liabilities (6,141) (19,351) (24,806)
Net cash (used) in financing activities (94,476) (85,728) (546,493)
Net increase/ (decrease) in cash and cash equivalents 2,378,040 1,127,623 1,898,107
Effects of foreign exchange fluctuations on cash and cash equivalents 6,189 - (4,670)
Cash and cash equivalents at beginning of period 9,115,118 7,221,681 7,221,681
Cash and cash equivalents at end of period 11,499,347 8,349,304 9,115,118
Free cash flow 2,201,635 973,206 1,969,661
Skillcast Group PLC
Notes to the consolidated financial statements
For the period ended 30 June 2025
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 2025.
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 18 September
2025.
Statutory accounts for the year ended 31 December 2024 were approved by the
Board of Directors on 29 April 2025 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 Profit before interest, tax, depreciation and amortisation 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.
Unaudited as at Unaudited as at Audited as at
30 June 2025 30 June 2024 31 December 2024
£ £ £
Operating profit 557,752 (94,190) 244,715
Other Interest 725 2,464
-
Depreciation 39,908 43,510 102,051
Amortisation 75,364 81,888 150,728
EBITDA 673,749 31,208 499,958
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 2025 30 June 2024 31 December 2024
£ £ £
Major product lines
Software as a Service (SaaS) subscriptions (i) 6,403,123 5,197,164 10,987,628
Professional services (ii) 1,098,793 1,180,842 2,252,381
7,501,916 6,378,006 13,240,009
(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 the 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 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 2025 30 June 2024 31 December 2024
Gross profit by product lines £ £ £
Software as a Service (SaaS) subscriptions (i) 5,093,395 4,104,048 8,804,612
Professional services (ii) 568,518 467,015 939,629
5,661,913 4,571,063 9,744,241
The Group has analysed costs along product lines after having identifiable
direct costs and using judgement to allocate other direct costs such as staff
based on a proportion related to that product line.
Unaudited as at Unaudited as at Audited as at
30 June 2025 30 June 2024 31 December 2024
£ £ £
Geographic split
UK 5,856,080 5,055,834 10,393,492
Europe 550,803 646,231 1,444,687
Rest of world 1,095,033 675,941 1,401,830
7,501,916 6,378,006 13,240,009
5 Equity - issued capital
Unaudited as at Unaudited as at Audited as at
30 June 2025 30 June 2024 31 December 2024
Number 89,459,460 89,459,460 89,459,460
Par value per share (GBP) .10p .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.
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 ulitmate holding company of Thruvision Ltd
Belvedere Consultancy Ltd Private Limited liability company registered in England and Wales.
Company registration number is 08254276
Purchased services from the Group. Richard Steele is both an Executive
director of Belvedere Consultancy Ltd and an Executive Director of the Group.
Unaudited as at Unaudited as at Audited as at
30 June 2025 30 June 2024 31 December 2024
£ £ £
71,297 84,318 138,972
Group expenditure with Monad IKE
17,788 13,068 24,518
Group expenditure with PsyPotential Ltd.
635 13,586 15,587
Group revenue with Thruvision Ltd.
Belvedere Consultancy Ltd 175 -
349
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 2025 30 June 2024 31 December 2024
£ £ £
Profit (Loss) before tax 711,791 40,876 548,639
Tax
(143,089) (48,945) (37,270)
Profit (Loss) after tax 568,702 511,369
(8,069)
Earnings 568,702 (8,069) 511,369
Weighted average number of ordinary shares
Basic 89,459,460 89,459,460 89,459,460
Effect of dilutive potential ordinary shares 710,866 404,995
-
Diluted average number of shares 90,170,326 89,459,460 89,864,455
Earnings per share:
Basic 0.636p -0.009p 0.572p
Diluted 0.631p N/A 0.569p
Basic and diluted earnings per share of 0.636p and 0.631p (H1 24: -0.009p) 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 2025 30 June 2024 31 December 2024
Pence per £ Pence per £ Pence per £
share share share
Dividend declared - Final 2023 0.279p 249,592
Dividend declared - Interim 2024 0.168p 150,292
During the period under review, the Group generated a profit before tax of
£711,791. The Group's policy is to broadly increase dividend payments in
line with the annual growth rate of subscription revenues.
The Shareholders passed a resolution at the AGM on 24 June 2025 for a final
dividend of 0.349p per share to be paid on 25 July 2025 to shareholders on the
register at the close of business on 4 July 2025. In combination with the
interim dividend paid during 2024 this represented a total dividend for the
year 2024 of £462,282 or 0.517p per share based upon the number of shares
currently in issue.
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