REG - Skillcast Group PLC - Trading Update and Notice of Interim Results

SkillcastAnnouncement

19/07/2023 07:00

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RNS Number : 4219G  Skillcast Group PLC  19 July 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.

 

19 July 2023

 

Skillcast Group plc

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

 

Half Year Trading Update and Notice of Interim Results

 

Skillcast Group plc (AIM: SKL), the provider of content and technology for
digital compliance transformation, is pleased to announce a positive trading
update for the six months ended 30 June 2023.

 

The Group expects to report revenues of £5.2 million for H1 2023, a 16%
increase on the comparative period last year (H1 2022: £4.5 million). The
growth was driven by a strong performance in recurring subscription revenues,
which increased 23% on the same period last year, and a stable performance
from professional services. The share of the revenue from subscriptions
increased to 75% (H1 2022: 70%) of total Group revenues.

 

The Group's ARR* has increased by 26% over the 12 months to June 2023 to £8.0
million (June 2022 ARR: £6.3 million) and by 19% since the start of the year
(December 2022 ARR: £6.8 million). ARR growth was driven by new clients at
higher average transaction values and upsells of both new and existing
products, combined with a 10% price rise that took effect on renewals from 1
January 2023.

 

In March 2023, the Company launched its Global Risk and Global Compliance
libraries and, in April, it launched a Compliance Bites library of short,
engaging videos on key compliance topics designed to improve employee
knowledge retention. Two further exciting new product releases are scheduled
for release in H2 2023.

 

As a result of the positive momentum achieved to date, the Group is on track
to return to profitability in future periods. It has completed the hiring of
key growth roles and expects future headcount growth to be focused on
supporting volume growth. The Group develops all of its technology products
in-house and is increasing its investment in AI technologies to improve its
business processes and enhance its products.

 

The Group had no debt and cash in bank of £7.6 million on 30 June 2023 (31
December 2022: £7.7 million). This represents c. 8.5p per ordinary share in
the Company.

 

Notice of Interim Results

 

The Group will announce its full interim results on 27 September 2023.

 

Vivek Dodd, Chief Executive Officer of Skillcast Group, commented:

 

"We are pleased with our revenue growth from subscriptions in H1 2023. More
clients are becoming aware of the value of Skillcast's proven compliance
learning and Regtech products. Our historic average contract value has been
around £5,500, so we were particularly pleased to win two major clients in
the period with annual revenues of over £70,000 each. We are also pleased
with the launch of our new products in H1 2023 and are excited for the further
launches scheduled for the second half of the year. We are cognisant of the
challenging macro environment but remain confident about achieving our
full-year growth expectations for 2023."

 

* ARR (Annualised Recurring Revenue) is calculated by annualising revenue
recognised from all client subscriptions on annual contracts in a given month.

 

For further information, please contact:

 Skillcast Group plc                                          +44 (0) 207 929 5000

 Richard Amos, Chairman

 Vivek Dodd, CEO

 Richard Steele, CFO

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

 James Reeve / Piers Shimwell (Corporate Finance)

 Jos Pinnington / Tony Quirke (Corporate Broking and Sales)

 

 

About Skillcast Group plc

Skillcast helps companies build ethical, inclusive, and resilient workplaces.
It provides content and technology to digitise and streamline compliance
processes and manage them from a single compliance portal. Its product range
includes a Learning management system with comprehensive off-the-shelf
compliance course libraries, a Policy hub, Staff declarations, Anonymous
surveys, CPD tracking, and compliance registers for gifts, expenses, PA
dealing, whistleblowing.

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