Last checked at 24 Feb 2022 07:00
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.
24 February 2022
Skillcast Group plc
("Skillcast", the "Group", or the "Company")
Full Year Trading Update
Skillcast Group plc, a provider of e-learning and digital compliance transformation, is pleased to announce a positive trading update for the year ended 31 December 2021.
The Board expects, subject to completion of the 2021 audit, the Group's revenue for 2021 to be not less than £8.3 million (2020: £7.3 million), and adjusted EBITDA* to be not less than £1.1 million (2020: £1.2 million). The revenue growth is underpinned by strong growth in recurring subscription revenue as well as a stable performance from professional services.
The Group uses annualised recurring revenue ("ARR")** as a key performance indicator to measure the size of the Group's subscription business. During 2021, the Group's ARR grew by 29% from £4.5 million in December 2020 to £5.8 million in December 2021. Overall, recurring revenue increased to over 62% of total revenue in 2021 (2020: 56%), driven by new client acquisitions and net retention of the Group's content and software-as-a-service (SaaS) subscription base.
The Group's earnings were supported by an increase in professional services revenue late in the year. This revenue typically fluctuates and, although it declined in the first half of the year due to COVID-19 lockdowns, the full year professional services revenue is expected to be not less than £3.1 million (2020: £3.2 million).
The Group's net cash position on 31 December 2021 was £7.8 million, including the net proceeds of the successful £3.5 million placing for the Company at the time of its admission to AIM (31 December 2020 net cash: £3.8 million).
Vivek Dodd, CEO of Skillcast, said: "We are pleased with the subscription and professional services revenue that we achieved in 2021. We have the technology, content and award-winning client service to help companies build ethical, inclusive and resilient workplaces. Our admission to trading on AIM is helping us to attract talent, win clients and strengthen our leadership in the field of digital compliance transformation."
*Earnings before interest, tax, depreciation, amortisation and adding back leasehold depreciation and reinstating the related rental charge (reversing the IFRS 16 leasehold depreciation)
** ARR is calculated by annualising revenue recognised in a given month from all client subscriptions on annual contracts
For further information, please contact:
Skillcast Group plc Richard Amos, Chairman Vivek Dodd, CEO Chris Backhouse, CFO
| +44 (0) 207 929 5000 |
Allenby Capital Limited (Nominated Adviser and Broker) James Reeve / Piers Shimwell (Corporate Finance) Tony Quirke / Jos Pinnington (Corporate Broking and Sales)
| +44 (0) 203 328 5656 |