Vela Technologies #VELA – Investee Co Skillcast #SKL results for 12 months ended 31 Dec 2023 April 25, 2024 – Posted in: Blog, Vela Technologies Plc (VELA) – Tags: , , , , ,

Skillcast (AIM: SKL), the provider of SaaS compliance platforms and off-the-shelf e-learning, is pleased to announce its audited results for the twelve months ended 31 December 2023.

Highlights

 

2023

 

2022

Change (2023 v 2022 )

Total Revenue

£11.3m

£9.8m

+15%

Subscription revenue

£8.6m

£6.7m

+28%

Gross margin (%)

69.7%

70.1%

-0.4pps

Annualised recurring revenue (ARR)*

£9.3m

£6.8m

+37%

Overheads

£8.8m

£7.4m

+18%

(LBITDA)*

-£0.6m

-£0.3m

n/a

Basic loss of earnings per share (pence)

-0.733p

-0.460p

n/a

Total dividend per share (pence)

0.447p

0.447p

–

Cash in bank

£7.2m

£7.7m

-6%

Free cash flow **

-£0.1m

£0.3m

n/a

·    Total revenues up 15% at £11.3 million (2022: £9.8 million)

o  Revenue increase was driven by strong growth in recurring subscription revenues, up 28% at £8.6 million (2022: £6.7 million)

o  Annualised recurring revenue (ARR)* up 37% to £9.3 million (December 2022: £6.8 million) predominantly from new client acquisitions

o  Recurring subscriptions contributed to 76% of total revenues (2022: 68%)

o  Non-strategic professional services revenues declined 12% to £2.8 million (2021: £3.1 million)

·    Gross margin remained strong at 69.7% (2022: 70.1%)

·    LBITDA of £0.6 million (2022: £0.3 million)

o  Overhead investment rate slowed to increase on the prior year by £1.3 million (2022: £2.5 million).

o  Headcount increased by 6% in the year to 118 (2022: 111)

o  All research and development is expensed

·    Strong net cash position at 31 December 2023: £7.2 million (31 December 2022 net cash: £7.7 million), representing c. 8 pence per ordinary share in the Company

o  Up-front payments on increased subscription revenues support losses

o  Free cash flow** of -£0.1 million (2022: £0.3 million) despite LBITDA of £0.6 million

·    Basic LPS -0.733 pence per share (2022: LPS -0.460 pence)

·    Total dividend of 0.447 pence per share (2022: 0.447 pence)

o  Final dividend proposed: 0.279 pence

o  Interim dividend paid: 0.168 pence

·    Operational highlights

o  Total client numbers grew to over 1,200

o  Net retention of 105% supported by price rises and launch of new products and reduced churn

o  Launched Fast Track and new Global Compliance and microlearning Compliance Bites course libraries

o  Developed B2B e-commerce self-serve offer for small businesses

o  Repositioned product offering into three levels: Basic, Standard and Premium

o  Recruited Head of Marketing to drive marketing activity

o  Maintained excellent customer service records (Feefo Platinum Service Award 4.9/5.0)

o  ESG: retained our carbon-neutral position

Current trading and outlook

We have entered the new financial year in a good financial and operational position. Our recent product enhancements and new go-to-market strategy have increased enquiry levels from potential customers, which we are working to convert into additional subscription revenues. Professional services activity remains challenging due to on-going delays in corporate decision-making.

Since the period-end, the ARR from subscriptions has continued to increase on the prior year. As of the end of Q1, our ARR was £10.0 million, up 36% from twelve months ago (March 2023 ARR: £7.3 million). The Board remains confident of meeting market expectations for the year ahead, of returning to profitability, and of delivering on its longer-term strategic plan to achieve its stated vision.

Vivek Dodd, Chief Executive Officer of Skillcast, said:

“Skillcast enables companies to digitise and automate their compliance processes. We are the leading innovators in our sector and are passionate about helping our clients engage their staff on compliance issues, make data-driven decisions and reduce the cost of complying with regulations.

“We are delighted with our SaaS subscriptions ARR growth rate accelerating from 16% in 2022 to 37% in 2023 and the consequent 28% growth in our subscription revenue in 2023.

“This performance is underpinned by our improvements across our content and technology product range, scalable technology infrastructure, and highly responsive customer service, which received a Platinum Service Award based on customer ratings for the fourth consecutive year.

“Trading in 2024 has started well and is in line with expectations. We expect to maintain our growth with our compelling, risk-reducing SaaS solutions and return to sustainable profits from the second half of the year.”

*Further details on the calculation of adjusted EBITDA and 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)