Skillcast Group Plc · LSE:SKL
Skillcast — Investor Presentation (September 2022)
18 slides from Skillcast's investor presentation, September 2022
Slide 1: Digital Compliance Transformation
SKILLCAST GROUP PLC Digital Compliance Transformation H1 2022 INVESTOR PRESENTATION Sept 2022
Slide 2: Legal Notice
Legal Notice This document, which comprises an investor presentation (this "Investor Presentation"), has been prepared by, and is the sole responsibility of, Skillcast Group plc (the "Company") and is solely for use at a presentation (the "Presentation") to inform the investment community regarding
Slide 3: Presentation team
Presentation team Vivek Dodd Richard Steele CEO CFO • Co-founded Skillcast in 2001 • Joined Skillcast as CFO in May 2022 • Ex-investment banker (JP Morgan) • 30 years commercial finance background • MS (MIT), BTech (IIT Delhi), former CFA Charterholder • Previously CFO Mind Gym Plc vdodd@skillcast.c
Slide 4: Board of directors
Board of directors Richard Amos Vivek Dodd Catriona Razic Richard Steele Non-exec Chairman CEO CCO CFO Anthony Miller Sally Tilleray Isabel Napper CTO Non-exec Director Non-exec Director Audit Chair Remuneration Chair 4
Slide 5: H1 2022 Highlights
H1 2022 Highlights Company Financial performance Recurring subscriptions underpin revenue growth B2B Software-as-a-Service £4.5m H1 ‘22 Revenue -£0.2m H1 ‘22 Adj EBITDA (H1 ‘21: £3.7m) (H1 ‘21: £0.6m) Total revenue: £4.5m (up 20%) E-learning & Compliance Tech £7.5m Cash June 2022 £6.3m ARR in Jun 20
Slide 6: H1 2022 progress
H1 2022 progress Invested in people to fuel future growth Appointed first full time CFO to strengthen the Executive Management Average number of employees up 32% to 95 despite well documented recruitment challenges Sales and marketing largest area of investment up 45%. Increased marketing activity I
Slide 7: Revenue streams
Revenue streams Subscriptions (Recurring) Professional Services (Non-Recurring) H1 22 saw 33% revenue growth to £3.1m driven by: H1 22 revenues of £1.4m in line with prior year: • New clients buying our e-learning libraries and hosting platform • Our strategy is to maintain absolute revenues to our
Slide 8: Financials – Income statement summary
Financials – Income statement summary Income Statement (£’000) Growth 6 MONTHS ENDED 30 JUNE 2022 2021 Growth rate Annualised Recurring Revenue (£m) 6.3 (UNAUDITED) rate 5.8 Subscriptions 3,117 33% 2,350 14% 5.0 4.5 Professional Services 1,387 -1% 1,386 -10% 4.0 3.7 Total Revenue 4,484 20% 3,736 4%
Slide 9: Financials – Balance sheet summary
Financials – Balance sheet summary Statement of Financial Position (£’000) 30.6.22 30.6.21 31.12.21 Receivables include net trade debtors of £2.5m at Non-current assets 794 395 864 30.6.22, 41% higher than at 30.6.21 and £1.0m Maltese Current assets withholding tax rebate Receivables 4,015 2,430 3,7
Slide 10: Financials – Cash flow statement summary
Strong Track Record of Cash Generation Financials – Cash flow statement summary Cash flow statement (£’000) 2022 2021 6 MONTHS ENDED 30 JUNE (UNAUDITED) (Loss)/profit before tax (286) 299 Cash burn in H1 22 of £0.3m Depreciation/amortisation 111 79 Share Option Reserve 92 0 The Group’s policy is to
Slide 11: Trading update
Well placed to deliver growth Trading update Q3 2022 Update Trading in line with full year expectations Subscription prospect pipeline remains good Top management, team leaders and specialist roles for 2022 have been filled Technology development on schedule • Migration to MS Azure • Self-service bu
Slide 12: www.skillcast.com 80 Leadenhall St London
www.skillcast.com 80 Leadenhall St London EC3A 3DH 12
Slide 13: What our business is about
Overview What our business is about Compliance Issues Cloud-based Services Compliance Transformation • Anti-Bribery Compliance • E-learning • Anti-Money Laundering Content Libraries • Policy Attestations • Bullying and Harassment • Declarations/Disclosures • Cyber Security • Workplace Surveys Techno
Slide 14: The investment case
Overview The investment case Corporate compliance is a That is large and growing Skillcast is well positioned to thrive in resilient market … fast … Breadth and depth of Market position - delivering 01Corporate spending on regulatory $744m growing at 15-20% compliance is largely non-discretionary pr
Slide 15: Subscriptions: E-learning
Subscriptions: E-learning Typical client Why do SMEs choose Skillcast? Client portfolio UK SME subscribing to our compliance • Staff compliance is critical for 800+ subscription clients course library and our managed LMS for performance and survival creating their internal white labelled • Simple, f
Slide 16: Revenue streams
Revenue streams Subscriptions (Recurring) Professional Services (Non-Recurring) Content – Off-the-shelf (OTS) course libraries to help clients fulfil their Bespoke e-learning content development regulatory compliance obligations efficiently and cost effectively Technology – Learning Management Syste
Slide 17: Professional services
Professional services Bespoke e-learning development Course customisation service Significant clients Wins 50+ enterprise clients optional service for subscription clients repeat business strengthens client relationships 140 200+ projects projects c. £14,000 c. £1,400 average project value(1) averag
Slide 18: Summary
Resilient demand, Recurring revenues, Strong cash flows Summary Subscription growth in H1 ‘22 20% Revenue growth 33% Subscription growth 26% ARR growth 70% Gross margin Market £3.8bn UK Online Training(1) $0.7bn Global Compliance Technology(2) $0.5bn Global Policy & Training Management Technology(2)
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