Skillcast Group Plc · LSE:SKL
Skillcast — Investor Presentation (November 2023)
25 slides from Skillcast's investor presentation, November 2023
Slide 1: Digital Compliance Platform & Courseware
SKILLCAST GROUP PLC Digital Compliance Platform & Courseware H1 2023 INVESTOR PRESENTATION November 2023
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 Richard Amos Richard Steele Chairman CFO • Joined Skillcast in 2021 • Joined Skillcast as CFO in May 2022 • Former CFO of 5 listed businesses over last 20+ years (including • 30 years commercial finance Anite and Wilmington) background • Now operating as NED including • Previously
Slide 4: Introduction to Skillcast
Introduction to Skillcast Vision: to be the leading provider of digital training and technology for staff compliance SaaS business – addressing the corporate compliance market E-learning and RegTech products IPO – Dec 2021 – raised £3.5m at £30m valuation Strong revenue growth - latest H1 FY2023 +15
Slide 5: The Investment Case
The Investment Case Corporate compliance is a That is large and growing Skillcast is well positioned to thrive in resilient market … fast … 01 Corporate spending on $744m growing at 15-20% Breadth and depth of Market position - regulatory compliance is largely non- product to help companies train de
Slide 6: Board of Directors
Board of Directors Vivek Dodd Catriona Razic Anthony Miller Richard Steele CEO Co-Founder CCO Co-founder CTO Co-Founder CFO Richard Amos Sally Tilleray Isabel Napper Non-exec Chairman Non-exec Director Non-exec Director Audit Chair Remuneration Chair 6
Slide 7: About Skillcast
About Skillcast Skillcast enables businesses to build ethical and resilient workplaces. Our vision is to be the leading provider of digital training and technology for staff compliance. Skillcast Group is headquartered in the City of London, with an operations hub on the island of Malta. We develop
Slide 8: What our business is about
What our business is about Skillcast provides time-saving and cost-effective “SaaS” (Software as a Service) solutions including 100+ multi-format courses hosted on a flexible learning management system (LMS) and many associated “Regtech” products to manage compliance needs. Compliance Issues Cloud-b
Slide 9: Our Customers
Our Customers Over 1,000 companies use Skillcast’s SaaS (Software as a Service) products and consultancy services to support over 1 million employees to meet their compliance requirements. Originally targeting the financial services industry, 45% of revenues now come from other sectors, including re
Slide 10: Case study: Future-proofing Tesco
Case study: Future-proofing Tesco Challenge Following a capability review, Tesco needed a partner to help deliver training to adapt, upskill, and reskill its workforce to face future challenges. Solution Using complex data integrations and sophisticated algorithms, Skillcast provided invaluable supp
Slide 11: 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 12: 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 1000+ subscription clients course library and our managed LMS for performance and survival creating their internal white labelled • Simple,
Slide 13: Microlearning
Microlearning Shorter interactive formats that improve employee engagement and knowledge retention. Compliance Bites Microlearning FastTrack E-learning Courses • Compliance Bites microlearning are short videos • Enables experienced and knowledgeable on specific compliance issues, such as insider emp
Slide 14: Subscriptions: RegTech
Subscriptions: RegTech Upsell to e-learning clients Fresnillo Plc (FTSE 100) feedback upon using Conflicts Management Declaration Digitise paper-based processes Typical uplift of +33% to +100% “We previously did the declaration of conflicts of interest manually, on paper. Now that we have done so th
Slide 15: ARR and recurring subscription revenues
ARR and recurring subscription revenues 8.1 • ARR (Annualised Recurring Revenue) key lead indication of Annualised Recurring Revenue (£m) 6.8 subscription revenues 6.3 5.8 5.0 • 3-year CAGR ARR +27% 4.5 4.0 3.7 • Subscription revenues grown to 75% of total revenues, 3.0 Dec 18 Jun 19 Dec 19 Jun 20 D
Slide 16: Key financials
Key financials Total revenues (£m) Adjusted EBITDA* (£m) 1.6 1.2 1.3 9.8 1.1 8.4 7.3 6.8 5.7 H2:5.3 -0.3 -0.7 H2:4.7 2018 2019 2020 2021 2022 H123 H1:5.2 H1:3.7 H1:4.5 *EBITDA adjusted to exclude IPO costs and on an IFRS 16 basis 2018 2019 2020 2021 2022 H123 Key Metrics Net cash 7.9 (£m) 7.5 7.7 7.
Slide 17: Our strategy
Our strategy Organic growth ▪ Focus on building on what we have ▪ Resilient and growing market New clients ▪ Focus on mid size regulated market ▪ Target smaller clients with e-commerce self-serve offering Existing clients ▪ Minimise churn through continued excellent customer service ▪ Minimise churn
Slide 18: Investment summary
Investment summary Operating in a growing fragmented market – corporate compliance Targets non-discretionary spending – offers resilience in challenging times Product portfolio with depth and breadth of offer Subscription-based business model – recurring revenues and positive cash flow Experienced m
Slide 19: Thank you
Thank you 80 Leadenhall St London EC3A 3DH skillcast.com 19
Slide 20: H1 2023 at a Glance
H1 2023 at a Glance Who we are Financial highlights Operating highlights Three new products launched B2B Software-as-a-Service £5.2m H1 ‘23 Revenue -£0.7m H1 ’23 LBITDA to increase net retention and (H1 ‘22: £4.5m) (H1 ‘22: £-0.2m) attract new clients E-learning & Compliance Tech £7.6m Cash June 202
Slide 21: H1 2023 operational highlights
H1 2023 operational highlights New products launched February 2023: FastTrack launched: reduces learning time for learners who pass a pre-assessment. March 2023: Global Compliance and Risk libraries launched: non-UK specific learning aimed at multi-nationals April 2023: Compliance Bites launched: mi
Slide 22: Financials – Income statement summary
Financials – Income statement summary Income Statement (£’000) 6 MONTHS ENDED 30 JUNE 2023 Growth rate 2022 Growth rate (UNAUDITED) Subscriptions 3,847 23% 3,139 33% All revenue growth came from subscription revenues Professional Services 1,303 -3% 1,345 -1% Professional services, essentially in lin
Slide 23: Financials – Consolidated statement of financial position
Financials – Consolidated statement of financial position Statement of Financial Position (£’000) 30.6.23 30.6.22 31.12.22 Non-current assets 793 794 882 Fixed assets relate to office fit-out, IT equipment and Current assets office leases in London and Malta. No R&D capitalised. Receivables 3,734 4,
Slide 24: Financials – Cash flow statement summary
Financials – Cash flow statement summary Strong Track Cash flow statement (£’000) Record of 2023 2022 6 MONTHS ENDED 30 JUNE (UNAUDITED) Cash Generation (Loss)/profit before tax (772) (286) Cash burn in H1 23 of £0.1m Depreciation/amortisation 118 111 Share based payment 68 92 Finance (income)/expen
Slide 25: Current trading
Current trading Well-placed to deliver growth Q3 2023 Update Trading since the period end continues to be encouraging, with the rate of year-on-year ARR growth accelerating to further support future subscription revenues Overhead growth rate expected to continue to slow now all key senior/growth rol
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