Slide 1: Digital Compliance Success
SKILLCAST GROUP PLC Digital Compliance Success H1 2024 RESULTS INVESTOR PRESENTATION September 2024
Slide 2: 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 • MS (MIT), BTech (IIT Delhi), former background CFA Charterholder • Previously CFO at Mind Gym Plc vdodd@skillcas
Slide 3: H1 24 Financial Highlights
H1 24 Financial Highlights Total revenues increased 24% to £6.4m (H1 23: £5.2m) Subscription revenues growth +35% to £5.2m (H1 23: £3.8m) ARR growth +27% YOY to £10.3m Gross profit increased 5.2 ppts to 71.7% (H1 23: 66.5%) Overhead growth on prior year slowed to 9% (H1 23: 26%) Returned to profitab
Slide 4: H1 24 Operational Highlights
H1 24 Operational Highlights Marketing and new ARR Developing additional revenue streams New Head of Marketing appointed, conducted Self-serve e-commerce launched audit and overhauled plan AI in-course tutor developed, currently in testing Cyber Essentials Plus and SOC 2 Type 1 Audit completed Trust
Slide 5: ARR and recurring subscription revenues
ARR and recurring subscription revenues 10.3 Subscription Revenues (£m) Annualised Recurring Revenue (£m) 9.3 8.1 8.5 6.8 6.7 6.3 5.2 5.2 5.8 3.7 4.1 3.8 5.0 2.7 4.5 3.7 4.0 3.0 2018 2019 2020 2021 2022 2023 H1 23 H1 24 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec 23 Jun 20 Jun 19 Jun 21 Jun 22 Jun 23 Jun
Slide 6: Financials – Income statement summary
Financials – Income statement summary Income Statement (£’000) Growth Growth 2024 2023 SIX MONTHS ENDED 30.6 rate rate All revenue growth came from subscription revenues Subscriptions 5,197 35% 3,847 23% Professional Services 1,181 -9% 1,303 -3% Non-strategic professional services revenues impacted
Slide 7: On track for return to profitability
On track for return to profitability Overheads as % of ARR, our leading indicator of future subscription revenues, fell to 44% in H1 24, in line with pre- IPO levels. IPO Dec Post-IPO increase in overheads 21 to support future growth as intended On track to return to profitability in FY 24 Non-core
Slide 8: Cash flow statement
Cash flow statement Cash flow statement (£’000) 2024 2023 6 MONTHS ENDED 30.6 Free cash flow of £1.1m driven by upfront payments PBT 41 (772) on increased annual subscriptions. Depreciation/amortisation 125 118 £0.2m of interest received from cash on deposit Share Option Reserve 32 68 £1.0m increase
Slide 9: Financials – Balance sheet summary
Financials – Balance sheet summary Statement of Financial Position 30.6.24 30.6.23 31.12.23 (£’000) Non-current assets related to office F&F, IT equipment and the Non-current assets 714 793 795 right-of-use assets of the 2 office leases Current assets All product and tech development is expensed Rec
Slide 10: Our strategy
Our strategy Organic remains the prime driver of growth ▪ Focus on resilient and growing staff compliance market ▪ Focus new business sales efforts on mid-size/regulated market ▪ Minimise churn through continued excellent customer service ▪ Maximise upsells of "sticky" Regtech tools and Premium ▪ Ta
Slide 11: Current Trading & Outlook
Current Trading & Outlook Continue to trade in line with expectations ▪ ARR continues to grow in the second half ▪ Non-strategic Professional services continue to be slower than last year • Actions taken to reduce or redeploy headcount ▪ We continue to control costs and remain on track to grow profi
Slide 12: Thank you
Thank you 80 Leadenhall St London EC3A 3DH skillcast.com