Slide 1: Digital compliance platform and courseware
SKILLCAST GROUP PLC Digital compliance platform and courseware H1 2023 INVESTOR PRESENTATION Sept 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 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: H1 2023 at a Glance
H1 2023 at a Glance Who we are Financial highlights Operating highlights Three new products launched to B2B Software-as-a-Service £5.2m H1 ‘23 Revenue -£0.7m H1 ’23 LBITDA increase net retention and (H1 ‘22: £4.5m) (H1 ‘22: £-0.2m) attract new clients E-learning & Compliance Tech Increased commercia
Slide 5: 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 6: ARR and recurring subscription revenues
ARR and recurring subscription revenues 8.1 Subscription Revenues (£m) Annualised Recurring Revenue (£m) 6.7 6.8 6.3 5.2 5.8 3.7 4.1 3.9 2.7 3.1 5.0 4.5 3.7 4.0 3.0 2018 2019 2020 2021 2022 H1 '22 H1 '23 Dec 18 Jun 19 Dec 19 Jun 20 Dec 20 Jun 21 Dec 21 Jun 22 Dec 22 Jun 23 H1 23 saw 23 % subscriptio
Slide 7: 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 8: 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 office leases in London and Malta. No R&D capitalised. Current assets Receivables 3,734 4,
Slide 9: Financials – Cash flow statement summary
Strong Track Record of Cash Generation Financials – Cash flow statement summary Cash flow statement (£’000) 2023 2022 6 MONTHS ENDED 30 JUNE (UNAUDITED) (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 10: Our strategy
Our strategy Organic growth ▪ Focus on building on what we have ▪ Resilient and growing market Subscription revenue growth ▪ Focus on growing scalable subscription revenues ▪ Maintain Professional Services revenue at absolute levels for brand awareness (big logos) and product/market insights New cli
Slide 11: Current trading
Well placed to deliver growth Current trading 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
Slide 12: Investment summary
Investment summary • Operating in 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 cashflow • Experi
Slide 13: Questions?
Questions? www.skillcast.com 80 Leadenhall St London EC3A 3DH 13
Slide 14: Appendix
SKILLCAST GROUP PLC Appendix
Slide 15: 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
Slide 16: 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 17: 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 17
Slide 18: What we do
What we do Skillcast provides time-saving and cost-effective “SaaS” (Software as a Service) solutions, including: 100+ off-the-shelf (OTS) multi-format e-learning courses that cover topics including Anti Money Laundering (AML), Bribery and Corruption, Diversity, Equality and Inclusion (DEI), Environ
Slide 19: 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 20: 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 21: Subscriptions: RegTech
Subscriptions: RegTech Fresnillo Plc (FTSE 100) feedback upon using Conflicts Management Declaration Upsell to e-learning clients “We previously did the declaration of conflicts of interest manually, on paper. Now that we have done so through Digitise paper-based processes Typical uplift of +33% to
Slide 22: 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 23: Our Customers
Our Customers Over 1,000 companies use Skillcast’s SaaS (Software as a Service) products 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 retail
Slide 24: Case studies
Case studies 3 & skillcast’ é Improving Induction Efficiency When Ms Aas needesto improve the quality, speed and cost-ffeciveness of their induction and refresher training, they chose to partner with Skillet. Reducing the Policy Burden for BFML When BML needed to reduce the burden of cistributing hu
Slide 25: Case study: Streamlining SMCR
Case study: Streamlining SMCR Challenge Kentro was using a mix of documents and spreadsheets alongside a legacy record system to manage their compliance with the Senior Managers and Certification Regime (SMCR). Solution Skillcast SMCR 360 enabled Kentro to integrate their SMCR records to increase st
Slide 26: 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 … Breadth and depth of Market position - delivering 01 Corporate spending on regulatory $744m growing at 15-20% compliance is largely non-discretionary product to
Slide 27: Summary
Resilient demand, Recurring revenues, Strong cash flows Summary Subscription growth in H1 ‘23 15% Revenue growth 23% Subscription growth 27% ARR growth 67% Gross margin Market £3.8bn UK Online Training(1) $0.7bn Global Compliance Technology(2) $0.5bn Global Policy & Training Management Technology(2)