Skillcast Group (SKL) H1 2025 earnings summary

Executive summary

• H1 revenue rose 18% to £7.5m, entirely organically; subscription revenue increased 23% to £6.4m and ARR rose 23% to £12.8m.

• EBITDA reached £674k, compared with £31k in H1 2024; demand for governance, risk and compliance content and software remained resilient.

Financial highlights

• Gross profit increased 24% to £5.7m; gross margin rose 3.8 percentage points to 75.5%.

• Profit before tax was £712k versus £41k; EPS was 0.636p compared with a loss of 0.009p in H1 2024.

• Overheads rose 9% to £5.1m, primarily due to people costs and marketing.

• Free cash flow was £2.2m versus £1.0m in H1 2024, supported by upfront subscription receipts, profitability and lower receivables.

Outlook and guidance

• Trading remained in line with expectations; FY25 profit was expected to meet market expectations, with operational gearing supporting further margin improvement.

• H2 ARR growth was driving subscription revenues in line with expectations; limited visibility for non-strategic Professional Services revenue remained, though its impact was reducing.

• Product plans included Aida rollout, UI/UX and authoring-tool improvements, and an EU Compliance Library launch in Q4 2025.