Skillcast Group (SKL) H2 2024 earnings summary

Executive summary

• FY24 revenue rose 17% to £13.2m, led by subscription growth; EBITDA returned to profit at £0.5m from a £0.6m loss in 2023.

• ARR grew 25% to £11.6m; ARR and subscription revenue doubled in the three years since December 2021.

• Subscription-led growth and slower overhead growth drove operational gearing; overheads rose 9% while revenue grew 17%.

Financial highlights

• Subscription revenue increased 29% to £11.0m; total revenue rose 17% to £13.2m.

• Gross profit rose 24% to £9.7m; gross margin improved 3.9 percentage points to 73.6%.

• EBITDA was £0.5m versus a £0.6m loss; PBT was £0.5m versus a £0.6m loss.

• EPS was 0.572p versus a loss of 0.733p; free cash flow was £2.0m versus an outflow of £0.3m.

Outlook and guidance

• Trading started strongly, with ARR at £12.1m at 31 March 2025; the 3% price increase from January was well accepted.

• H1 profit was in line with expectations; profitability is expected to be H2-weighted, reflecting H1 pay rises and rebrand marketing costs.

• Premium and CoreCompliance sales continued to grow; AIDA was trialled by 87 clients ahead of its planned launch later in 2025.