t
| Date | 30 Sept 2026 |
| Time | 07:00:04 |
| Category | Results |
| ID | 8425W |
The information contained within this announcement is deemed by the Company to constitute inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended.
30 September 2026
Skillcast Group PLC
("Skillcast", the "Group" or the "Company")
Results for the six months ended 30 June 2026
Skillcast (AIM: SKL), the Governance, Risk and Compliance (“GRC”) software and e-learning provider, is pleased to announce continued growth in recurring subscription revenue and profitability in its unaudited results for the six months ended 30 June 2026 (“H1 26”), in line with expectations.
Highlights
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6 months to 30 June 2026 |
6 months to 30 June 2025 |
12 months to 31 December 2025 |
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Financial |
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ARR* |
£m |
14.5 |
12.8 |
13.8 |
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ARR YoY Growth % |
% |
14% |
23% |
19% |
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Total Revenue |
£m |
8.2 |
7.5 |
15.3 |
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Recurring revenue mix |
% |
90% |
85% |
87% |
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Total Gross Margin |
% |
77.1% |
75.5% |
75.7% |
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EBITDA |
£m |
1.0 |
0.7 |
1.5 |
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Rule of 40*** |
% |
26% |
32% |
29% |
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Basic EPS |
p |
1.052 |
0.636 |
1.450 |
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Dividend per share |
p |
0.232 |
0.202 |
0.620 |
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Cash in bank |
£m |
13.6 |
11.5 |
12.7 |
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Free cash flow** |
£m |
0.7 |
2.2 |
3.7 |
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Non-Financial |
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Average ARR per client (excl Core) |
£ |
11,402 |
10,647 |
11,133 |
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ARR from Core/Enhanced/Premium |
£m |
2.2 |
1.2 |
1.9 |
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% Total ARR from Core/Enhanced/Premium |
% |
15% |
10% |
14% |
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Net revenue retention (NRR) % |
% |
100% |
100% |
101% |
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Churn (annualised) |
% |
8.5% |
6.7% |
7.4% |
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Headcount at period end |
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126 |
125 |
125 |
Current Trading and Outlook
Given the global uncertainties and challenges facing companies we firmly believe that the need for GRC services such as ours remains strong. We have added several AI features to our plans to enhance learner experience, drive compliance effectiveness and improve cost effectiveness. We are on track to add further enhancements in H2 26 and in 2027.
Notwithstanding slower decision-making, our pipeline is in line with the same period in 2025. Non-strategic Professional Services has limited visibility, but the continued growth in subscription revenues has reduced its impact.
ARR is expected to grow at a similar level to the first half, with the year-on-year growth at the full year expected to be slightly down on that at 30 June due to stronger H2 growth in the prior year. The Board expects that full year revenue and profit will be in line with market expectations.
Vivek Dodd, Chief Executive Officer, said:
"I am pleased with our performance in H1 26 given the challenging market conditions we are facing. Although many corporate clients are currently taking longer to form their response to regulatory, economic and technology changes as they face up to the challenges within their business from economic pressures and understanding the potential from AI, we believe that the case for managing GRC is stronger than ever. Our client retention remains strong, and subscriptions now account for 90% of our total revenue. Our Gross Margin has risen above 77%, and our EBITDA is 48% higher than the same period last year, both demonstrating the inherent strength of our business model and operations. Our cash balance continues to grow, and we are carefully evaluating acquisitions to scale ARR and leverage our capabilities.
We are at the forefront of deploying AI in corporate compliance. Our clients can use Aida, the AI agent within the Skillcast portal, to ask compliance questions and edit and localise courses. In July, we released Edit with Aida to enable clients to customise and localise off-the-shelf courses to their business and we are very encouraged that already 15% of our clients have adopted it and are seeing the benefits. In H2, we are releasing Learn with Aida, a conversational learning mode where Aida can quiz employees to assess and build their compliance knowledge. With our Human-led AI-powered approach, we are delivering more engaging, impactful and cost-effective staff compliance for our clients in an innovative, trusted and secure environment."
*Further details on the calculation of ARR, Rule of 40 and Free Cash Flow are set out in the Alternative Performance Measures section of the Financial Review below
Enquiries:
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Skillcast Group plc |
+44 (0)20 7929 5000 |
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Richard Amos, Chairman Vivek Dodd, Chief Executive Officer |
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Richard Steele, Chief Financial Officer |
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Cavendish (Nominated Adviser & Broker) |
+44 (0)20 7220 0500 |
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Jonny Franklin-Adams / Isaac Hooper (Corporate Finance) |
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Sunila de Silva (Corporate broking) |
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Background
What we do
The Group provides a cloud-based, software-as-a-service (SaaS) portal for managing GRC. It combines learning content, activity tracking, policy management, and a range of compliance declarations and submissions. Skillcast supports firms in simplifying their staff compliance and meeting complex regulatory obligations cost-effectively, and helps them reduce risk from compliance breaches. The Group has grown entirely organically, building and maintaining all its technology and content IP in-house, allowing it to deliver customisable solutions.
Our customers
Skillcast serves over 1,500 clients, including FTSE 100 companies, global financial institutions, and small to mid-sized businesses in the UK. The majority of our clients operate in regulated sectors such as financial services and insurance.
Headlines for the Period
Skillcast has performed well in the first half of the year, delivering 15% growth in subscription revenues and 48% growth in EBITDA despite a market background that was challenging on a number of fronts.
Clients have been faced with considerable economic pressure and uncertainty and this has manifested itself in slower decision-making and additional layers of stakeholder approval. In addition during the first half of the year clients have really had to assess AI and the impact that could have in multiple areas of their business. C-suites have been strongly encouraging and in some cases incentivising clients to innovate with AI, leading to delays in driving forward GRC projects as they consider how that might be achieved whilst ensuring that high quality outcomes are delivered particularly in regulated areas.
The delays in decision-making have particularly impacted new business opportunities and resulted in a slowdown in growth in ARR in the first half of the year. However, as all our technology and content have been developed in-house, we've been able to incorporate AI rapidly into our products and services. In 2026, we delivered several AI features that enhance learner experience, drive compliance effectiveness, and improve cost-effectiveness, which have been well received by clients, and we are developing others based on client needs.
Our clients rely on us to provide high-quality, engaging content, the technology to automate their workflows and a system of record to evidence staff compliance with their regulatory obligations and for their legal defence. They rely on us to understand and automate their specific workflows, keep their personal and HR data safe, provide accurate reporting and carefully manage their staff compliance programme, with a very low tolerance for errors. These capabilities are hard to replicate and our ability to provide them has earned our clients' trust over many years. Accordingly we believe we are well positioned with services and products which allow clients to leverage AI safely and reliably in their staff compliance programmes.
Strategic and operational progress
Skillcast enables businesses to build ethical and resilient workplaces and make compliance simple.
We are pleased with the progress we made in the first half on our six strategic pillars outlined below.
1) Continue to organically grow New ARR
We continued to grow subscriptions, adding £0.7m in ARR from 101 new clients. Despite creating more pipeline in H1 26 than the comparative period last year, ARR growth has moderated due to slower decision-making, particularly amongst the larger prospects, as a result of the challenges described above.
2) Maintain net retention over 100%
The foundations of our subscription business are built on client retention, and we maintained net retention at 100% in H1 26 in line with last year. Upsells, from price rises, additional users or products increased 41% on H1 25 though offset by higher down sells and churn. Annualised churn increased from 6.7% in H1 25 to 8.5% though there are no concerning underlying reasons. ARR from our non-standard plans (CoreCompliance, Enhanced and Premium) increased 78% on the same period last year to represent 15% of total ARR (H1 25: 10%).
3) Innovate product and strengthen differentiation
Skillcast is one of the leading enablers of AI in staff compliance. Our clients rely on us to provide updated, verified, and engaging content, automate sometimes complex workflows, and provide accurate reporting. We've built these capabilities and trust over many years, and we're enhancing them with AI tools to deliver superior compliance capabilities to our clients. Following the roll out of our AI assistant Aida to all participating Enhanced and Premium Plan clients in 2026, we extended this to Standard plan users in H1 26. In July, we released Edit with Aida to enable clients to customise and localise off-the-shelf courses to their business and are very encouraged that already 15% of our clients have adopted it and seeing the benefits. We have enhanced this further in 2026 to conversational learning “Learn with Aida” which will be released in H2 26. In addition, our Content Management System (“CMS”) will allow users to edit and customise courses with Aida and create bespoke courses from scratch in a safe environment using trusted sources.
4) Maintain a Professional Services presence
We continue to maintain our professional services capability, which enables us to maintain major logos and help our clients make compliance more relevant and engaging for their staff. However, we've been pragmatic and managed capacity as the demand for large bespoke projects continued to fall. This trend continued H1 26 with revenues of £0.9m 22% below H125 and gross profits in line with last year at 64%.
5) Deliver operational gearing benefits to further strengthen EBITDA margin
Our Gross Profit Margin increased by 2% to 78% (2024: 76%) due to a higher mix of SaaS revenues and higher SaaS margins.
EBITDA increased by 48% in H1 26 to £1.0m (H1 25 £0.7m) and margin improved by 3% points to 12% (H1 25: 9%) 4%), due to our SaaS operational gearing and operational efficiency drive, and despite our policy of expensing all R&D, including that on AI development.
6) Maintain a strong balance sheet and optionality (including M&A)
Our net cash increased to £13.6m at 30 June 2026. We remain convinced about the value of scaling up with acquisitions that enable us to leverage our technology platform and AI developments. We have increased our focus on this during H1 26 and are currently exploring multiple opportunities.
Outlook
Given the global uncertainties and challenges facing companies we firmly believe that the need for GRC services such as ours remains strong. We have added several AI features to our plans to enhance learner experience, drive compliance effectiveness and improve cost effectiveness. We are on track to add further enhancements in H2 26 and in 2027.
Notwithstanding slower decision-making, our pipeline is in line with the same period in 2025. Non-strategic Professional Services has limited visibility, but the continued growth in subscription revenues has reduced its impact.
ARR is expected to grow at a similar level to the first half, with the year-on-year growth at the full year expected to be slightly down on that at 30 June due to stronger H2 growth in the prior year. The Board expects that full year revenue and profit will be in line with market expectations.
Financial Review
Revenue
Total revenues of £8.2 million were 10% up on the comparable period last year (H1 25: £7.5 million), driven by SaaS subscription revenues. Subscription revenues typically accrue from 12-month contracts, invoiced up front, for our library of compliance e-learning courses and associated compliance products. During H1 26, subscription revenue growth helped increase the proportion of revenues from subscriptions to 90% (H1 25: 85%) of total revenues. Total revenue-generating clients excluding Core Compliance in H1 26 increased by 6% to 1,250 (H1 25: 1,184). The top 10 clients accounted for 13% of revenues in the period (H1 25: 17%).
Revenues from the Financial services sector account for 61% of total revenues (H1 25: 62%).
SaaS revenues grew 15% to £7.4 million (H1 25: £6.4 million), driven by a 6% increase in clients (excluding CoreCompliance). 44% of SaaS revenues included our bespoke GRC technology with the balance derived from e-learning courses (H1 25: 44%).
Annual recurring revenue (“ARR”), our key performance indicator to measure subscription sales progress, grew by 14% to £14.5 million over the past 12 months (June 2025: £12.8 million) and by 5% since the start of the year (December 2025: £13.8 million). All of the net ARR growth in the period was derived from new clients.
Net retention in the period was 100% (H1 25: 100%). Annualised churn increased by 2% to 8.5% in the period (H1 25: 6.7%). Downsells were consistent with the prior year and upsells were 41% higher than prior year.
Average ARR per client (excluding CoreCompliance) increased by 7% to £11,402 (H1 25: £10,647).
ARR growth continued to be supported by the Group’s Core, Enhanced and Premium plans.
Our premium plan grew by 41% on prior year to 9.2% of ARR (H1 25: 7.4%).
Our enhanced learning plan grew by 324% and represents 4.4% of ARR. (H1 25: 1.2%)
CoreCompliance, our self-serve e-commerce offer for small businesses launched in 2024 grew to 1.7% of ARR (H1 25: 1.2%). Client numbers grew 55% to 219 (H1 25: 141) and average ARR per client increased 4% to £1,097 (H1 25: £1,053).
Revenue from non-strategic professional services was £0.8 million in the period, 22% below the prior year (H1 25: £1.1 million) as some historically large clients reduced their spend on bespoke courses.
Gross profit
Gross profit increased by 12% to £6.3 million (H1 25: £5.7 million). Gross margin increased by 2% to 77.1% in H1 26 (H1 25: 75.5%), due to a higher mix of SaaS revenues with higher margins and a 1.2% margin improvement in SaaS margins. Gross profit on Professional Services remained in line with last year at 64%.
Overhead costs
Overheads increased by 7% to £5.5 million in the period (H1 25: £5.1 million), below the 10% growth in revenue. 73% of overheads are people costs, which increased 6% year on year. Marketing activity increased 4% and represented 4% of revenue.
No research and development costs are capitalised and expenditure remained consistent with the previous period at 9% of revenues.
In H1 26, total employment costs (including employees in operations included in the cost of sales), increased by £0.3 million or 5% to £5.2 million (H1 25: £4.9 million), and the average headcount increased by 3% to 126 (H1 25: 123). Average cost per headcount increased 3% to £41k in the period (H1 25: £40k). Total headcount at 30 June 2026 was 126 (30 June 2025: 125).
EBITDA
The Group delivered EBITDA of £1.0 million (H1 25: £0.7 million), an increase of 48% and equivalent to 12% of revenue (H1 25: 9%). This improvement reflects continued operational gearing as revenue growth outpaced the increase in administrative expenses.
Rule of 40
The Group’s Rule of 40 performance, calculated as the sum of ARR growth and EBITDA margin, was 26% for the period (H1 25: 32%). The reduction reflects a lower ARR growth rate, partly offset by the improved EBITDA margin.
Tax
The Group reported a profit before tax of £1.1 million and a tax charge of £0.13 million with an effective tax rate of 12%. The tax charge was favourably impacted by a reduction in the deferred tax asset from the intrinsic value in unexercised share options.
EPS
The basic earnings per share was 1.052 pence on 89.7 million shares. (H1 25: 0.636 pence). Diluted earnings per share adjusted for unexercised share options under the treasury stock method was 1.025 pence on 92.0 million shares. (H1 25: 0.631 pence).
Dividend
With a business that is backed by recurring revenues that provide strong cash generation, the Board is committed to paying dividends. It is the Board's stated policy to broadly increase dividends in line with subscription revenue growth rates. The Board, therefore, declared an interim dividend of £208,000, 15% higher than the previous year, or 0.232 pence per issued ordinary share. The interim dividend will be paid on 30 October 2026 to shareholders on the register on 9 October 2026. The ex-dividend date will be 8 October 2026.
Balance sheet
The Group had £13.6 million cash at bank at 30 June 2026 (30 June 2025: £11.5 million) and has no bank debt.
The Group does not capitalise any intellectual property on either the content or technology of its products. It has two right-of-use assets totalling £0.7 million at 30 June 2026, representing its leased offices in London and Malta and £0.2 million of property plant and equipment including office and IT equipment. In May 2026 it renewed its London office lease for a further five years. Deferred tax assets include the future corporation tax credit on unexercised share options.
Trade and other receivables at 30 June 2026 were £3.5 million, broadly unchanged from £3.5 million at 30 June 2025 and £3.6 million at 31 December 2025. Trade debtors of £2.8 million were £0.1 million or 4% higher than at 30 June 2025 and debtor days increased from 52 at 30 June 2025 to 54 days at 30 June 2026. Other receivables of £0.7 million at 30 June 2026 were £0.1 million below 30 June 2025 of £0.8 million.
Current liabilities of £9.8 million at 30 June 2026 were £0.8 million higher than at 30 June 2025 primarily due to a £0.7m increase in contractual liabilities relating to deferred income. Deferred income of £7.3 million at 30 June 2026 was £0.7 million or 11% higher than 30 June 2025 due to SaaS contracts and work in progress relating to professional services projects. Deferred income at 30.6.26 remained materially the same as at 31.12.25 despite a 10% revenue increase in H1 26 compared to H1 25. This was due to c. £0.2 million of uninvoiced contract renewals, and £0.3 million of contract overages that are recognised as they are invoiced. Trade and other payables at 30.6.26 of £1.8 million were c. £0.3 million lower that at 30.6.25 due to the repayment in H2 25 of a £0.4 million incorrect VAT deduction by HMRC. Income tax payable of £0.6 million at 30.6.26 reflects unpaid UK tax for the prior financial year to be paid in H2 26. In July 2026 the UK entities commenced quarterly corporation tax payment instalments.
Long-term lease liabilities at 30.6.26 of £0.5m reflects the renewing of the London office lease in May 2026 for a five year term.
Net assets at 30 June 2026 were £7.9 million, an increase of £1.0 million since 31 December 2025 and £1.6 million since at 30 June 2025 due to the retained profits accumulated less dividends, all paid in the second half of the financial year.
Cash flow
Free Cash Flow in the period was £0.7 million, £1.5m below the comparative prior year (H1 25: £2.2 million). £0.5 million was due to the one-off historic debt settlement from the Maltese tax authorities received in H1 25. The remaining reduction was mainly due to £0.8 million smaller increase in deferred revenue in H1 26 than H1 25 and £0.4 million lower trade and other payables. The smaller deferred revenue increase was impacted by £0.4 million from a slower ARR growth in H1 26 compared to H1 25, £0.2 million higher uninvoiced contract renewals and £0.2 million higher overages. H1 25 also included the one-off benefit from introducing auto-renewal terms in our subscription contracts. Trade and other payables were £0.4 million lower in H1 26 compared to H1 25 due to an incorrect VAT deduction repaid in H2 25.
Alternative Performance Measures*
Annual Recurring Revenue (ARR)
ARR is also used to assess the performance and the trend of subscription revenue. ARR is calculated by multiplying the Monthly Recurring Revenue (“MRR”) by twelve. MRR is defined as the subscription revenue that was recognised in a month, excluding any retrospective upward adjustments that arise at the end of the contract where there have been more subscribers than a client originally contracted for, less any contract losses (Churn), or downward adjustments arising on contract renewal. The Directors consider that the ARR, derived from software-as-a-service (SaaS) sales, is a key measure of the performance of the business. The ARR increased 14% to £14.5 million on the year (June 25: £12.8 million) and 5% since December 2025 (£13.8 million).
Free Cash Flow (FCF) **
Free cash flow is defined as net cash inflows from operations less net cash used in investing activities less principal paid on lease liabilities and less interest paid.
Rule of 40 ***
The Rule of 40 is a SaaS company performance metric based on the sum of the ARR growth rate and the EBITDA margin. Achieving the target of 40% for this sum is considered as an appropriate performance measure by Directors as the Group balances growth with profitability.
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Skillcast Group PLC |
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Consolidated statement of profit or loss and other comprehensive income |
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For the period ended 30 June 2026 |
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Unaudited |
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Unaudited |
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Audited |
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Six months to |
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Six months to |
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Twelve months to |
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30 June 2026 |
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30 June 2025 |
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31 December 2025 |
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Note |
£ |
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£ |
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£ |
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Revenue |
4 |
8,231,957 |
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7,501,916 |
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15,348,469 |
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Cost of sales |
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(1,888,002) |
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(1,840,003) |
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(3,731,716) |
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Gross profit |
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6,343,955 |
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5,661,913 |
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11,616,753 |
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Administrative expenses |
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(5,475,863) |
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(5,104,161) |
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(10,351,289) |
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Operating profit |
|
868,092 |
|
557,752 |
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1,265,464 |
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Earnings before interest, tax, depreciation & amortisation (EBITDA) |
3 |
997,943 |
|
673,749 |
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1,507,460 |
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|
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Other income |
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- |
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(16,225) |
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- |
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Finance income |
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214,842 |
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176,405 |
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375,825 |
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|
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Finance expense |
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(5,967) |
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(6,141) |
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(9,206) |
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|
|
|
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|
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Profit before tax |
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1,076,967 |
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711,791 |
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1,632,083 |
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|
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|
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Income tax |
|
(133,533) |
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(143,089) |
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(335,357) |
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|
|
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|
|
|
|
|
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Profit after tax and total comprehensive income |
|
943,434 |
|
568,702 |
|
1,296,726 |
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|
|
|
|
|
|
|
|
|
|
|
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EPS basic |
7 |
1.052p |
|
0.636p |
|
1.450p |
|
|
|
EPS diluted |
7 |
1.025p |
|
0.631p |
|
1.421p |
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|
|
Skillcast Group PLC |
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Consolidated statement of financial position |
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As at 30 June 2026 |
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Unaudited as at |
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Unaudited as at |
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Audited as at |
|
|
|
|
30 June 2026 |
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30 June 2025 |
|
31 December 2025 |
|
|
|
Note |
£ |
|
£ |
|
£ |
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Assets |
|
|
|
|
|
|
|
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Non-current assets |
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
222,585 |
|
246,465 |
|
213,867 |
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Right-of-use assets |
|
|
687,101 |
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233,832 |
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158,468 |
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Intangible Assets |
|
|
9,236 |
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- |
|
8,456 |
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Deferred tax assets |
|
|
199,666 |
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84,611 |
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328,630 |
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|
|
|
1,118,588 |
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564,908 |
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709,421 |
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Current assets |
|
|
|
|
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|
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Trade and other receivables |
|
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3,453,476 |
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3,535,892 |
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3,605,942 |
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Cash and cash equivalents |
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|
13,641,252 |
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11,499,347 |
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12,684,596 |
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|
|
|
17,094,728 |
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15,035,239 |
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16,290,538 |
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TOTAL ASSETS |
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18,213,316 |
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15,600,147 |
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16,999,959 |
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Issued capital and reserves attributable to owners |
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Share capital |
|
5 |
89,722 |
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89,459 |
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89,459 |
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Share Option Reserve |
|
|
541,807 |
|
427,979 |
|
740,737 |
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Share Premium Paid |
|
|
3,603,241 |
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3,490,541 |
|
3,490,541 |
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Retained earnings |
|
|
3,616,102 |
|
2,437,563 |
|
2,672,665 |
|
|
|
|
7,850,872 |
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6,445,542 |
|
6,993,402 |
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Liabilities |
|
|
|
|
|
|
|
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Current liabilities |
|
|
|
|
|
|
|
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Trade and other payables |
|
|
1,843,331 |
|
2,180,044 |
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2,228,984 |
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Contract liability |
|
|
7,254,134 |
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6,547,533 |
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7,270,906 |
|
Current lease liabilities |
|
|
154,122 |
|
132,825 |
|
71,902 |
|
Income tax payable |
|
|
564,345 |
|
168,078 |
|
344,345 |
|
|
|
|
9,815,932 |
|
9,028,480 |
|
9,916,137 |
|
Non-current liabilities |
|
|
|
|
|
|
|
|
Long-term lease liabilities |
|
|
546,512 |
|
126,125 |
|
90,420 |
|
|
|
|
546,512 |
|
126,125 |
|
90,420 |
|
Total liabilities |
|
|
10,362,444 |
|
9,154,605 |
|
10,006,557 |
|
TOTAL EQUITY AND LIABILITIES |
|
|
18,213,316 |
|
15,600,147 |
|
16,999,959 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated statement of changes in equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital |
|
Share Premium Paid |
|
Share Option Reserve |
|
Retained earnings |
|
Total equity |
|
|
£ |
|
£ |
|
£ |
|
£ |
|
£ |
|
|
|
|
|
|
|
|
|
|
|
|
01 January 2025 |
89,459 |
|
3,490,541 |
|
388,731 |
|
1,868,861 |
|
5,837,592 |
|
Comprehensive Income for the period |
|
|
|
|
|
|
|
|
|
|
Profit/(Loss) |
|
|
|
|
|
|
568,702 |
|
568,702 |
|
Total comprehensive Income for the year |
- |
|
- |
|
- |
|
568,702 |
|
568,702 |
|
Total contributions by and distributions to owners |
|
|
|
|
|
|
|
|
|
|
Share Option Reserve |
|
|
|
|
39,248 |
|
|
|
39,248 |
|
Dividends |
|
|
|
|
|
|
|
|
|
|
Total contributions by and distributions to owners |
- |
|
- |
|
39,248 |
|
- |
|
39,248 |
|
|
|
|
|
|
|
|
|
|
|
|
30 June 2025 |
89,459 |
|
3,490,541 |
|
427,979 |
|
2,437,563 |
|
6,445,542 |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive Income for the period |
|
|
|
|
|
|
|
|
|
|
Profit |
|
|
|
|
|
|
728,024 |
|
728,024 |
|
Total comprehensive Income for the period |
- |
|
- |
|
- |
|
728,024 |
|
728,024 |
|
Total contributions by and distributions to owners |
|
|
|
|
|
|
|
|
|
|
Share-based payments: excess tax benefit credited to equity |
|
|
|
|
262,777 |
|
|
|
262,777 |
|
Share Option Reserve |
|
|
|
|
49,981 |
|
|
|
49,981 |
|
Dividends - Prior Year |
|
|
|
|
|
|
(312,214) |
|
(312,214) |
|
Dividends - Current Year |
|
|
|
|
|
|
(180,708) |
|
(180,708) |
|
Total contributions by and distributions to owners |
- |
|
- |
- |
312,758 |
- |
(492,922) |
- |
(180,164) |
|
31 December 2025 |
89,459 |
|
3,490,541 |
|
740,737 |
|
2,672,665 |
|
6,993,402 |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive Income for the period |
|
|
|
|
|
|
|
|
|
|
Profit |
|
|
|
|
|
|
943,434 |
|
943,434 |
|
Total comprehensive Income for the year |
- |
|
- |
|
- |
|
943,434 |
|
943,434 |
|
Total contributions by and distributions to owners |
|
|
|
|
|
|
|
|
|
|
Share Options Exercised |
263 |
|
112,700 |
|
(24,238) |
|
|
|
88,725 |
|
Share Option Reserve |
|
|
|
|
40,739 |
|
|
|
40,739 |
|
Reversal of share-based payment deferred tax benefit recognised in equity |
|
|
|
|
(215,431) |
|
|
|
(215,431) |
|
Opening balance adjustment |
|
|
|
|
|
|
3 |
|
3 |
|
Total contributions by and distributions to owners |
263 |
|
112,700 |
|
(198,930) |
|
3 |
|
(85,964) |
|
|
|
|
|
|
|
|
|
|
|
|
30 June 2026 |
89,722 |
|
3,603,241 |
|
541,807 |
|
3,616,102 |
|
7,850,872 |
|
Skillcast Group PLC |
|
|
|
|
|
|
|
|
|
Consolidated statement of cash flows |
|
|
|
|
|
|
|
|
|
|
Unaudited 6 months to |
Unaudited 6 months to |
Audited 12 months to |
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£ |
£ |
£ |
|
Cash flows from operating activities |
|
|
|
|
Profit before tax |
1,076,967 |
711,791 |
1,632,083 |
|
|
|
|
|
|
Adjustments for: |
|
|
|
|
Depreciation of property, plant and equipment |
49,618 |
39,908 |
90,641 |
|
Depreciation of right-of-use assets |
79,757 |
75,364 |
150,728 |
|
Amortisation of intangible assets |
476 |
|
627 |
|
Finance income |
(214,842) |
(176,405) |
(375,825) |
|
Share based payment |
40,739 |
39,248 |
89,229 |
|
Finance expense |
5,967 |
6,141 |
9,206 |
|
Unrealised foreign exchange (gain)/ loss |
247 |
(6,189) |
(6,718) |
|
|
1,038,929 |
689,858 |
1,589,971 |
|
Changes in working capital |
|
|
|
|
(Increase)/ decrease in trade and other receivables |
152,466 |
794,794 |
724,742 |
|
Increase/(decrease) in trade and other payables, including contract liabilities |
(402,425) |
843,112 |
1,615,422 |
|
Cash generated from operations |
788,970 |
2,327,764 |
3,930,135 |
|
Income taxes paid |
- |
(10,425) |
(7,663) |
|
Net cash flows from operating activities |
788,970 |
2,317,339 |
3,922,472 |
|
|
|
|
|
|
Cash flow from investing activities |
|
|
|
|
Purchases of property, plant and equipment |
(58,336) |
(21,228) |
(39,362) |
|
Purchases of intangible assets |
(1,256) |
|
(9,083) |
|
Interest received |
214,842 |
176,405 |
375,825 |
|
Net cash generated/(used) in investing activities |
155,250 |
155,177 |
327,380 |
|
|
|
|
|
|
Cash flow financing activities |
|
|
|
|
Principal paid on lease liabilities |
(48,014) |
(88,335) |
(184,964) |
|
Dividends paid |
- |
- |
(492,922) |
|
Share issue |
112,783 |
|
- |
|
Interest paid on lease liabilities |
(5,967) |
(6,141) |
(9,206) |
|
Net cash (used) in financing activities |
58,802 |
(94,476) |
(687,092) |
|
|
|
|
|
|
Net increase/ (decrease) in cash and cash equivalents |
1,003,022 |
2,378,040 |
3,562,760 |
|
Effects of foreign exchange fluctuations on cash and cash equivalents |
(46,366) |
6,189 |
6,718 |
|
Cash and cash equivalents at beginning of period |
12,684,596 |
9,115,118 |
9,115,118 |
|
Cash and cash equivalents at end of period |
13,641,252 |
11,499,347 |
12,684,596 |
|
|
|
|
|
|
|
|
|
|
|
Free cash flow |
675,397 |
2,201,635 |
3,688,940 |
|
Skillcast Group PLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to the consolidated financial statements |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
For the period ended 30 June 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
GENERAL INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Skillcast Group PLC (‘Company’) is registered in the United Kingdom with registration number 12305914 and is limited by shares. Its registered office is at 80 Leadenhall Street, London, England, EC3A 3DH. The Company is the ultimate parent of Inmarkets Ltd, Inmarkets Group Ltd, Inmarkets International Ltd. |
||||||
|
|
This report and financial statements reflect the consolidated activities and transactions of the Company and other group companies ('Group') and is non-statutory. It is prepared to present the mid-year trading performance and position. |
||||||
|
|
The Company is primarily involved in providing management services to other entities in the group. The Group provides software and content subscriptions and related professional services to enable companies to transform their staff compliance. Operating from its two bases, in London and Malta, the Group helps companies across a broad spectrum of industry sectors in the UK, EU and in the rest of the world, to train their staff and demonstrate compliance with various laws, regulations, and standards that are relevant for their business. |
||||||
|
|
The accounting year end of the Company and Group is 31 December. This unaudited interim report and financial statements presents activities and transactions for the six months to 30 June 2026. |
||||||
|
|
|
|
|
|
|
|
|
|
2 |
Basis of preparation and statement of compliance |
|
|
|
|
|
|
|
|
The condensed interim financial statements have been prepared in accordance with the requirements of the AIM Rules for Companies. As permitted, the Company has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing this interim financial information. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2025, which have been prepared in accordance with International Accounting Standards in conformity with the Companies Act 2006. The unaudited interim financial information does not constitute statutory accounts within the meaning of the Companies Act 2006. This interim report, which has neither been audited nor reviewed by independent auditors, was approved by the Board of Directors on 29 September 2026. |
||||||
|
|
Statutory accounts for the year ended 31 December 2025 were approved by the Board of Directors on 28 April 2026 and delivered to the Registrar of Companies. |
||||||
|
|
The Group's forecast and projections and strong cash balance support the preparation of the interim financial statements on a going concern basis under historical cost convention. |
||||||
|
|
The interim financial statements have been presented in pounds sterling. |
||||||
|
|
The accounting policies used in preparing the interim statements are the same as those applied to the latest audited annual financial statements. |
||||||
|
|
|
|
|
|
|
|
|
|
3 |
Earnings before interest, tax, depreciation and amortisation EBITDA |
|
|
|
|
||
|
|
EBITDA is not defined or recognised under IAS. EBITDA is defined by the Group as 'earning before interest, tax, depreciation and amortisation'. EBITDA is presented below as 'operating profit' plus all depreciation added back. |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited as at |
|
Unaudited as at |
|
Audited as at |
|
|
|
|
30 June 2026 |
|
30 June 2025 |
|
31 December 2025 |
|
|
|
|
£ |
|
£ |
|
£ |
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
868,092 |
|
557,752 |
|
1,265,464 |
|
|
Other Interest |
|
- |
|
725 |
|
- |
|
|
Depreciation - PPE |
|
49,618 |
|
39,908 |
|
90,641 |
|
|
Depreciation - ROU |
|
79,757 |
|
75,364 |
|
150,728 |
|
|
Amortisation - Intangible assets |
|
476 |
|
|
|
627 |
|
|
EBITDA |
|
997,943 |
|
673,749 |
|
1,507,460 |
|
|
|
|
|
|
|
|
|
|
|
Due to nature of calculation of EBITDA the reported figures may not be comparable to other companies with similar measures. |
|
|||||
|
4 |
Revenue |
|
|
|
|
|
|
|
|
|
|
Unaudited as at |
|
Unaudited as at |
|
Audited as at |
|
|
|
|
30 June 2026 |
|
30 June 2025 |
|
31 December 2025 |
|
|
|
|
£ |
|
£ |
|
£ |
|
|
Major product lines |
|
|
|
|
|
|
|
|
Software as a Service (SaaS) subscriptions (i) |
7,372,215 |
|
6,403,123 |
|
13,299,407 |
|
|
|
Professional services (ii) |
|
859,742 |
|
1,098,793 |
|
2,049,062 |
|
|
|
|
8,231,957 |
|
7,501,916 |
|
15,348,469 |
|
|
|
|
|
|
|
|
|
|
|
(i) SaaS subscriptions - The Group provides right of access of subscriptions to its content and technology products to the customer over time for the subscription periods that are typically twelve months. The revenue is recognised evenly over the period of the subscription. This revenue includes subscriptions to: (a) Skillcast Portal - the Group’s integrated compliance management application that comes with a broad range of tools, namely SELMS, Policy Hub, Compliance Declarations, Surveys, Compliance Registers, Training 360, Events Management and SMCR 360; and (b) the Skillcast OTS course libraries, namely Essentials, FCA Compliance, Insurance Compliance and Risk. |
||||||
|
|
(ii) Professional services - The Group provides customised and standard content to its clients under fixed-price contracts. This non-recurring revenue includes: (a) bespoke e-learning development projects for large corporates; (b) translations of those bespoke courses; (c) customisation of OTS courses for subscription clients; and (d) other content and technology consultancy. |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited as at |
|
Unaudited as at |
|
Audited as at |
|
|
|
|
30 June 2026 |
|
30 June 2025 |
|
31 December 2025 |
|
|
Gross profit by product lines |
|
£ |
|
£ |
|
£ |
|
|
Software as a Service (SaaS) subscriptions (i) |
5,794,561 |
|
4,956,017 |
|
10,355,293 |
|
|
|
Professional services (ii) |
|
548,515 |
|
705,895 |
|
1,261,460 |
|
|
|
|
6,343,076 |
|
5,661,913 |
|
11,616,753 |
|
|
|
|
|
|
|
|
|
|
|
The Group has analysed costs along product lines after having identifiable direct costs and using judgement to allocate other direct costs such as staff based on a proportion related to that product line. |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited as at |
|
Unaudited as at |
|
Audited as at |
|
|
|
|
30 June 2026 |
|
30 June 2025 |
|
31 December 2025 |
|
|
|
|
£ |
|
£ |
|
£ |
|
|
Geographic split |
|
|
|
|
|
|
|
|
UK |
|
6,702,351 |
|
5,856,080 |
|
12,415,176 |
|
|
Europe |
|
707,464 |
|
550,803 |
|
1,192,370 |
|
|
Rest of world |
|
822,142 |
|
1,095,033 |
|
1,740,923 |
|
|
|
|
8,231,957 |
|
7,501,916 |
|
15,348,469 |
|
|
|
|
|
|
|
|
|
|
5 |
Equity - issued capital |
|
|
|
|
|
|
|
|
|
|
Unaudited as at |
|
Unaudited as at |
|
Audited as at |
|
|
|
|
30 June 2026 |
|
30 June 2025 |
|
31 December 2025 |
|
|
|
|
|
|
|
|
|
|
|
Number |
|
89,722,000 |
|
89,459,460 |
|
89,459,460 |
|
|
Par value per share (GBP) |
|
.10p |
|
.10p |
|
0.10p |
|
|
Total (GBP) |
|
89,722 |
|
89,459 |
|
89,459 |
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the number of, and amounts paid, on the shares held. On a show of hands, every member present at a meeting in person or by proxy shall have one vote and upon a poll, each share shall have one vote. |
||||||
|
6 |
Related party transactions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monad IKE |
|
Limited liability company registered in Greece. |
|
|||
|
|
|
Company registration number is 153449133000 |
|||||
|
|
|
Provides services to the Group. Morten Damsleth is both a director of Monad IKE and a member of the key management personnel of the Group. |
|||||
|
|
PsyPotential Ltd. |
|
Limited liability company registered in Malta. |
||||
|
|
|
|
Company registration number is C 86668 |
||||
|
|
|
|
Provides services to the Group. Sharon Mulligan is both a director of PsyPotential and a member of the key management personnel of the Group. |
||||
|
|
Thruvision Ltd. |
|
Limited liability company registered in England and Wales. |
|
|||
|
|
|
|
Company registration number is 10940081. |
|
|||
|
|
|
|
Client of the Group purchasing an annual subscription. Richard Amos was both a Non-Executive Director of Skillcast Group Plc. and a Director of Thruvision Group Plc, the ulitmate holding company of Thruvision Ltd |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited as at |
|
Unaudited as at |
|
Audited as at |
|
|
|
|
30 June 2026 |
|
30 June 2025 |
|
31 December 2025 |
|
|
|
|
£ |
|
£ |
|
£ |
|
|
|
Group expenditure with Monad IKE |
95,173 |
|
71,297 |
|
144,342 |
|
|
|
Group expenditure with PsyPotential Ltd. |
22,770 |
|
17,788 |
|
53,040 |
|
|
|
Group revenue with Thruvision Ltd. |
- |
|
635 |
|
220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7 |
Earnings per share |
|
|
|
|
|
|
|
|
Earnings per share (EPS) is calculated on the basis of profit attributable to equity shareholders divided by the weighted average number of shares in issue for the year. |
||||||
|
|
Diluted earnings per share has been calculated on the same basis as above, except that the weighted average number of ordinary shares that would be issued on the conversion of the dilutive potential ordinary shares as calculated using the treasury stock method (arising from the Company's share option scheme and warrants) into ordinary shares has been added to the denominator. |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited as at |
|
Unaudited as at |
|
Audited as at |
|
|
|
30 June 2026 |
|
30 June 2025 |
|
31 December 2025 |
|
|
|
|
£ |
|
£ |
|
£ |
|
|
|
Profit before tax |
|
1,076,967 |
|
711,791 |
|
1,632,083 |
|
|
Tax |
|
(133,533) |
|
(143,089) |
|
(335,357) |
|
|
Profit after tax |
|
943,434 |
|
568,702 |
|
1,296,726 |
|
|
Earnings |
|
943,434 |
|
568,702 |
|
1,296,726 |
|
|
Weighted average number of ordinary shares |
|
|
|
|
|
|
|
|
Basic |
|
89,722,000 |
|
89,459,460 |
|
89,459,460 |
|
|
Effect of dilutive potential ordinary shares |
2,280,042 |
|
710,866 |
|
1,796,711 |
|
|
|
Diluted average number of shares |
92,002,042 |
|
90,170,326 |
|
91,256,171 |
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
Basic |
|
1.052p |
|
0.636p |
|
1.450p |
|
|
Diluted |
|
1.025p |
|
0.631p |
|
1.421p |
|
|
Basic and diluted earnings per share of 1.052p and 1.025p (H1 25: 0.636p) have been impacted by interest, tax, depreciation, amortisation and non-core operating expenses. |
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8 |
Dividends |
|
|
|
|
|
|
|
|
|
|
Unaudited as at |
|
Unaudited as at |
|
Audited as at |
|
|
|
30 June 2026 |
|
30 June 2025 |
|
31 December 2025 |
|
|
|
Pence per |
£ |
Pence per |
£ |
Pence per |
£ |
|
|
|
share |
|
share |
|
share |
|
|
|
|
Dividend declared - Final 2024 |
|
|
|
0.349p |
312,214 |
|
|
|
Dividend declared - Interim 2025 |
|
|
|
0.202p |
180,708 |
|
|
|
|
|
|
|
|
|
|
|
|
Dividend declared per share |
|
|
|
|
0.477p |
|
|
|
During the period under review, the Group generated a profit before tax of £1,076,967. The Group's policy is to broadly increase dividend payments in line with the annual growth rate of subscription revenues. |
|
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|
|
The Shareholders passed a resolution at the AGM on 23 June 2026 for a final dividend of 0.418p per share to be paid on 24 July 2026 to shareholders on the register at the close of business on 3 July 2026. In combination with the interim dividend paid during 2025 this represented a total dividend for the year 2025 of £554,649 or 0.620p per share based upon the number of shares currently in issue. |
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