Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Skillcast describes year of robust growth
(Sharecast News) - Software company Skillcast Group reported a year of robust growth in annualised recurring revenue (ARR) in an update on Wednesday.
The AIM-traded firm said its revenue for 2023 was expected to reach £11.3m, making for a 15% increase compared to the prior year's figure of £9.8m.
It said its growth had been entirely organic, and was primarily attributed to a substantial surge in recurring subscription revenues, which jumped 28% to reach £8.5m.
In 2023, recurring subscription revenues accounted for 76% of total group revenue, demonstrating a substantial increase from the 68% share observed in 2022.
However, professional services revenues for the year were reported at £2.8m, making for a 12% decrease from the prior year's £3.1m.
Skillcast said its ARR also showed remarkable growth, surging by 37% from £6.8m in December 2022 to £9.3m in December 2023.
That, the board said, was primarily fuelled by the acquisition of new customers and increased sales of new products.
With a robust pipeline of new business opportunities, the company added that it was well-positioned to continue achieving its revenue objectives in the coming year.
In terms of profitability, Skillcast reported that its EBITDA loss for 2023 was not expected to exceed £0.8m, widening from £0.3m a year earlier.
The group said its financial health remained strong, with a net cash position of £7.2m as of 31 December - only slightly lower than the £7.7m reported at the end of 2022.
That translated to about 8p per share in the company.
"We are delighted with our performance in 2023 - our SaaS subscriptions ARR growth rate accelerated from 16% in 2022 to 37% in 2023," said chief executive officer Vivek Dodd.
"This validates our two-year plan to accelerate our technology and sales investment since our initial public offering in December 2021.
"We now have the products and key personnel to sustain growth and return to profitability in the second half of 2024."
Skillcast said it expected to announce its full-year results and recommend a final dividend for the year ended 31 December in April.
At 1500 GMT, shares in Skillcast Group were up 12.91% at 29.92p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
