Shares in Skillcast Group PLC (AIM:SKL) rose 8% after the governance and compliance software provider reported double-digit revenue growth, higher margins and a bigger interim dividend.
For the six months to June, revenue increased 18% to £7.5 million, driven by a 23% rise in subscription income, which now accounts for 85% of sales. Annualised recurring revenue grew to £12.8 million, up 23% year-on-year, with customer churn falling to 7%.
Profitability improved sharply, with earnings before interest, tax, depreciation and amortisation climbing to £0.7 million, against just £30,000 a year earlier.
Gross margins widened to 75.5% as costs in professional services were reduced. Free cash flow more than doubled to £2.2 million, lifting the group’s cash balance to £11.5 million.
The company declared an interim dividend of 0.202p a share, 20% higher than last year. Chief executive Vivek Dodd said the results highlighted the “resilience of the GRC market”.
The shares rose 4.5p to 61.5p.