Skillcast Group Plc (SKL) AI Stock Analysis

• Market Cap: £51.97M
• Dividend Yield: 0.77%
• Average Volume (3M): 19.93K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.21
• Revenue Growth: 14.64%
• EPS Growth: 916.67%
• Country: UK
• Employees: 120
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): <0.01
• Shares Outstanding: 89,599,460
• 10 Day Avg. Volume: 5,558
• 30 Day Avg. Volume: 19,935
• PEG Ratio: -0.41
• Price to Book (P/B): 6.44
• Price to Sales (P/S): 2.84
• P/FCF Ratio: 17.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.02
• Revenue Forecast (FY): £17.80M

• Rating: 69 Neutral
• Price Target: 85.00 p ▲(24.09% Upside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

Skillcast Group Plc's overall stock score is driven by strong financial performance and positive corporate events. However, the high P/E ratio and overbought technical indicators suggest caution. The company's robust cash flow and strategic initiatives in employee retention and market engagement are significant strengths, but valuation concerns and technical signals warrant careful consideration.

Positive Factors

Cash generation

Material operating cash flow and sustained positive free cash flow provide durable funding for product development, sales investment, and potential tuck-in M&A. Strong cash conversion reduces refinancing risk and supports multi-quarter investment without relying on external capital.

High gross margins & revenue scale

High gross margins and multi-year revenue growth reflect a scalable, content-driven GRC software and training model with limited incremental delivery cost. This margin structure supports sustainable operating leverage as sales scale and underpins long-term profitability if growth continues.

Conservative balance sheet

Very low leverage and a solid equity base give the company financial flexibility to withstand cyclical shocks, invest in growth, and preserve credit optionality. A conservative capital structure reduces insolvency risk and supports multi-quarter strategic planning.

Negative Factors

Modest net margin

Net margin remains low despite revenue gains, indicating limited conversion of top-line growth into durable shareholder returns. Persistent thin net profitability could constrain reinvestment capacity and make results sensitive to pricing pressure or higher operating costs.

Moderate ROE

ROE under 10% signals only modest efficiency in generating returns on shareholder capital relative to high-growth software peers. Sustaining investor-level returns may require higher margin expansion or more aggressive capital deployment, which carries execution risk.

Limited scale of workforce

A relatively small headcount can constrain product development, customer success and commercial coverage in a competitive GRC market. Scaling fast without diluting product quality requires hiring and retention; limited staff increases reliance on key personnel and execution risk.

Skillcast Group Plc Business Overview & Revenue Model

Company Description

Skillcast Group plc provides staff compliance training services in the United Kingdom, Malta, and internationally. It offers compliance courses and bespoke e-learning solutions; Learning Management System, a fully managed software-as-a-service that enables companies to build and deliver digital training content; Policy Hub, an online tool that provides corporate policy management solution; Training 360, a solution for recording in-person training, mentoring, and consultations; event management solutions; SMCR 360, a technology-based software solution; data integration solutions; and Regtech tools to manage compliance needs. The company was incorporated in 2019 and is based in London, the United Kingdom.

How the Company Makes Money

Skillcast generates revenue through a subscription-based model, offering its customers access to a suite of digital training and compliance tools. Key revenue streams include licensing fees for its e-learning courses, customized training solutions, and ongoing subscription fees for its learning management system (LMS). The company also benefits from partnerships with industry-specific organizations and regulatory bodies, which can enhance its credibility and reach within target markets. Additional revenue may be derived from consulting services, where Skillcast assists organizations in developing tailored training programs and compliance strategies.

Skillcast Group Plc Financial Statement Overview

Summary

Skillcast Group Plc demonstrates a strong financial performance across all verticals. The company has achieved significant revenue and profit growth, improved operational margins, and maintained a solid balance sheet with low leverage. The cash flow position is particularly strong, indicating excellent liquidity and efficient cash management. These strengths position the company well for future growth and stability in the competitive software application industry.

Income Statement

Skillcast Group Plc has demonstrated strong revenue growth, increasing from €6.76 million in 2019 to €13.24 million in 2024. The gross profit margin remains robust at approximately 73.6% in 2024, indicating effective cost management. The net profit margin has improved significantly, turning from negative in 2023 to 3.86% in 2024, showcasing the company's return to profitability. EBIT and EBITDA margins have also shown recovery, reflecting operational efficiencies. Overall, the upward trajectory in revenue and profitability suggests a positive outlook.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 41.39% in 2024, indicating a solid financial foundation. The debt-to-equity ratio is low at 0.06, reflecting conservative leverage. Return on Equity (ROE) has improved to 8.76% in 2024, highlighting effective use of shareholder capital. However, the decrease in total liabilities suggests a cautious approach to debt management. The balance sheet reflects both financial stability and a prudent capital structure.

Cash Flow

Skillcast Group Plc's cash flow position is robust. The operating cash flow has increased significantly to €2.16 million in 2024, indicating strong cash generation capabilities. The free cash flow has also turned positive at €2.12 million, a significant improvement from a negative figure in 2023. The operating cash flow to net income ratio is favorable, suggesting effective conversion of profits into cash. Overall, the cash flow metrics indicate healthy liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.36M	13.24M	11.30M	9.83M	8.41M	7.29M
Gross Profit	10.84M	9.74M	7.87M	6.89M	5.93M	5.03M
EBITDA	1.47M	826.22K	-366.57K	-297.31K	362.39K	1.25M
Net Income	1.09M	511.37K	-655.44K	-411.79K	377.63K	904.12K
Balance Sheet
Total Assets	15.60M	14.10M	12.26M	11.92M	12.52M	7.66M
Cash, Cash Equivalents and Short-Term Investments	11.50M	9.12M	7.22M	7.70M	7.86M	3.80M
Total Debt	258.95K	347.29K	469.09K	647.41K	643.67K	259.39K
Total Liabilities	9.15M	8.27M	6.56M	5.30M	5.30M	3.78M
Stockholders Equity	6.45M	5.84M	5.69M	6.62M	7.22M	3.88M
Cash Flow
Free Cash Flow	3.70M	2.12M	-143.19K	431.85K	1.26M	1.04M
Operating Cash Flow	3.74M	2.16M	31.89K	497.85K	1.50M	1.12M
Investing Cash Flow	-39.95K	284.89K	83.67K	-50.00K	-240.57K	-74.92K
Financing Cash Flow	-555.24K	-546.49K	-597.88K	-599.97K	2.80M	-601.10K

Skillcast Group Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 68.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SKL, the sentiment is Negative. The current price of 68.5 is above the 20-day moving average (MA) of 65.98, below the 50-day MA of 71.21, and above the 200-day MA of 60.63, indicating a bearish trend. The MACD of -3.95 indicates Positive momentum. The RSI at 19.03 is Positive, neither overbought nor oversold. The STOCH value of 7.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SKL.

Skillcast Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRB	70 Outperform	£125.34M	5.94	15.34%	1.71%	3.48%	318.89%
SKL	69 Neutral	£51.97M	18.48	17.89%	0.77%	14.64%	916.67%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GETB	60 Neutral	£30.41M	-10.45	-7.07%	―	1.73%	-68.87%
DSG	51 Neutral	£4.43M	-22.52	0.89%	―	―	―
RM	47 Neutral	£92.07M	42.76	10.33%	―	-14.23%	97.27%
PULS	47 Neutral	£59.66M	-3.17	-17.65%	―	-1.09%	-6.65%

Skillcast Group Plc Corporate Events

Skillcast boosts recurring revenues, profits and cash as GRC demand grows

Skillcast Group plc reported robust organic growth for the year to 31 December 2025, with revenue expected to rise 16% to about £15.4m, driven by a 21% increase in recurring subscription income to £13.3m, which now accounts for 87% of total revenue as lower-margin, non-strategic professional services declined. Annualised recurring revenue climbed 19% to £13.8m on the back of new customer wins, upgrades to enhanced and premium packages and reduced churn, while EBITDA is projected to surge to roughly £1.5m, more than triple the prior year, reflecting operational gearing and tight cost control; a strengthened net cash position of £12.7m, aided by auto-renewing contracts, underscores the company’s improving financial resilience and supports management’s confidence in meeting board expectations for 2026, reinforcing Skillcast’s positioning as a resilient, high‑recurring‑revenue GRC platform provider.

The most recent analyst rating on (GB:SKL) stock is a Buy with a £85.00 price target. To see the full list of analyst forecasts on Skillcast Group Plc stock, see the GB:SKL Stock Forecast page.

Skillcast Increases Share Capital Following Employee Option Exercise

Skillcast Group plc has issued and allotted 140,000 new ordinary shares following the exercise of employee share options, reflecting ongoing use of equity-based incentives within the business. The new shares are expected to be admitted to trading on AIM on 9 January 2026, taking the company’s total shares and voting rights in issue to 89,599,460, a figure shareholders can now use for disclosure and transparency calculations under FCA rules.

The most recent analyst rating on (GB:SKL) stock is a Hold with a £67.00 price target. To see the full list of analyst forecasts on Skillcast Group Plc stock, see the GB:SKL Stock Forecast page.