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Skillcast Group Plc (SKL) AI Stock Analysis

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GB:SKL

Skillcast Group Plc

(LSE:SKL)

Select Model
Rating:72Outperform
Price Target:GBX 51.00â–²(13.33% Upside)
Action:upgraded
Date:11/06/26

The score is driven primarily by solid financial strength (low leverage, expanding assets) and a clear recent profitability/cash-flow rebound, reinforced by an upbeat earnings outlook and margin expansion narrative. The rating is tempered by overbought technical conditions and an incomplete long-term trend recovery, plus a valuation that looks demanding at ~24.7x earnings given noted churn and Rule-of-40 underperformance.

Positive Factors
Recurring Revenue GrowthA high recurring-revenue mix and double-digit ARR growth provide greater revenue visibility than a primarily project-based model. This supports dependable reinvestment, strengthens customer relationships, and gives Skillcast a durable base for continued upselling and expansion.
Negative Factors
Rising Customer ChurnHigher churn is a direct risk to recurring revenue durability and can increase the sales effort required to maintain growth. If the deterioration persists, it could weaken customer lifetime value, constrain net retention, and reduce the benefit of Skillcast's subscription model.

Skillcast Group Plc (SKL) vs. iShares MSCI United Kingdom ETF (EWC)

-40%-30%-20%-10%0%10%20%30%GB:SKL-25.14%EWC+21.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
GBP 40.37M
Dividend Yield
1.44%
Average Volume (3M)
22.58K
Price to Earnings (P/E)
24.2
Beta (1Y)
0.44
Revenue Growth
11.94%
EPS Growth
53.28%
Country
UK
Employees
126
Sector
Technology
Sector Strength
61
Industry
Software - Application

Skillcast Group Plc Business Overview & Revenue Model

Company Description

Skillcast Group plc offers specialized compliance training services for staff, operating across the United Kingdom, Malta, and internationally. Their portfolio includes pre-built compliance courses and bespoke e-learning solutions. A cornerstone offe...

Skillcast Group Plc Earnings Call Summary

Earnings Call Date:Sep 30, 2026(Q2-2026)|% Change Since:5.23%|Next Earnings Date:Apr 29, 2027
Earnings Call SentimentPositive

The call was predominantly positive. Management reported double-digit subscription and ARR growth, materially improved EBITDA and margins, strong net cash with no debt, rapid adoption of new AI products, and reaffirmed full-year expectations. The main challenges were higher churn, a lower Rule of 40 result, declining and less visible professional services revenue, and investor concerns about share price performance and capital deployment.

Positive Updates

Double-Digit Revenue Growth
Subscription revenue increased 15% year over year to GBP 7.4 million, while total revenue grew 10% to GBP 8.2 million. Subscription revenue drove all of the revenue growth.

Negative Updates

Higher Customer Churn
Customer churn increased to 9% from 7% the prior year. Management described this as slightly disappointing, although it said there was no single factor driving the increase and that it was not causing undue concern.

Company Guidance

Management expects ARR to grow by 15%-20% per annum, maintain net retention of at least 100%, and consistently achieve the Rule of 40 in the medium term; ARR in H2 is expected to grow at similar levels to H1 2026 in absolute terms, with a slight impact on the year-on-year growth rate due to stronger growth in H2 last year, while EBITDA is expected to continue to grow and benefit from operational gearing and enhanced productivity from AI. The company expects full-year revenue and profit to be in line with expectations, is excited about launching Learn with Aida this half, will continue to serve professional services as and when there is an incoming need but has limited visibility of that, and is on track to deliver growth and increase profit margins in 2026.

Skillcast Group Plc Financial Statement Overview

Summary

Financial statements show sustained revenue growth (2020–2025) and a strong rebound in profitability and cash generation in 2024–2025. The balance sheet is conservatively financed with very low debt versus equity, supporting resilience. The main constraint is historical volatility in earnings and cash flow (losses and weak/negative free cash flow in 2022–2023), which reduces confidence in consistency.

Income Statement

71Positive

Balance Sheet

85Very Positive

Cash Flow

78Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue16.08M15.35M13.24M11.30M9.83M8.41M
Gross Profit12.30M11.62M9.74M7.87M6.89M5.93M
EBITDA1.83M1.88M826.22K-366.57K-297.31K362.39K
Net Income1.67M1.30M511.37K-655.44K-411.79K377.63K
Balance Sheet
Total Assets18.21M17.00M14.10M12.26M11.92M12.52M
Cash, Cash Equivalents and Short-Term Investments13.64M12.68M9.12M7.22M7.70M7.86M
Total Debt700.63K162.32K347.29K469.09K647.41K643.67K
Total Liabilities10.36M10.01M8.27M6.56M5.30M5.30M
Stockholders Equity7.85M6.99M5.84M5.69M6.62M7.22M
Cash Flow
Free Cash Flow2.73M4.26M2.12M-143.19K431.85K1.26M
Operating Cash Flow2.81M4.30M2.16M31.89K497.85K1.50M
Investing Cash Flow-86.81K-48.45K284.89K83.67K-50.00K-240.57K
Financing Cash Flow-533.81K-687.09K-546.49K-597.88K-599.97K2.80M

Skillcast Group Plc Technical Analysis

Technical Analysis SentimentPositive
Last Price45.00

Price Trends

50DMA42.30Positive
100DMA43.48Positive
200DMA49.24Negative

Market Momentum

MACD0.77Negative
RSI69.93Neutral
STOCH74.73Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SKL, the sentiment is Positive. The current price of 45.00 is above the 20-day moving average (MA) of 41.75, above the 50-day MA of 42.30, and below the 200-day MA of 49.24, indicating a neutral trend. The MACD of 0.77 indicates Negative momentum. The RSI at 69.93 is Neutral, neither overbought nor oversold. The STOCH value of 74.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SKL.

Skillcast Group Plc Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

GB:SKL against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
GB:TRBGB:TRB80OutperformGBP 217.26M24.5815.05%3.37%6.41%10.61%
GB:SKLGB:SKL72OutperformGBP 40.37M24.1922.52%1.44%11.94%53.28%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
GB:GETBGB:GETB61NeutralGBP 38.53M-30.5734.82%―6.07%-851.52%
GB:DSGGB:DSG58NeutralGBP 7.40M-6.92-18.80%―-14.79%-1833.33%
GB:RMGB:RM50NeutralGBP 96.92M22.3211.11%―-0.74%―
GB:PULSGB:PULS43NeutralGBP 20.00M-2.63-21.57%―4.57%-3.85%

* Technology Sector Average

Performance Comparison

-50%0%50%100%GB:SKLGB:PULSGB:DSGGB:TRBGB:GETBGB:RMDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
GB:SKL and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
GB:SKLSkillcast Group Plc45.00-15.11-25.14%
GB:PULSAccess Intelligence14.75-19.75-57.25%
GB:DSGDillistone Group plc18.008.5089.47%
GB:TRBTribal Group plc102.5041.5768.23%
GB:GETBGetbusy Plc75.50-1.00-1.31%
GB:RMRM plc100.00-11.00-9.91%

Skillcast Group Plc Corporate Events

Business Operations and StrategyDividendsFinancial Disclosures

Skillcast boosts subscription-led growth and expands AI compliance offering

Positive
Sep 30, 2026

Skillcast reported unaudited results for the six months to 30 June 2026 showing solid growth in recurring revenues and profitability, with total revenue up 10% to £8.2m and subscriptions now making up 90% of sales. Annual recurring revenue rose 14% y...

Business Operations and StrategyFinancial Disclosures

Skillcast to Brief Investors on Interim Results via Live Presentation

Positive
Sep 7, 2026

Skillcast Group plc will host a live investor presentation on 2 October 2026, where CEO Vivek Dodd and CFO Richard Steele will discuss the company’s interim results via the Investor Meet Company platform. The event, open to existing and prospective s...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 06, 2026