Skillcast Group PLC on Tuesday said revenue rose 15% in 2021 due to increased subscriptions, but profit plunged as expenses rose.

The London-based e-learning software and content company reported pretax profit of just £60,646 in 2021, down from £1.0 million in 2020, even as revenue rose by 15% to £8.4 million from £7.3 million.

Administrative expenses jumped by 47% to £5.9 million from £4.0 million the year before, as Skillcast said it is entering a ‘new investment phase’.

Skillcast highlighted that 62% of total revenue was recurring in 2021, compared to 56% in 2020. Recurring revenues from subscriptions grew by 28% to £5.2 million from £4.1 million in the previous year.

Skillcast expects continued growth in recurring revenue from subscriptions, while professional services revenue remains steady.

The company declared a final dividend of 0.279 pence per share for a total of 0.447p, based on the current number of shares in issue, in line with the year before.

Chief Executive Officer Vivek Dodd said: ‘We are pleased with how the increase in our subscription revenue helped accelerate total revenue growth from 8% in 2020 to 15% in 2021. Over the next two years, we intend to use the funds we raised in December to build on our leadership position through investments in our technology and content IP and through promoting our solutions to a wider market.’

Skillcast completed its initial public offering on the AIM market in London at the start of December, raising £3.5 million.

Skillcast shares were quoted at 22.00 pence each on Tuesday morning in London, down 41% from the company’s IPO price of 37p.

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