Final Results - Replacement

The following amendments have been made to the 'Final Results' announcement released on 29 April 2026 at 7.00 a.m. under RNS No 2884C.

"The final dividend will be paid on 24 July 2026 to shareholders on the register on 4 July 2026."

Has been updated to:

"The final dividend will be paid on 24 July 2026 to shareholders on the register on 3 July 2026."

All other details remain unchanged.

The full amended text is shown below.

The information contained within this announcement is deemed by the Company to constitute inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended.

29 April 2026

Skillcast Group PLC

("Skillcast", the "Group" or the "Company")

Results for the twelve months ended 31 December 2025.

 Strong SaaS execution delivers step‑change in profitability, cash generation and dividend growth

Skillcast (AIM: SKL), the Governance, Risk and Compliance ("GRC") software and e-learning provider, is pleased to announce its audited results for the twelve months ended 31 December 2025. 

 Highlights

*Annualised Recurring Revenue (ARR) is calculated by annualising revenue recognised in a given month from all client subscriptions on annual contracts.

** Free cash flow is calculated as net cash flows from operations less capital expenditure and lease costs.

*** The Rule of 40 is defined as the addition of the EBITDA percentage margin in the year and the ARR percentage growth on the previous year.

Financial Highlights

· ARR* increased to 19% to £13.8 million (December 2024: £11.6 million) driven primarily by new client wins acquisitions and continued demand for subscription-based compliance solutions.

· Total revenues increased to 16% £15.3 million (2024: £13.2 million).

o  Revenue increase was again driven by strong growth in recurring subscription revenues, up 21% at £13.3 million (2023: £11.0 million).

o  Recurring subscriptions contributed to 87% of total revenues (2024: 83%).

o  Professional services revenues declined 9% to £2.0 million (2024: £2.3 million) as the Group continued to prioritise scalable, high-margin subscription revenues.

· Gross margin increased by 2.1ppts to 75.7% (2024: 73.6%).

· EBITDA increased 202% to £1.5 million (2024: £0.5 million) through operational gearing.

o  Overhead increased £0.9m/9% to £10.4m on the prior year (2024: £9.5 million).

o  Research and development fully expensed.

· Strong cash generation increased net cash to £12.7 million at 31 December 2025 (31 December 2024: £9.1 million), equating to c. 14 pence per ordinary share in the Company.

o  Up-front payments on increased subscription revenues.

o  Faster cash conversion following the introduction of auto-renewal terms in 2024.

o  Free cash flow** of £3.7 million (2024: £2.0 million).

· Basic EPS 1.450 pence per share (2024: 0.572 pence).

· Total dividend up 20% to 0.620 pence per share (2024: 0.517 pence).

o  Final dividend proposed: 0.418 pence (2024: 0.349 pence).

o  Interim dividend paid: 0.202 pence (2024: 0.168 pence).

Operational highlights

· Total client numbers (excluding Core Compliance) grew 8% to 1,221 (2024: 1,133).

· Average ARR per client increased 9% to £11,133, 2024: (£10,206).

· Net retention of 101% in line with last year (2024: 101%)

o  Lower price rises of 3% in 2025 (2024: 7%).

o  Churn returning to normal levels of 7% (2024: 11%)

o  Supported by product upsells

· Non-standard plans ARR increased 125% in the year to represent 14% of total ARR (2024: 7%).

· AI adoption accelerated across products and operations.

o  Digital assistant (Aida) launched across courses and software tools.

o  Internal use extended from developers to all functions.

· Strengthened commercial tech stack to increase automation and improve client experience.

· New EU library developed for 2026 launch.

· New website and rebrand in March 2025, Advisory Board launched.

· Maintained excellent customer service records (Feefo Platinum Service Award 4.9/5.0, CSAT >93%).

· SOC Type 2 and Cyber Essentials Plus reaccredited. 

· Headcount increased by 4% to 125 at 31 December 2025 (2024: 120).

Current trading and outlook

ARR has continued to grow strongly in 2026, supported by new customer wins, resilient net retention and disciplined pricing. Growth rates have moderated to around 15% due to slower decision-making as a result of the global uncertainty, particularly among larger clients. We continue to attract many new logos and grow our pipeline. Net retention has remained above 100%, with slightly lower-than-expected churn and downsell offset by similarly lower upsells.

Our professional services business is typically lumpy and has poor visibility, but has had a strong start to the year.

The Group remains confident of meeting EBITDA expectations through productivity improvements and continued operational leverage.

Vivek Dodd, Chief Executive Officer of Skillcast, said:

"We delivered a strong performance in 2025, marked by continued ARR growth, a step-change in profitability and improved cash generation. Clients continue to recognise the value of our Enhanced and Premium plans, reflected in strong upsell performance and sustained net retention above 100%.

AI is becoming a key part of our product strategy and operations. After successfully launching Aida, our AI-powered compliance assistant, to higher-tier plans last year, we are now offering it to Standard Plan clients. In addition, clients will soon be able to use Aida to customise our trusted, readymade courses with their business profiles and policy documents. These developments strengthen our confidence in growing ARR, improving margins, and delivering strong shareholder returns."

*Further details on the calculation of adjusted EBITDA. ARR and free cash flow are set out in the Financial Review below

Enquiries:

Chairman's Statement

Dear Shareholders

Introduction

I am pleased to introduce Skillcast's Annual Report for the year ended 31 December 2025. This has been another successful year for the Group with continued growth in subscription revenues and demonstration of the strong operational gearing of our business model, with profitability returning towards levels achieved historically following the period of investment post our IPO. 

Results and Dividend

The year has seen another encouraging set of results, with subscription revenues increasing more than 20%. Importantly, EBITDA margins increased to 10% as a high proportion of the new revenue dropped through to profit due to the high gross margin associated with the SaaS business model. Margins do still remain below the level historically achieved by the business before it embarked on its investment phase, and hence there remains the opportunity for further progress in this area going forward. 

The business retains a strong balance sheet with net cash at 31 December 2025 of £12.7m (2024: £9.1m). The Board's previously stated policy is to increase dividends broadly in line with increases in subscription revenues, and therefore, at the AGM on 23 June 2026, the Board will propose a final dividend to be paid in July of 0.418p, up 20% on the 0.349p paid as the final dividend for 2024. Taken in conjunction with the interim dividend paid in October 2025, this will result in a full-year dividend per share of 0.620p (2024: 0.517p), an increase of 20%. 

Strategy

Skillcast's overall strategy remains unchanged and is set out in detail within this report, where we also explain how we expect AI to impact us and the challenges and opportunities it presents. In summary, our strategy is to focus on growing the recurring subscription revenue streams associated with our core SaaS business that provides small and medium-sized businesses with the digital training and technology to manage efficiently and effectively their workforce compliance challenges.

Historically, the business has been built entirely on organic growth, and this remains our principal focus. With a strong customer service culture that targets high net retention of the subscription base and a maturing sales and marketing organisation to drive new sales acquisition we continue to target long term subscription revenue growth of 20% and target margins of the same level to achieve the "Rule of 40" (as explained in further detail in the CEO Report) by which world-class SaaS businesses are measured. 

However, our increasing cash reserves have naturally encouraged us to look at accelerating this organic growth with targeted bolt-on acquisitions that can both increase our scale and augment our strategy. We seek content-based bolt-on acquisitions, where we can leverage our existing technology stack for cross-selling opportunities. Progress in this regard over the last twelve months has been limited, not least because of the challenges that we have faced in matching private company valuation expectations to what we receive as a public company. We intend to accelerate efforts in this regard in 2026, while retaining our primary focus on organic growth and only acting when confident that the returns we can expect for deploying our capital will be attractive to shareholders.

AGM and Shareholder Engagement

We have enjoyed meeting with investors over the last twelve months at both formal meetings and investor conferences and events. Topics covered in meetings with shareholders have included strategic priorities, plans for utilising the strength of our balance sheet, including dividend policy, and the challenges and opportunities that AI brings. We welcome opportunities to speak with existing and prospective investors and look forward to welcoming shareholders to our AGM on 23 June. 

People and Organisation

The results that have been achieved over the last twelve months have been delivered against a challenging commercial backdrop with instability in the political and economic climate. That has made the task of executing the strategy that much harder. It is to the undoubted credit of the whole Skillcast team that they have successfully navigated these challenges and delivered as presented in this Report. I am grateful to everyone in the organisation for the positive, collaborative and pragmatic ways in which they have approached their task and on behalf of the Board, thank them for their achievements.

Current trading and outlook

ARR has continued to grow strongly in 2026, supported by new customer wins, resilient net retention and disciplined pricing. Growth rates have moderated to around 15% due to slower decision-making as a result of the global uncertainty, particularly among larger clients. We continue to attract many new logos and grow our pipeline. Net retention has remained above 100%, with slightly lower-than-expected churn and downsell offset by similarly lower upsells.

Our professional services business is typically lumpy and has poor visibility, but has had a strong start to the year.

The Group remains confident of meeting EBITDA expectations through productivity improvements and continued operational leverage.

Richard Amos

Non-Executive Chairman

28 April 2026

CEO's Review

Results

I am pleased to report another year of strong, organic growth for Skillcast in 2025. In addition to sustaining above-20% subscription revenue growth for the fourth consecutive year, our EBITDA surged by 202% to £1.5 million, our profit margin rose to 10% margin, and we generated £3.7 million of free cash. The ARR at the end of the year was £13.8 million, +19% up on the previous year. Total revenue grew 16% and overheads by 9%, generating £1.5m of EBITDA, a £1.1 million improvement over 2024.

Subscriptions to our technology and content are the key drivers in our growth strategy. These subscriptions constitute a book of high-quality annual recurring revenue (ARR) contracts, which grew organically by 21% to £13.3 million in December 2025 (2024: 25% to £11.6 million in December 2024).

In 2025, 87% (2024: 83%) of our revenues came from such subscriptions, with the rest from professional services, which include bespoke content development and customisation of OTS courses and were lower at £2.0 million (2024: £2.3 million) as demand for large bespoke work continued to fall. While not core to our growth strategy, we remain committed to helping our clients with professional services that make compliance more relevant and engaging for their staff.

We typically serve our clients with annual subscription contracts, invoiced upfront and standard 30-day payment terms. This gives us healthy cash flows from operations and strong revenue visibility over the next 12 months. Our EBITDA margin should continue to grow further in the coming periods due to continued operational gearing.

Strategic progress in 2025

Our focus in 2025 remained on growing the subscription business and ensuring we delivered the productivity gains from our prior-year investments to expand our EBITDA margin and achieve our medium-term ambition of reaching the Rule of 40. We believe Skillcast has a tremendous growth opportunity to help companies simplify staff compliance by digitising, automating, and streamlining processes to reduce costs, improve the employee experience, and reduce the risk of breaches amid ever-growing regulations. Progress on our six strategic pillars included:

1) Continue to organically grow New ARR

We continued to grow subscriptions, adding £1.9m in ARR from 232 new clients, excluding the retail Core Compliance plan. This included several major logos that diversified our customer base, such as a large multinational manufacturer adopting our compliance tools and a leading public-sector regulator subscribing to our compliance content.

2) Maintain net retention over 100%

The foundations of our subscription business are built on client retention, and we're proud to have achieved a net retention rate of over 101% for the year. Client churn returned to a more normal level for our business at 7% (2024: 11%), partly offset by product upsells and a 3% price rise (2024: 7%), in line with prevailing inflation.

3) Innovate product and strengthen differentiation

We have also continued to innovate our product to offer more process automation and employee engagement. While the ARR from our Standard Plan subscriptions (e-learning only) grew by 10%, the ARR from other plans, featuring recent innovations, grew 125% year on year, doubling their share of total ARR to 14%. The ARR from our Premium Plan, which helps digitise and automate the widest range of compliance processes, grew 69% in 2025, accounting for 9% of total ARR by December 2025 (December 2024: 6%). In Q1 2025, we launched the Enhanced Plan, with engaging e-learning elements such as FastTrack, and it accounted for 3% of total ARR by December 2025 (December 2024: nil). Both the Enhanced and Premium Plans help embed Skillcast more deeply in our client organisations and aid retention. CoreCompliance, our retail, self-serve compliance offering for small businesses, increased sales by 169% in 2025 to account for 1.5% of total ARR by December 2025 (December 2024: 0.6%)

As AI adoption in compliance accelerates, we are confident that Skillcast is well-positioned to help our clients with both advisory and agentic AI tools. Our clients rely on us to provide updated, verified, and engaging content, automate sometimes complex workflows, and provide accurate reporting. We've built these capabilities and trust over many years, and we're enhancing them with AI tools to deliver superior compliance capabilities to our clients. In H2 2025, we also rolled out our AI assistant Aida to all participating Enhanced and Premium Plan clients and are extending it to all other clients in 2026. We are shortly due to release an agent that enables our clients to adapt our high-quality content to their business risks and policies almost instantly.

In Q4 2025, we released our EU Compliance library for our EU clients and our UK clients with a substantial presence in the EU. We expect this library to improve client retention and drive new client acquisition in the EU, particularly in Germany, France and Benelux.

4) Maintain a Professional Services presence

We continue to maintain our professional services capability, which enables us to maintain major logos and help our clients make compliance more relevant and engaging for their staff. However, we've been pragmatic and managed capacity as the demand for large bespoke projects continued to fall. Consequently, we improved gross margins for this business line by 9% to 62% (2024: 53%) from headcount reductions made in 2024 and enhanced productivity.

5) Deliver operational gearing benefits to further strengthen EBITDA margin

Our Gross Profit Margin increased by 2% to 78% (2024: 76%) due to economies of scale, and our EBITDA margin improved by 6% points to 10% (2024: 4%), despite our policy of expensing all R&D, including that on AI development, due to our SaaS operational gearing and operational efficiency drive. Free cash flow increased to £3.7m (2024: £2.0m), assisted by a faster order-to-cash cycle following the introduction of standard auto-renewal terms in 2024 and stronger debtor management.

6) Maintain a strong balance sheet and optionality (including M&A)

We maintained a strong balance sheet in 2025 and continue to do so, with a large cash position that provides the Group with a high degree of stability and flexibility in decision-making. We engaged a deal origination firm to identify acquisition opportunities in the staff compliance market. However, we did not find suitable and willing targets during the year. We remain convinced about the value of scaling up with acquisitions that enable us to leverage our technology platform and AI developments.

Operational progress/highlights:

Our drive to increase productivity through process improvement and automation continued in 2025, which is reflected in an average headcount increase of just 3% compared to a 16% increase in revenues. We strengthened our sales and marketing tech stack with internally developed tools and externally sourced apps to increase our marketing reach, improve the prospect experience, enhance automation, and increase straight-through processing.

We improved our customer service productivity, contributing to the 2% increase in gross profit margin, whilst maintaining our 4.9/5.0 Platinum Customer Service Rating on Feefo and Customer Satisfaction (CSAT) score above 91%, which we introduced as a new measure in 2025.

Environmental, Social and Governance (ESG)

Increasing regulatory requirements and stakeholder expectations around ESG continue to drive demand for our products and services. Through our staff compliance and governance solutions, we help clients build ethical and resilient workplaces. Our digital-first delivery model reduces waste and carbon intensity.

We are equally committed to managing our own environmental and social impact. We have a long-term ambition to achieve net zero by 2050. During the year, we reduced our scope 3 upstream emissions by 27% and reaccredited with SOC 2, ISO 27001 and Cyber Essentials Plus and attained G-cloud accreditation for the public sector.

We maintained our accreditation as a Living Wage Employer and pride ourselves on our competitive employee value proposition. We offer wellbeing and benefits that include mental health training and support, medical and dental cover, share option grants, which all support engagement and retention, evidenced by our low employee turnover rate of 12% during the year. We are strongly committed to promoting inclusivity, sustainability, and integrity, and fostering diversity and well-being in our organisation.

Vivek Dodd

Chief Executive Officer

28 April 2026

Financial Review

2025 clearly demonstrated the financial strength of our business model. A fourth consecutive year of over 20% growth in subscription revenues and 2% gross margin growth led to a 202% increase in EBITDA on the year and 145% cash conversion. By ending the year with a 19% increase in ARR and £12.7m of net cash we are well-positioned for future growth both organically and by acquisition should opportunities arise.

Revenues for the year ended 31 December 2025 increased by 16% to £15.3 million (2024: £13.2 million), driven by new subscription customers, with ARR* growing 19% on the year to £13.8 million (2024: £11.6 million). In contrast, overheads increased by £0.9m/9% with average headcount increasing 4%. EBITDA increased by £1m to £1.5m on the year (2024 EBITDA: £0.5m). Net cash at year-end of £12.7 million, 39% above last year (2024: £9.1 million), with free cash flow of £3.7 million (2024: 2.0 million).

Key Performance Indicators

Key performance indicators (KPIs) tracked through monthly reviews against targets approved by the Board.

* defined later in the financial report in Alternative Performance Measures section

Revenues

62% of total revenue were derived from clients in the financial services sector, materially consistent with the previous year (2025: 61%). 81% of total revenues were derived from the UK (2024: 78%), 8% from the EU (2024: 11%) and 11% from elsewhere (2024: 11%). The top 10 customers accounted for 16% of total revenues in line with 2024.

Subscription revenues typically accrue from twelve-month contracts, invoiced up front, for our compliance e-learning libraries and compliance technology. During 2025, subscription revenue growth helped grow the proportion of revenues from subscriptions to 87% (2024: 83%) of total revenues.

ARR

The Group monitors Annual recurring revenue (ARR*) as a key performance indicator to measure subscription sales progress. ARR grew by 19% to £13.8 million over the past 12 months (31 December 2024: £11.6 million). Average ARR per client increased 9% (excluding Core Compliance) on the previous year to £11,133 (2024: £10,206), and the number of ARR clients increased 8% to 1,221 (2024: 1,133). 

New sales lifted ARR by 18% from December 2024, and the net retention rate was 101% (2024: 101%), which included 7% churn (2024: 11%). 2025 net retention was boosted by a standard 3% price rise on new business and renewals throughout the year (2024: 7%). Since the IPO in December 2021, ARR has achieved a 4-year compound annual growth rate of 24%.

ARR growth was supported by several recently launched products or plans. In January 2024, Skillcast Premium was launched, an all-inclusive service bundle that includes e-learning and all our compliance management "GRC" products to support upsells. ARR from Premium Plan increased 69% on the year in 2025 to account for 9.1% of total ARR at 31 December 2025 (6.4% at 31 December 2024).

In December 2023, we released Skillcast Core Compliance, our self-serve, cost-effective compliance e-learning solution for small businesses with up to 50 users. ARR from CoreCompliance increased 169% on the year in 2025 to account for 1.5% of total ARR at 31 December 2025 (0.6% at 31December 2024).

In January 2025, we launched our Enhanced Learning plan which bundles our collection of features designed to enhance the learning experience and improve efficiency. Enhanced Learning accounted for 3% of total ARR at 31 December 2025.

The combined ARR from our three new products/plans described above increased 125% at 31 December 2025 on the same date in the prior year, with their contribution to mix of total ARR increasing by 90% to 13.6% (31 December 2024: 7.1%).

Revenue from Professional Services was £2.0 million, which was 9% below the same period last year (2024: £2.3 million). The reduction reflects the continued challenges faced in the non-strategic bespoke e-learning market.

Gross profit

Gross profit margin increased by 2.1 percentage points to 75.7% (2024: 73.6%). The increase was primarily due to a continued reduction in the Professional Services team in response to falling demand for bespoke Professional Services. As a result of headcount reductions made in 2024 as a response to the falling demand, gross margins for Professional Servies increased by 9% points to 62% (2024: 53%). Gross Margin from our SaaS revenues remained level on the year at 78%.

Overheads

Overheads were £10.4 million in the period, a 9% increase on the prior year of £0.9 million (2024: £9.5 million). 74% of overheads are employee-related in line with the previous year (2024: 78%), and the 9% increase in overhead employment costs was driven by a 4% average employment cost increase and 5% increase in average headcount. The 6% increase in the year from non-people costs was mainly from increased marketing, professional fees and share-based payment charge from 3.3 million share options which were granted to employees during the year.

Overheads excluding depreciation and amortisation as a percentage of ARR continued to fall during the year and represented 73% of ARR in 2025, 6 percentage points below 2024.

Headcount

On 31 December 2025, the total headcount had increased by 5 to 125 (31 December 2025: 120). Total average headcount increased in 2025 by 3% to 125 (2024: 121). The largest growth area was in the client services function, with an increase of four heads during the period. Total staff costs increased 8% to £10.2 million (2024: £9.5 million), with average salary increases of 4% awarded in January 2025.

EBITDA

As a consequence of continued operational gearing in the business, increasing gross margin and slower overhead growth, the Group delivered a 202% increase in EBITDA of £1.5 million (2024: £0.5 million).

The Group's stated medium-term aim is to achieve The Rule of 40***, which was 29% in 2025 (ARR increase +19%, EBITDA margin +10%) and in line with the prior year (ARR increase +25%, EBITDA margin +4%).

Depreciation and amortisation

The Group incurred £0.2 million in depreciation and amortisation (December 2024: £0.3 million) relating to office and IT equipment and leases for its two offices in London and Malta. The Group does not capitalise any research or development costs.

Interest receivable

£0.4 million of bank interest was received on cash balances during the year (2024: £0.3 million) as the Group benefited from increased surplus cash on deposit.

Tax

The Group reported a profit before tax of £1.6 million (2024: £0.5 million).

The taxation charge for the Group in 2025 was £0.3 million. The effective tax rate in 2025 is 21% due primarily to the lower corporation tax rate of 5% in the Maltese subsidiaries compared to 25% in the UK.

Earnings per share (EPS)

The basic earnings per share for the period was 1.450 pence on 89.5 million shares (2024: 0.572 pence). On a diluted basis, on 91.3 million shares, the EPS was 1.421 pence (2024: 0.570p).

Dividends

With a business backed by strong ARR growth supporting future recurring revenues that provide strong cash generation, the Board is committed to paying dividends. Our stated dividend policy for the foreseeable future is to increase dividends broadly in line with increases in subscription revenues.

Accordingly, at the AGM on 23 June 2026, the Board will propose a final dividend per share of 0.418 pence per share, up 20% on the 0.349 pence paid as the final dividend for 2024. Taken in combination with an interim dividend per share of 0.202 pence that was paid in October 2025 this will result in a full year dividend per share of 0.620 pence (2024: 0.517 pence) an increase of 20%. The final dividend will be paid on 24 July 2026 to shareholders on the register on 3 July 2026.

Balance sheet and cash flow

Net assets at 31 December 2025 were £7.0 million (31 December 2024: £5.8 million). The £1.2 million increase in the year was due to the £1.3 million in comprehensive income in the year and £0.3 million increase in the share option reserve, less £0.5 million of dividend payments.

Non-current assets of £0.7 million at 31 December 2025 in line with the prior year. Reductions in property, plant and equipment and right-of-use assets were offset by increases in deferred tax asset principally from the increase in the intrinsic value of employee share options. The Group does not capitalise any intellectual property additions to its products' content or technology, and costs are expensed as they are incurred.

Current assets, excluding cash, were £3.6 million at 31 December 2025 (31 December 2024: £4.3 million). This predominantly includes trade receivables, which reduced 7% to £2.9 million at 31 December 2025 (31 December 2024: £3.1 million) despite the 16% growth in revenue on the year through improved cash collection and the introduction of standard subscription contract auto-renewal terms introduced during 2024. As a consequence, debtor days at 31 December 2025 were 45 (31 December 2024: 54). Debtors more than 60 days overdue represented 6% of trade receivables at 31 December 2025 (31 December 2024: 11%). Other non-trade receivables were £0.8m at 31 December 2025, a £0.5m reduction due to a receipt of Maltese withholding tax relating to tax rebates on dividends declared from subsidiary companies (31 December 2024: £1.3m).

Total liabilities at 31 December 2025 of £10.0 million increased by £1.7 million on the year (31 December 2024: £8.3 million). The biggest contributor to the increase was a £1.6 million increase in unrecognised revenue from signed contracts, representing a 28% increase on the year reflecting the growth in ARR and the more efficient renewal process.

The Group has no bank debt and at 31 December 2025, held cash of £12.7 million (31 December 2024: £9.1 million). Free cash flow** during the year was £3.7 million (2022: £2.0 million) as the Group generated cash from a return to profitability of £1.6 million (2024: £0.5 million), and upfront payments from a growing contractual book of £1.6 million (2024: £1.8 million) and £0.5 million withholding tax credit receipt relating to prior years.

Alternative Performance Measures

The Group elects to report certain financial measures not defined or recognised under IFRS, including EBITDA. See note 3 of the Group Consolidated Accounts, Annual Recurring Revenue (ARR) and Free Cash Flow defined below.

*Annual Recurring Revenue (ARR)

ARR is also used to assess the performance and the trend of subscription revenue. ARR is calculated by multiplying the Monthly Recurring Revenue ("MRR") by twelve. MRR is defined as the subscription revenue recognised in a month, excluding any retrospective upward adjustments arising at the end of the contract where there have been more subscribers than a client originally contracted for, less any contract losses (Churn) or downward adjustments arising on contract renewal. The Directors consider that the ARR, derived from software-as-a-service (SaaS) sales, is a key measure of the performance of the business.

** Free cash flow is calculated as net cash flows from operations less capital expenditure and lease costs.

*** Rule of 40

The Rule of 40 is defined as the addition of the EBITDA percentage margin in the year and the ARR percentage growth on the previous year.

Richard Steele

Chief Financial Officer

28 April 2026