I have been very patient with Janison, a serial underperformer in my RL portfolio. My reasons for liking the company are well summarised in @jcmleng 's previous post.

However after reading through the FY24 annual report documents and presentations there are numerous disclosures that I find unsettling:

• Despite ostensibly having a seasoned and well experienced board of directors, despite the business founder still being on the board, and despite the recruitment of a new CEO with "20 years spent in global education and assessment", the company has retained the Nous Group to advise on a new strategy. "In July 2024 a significant reshaping of the business was implemented to create capacity to invest in capability to drive long-term growth." Create a capacity to invest in capability??? This sounds like bullsh*t - I hoped for better communication from the new CEO.
• There is a bit more detail in the full annual report: "More specifically, we have created two new senior enterprise sales positions and engaged external professionals to assist in building the foundation for growing our pipeline of deals and establishing the processes and support necessary for the best chance of success in winning new business." So they don't know how to sell the value proposition of their assessment platform despite having been trying to do so since inception, and need some more expensive consultants to tell them how to do it. It sounds like Janison lacks the skills internally to grow the business. If nothing else, I expect operating costs to swell in FY25 due to this dependency on external consultants. Let's hope that revenue grows to compensate.
• The company has ceased working with Singapore Exam Board, allegedly this is an intentional choice because it required a lot of bespoke work, but this marks the end of a long term relationship and one that helped shape the current Insights platform. This is perhaps not a material loss - worth maybe $0.5 million in revenue pa.
• Alarmingly, the much vaunted 5-year contract with the OECD to be the platform for delivering the PISA for Schools program has not been extended. Instead for FY25 onwards "ETS has been selected as the international digital delivery platform provider for the OECD’s PISA-based Test for Schools (PBTS) digital assessment through 2029 pending final signature. In this role, ETS will design, develop, and maintain an international digital delivery platform for the PBTS." (https://www.theewf.org/news/2024/ets-expands-its-longstanding-work-with-oecd-becoming-the-international-digital-delivery-platform-provider-for-pisa-based-test-for-schools-pbts-digital-assessment-through-2029). It sounds like ETS don't even have a delivery platform the PISA test, so Janison must have done something seriously wrong to lose the OECD contract to them. This represents a loss of at least $2.5m pa.
• "In August 2024 a company-wide restructure was completed resulting in the loss of approximately 40 roles and an annualised savings of approximately $4 million – to be realised across Opex, Capex and Cost of Sales." Since they had 190 full time staff at the end of FY24, this means that 21% of the employees have been sacked.
• "Acquisitions in the Assessments business over the past 3 years have proved challenging and not performed as initially expected."

Against the backdrop of a 5 year $45m contract win with the NSW Dept of Education, none of the above may be material from a financial perspective, but at the end of the day a business is a collection of people and I'm afraid these people no longer convince me that they deserve my support. So I'm out.