Research report
**I am not able to attach my research report PDF for some reason. Not sure if the Strawman site is experiencing issues.
Investment Thesis
JAN are at the forefront of a rapid change in global behaviours when it comes to education. They have a developed platform with existing customers that is proving to be top of the market in a competitive environment.
Contract wins such as the OECD based-test for schools (PBTS) pays tribute to the quality of the platform offered by Janison. This contract [through to FY2024] is a key part of the thesis and is expected to contribute considerably to top-line growth. JAN have now signed up a fair amount of countries becoming the national service provider for the UK, US & Australia (key drivers).
The acquisition of the ICAS assessments business is another contributor to the investment thesis. In FY21 the business was purchased for a steal of $0.75m and produced revenue of $4.8m. As the effects of COVID dissipate I expect the business to contribute up to $15m in revenue, which reflects pre-covid levels. It is my believe that the business was sold off in a panic due to the onset of covid.
The business is very close to the inflexion point of generating positive cash flows. The balance sheet with $10m of cash and no debt is considered solid.
The revenues achieved through the assessment’s platform contribute to significant ARR growth in the coming years. The platform needs to develop to be hard for competitors to match and the costs for swapping platforms to be high for existing Janison customers, creating a stickiness effect.
