I've always been disappointed on how this company communicates. A lot numbers engineering (swapping around divisions, dividing things into core and non-core, etc, etc) and opaqueness.

This is a new low. Slipped it into a non-price sensitive AGM chairman's address

https://announcements.asx.com.au/asxpdf/20230614/pdf/05qmd0kdb350kx.pdf

The NAPLAN extension is nice and underpins a portion of the revenues for the next several years. Supposedly this is the largest contract that Janison has signed in its history. I believe it's larger than the previous contract that was first initiated in 2016, but not by a large amount in per annum terms.

What's potentially just as, if not more, exciting was the unrelated final paragraph of the announcement

"The Cambridge agreement was signed with a minimum contract value of ~$1m in revenue over three years but has to date added $2.5m in the last nine months in FY23 and is expected to grow significantly in FY24 and beyond. The Oxford agreement has commenced with a range of tests worth approximately ~$1m in TCV but, similar to the Cambridge agreement, test volumes are likely to be higher than minimum contract amounts, and further opportunities exist to deliver additional OUP tests on the Janison assessment platform."

Janison signed a 3-year $1m minimum umbrella contract with Cambridge Assessments at the end of Q1 FY23. And in the first 9 months, has already booked $2.5m and will look to grow this significantly. Also hinted that the Oxford deal might head down a similar path.

I feel like this is the first time they've under-promised and over-delivered. Normally management have front run operational performance with flashy forecasts that they've never come close to hitting - ICAS, PISA for schools, etc.

Acquisition of Academic Assessment Services (AAS) for between $9-17m depending on meeting earn-out hurdles.

I really like how JAN is positioned with these bolt-ons. Essentially an arbitrage between private no-tech assessment and public SaaS edtech. And a lot of synergies with building stronger relationships with schools, direct-to-parents and cross selling PISA for schools and ICAS. Also positions them well for the eventual digitisation of HSC/VCE/etc, and the optionality to bring the IP (the bank of questions and answers) to overseas markets.

The integration is low risk because this is what Janison does. These assessment companies know they need to digitalise at some stage. May as well take some risk off the table and sell to JAN.

National Catholic Education Commission (NCEC) and Janison have entered a partnership in relation to PISA for Schools. 

News release: https://www.ncec.catholic.edu.au/news-events/media-releases/582-catholic-education-to-enhance-student-learning-through-pisa-for-schools-partnership/file

In NCEC's 2020 annual report, it states they represent ~500 secondary schools in Australia. So there's a potential of $3.5m in ARR here (500 x $7000/school).

This is where Janison can get some quick runs with PISA for Schools penetration - through partnerships with private and government bodies. NSW Department of Education, who they have a very strong relationship with, would be firmly in their sights. 

We own. Rocket emoji.