A new business in the personal portfolio, in line with my strategy to invest in the riskier businesses not yet fully proven, via the personal portfolio.
29/9/20 purchased a position in JAN with funds realised from selling ICU.
Janison Education Group Limited provides assessment and learning platform solutions in Australia and internationally. The company operates in two segments, Assessment and Learning. The Assessment segment implements and operates a platform for the provision of digital exam authoring, testing, and marketing to national education departments, tertiary institutions and independent educational institutions. The Learning segment operates a learning management platform that manages the content and learning programs for corporate and government clients.
Obviously the business has benefitted from the COVID situation, but the strong growth in revenues has propelled the business to a position where it will be profitable and cash flow positive this year, and I believe some of the covid driven gains will be sticky. The business is basically debt free. Directors hold a lot of shares, 87% held by top 20, only 13% free float.
What can go wrong - the revenue drops back to pre-covid levels and the business becomes unprofitable again. Management use the current rosy outlook to borrow or raise and then make stupid M&A, Big clients like Naplan change provider.
Why thats unlikely - revenue growth is not just driven by covid, there has been organic customer & revenue growth, Management have been good capital allocators to date, assessment contracts are probably quite sticky.