Slide 1: ReadCloud Limited FY22 Result
For personal use only ReadCloud Limited FY22 Result 29 November 2022
Slide 2: ReadCloud is a market leader in digital content delivery for education in Australia
For personal use only READCLOUD IS A MARKET LEADER IN DIGITAL CONTENT DELIVERY • ReadCloud platform is now used by over 600 FOR EDUCATION IN AUSTRALIA schools and educational institutions We deliver eBooks Solutions to schools, VET-in- Schools and post-secondary training and assessments digitally Ac
Slide 3: FY22 Financial Highlights
FY22 FINANCIAL HIGHLIGHTS For personal use only 17.5% increase in consolidated sales and fee revenue to $8.21 million (FY21: $6.99 REVENUE BY SEGMENT million) $5,000,000 $4,500,000 $4,000,000 17.8% and 17.1% increases in eBook $3,500,000 * Solutions segment and VET segment sales $3,000,000 and fee r
Slide 4: Operational Highlights
OPERATIONAL HIGHLIGHTS For personal use only School and user growth driven by organic growth (new school customers and School & user growth additional sales to existing customers) and 700 140,000 acquisition of Ripponlea Institute 600 120,000 500 100,000 Execution of first overseas eBook Solutions d
Slide 5: Acquisition of Southern Solutions
ACQUISITION OF SOUTHERN SOLUTIONS For personal use only ReadCloud acquired Southern Solutions for up to $3.15m Positive on a two year earn-out. In FY22, Southern Solutions supply/demand generated sales revenue of $2.0 million and delivered trends in the EBIT of $0.36 million childcare sector This ta
Slide 6: ReadCloud's Market Opportunity
READCLOUD’S MARKET OPPORTUNITY For personal use only 241,000 3.9 million students 1.7 million students in students in enrolled in VET 2,816 secondary VET-in-school courses with 3,519 schools in Australia2 courses1 training providers in Australia Continued Investment Increased Investment New Investme
Slide 7: VET Growth Strategy
VET GROWTH STRATEGY For personal use only VET-in-Schools platform 28% of the three Platform has been Southern Solutions provides an excellent ReadCloud RTO’s successfully offered to a acquisition provides an opportunity to scale collective school number of schools who entry to state-funded the offer
Slide 8: King's InterHigh Agreement
KING’S INTERHIGH AGREEMENT For personal use only First overseas eBooks Solutions deal Four-year agreement to become the exclusive provider of eBooks to the parents of around 4,000 students Provides an additional revenue channel primarily for FY23 and onwards King’s InterHigh is part of the Inspired
Slide 9: Trading Update & Outlook
TRADING UPDATE & OUTLOOK For personal use only New school signings for 2023, combined with a strong sales pipeline, gives management confidence momentum will continue going into the key Term 4 selling / closing season The launch of the ReadCloud VET Group in FY22 and hiring a new dedicated VET sales
Slide 10: Corporate Snapshot
CORPORATE SNAPSHOT For personal use only ASX Code: RCL Substantial Shareholders Share Price (25 November 2022) $0.12 Thorney Group* 10.2% Microequities 7.7% Market capitalisation (@ 0.12 cents) $14.6m Lars Lindstrom 7.1% Shares on issue 121.6m Hunmar Holdings/Darren Hunter* 5.8% West Elk Partners LP
Slide 11: Additional information
For personal use only Additional information 11
Slide 12: FY22 Financials
FY22 FINANCIALS Underlying EBITDA For personal use only ($’000) FY22 FY21 YOY Sales and fee revenue 8,212 6,988 +17.5% Less publisher & bookseller fees (3,334) (2,904) +14.8% Margin after publisher & bookseller • Underlying EBITDA = EBITDA adjusted for Interest, Tax, 4,878 4,084 +19.4% Depreciation
Slide 13: FY22 Financials: Balance Sheet
FY22 FINANCIALS Balance Sheet For personal use only $’000 Note 30-Sep-22 30-Sept-21 Notes Cash and cash equivalents 2,467 4,471 1. Includes FY22 R&D tax incentive receivable ($0.42 Trade and other receivables 1 million) expected to be received in the current 898 787 quarter Prepayments 106 126 Total