Teaching-focused tech pioneer Janison Education Group [ASX:JAN] has released its preliminary unaudited financial results and trading update for the first half of the financial year.
The education platform reported a 42% boost in its EBITDA (earnings before interest, depreciation, and amortisation) compared with the first half of the 2022 financial year.
Gross profit likewise increased, with earnings totalling $14 million, which became a 12% improvement at the same time the prior year.
With its rising share price on Thursday, JAN went up 3.5% in the last month. However, its stock is still sitting under the red line by 54.5% over the course of the year.
Source: tradingview.com
Janison Education enjoys rising profit
The academic technology creator was thrilling shareholders today when it announced highly satisfying results in its unaudited half-year report.
For the period ending 31 December 2022, the company reported a total of $2.7 million in EBITDA, representing a 42% increase at the same time in the previous financial year.
The jump in earnings understandably had a hand in profit increase, and so it’s not surprising the company also revealed a 12% boost in this segment, to a total of $14 million.
With gross profit up 12%, a positive change was noted in the gross profit margin, one ppt versus that which occurred in FY22, 65% up year-on-year and 34% better than FY19.
Janison’s assessment revenue grew 46% on half-year FY2022, and its core solutions revenue growth also went up 2%.
Overall solutions revenue declined, however, which the company put down to event timing in the second half of the year.
JAN said it hit a record in client wins in 1H23, with a $3 million total contract value and notes the opportunity to expand.
David Caspari, CEO and Managing Director of Janison Education, commented on the results:
‘We are pleased to announce strong first half trading results for FY23, which reflects our unwavering commitment to delivering high-quality assessment solutions that deliver meaningful outcomes for our students and learners around the world. Our investment in innovation and technology has positioned us well for continued growth, and we are confident in our ability to maintain this trajectory, driving positive results in the future.’
Janison looking ahead into H2 FY23
The company did manage to achieve a cost reduction for the June 2022 period and reported $6 million in cash on hand as at 31 December 2022.
Janison is positive about its cash balance, looking forward to ‘favourable’ receipts to come through for the second half of FY2023.
Total year guidance revenue is $41–43 million, with an annual growth rate of between 13–20%.
Gross profit is predicted to reach $27–28 million by the end of FY23, and the gross margin is floating around the same 65–66% zone.
EBITDA for the end of the 2023 financial year has been set for around $4–5 million.
JAN showed confidence in the likelihood it can achieve positive free cash flow for the full financial year.
Source: JAN
Five bargain stocks
2022 was a year that was fraught with more and more challenges.
And we’re not quite out of the woods yet.
With many of the effects of the pandemic still lingering, we were handed an influx of new challenges — inflation, war, continually rising rates…
Households and businesses alike were — and still are — feeling the pinch.
The silver lining is that in times like these, some real ASX stock bargains can emerge — if you know where to look.
Our small caps expert Callum Newman has done the hard work for you.
He’s found five of what he calls ‘the best stocks to own in Australia’ right now.
And the best part is, right now, they don’t even cost that much.
Click here to discover Callum’s top five Aussie bargain stocks.
Regards,
Mahlia Stewart,
For Money Morning
