Janison eyes UK market after sealing new PISA distribution deal, shares jump
Link copied to
On a rough day for ASX tech stocks, Janison Education Group (ASX:JAN) was one of the few that bucked the trend on the back of a new distribution deal for the UK market.
The edtech platform announced it’s been accredited by the Organisation for Economic Cooperation and Development (OECD) as the exclusive provider of its PISA for Schools learning platform.
The Program for International Student Assessment, PISA is a standardised program used to test reading and science literacy for 15 year-old students.
Back in April 2019, Janison signed a five-year partnership with the OECD to look after the digital rollout of PISA for Schools globally.
Shares in JAN have climbed from around 40c in November 2020 to consistently trade near 80c through the middle of 2021.
To calculate revenues from its PISA distribution role, JAN bases the market opportunity on an average annual fee of $7,000 per school.
In March this year it announced similar OECD approval for the Australian market, and by mid-April said it had signed around 200 schools to the platform for estimated revenues of around $1.4m.
“More Australian schools are expected to join the program before testing begins in August,” the company said today.
Janison flagged the total addressable market for the UK at $50m, based on a total of 7,200 secondary schools — around 2.6x the total pool of Australian schools.
While UK school purse strings were tightened through the height of the pandemic, Janison said it hopes to benefit from positive macro drivers as education spending increases in the year ahead.
The company also said its PISA platform offers a more flexible standardised testing model as schools adapt to the disruption caused by the pandemic.
While it’s flagged the UK as its next key market, JAN is looking to leverage its OECD partnership to drive the digital rollout of PISA for Schools across international markets.
Along with the UK and Australia, the company is also the National Service Provider for PISA in the US market, meaning it takes full responsibility for the platform rollout.
So far the US rollout has been limited although the company gained some initial traction in some other markets, particularly Russia where it provided the PISA assessment software for 1,750 in 2020, with plans to lift that above 2,000 in 2021.
Revenue for the half-year to December 2020 came in at $15.9m which flowed through to core earnings of $2.8m.