- Human Resources and training tech provider Schrole Group (SCL) releases its first-half results
- The company posted revenues of $2.99 million, up 21 per cent from 1H 2022
- Total cash receipts jumped 23 per cent to $2.61 million
- Schrole is seeing sales increase as it implements AI tech in its job ad writing software products
- The company has guided towards increasing sales and revenue growth in 2H 2023
- Shares closed eight per cent lower, trading at 23 cents at market close
Schrole Group (SCL) has published its interim financial report for the first half of CY23, posting revenues of $2.99 million, up from $2.47 million compared to 1HCY22, the prior corresponding period (PCP).
That reflects an increase in revenue of 21 per cent PCP.
Software revenues jumped 23 per cent to $1.9 million and training revenue to $1.06 million, a rise of 17 per cent.
Total cash receipts jumped 23 per cent to $2.61 million over the PCP. Again, software growth led the charge at a 43 per cent increase to $1.04 million and training up 13 per cent to a higher $1.57 million.
The same was true for invoiced sales. That metric jumped 21 per cent to $2.95 million with software up 22 per cent over the PCP to $1.9 million and training up 18 per cent to $1.1 million.
Schrole’s training division, Schrole Develop, continues to see a strong post-COVID recovery in the Australian business with domestic demand high for courses among new and existing customers.
This has led Schrole to post strong margin performance in its 1H results – as well as strong performance with regard to increased exposure to the international education market. To this end, Schrole has also delivered a short course product series as part of its overall HR tech offering.
The company posted a loss for 1HCY23 of $1.26 million versus $1.17 million in the PCP which Schrole attributed to increased investment in marketing, sales and accounts; as well as management changes including the hiring of a new CFO.
Cash and cash equivalent were positive as of June 30 2023 with $1.36 million in the coffers. Net operating cash outflow for 1HCY23 improved by 40 per cent.
The company is approaching cash breakeven with training and software sales both growing in tandem, and, $1 million in cost reductions set for Q3 of FY23.
Average 12-month contract value climbed eight per cent to $11,220 and the company advanced relationships with international schools and mining companies through Schrole Develop across 1HCY23.
Notably, the company points towards its leverage of the AI thematic. Customer experience and software capability metrics are both being enhanced by the utilisation of extremely popular AI solutions.
This forms part of the company’s confidence looking forward – increased sales and revenues are forecast to continue heading into 2H23, as stated by the company.
AI capability has already been programmed into Schrole’s recruitment platform, Schrole Connect, which uses a language model to auto-populate draft job ads and position descriptions. This helps engineer each advertisement for SEO reach and targeted data advertising, assisting in helping companies find the right applicants.
The company also pointed to increased use of its Schrole Cover substitute teacher organising software in overseas markets compared to its existing use in WA schools.
“The company will continue to focus on improving its SaaS retention rates … which will help diversify the business’s revenue streams as well as boost growth and margins,” Schrole Managing Director Rob Graham said.
“The team implemented sales initiatives which resulted in increased new sales … leading to higher revenue growth in both software and training divisions.
“Alongside these initiatives, Schrole undertook a strategic review of its operations which is expected to save the Company around $1 million per annum.”
SCL shares closed eight per cent lower, trading at 23 cents at market close.