You make a good point. If 50% of the customers go back to ISS...

You make a good point. If 50% of the customers go back to ISS and 50% stay with Schrole and Schrole get 100% of revenue then the revenue might not change at all.

That is correct (and that’s before any new customers from Faria and/or direct sales).

The sales record has been poor if you take out the ISS schools deal which triggered a whole bag of shares for the MD a few years back even though more of the revenue was going to ISS than to Schrole.

I am not sure how meaningful it is to take out the ISS schools, given that the terms of the ISS-Schrole agreement heavily restricted the number of schools SCL could effectively market their product to; the way I see it is that Schrole started from ~150 schools 3 years ago (when the agreement started) and has got to ~350 schools as of now, which doesn’t look all that bad to me.

Next 6 months will be interesting to see how many schools leave and how many new ones come onboard via Faria.

Agree. As you will know, Faria service ~3,000 international schools (plus ~7,000 other schools), so even a tiny percentage of Faria customers signing up for Schrole will make a big difference in terms of revenue growth for SCL.

I would like to see more reporting around the platform numbers as so far it hasn't had anywhere near the growth that people were projecting. It seems they have difficult in selling their own product without the help of a partner.

At the time when the ISS-Schrole agreement was signed, the target was for ~380 schools signed up; the current ~350 is behind that, but not by far. Again, part of the reason is that the terms of the agreement put some heavy limits on who SCL could market to, which is why Schrole have entered into a new agreement (with Faria). The fact that they are now also adopting a direct sales model, to onboard new schools outside the Faria agreement, makes me think they do have a modicum of confidence that it will be a worthwhile endeavour.

I think this will continue to drift downwards until people see an increased customer uptake. Milking the existing customers for more revenue doesn't seem to be a driver for the shareprice to date.

I am not going to comment on the SP per se (especially during tax-loss-selling season), but certainly new revenue and better margins will help. Personally, as new product modules are going to be released over the next few months, I am largely indifferent to whether revenue/GP growth is going to come from upselling, new customers, or both.

Cheers