Hi XHYI am certain they can breakeven in FY22, but that is...

Hi XHY
I am certain they can breakeven in FY22, but that is entirely up to decisions they make between now and then. If they decide to keep investing more for growth, then maybe not quite in FY22. However, I think the odds are strongly in favour of breakeven or better because of the one-off expenses increases that are now past, which I outlined in my last post: Post #: 59581285. I repeat them here:

"The 14th Feb announcement makes it very clear that this (expenses) will revert to a significantly lower growth rate due to:

1. Head count growth occurred during FY21, leading to annualisation increase in 1H FY22. This should therefore now only grow at low single digit in line with wages increases.
2. Removal of Job-keeper and other Government funding has already occurred.
3. Increase of Op-Ex from the two small acquisitions only occurs once whereas the Gross Profit keeps increasing.
4. The Global 24/7 exam support team has already been established so will not contribute much to Op-Ex increases moving forward."

The decision to buy/hold/sell JAN is largely one about trust or otherwise in management to invest capital wisely for the best medium-term return for shareholders. I for one am happy to back any decisions made by management because of what they have already achieved and because their incentives are aligned with shareholders. Wayne Houlden has >68M indirect shares and there have been 5 Director buys and no sells since Sep 2020.

P.S. I think another reason for the slow growth in PISA schools in US and GB, apart from Covid school closures and a lack of sales support, was the need to set up a global 24/7 exam support team first. Now that has been completed, Covid is easing, and JAN has strengthened their sales & marketing team, that should start to accelerate significantly this half.