IODM Achieves Major Revenue Growth in UK Education Sector
IOD (IOD) Share Update November 2024 Wednesday 20th
IODM Reports Significant Revenue Growth in UK Education Sector
IODM Limited (ASX: IOD) has reported a substantial increase in revenue from its UK Education segment, marking a 306% growth compared to the same period last year.
Instant Summary:
- October 2024 UK Education revenue reached approximately AUD289k.
- 306% increase compared to October 2023.
- Significant contributions from five original universities.
- Four new universities added limited revenue of AUD18k.
- Expected cash receipts for December quarter to be AUD670k.
Revenue Growth Details
IODM Limited has announced a remarkable increase in its UK Education segment revenue, achieving approximately AUD289k in October 2024. This represents a 306% increase compared to the same month in the previous year. The five original universities that contributed to the revenue in October 2023 were responsible for AUD271k of the October 2024 revenue, showcasing the effectiveness of the revised revenue-sharing agreement and the IODM connect platform.
Four additional universities were onboarded during the first half of 2025, contributing a limited revenue of AUD18k for October 2024. However, from November 2024 onwards, all nine universities are expected to fully contribute to the company's monthly UK Education revenue.
Future Projections
The company anticipates cash receipts for the December quarter to reach AUD670k, reflecting a 38% increase on the previous corresponding period. Additionally, unaudited revenue for the first half of 2025 is expected to be AUD1.16m, marking a 38% increase on the previous corresponding period.
The October 2024 revenue performance has demonstrated a greater than 50% increase in partnership revenue from the original five universities due to the adoption of the IODM connect platform. This has resulted in a significant reduction in bad and doubtful debts for the universities, decreased costs in managing student invoicing and debtor management, and strengthened cash collection positions.
The substantial increase in revenue from the UK Education sector is likely to positively impact IODM's stock, as it demonstrates the company's successful expansion and effective implementation of its platform. The growth in revenue and the addition of new universities indicate a strong potential for further expansion in the education sector.
Investor Reaction:
Analysts are likely to view this announcement positively, as it highlights IODM's ability to significantly grow its revenue and expand its market presence. The successful implementation of the IODM connect platform in the education sector may lead to increased investor confidence.
Conclusion:
Investors should consider the potential for continued growth in IODM's UK Education segment and the broader implications for the company's expansion into other regions. Staying informed on IODM's strategic developments will be crucial for making informed investment decisions.