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Appendix 4E
Preliminary Final Report to the Australian Securities Exchange
1. Company Details
Name of Entity: | Schrole Group Ltd |
ABN: | 27 164 440 859 |
Reporting period: | for the year ended 31 December 2021 |
Previous period: | for the year ended 31 December 2020 |
2. Results for Announcement to the Market
The current year financial results represent the consolidated entity comprising Schrole Group Ltd ('Schrole Group', 'Company') and its wholly owned subsidiaries for the year ended 31 December 2021.
2021 | 2020 | ||
$ | $ | % | |
Sales revenue | |||
- Software | 3,976,976 | 4,696,199 | -15% |
- Training | 1,286,761 | 979,138 | 31% |
Total sales revenue | 5,263,737 | 5,675,337 | -7% |
Other revenue | 210,032 | 469,265 | -55% |
Total revenue | 5,473,769 | 6,144,602 | -11% |
EBITDA | (2,035,304) | (1,033,235) | -97% |
Net profit/(loss) | (2,438,844) | (2,177,382) | -12% |
Cash and cash equivalents | 4,964,008 | 5,107,987 | -3% |
Net current assets / (deficiency) | 2,409,626 | 1,547,796 | 56% |
Net assets / (deficiency) | 3,694,983 | 2,189,108 | 69% |
Net cash (used in) operating activities | (1,769,217) | (1,000,811) | -77% |
- Finished FY21 with a strong cash position of $5.0m, reflecting a combination of the capital raise undertaken during the year and increasing customer numbers, improving margins in the software business and higher training sales, generating improving net cash from operations.
- Continued investment to bring forward delivery of high quality additional Schrole HR product modules saw the launch of Schrole Connect 3.0 and Schrole Events 1.0 during the year, with Schrole Engage 1.0 delivered subsequent to year end. All Schrole HR modules are now in market, expanding cross-sell and up-sell opportunities. Investment made in an expanded sales and account management team mid 2021 to support continued strong customer renewal rates, sales of the expanded product suite to existing customers and sales to new customers, particularly in the new markets of Europe and the Americas. Supported by the improving cashflow from operations and the capital raise in Q4 2021 (net proceeds $2.5m), 2022 will see continued investment in these areas and additional marketing of the full Schrole HR product suite across the globe.
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- FY21 sales revenue fell by 7% to $5.3m with training revenues continuing post-pandemic recovery whilst software revenues were impacted by the amended ISS agreement (the change was to record 50% of Connect/Advantage renewal revenue with no distributions to ISS, from previously recording 100% of those revenues, with more than 50% then distributed to ISS). Gross margins improved as a result of this amendment.
Please refer to the attached Annual Report to Shareholders for further commentary.
3. Net Tangible Assets
2021 2020
Cents Cents
Net tangible assets/(deficit) per ordinary security | 0.2 | 0.1 |
The net tangible assets per ordinary security is calculated based on 1,729,276,990 ordinary shares on issue as at 31 December 2021 (31 December 2020: 1,473,183,763 ordinary shares).
4. Audit Qualification or Review
Details of audit/review dispute or qualification (if any):
An unqualified opinion relating to the financial statements has been issued by the Company's Auditor and is included in the Annual Report to shareholders.
5. Attachments
Details of attachments (if any):
For the year ended 31 December 2021:
- Annual Report to Shareholders for the year ended 31 December 2021
- Corporate Governance Statement
- Appendix 4G
6. Signed
_____________________________________
Rob Graham Managing Director Date: 25 February 2022
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Schrole Group Ltd
ABN 27 164 440 859
Annual Report
31 December 2021
Corporate Directory
For personal use only
Directors | Stuart Carmichael | |||||
Robert Graham | ||||||
James King | ||||||
Guy Perkins | ||||||
Colm O'Brien | ||||||
Company secretary | Benjamin Donovan | |||||
Registered office | Ground Floor, 142 Hasler Road | |||||
Osborne Park | WA | 6017 | ||||
AUSTRALIA | ||||||
Telephone: +61 8 9230 7000 | ||||||
Principal place of business | Ground Floor, 142 Hasler Road | |||||
Osborne Park | WA | 6017 | ||||
AUSTRALIA | ||||||
Telephone: +61 8 9230 7000 | ||||||
Share register | Link Market Services Limited | |||||
Locked Bag A14 | ||||||
Sydney South | NSW | 1235 | ||||
AUSTRALIA | ||||||
Telephone: +61 1300 554 474 | ||||||
Auditor | BDO | |||||
Level 9, Mia Yellagonga Tower 2, 5 Spring Street | ||||||
Perth | WA | 6000 | ||||
AUSTRALIA | ||||||
Telephone: +61 8 6382 4600 | ||||||
Solicitors | Hamilton Locke | |||||
Suite 4201, Level 42, Australia Square, 264 George Street | ||||||
Sydney | NSW | 2000 | ||||
AUSTRALIA | ||||||
Telephone: +61 2 8072 8271 | ||||||
Bankers | National Australia Bank | |||||
Level 14, 100 St Georges Terrace | ||||||
Perth | WA | 6000 | ||||
AUSTRALIA | ||||||
Telephone: 13 22 65 | ||||||
Stock exchange listing | Schrole Group Ltd shares are listed on the Australian Securities Exchange | |||||
(ASX code: SCL) | ||||||
Website | www.schrole.edu.au | |||||
Corporate Governance Statement | https://legal.schrole.edu.au/ | |||||
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Directors' Report
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Your Directors present their report, together with the financial statements of Schrole Group Ltd ("the Company") and controlled entities ("the Group") for the financial year ended 31 December 2021.
Directors
The names and the particulars of the Directors of the Company during or since the end of the financial year are:
Name | Role | Appointed | Resigned | |
Stuart Carmichael | Non-Executive Chairman | 5 October 2017 | ||
Robert Graham | Managing Director | 5 October 2017 | ||
James King | Non-Executive Director | 29 November 2019 | ||
Guy Perkins | Non-Executive Director | 27 October 2020 | ||
Colm O'Brien | Non-Executive Director | 20 October 2021 | ||
Shaun Hardcastle | Non-Executive Director | 5 October 2017 | 18 May 2021 |
The principal continuing activities of the Group during the year was the provision of software solutions primarily to the education sector, and the provision of training services.
Dividends
There were no dividends paid or recommended during the financial year ended 31 December 2021 (2020: Nil).
Review of operations
Schrole Group Ltd reported a loss for the year ended 31 December 2021 of $2,438,844 (2020: $2,177,382 loss).
The net assets of the Group as at 31 December 2021 were $3,694,983 (2020: $2,189,108).
The Group's cash and cash equivalents as at 31 December 2021 were $4,964,008 (2020: $5,107,987).
Significant changes in the state of affairs
There were no significant changes in the state of affairs in the year ended 31 December 2021.
Highlights during the year
Schrole is successfully moving towards realising its ambition of being a complete HR SaaS solution for teachers and educational organisations. Two additional modules of the Group's Schrole HR platform were successfully launched in the second half of the year with Schrole Connect 3.0 launched on 15 July 2021 and Schrole Events launched on 21 September 2021. In addition, subsequent to year end a third module, Schrole Engage 1.0, was launched on 21 February 2022, ahead of time and within cost expectations. The release of Schrole Engage 1.0 means that all Schrole HR modules are now in market, significantly expanding cross-sell and up-sell opportunities. The delivery of the new software represents a significant strategic opportunity, with the full Schrole HR solution available for sale to the international schools sector and adjacent markets.
On 8 July 2020, Schrole announced that it had agreed to terminate its agreement in June 2022 with International Schools Services, Inc ('ISS") for sales of the ISS-Schrole Advantage product ('Advantage'). Up to
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Schrole Group Limited published this content on 27 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 February 2022 21:20:06 UTC.