ASX:RCL
ReadCloud Ltd
Investment Summary
The fund managers believe that ReadCloud Ltd is experiencing a significant turnaround, underscored by its recent performance. In their opinion, the company’s reported revenues of $5.2m with a positive operating cash flow of $2m reflects strong growth potential, particularly following new management’s appointment. The fund managers express optimism as ReadCloud's revenue increased by 13% to $8m for the half-year ending March 2024, leading to an EBITDA of $1m, a noteworthy achievement for a company with a market capitalization of just $8m. Furthermore, they highlight the promising trajectory in digital curricula and VET training, with expectations of over 25% growth in new school take-up for this year. The cyclicality of school billing suggests that ReadCloud may see its strongest cash flows in the upcoming quarters, with forecasts indicating FY25 could be its best year yet. Fund managers maintain a positive outlook on ReadCloud’s future.
Commentary From The Managers
Cyan Investment Management
31 Jan 2025
$0.09
- ReadCloud Ltd. is experiencing strong performance with notable growth in its VET-in-school products.
- Impressive take-up in new schools is anticipated to drive growth exceeding 25% this year.
- The cyclicality of school billing indicates that the next two quarters will yield the company's strongest cash flows.
- FY25 is forecasted to be ReadCloud’s most successful year to date, ending in September.
- Cyan Investment Management continues to hold a positive outlook on ReadCloud based on these growth indicators.
Cyan Investment Management
31 May 2024
$0.07
- ReadCloud Ltd specializes in digital learning solutions for secondary schools and the VET sector.
- Cyan Investment Management notes meaningful signs of a turnaround since new management was installed last year.
- The company reported its 1H24 earnings for the period ending 31 March 2024.
- Revenue increased by 13% to $8 million, demonstrating significant growth compared to prior years.
- A positive EBITDA of $1 million has been achieved, important for a company with a market cap of $8 million.
- ReadCloud holds no debt and has $3 million in cash, contributing to financial stability.
- Cyan Investment Management continues to hold its position based on these developments.
Cyan Investment Management
30 Apr 2024
$0.06
- ReadCloud (RCL) demonstrated strong performance with a +28% increase.
- Reported customer revenues of $5.2 million for the quarter.
- Achieved positive operating cash flow of $2 million.
- Specializes in providing digital eLearning solutions for Secondary Schools and the Vocational Education and Training (VET) sectors.
- Evidence of a significant turnaround following the installation of new management last year.
- Cyan Investment Management continues to hold a positive outlook on ReadCloud.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.