UKIS & GUSC Discussions/Research20 Apr 2015 16:56
Apols for my delay in posting this, but wanted to make sure I had all my positions as I'd want them etc. and I wanted to do some follow-up reserach to validate the things I had learnt from discussions. I will do this two bits as not enough space ...
Part 2 of 2:
Now here is the best bit. I asked about pricing and that was very simple and transparent .. it basically works in bands. The more pupils there are in a school then the higher the price. The fee was licence based and paid annually. The specific bands are:
000-100 pupils £550
101-300 pupils £650
301-499 pupils £695
500+ pupils £750
Now we know already that 200 are committed (as at Feb). That equals revenues already of £100k. One assume more schools will be signed up. So, I did some scenarios, and this is what came u...
Now, look at the table below - even if they get 10% at the lowest cost (£550 per year) then they will be sat on revenues of at least £1m a year minimum. When I tipped this company last week it's mcap was £1.2m. Now admittedly lets remind oursleves that GUSC own 30% of Soortsdata Ltd at the moment, so revenue for GUSC would be around £350k for a conservative number of schools and at the lowest rate being calculated. In other words there is good upside to this number.
No. of Primary Schools: 20000 No. of Schools £550
1% 200 £110,000
2% 400 £220,000
3% 600 £330,000
4% 800 £440,000
5% 1,000 £550,000
6% 1,200 £660,000
7% 1,400 £770,000
8% 1,600 £880,000
9% 1,800 £990,000
10% 2,000 £1,100,000
Now one assumes that private schools will also be targeted and is in addition to the above.
Then add to that, I note from the Youth Sporst Trust Website that they also work with Middle and Secondary schools too, and one assumes there will be a product at that level too. Remember this istheir 'first' prooduct.
Tony (the NED) also indicated that they are looking at other markets and pointed me to the new NED's that were appointed and suggested to me that that was not a coincidence. the inference being they already know what they want to target next and watch this space for that.
Now, looking at the Mcap and the very simple and transparent revenue model, and then looking at the management, and then looking at the scope, product potential and the contacts this is I believe destined for great things, and at these sp level I am topping up where ever possible since by end of year I fully expect this to be worth at least double but likely more.0
Remember they will be releasing other products and targetting other markets too ....
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