Schrole Group (ASX:SCL), which supplies the lucrative international schools industry with technology-based recruitment services, is already reaping the benefits of its recently announced alliance with leading US-based international school service provider International School Services (ISS), with a surge in renewals and a significant increase in average subscription price paid by its renewing customers.
It has also said it believes the strong renewal rates and ability to secure significant price increases further reinforces the strategic importance and improved customer proposition of the ISS-Schrole Advantage platform due to be launched in September 2018.
With the combined strengths of both organisations, Schrole believes it is growing into a global market leader position for international school recruitment.
Schrole has also been hard at work migrating its own existing customers on to the new technology with 45 international school subscription licenses already renewed for the 2018/2019 international school year.
The company reports that the sales so far represent about a quarter of their customers, with the remainder to follow progressively over the coming school year.
Schrole will be encouraged by the type of renewal subscriptions, with about 40% of contracts opting for the higher-priced ISS-Schrole Advantage Premium product.
The Premium edition takes advantage of ISS’s global position, packaging Schrole’s technology with attendance at international school recruitment fairs. Previously the ASX junior was not able to offer attendance at these sought-after events.
Under a binding term sheet between ISS and Schrole, all ISS-Schrole Advantage services will see the net revenue shared 50:50 by Schrole and ISS.
Commenting on the subscription process, Schrole Managing Director Rob Graham said:
The strong renewals of Schrole customers for the 2018/2019 international school year onto the ISS-Schrole Advantage platform provides further confirmation of the benefits of the ISS-Schrole Alliance, both to Schrole and to the international school sector.
“The average price increase achieved is particularly encouraging and provides compelling evidence of the improved value proposition for international schools that the ISS-Schrole alliance provides,” he said.
Schrole will be particularly pleased with its expansion into the Qatar Foundation schools. The foundation, which is chaired by a member of the Qatari royal family, has effectively doubled-down on its agreement with Schrole.
As part of the renewals process the group has expanded coverage from 7 to 13 schools, representing a total subscription value of over US$40,000 per annum.
There may be more good news to come with Schrole engaging in discussions with Qatar Foundation to further increase its offering, potentially through its professional development training service, known as ETAs.