October was a memorable month for specialist recruitment technology company Schrole Group Limited (ASX:SCL).
On October 12 the company’s shares commenced trading on the Australian Securities Exchange (ASX) following a very successful RTO raising. Schrole closed its capital raising early and well oversubscribed, raising the maximum subscription of $6 million, giving the company an implied market capitalisation of $11.7 million.
Schrole develops recruitment-focused technology and staff training solutions that have acquired a significant share of the local and international education markets. The Company’s three primary products – Schrole Connect, Schrole Cover and Schrole Develop are currently being used by more than 215 schools in 35 countries worldwide and are earning annuity income.
Schrole Managing Director Rob Graham said the company successfully closed its offer early and oversubscribed. “I’d like to thank the Board, our shareholders and the whole team at Schrole for making this possible,” Mr Graham said. “The successful completion of this capital raising ensures that we will be able to progress our development plans and continue to deliver top-class products Schrole connects with investors for oversubscribed ASX listing worldwide. We look forward to updating everyone on the milestones of the Company and encourage you to follow us on our website and social channels.”
The Company plans to use the capital it has raised for ongoing improvement of its software solutions and to expand and diversify its markets.
Mr Graham said the market showed strong support for the Schrole RTO because of the company’s strong business model. “Schrole had been growing organically over the past year and has already had great success despite limited funds to drive sales and marketing. “It is clear we are ready to accelerate our sales and grow our revenue, as we are targeting global opportunities in a very large market.”
That target market includes:
- Over 8,900 international schools and 400,000 international school teachers globally – forecast to almost double over the next 10 years*
- An estimated 80,000 teacher placements worldwide each year; and a
- Recruitment market estimated to be worth US$2 billion
*ISC Research Limited
The company already has a current client base of more than 215 schools in 35 countries and a rich active database of over 50,000 teachers.
“It is an organically growing market with an estimated 850 new schools to open globally this year, so it provides us with growth opportunities, particularly as our superior database and technology platform is better than anything else out there,” Mr Graham says.
A day before its listing, Schrole announced it had been awarded the tender to implement a staff messaging system for Perth’s Sir Charles Gairdner Hospital.
The term of the contract is for an initial one year period, with extension options at the discretion of Sir Charles Gairdner Hospital of up to a further four years.
Mr Graham said the contract win is a positive step towards expanding the use of the company’s Schrole Cover application by providing a “white labelled” version of the software for use in other industries, such as healthcare. “The tender with Sir Charles Gairdner Hospital indicates the scope for application of our Schrole Cover system beyond schools.
We are very pleased to be able to confirm we will be providing this service to hospitals, and will be actively investigating further opportunities for Schrole Cover in healthcare and other industries,” Mr Graham said.
Schrole delivers innovative, technology-based recruitment platforms and consulting service solutions. The company has evolved through its depth of knowledge of the Australian and International education sector and is now diversifying its technology and service solutions for other sectors.
Schrole has three business units:
Schrole Connect, an online Software-as-a-Service (SaaS) platform for efficient and effective recruitment of international school teachers;
Schrole Cover, a cloud-based SaaS platform for the fast filling of casual staffing positions; and
Schrole Develop, a training and consulting organisation that provides Australian-accredited leadership training and strategic consulting services to schools.
The company has a very experienced management team led by MD Rob Graham, GM Operations, Michael Kirkwood, Chief Financial Officer Nick Allan and Consultant Greg Smith.