Janison Education Group Limited (JAN) Earnings Call Transcript & Summary

Good morning, and welcome to the Janison Education Full Year '25 Investor Webinar. My name is Danny Younis, and I help with Investor Relations for Janison. With me this morning, we have the CEO of Janison, Sujata Stead; and the CFO, Dharmendra Singh. Before I hand over to Sujata, just to note that we'll be having a Q&A session at the end. [Operator Instructions] I would now like to hand the webinar over to Sujata. Please go ahead.

Thank you. Thank you, Danny, and welcome, everyone, and good morning. And my name is Sujata Stead. I'm the Chief Executive Officer. And with me, I have Dharmendra Singh, our Chief Financial Officer. And very pleased to present to you our Janison's full year 2025 results, and I'll start off first and then hand over to Dharmendra to talk about the financials. I'd like to first begin with the acknowledgment of country. Janison acknowledges the traditional owners and custodians of the land on which we stand today and pay our respects to the elders past and present. We recognize their ongoing connection that indigenous people have to their land and the importance of their cultural heritage, the community. In terms of our FY '25 highlights, before we share with you the financials, there's just a couple of highlights that I wanted to share with you. I know that I've talked to many of our shareholders during the year, and this is my -- FY '25 was the first full financial year as the CEO of Janison Education Group for myself. And as you know, one of the focus for me has been very much ensuring the organization has a new strategy, a laser sharp focus on a clear strategy, and ensuring that we have the right leadership team to deliver on our strategy and our ambitious growth and transformation agenda. I'm very pleased to share with you today that now we do have the full new executive team in place, as you can see on the screen. So we have executives with diverse experience, skills and capabilities and together is an exceptional team who are all well poised to deliver at pace our transformation strategy. Then the next slide, what I want to share with you, of course, is the key kind of credentials for Janison, I know again I've shared the previous version of this slide at the midyear update last year. And what I'm trying to convey through this slide is that, yes, we have a great transformation strategy for Janison. It's all about taking our focus back on our platform and ensuring that we actually realize our organization's full potential by ensuring that we have a world-class platform to provide organizations exceptional services in terms of digital assessment delivery end-to-end. But what I'd like to remind everyone is that we are actually delivering on the growth and transformation strategy on a very kind of impressive set of track record and credentials. So it's a strong foundation. I'm very pleased to share with you today that, that foundation continues building and the numbers keep getting stronger. Some of the numbers I want to share with you today is, of course, our revenue. We've had 9% revenue growth over prior year to $47 million. We delivered 7 million assessments across 117 countries, and we've actually delivered testing to over 10,000 schools who have used Janison digital assessment platforms across Australia. So some very strong numbers that we are very proud of and the impact that we are making in digital assessment and learning in Australia and across the world. In terms of the FY '25 performance highlights. As I've shared with our shareholders during the year in FY '25, FY '25 strategy has been a deliberate strategy of focusing on ensuring that we are building a solid, strong foundation, investing in our business so that we have the right capabilities, right skills, right infrastructure to realize our full potential and deliver sustained growth, but do that in a manner that we are also simultaneously growing the business. And from that perspective, I'm very pleased to share that we've ended FY '25 very much achieving that, which is building a strong foundation, but also delivering growth and momentum at the same time. So some of the numbers, of course, is we achieved revenue growth of 9% in a year of very disciplined execution. EBITDA and cash position is in line with prior period, as I've shared in my previous updates, and that's very much reflecting the deliberate need for reinvestment into the business to ensure that we have the right capability, skills, experience to ensure that we can keep growing. In terms of balance sheet, again, very, very strong balance sheet at June '25. And very pleased from that perspective that we have been able to maintain the balance of growing and investing in the business, but in a manner that we also exercised strong fiscal discipline as well. Now in terms of some of the narrative -- some of the qualitative kind of narrative behind those numbers, just want to highlight a few things. As you know that NAPLAN Online is one of our flagship programs. This year, we delivered about 7 million tests worldwide, including for NAPLAN Online, about 1.3 million students across about 10,000 Australian schools. In addition, of course, we are very, very delighted to welcome a new strategic platform customer in the New Zealand Ministry of Education, where we will be providing the digital assessment tools and expertise for the delivery of a new assessment across New Zealand schools in their bilingual curriculum, both in the New Zealand curriculum and the Maori Aromatawai Tool as well. And of course, as you know, one of our largest contract is with the New South Wales Department of Education. We have a long-standing partnership with the New South Wales Department of Education that spans over 20 years. But one of our most recent contract is the one for the digital delivery of the opportunity class and selective high school assessments. And 2025 was year 1, where we digitize the assessment. We administered them to a new network of centers and also to new contents. While testing went to plan in 106 venues, of course, as you know, in three of the largest test venues in Sydney, we had cloud management challenges. And we work very collaboratively with the department to ensure that every student was impacted completed the assessment. And now going forward, our focus is very much committed to this very valuable and contract that we have with the department, and we are very, very committed to ensuring that we take and take all the learnings from the 2025 testing as we actually start planning for the future rounds of testing. The other, of course, highlight that I want to share is a sales pipeline. I know I've been sharing the sales pipeline in the last couple of updates, and pleased to report that it's grown by 80%. Then looking at the Product side of our business. ICAS had a very strong year. In previous years, ICAS has either had static or minimal growth, but very pleased that we've returned and return ICAS back to growth and ended the year with 15% growth. We'll talk a bit more about that in subsequent slides. In terms of innovation, of course, I think what we are very proud of is the launch of Jai, which is our AI-powered assessment platform that combines human expertise with AI to pave the way for the next generation of digital assessments. In my next slide, I'll talk a bit more about Jai. So Jai is very much our latest AI-enabled platform. We have been talking quite a bit about this. And what we are very pleased about is the platform is now fully operational. It's been embedded internally to our internal development workflow, including ICAS. And also very pleased to share that we have also adopted -- it has been adopted by our first Jai customer, by Chartered Accountants of Australia and New Zealand. And what really is exciting about Jai as an AI platform for our business actually is it's a great example of where we are actually combining artificial intelligence with deep pedagogical expertise through a human-in-the-loop model, where Jai actually sits as a member of the item development team, working alongside our human item developers to ensure that we can scale up without compromising quality, what is often one of the biggest barriers to scalability for assessments. That is the creation of items that can often be laborious, time-consuming and expensive. And what I would also love to share with you at this point is some of the results of the adoption of Jai both internally and externally. Customer impacts from the stats are, of course, 70% reduction in assessment creation time, 90% acceptance rate or exceptionally high acceptance rate for AI generated items and accelerated delivery of high-quality content. Internally, we have a 50% lower item production costs as a result of use of Jai and 5x more productivity improvements. It has also contributed to 5% product gross margin uplift and enable us to launch a new product in FY '25, which is the ICAS All Stars. And just sharing a quarter of the slide about how delighted the Chartered Accountants of Australia and New Zealand, a long-standing customer is with the adoption of Jai and how helping them with their strategic objectives as well. Now in terms of our FY '25 financial results, I'll just hand over to Dharmendra to take us through the financial results.

Thank you, Sujata, and good morning, everyone, and thank you for joining us today. So I'll be taking you through the FY '25 financial results section of the presentation. So I'll move on to Slide 10, which gives us a bit of highlight on the key metrics that we've been tracking and presenting this over the past few presentations as well. So we have revenue, gross profit, EBITDA and free cash flow. So I'll talk through those in the next couple of slides in a little bit more detail. So moving on to Slide 11, which is the group income statement. So we'll start with some of the key financial takeaways. I think Sujata touched on our revenue growth of 9%. That's been at the back of new platform customer wins, which we also mentioned earlier on and also complemented by our strong results in the product segment as well, particularly ICAS, which again, Sujata just touched on. So we'll talk about some of the segment level information in the next few slides. But at a consolidated level, gross profit, it reduced by about 3 percentage points. That is a result of our investment in transition and partnership with our clients as they move towards the digitized ecosystem. So we will, again, talk about where -- in which segment that has been impacted the most, and then we'll go -- we'll highlight those in the next few slides. So at the OpEx level, the OpEx has gone up by 4% as well. What's pleasing to note is that if you look at the revenue growth of 9%, that's contained at that level. And again, as Sujata mentioned, this has been the first year of our transformation journey. And so having that to be kept at 4% was quite pleasing. That also assisted in maintaining our operating EBITDA at $3.1 million mark, which is consistent with prior period as well. So I'll touch on net loss after tax. So net loss after tax at a statutory level increased by about $3.2 million. Now the thing to note in there that, that includes a one-off adjustment of about $4.5 million to deferred tax assets. That is a nonperformance-related adjustment that is one-off and not cash as well. So we'll talk about that when we get to the balance sheet. But if we exclude this, the underlying net loss was about $1.5 million lower than prior corresponding period. So as I mentioned, we'll sort of cover some of the details at the segment level as well. So firstly, covering the Platform segment. So looking at this segment, it delivered strong top line growth, and that has been supported by the strategic investments in our high state contracts as well. And I think Sujata covered on the delivery in the New South Wales environment, the complexity and how important it was as the New South Wales government also Minister of Education transitioned into the digitized ecosystem for the first year. So that was quite significant in terms of helping us obviously grow the revenue in this segment, but we've also have onboarded new clients as well. We've had some partial losses from customer attrition as well on our legacy systems. But I think we've flagged some of them before as well. So the key one was the Singapore Education Assessments Board. So we lost that revenue, but that has been over a period of last couple of years. At the gross profit level, the gross profit reduction, that has been driven by the revenue mix shift towards professional services and platform. And I think it is important to note that as we have delivered these high stakes complex engagements in the first year of transition for our partners and our customers, it was necessary. And that also has been quite important from us from a strategic perspective because not only it demonstrates our ability and capability in partnering with our customers to deliver those, but also has enabled us to land on some other key strategic customers as well. So I think Sujata mentioned the New Zealand Ministry of Education. So that's at the back of our ability to demonstrate that we are able to deliver this. And I think that's quite important because as a lot of the -- not only locally but globally, as everyone moves into this digitized ecosystem, that does play a very strong position as well. I think OpEx, as I mentioned before, in this segment was up because that also required a lot of support services to our clients as they transition. And I think that is quite strategic from our perspective to invest in that as well. And in addition to that, I think, Sujata also mentioned that we are trying to scale the business to sort of grow for future as well. So there has been a bit of that transformation related adjustment to our OpEx line as well. Both the gross profit and OpEx then obviously impacted our EBITDA in this segment, so which is down to $24 million -- by $2.4 million, sorry, and finishing at about $1.7 million. So look, whilst we've made some strategic investments in the platform side of the business to support long-term growth, the Product segment delivered strong margin accretive performance this year. So look -- I'll take you through that in a little bit more detail now. So if you look at this segment, the revenue is up by about 6%, and that's $1 million. And again, that's at the back of very strong sales from our flagship product, ICAS. And I think Sujata also talked about the All Stars competition that we launched as well. So that really contributed to strong revenue growth of this segment as well. It was also complemented by our other product suite, which is the AAS product. So that combined gave us a 6% growth in this segment. Now what's pleasing to note in this segment as well is the gross margin improvement that has complemented some of our investments that we've made in the Platform segment. And that's at the back of a number of things. And I think one of the things that Sujata just touched on was the efficiencies that we are getting in our product development -- or content development, I should say, from the productivity gains that is coming from using our own internally created Jai AI platform as well. So that has significantly improved our gross margin. And in addition to gross margin, that has also allowed us to streamline some of our processes as well. And hence, our OpEx number also reduced by $1 million as well. So if you look at the bottom line numbers in this segment, that's been a bit of a turnaround. It's gone up about $2.4 million from a loss to a $1.4 million segment EBITDA profit. And that really is positive for us because this is also a bit of a test case for us as to how we'll obviously take Jai as a platform into our other parts of the business as well. So I'll move on to the cash flow statement. So if I sort of focus our attention on the operating cash flow, that's up by $1 million. That's been driven by working capital improvements. And we've been able to then reinvest that in our business, particularly in the product development as we supported our key clients and our customers, but also in the Jai platform as well. That was about $2.2 million, and more than 50% of that was growth related CapEx as well. That left us with a net increase in our cash position of about $0.5 million and leaving us with a closing cash balance of about $10.6 million, which is in line with what we've been expecting for the current year. So I will move on to the balance sheet, and I think I'll start off with saying that the balance sheet is quite strong. We remain debt free. And I'll sort of touch on some of the key highlights and key variances as we sort of walk through that in a little bit more detail. So cash at bank, I think we've talked about that. The reduction in the current assets is predominantly coming from working capital improvements in the trade and other receivables line. But the other adjustments, highlighting that most of them noncash-related adjustments. So if you look at the intangible assets, that's declined by about $6.4 million, that's as we are running of amortization of our customer relationships, particularly from our previous business combinations, and then also the normal amortization charge from our software and our platform as well. So just wrapping the asset section up with the movement in the deferred tax asset, I think I've talked about that earlier on in the first slide. That's a noncash adjustment. And I will sort of highlight again that this is a nonrecurring adjustment mostly done to align and make the accounting practice of recognizing deferred tax assets or temporary differences in line with how we treated the next losses as well. Liabilities, the reduction again reflects working capital improvements, but we've also reverse the deferred tax liability in relation to those temporary differences as well. So I will close off with sort of highlighting that it's a strong balance sheet, debt free. And we've also got $2 plus millions of undrawn facility as well. That really puts us in a very strong position to walk through our second year of our transformation plan and our longer-term value creation pathway that we run. So on that note, I will pass back to Sujata to take us through the strategy and outlook section, but more than happy to take questions in the end as well.

Thank you. Thank you, Dharmendra. So in the last section of our update today, I'll focus on the strategy and the outlook, essentially what our focus is in the current financial year FY '26. And essentially, I think what I would like to share with you is the market landscape where Janison is operating and what is our competitive advantage in that position. Now Janison is in the space of digital assessment delivery. We are one of the pioneers, been there in the business for over 20 years right now and have got that exceptional track record of digitizing large-scale national school exams like NAPLAN in Australia, perhaps one of the largest digital exams of this kind in the world, that requires delivery across different bandwidth, infrastructures and geographical remoteness as well. Similarly, also we do some huge state level assessments like New South Wales, which is one of the largest public school education systems in the world, in the Southern Hemisphere. So I think if you look at those experience that we have, combined with the opportunities in the market, based on latest data, the market is set to -- projected to grow to about -- just about $27 billion by 2032, about 10% to 12% growth annually. And given the -- because I understand we are still on a transformation journey. But given the clarity of our strategy, the capabilities we are building and the focus of being ambidextrous of building and growing at the same time, we feel we are in a very strong position to get a bigger share of the growing global market for digital assessments. Some organizations are already on the journey and some organizations are looking at being on the journey over the next couple of years. And hence, I think what Dharmendra mentioned is financial update is important, I think, in the sense that it's important that we bring these organizations on the journey sometimes might require also bringing them on the journey from paper-based traditional testing to digital and, hence, that component of nature of what platform revenue and services revenue from the platform side of our business. In terms of the geography, our proactive focus is where our team is based, primarily Australia, New Zealand and the surrounding region and also U.K. and surrounding region. But of course, I think as I shared in my previous updates, one of the focus for us also for this year has been the partnership. The entire digital assessment industry and ecosystem has a large number of players who are offering complementary and often competing services. And we are part of that ecosystem, a small organization at the bottom of the world. For us, I think one of the areas of growth that we see is the strategic partnerships. And from a partnership point of view, our growth strategy also is opportunistic, which is that we work closely with partners and, together, offer the best-of-breed solution to our customers that actually provides a clear compelling value proposition. And from that perspective, we are also looking at going to other markets that may not be naturally accessible from us from where our teams are based, but through partnerships, they do become accessible. In terms of our value proposition to our customers, what we offer is an integrated ecosystem that combines our end-to-end digital assessment platform, which does everything right from item creation, to test delivery, to results analysis to results publication. That's beautifully complemented by our delivery services, where we are helping with the administration and the logistical challenges and the maneuvering of how you deliver those tests. And that's supported by our trusted school assessments like ICAS and AAS, which offer valuable insights to school in terms of student performance and scholarships and placement testing, but also school competitions like ICAS, which is a great way of students being able to demonstrate the excellence in academic areas, just a way the number of competition for students who are more inclined to a sports or music and the arts. And all of them is now being enhanced by our latest AI platform, Jai. And that what we are providing is we are providing a kind of a beautiful ecosystem where they are all interdependent. For example, Jai could create those items that feed into our platform and thereby through our delivery services offer great seamless assistant experiences to our customers. That also creates multiple pathways for growth as well. Now of course, I think our ambition of growth and transformation is actually validated by strong track records and stats. As you know, our platform is a highly robust, resilient, scalable and accessible. It has a track record of delivering under -- just under 0.5 million tests at the same time concurrent users. It's ISO 27001 certified security standards. And of course, we have a human-in-the-loop AI capabilities. And of course, we are also growing from a strong baseline of a pipeline that's grown by 80% to nearly $29 million. So essentially, I think it's an exciting market to be in. Janison as an organization, we are very much driven by our value and mission, to unlock the potential in every learners. And given our track record, our partners, our product and the robustness of our platform and our pipeline, we are in a very strong position to continue on the journey of growth and transformation. In terms of our pipeline, just kind of what I wanted to share with you, quite pleased to share with you, is that the pipeline is moving in the right direction. So the number of kind of deals or revenue, which is -- potential revenue, which is in the final stage, which is validated and negotiated has increased. So the pipeline is moving in the right direction. So very pleased with that. Of course, typical sales conversion time is 12 to 18 months. It's large enterprise deals, primarily with governments, they do take time. And in terms of the opportunities, they span both private and government clients. And in terms of the regions we are focusing, that pretty much aligns with our strategy of focusing in APAC and U.K. and the surrounding region. In terms of our focus for FY '26, '25 has been the first year of our transformation journey, and we're very pleased to have completed it another way we wanted it. That means some good, strong foundation, good growth. And FY '26 is to continue on the journey of growth and transformation with focus on 3 interdependent areas. The firstly is execute the go-to-market strategy. We've made a huge amount of investment in ensuring that as an organization, we've sharpened our go-to-market capabilities and strategy, including we have now a highly competent, experienced Chief Growth Officer. We professionalize our tender submissions and our entire sales cycle. We've got some great partners, and we also have a world-class Advisory Committee with leaders in our industry from across key markets around the world. So through a combination of all of this, what we are looking forward to is making sure that we continue having that laser sharp focus on executing our go-to-market strategy, but doing that in a manner that we continue investing in our platform, including our AI capabilities so that the platform continues to meet and exceed customer needs and continue to remain fit for purpose in a sector which is evolving very fast. And finally, all of that is underpinned by driving operational excellence, ensure that we keep the customers at the heart of everything we do and give them the exceptional service that they deserve. So that is very much our laser sharp focus on what we'll be doing as an organization: focusing on strategy in a manner our platform continues evolving and growing with the investment in AI and also continue driving operational excellence. And on that note, it brings us to the end of our presentation. And I -- we have got some time, so very, very happy to take questions at this point.

Thank you, Sujata. Yes, we will now move to the Q&A session. [Operator Instructions] We do have a few questions to go through. So the first question is -- could you give us some idea about the New Zealand Aromatawai Tool contract potential size relative to NAPLAN?

Good question. But at this point, it's still a bit early days. But I think all I can say is that, yes, it is going to be -- it's got the potential to be a significant contract and a significant partnership. And we should be able to share a bit more information in the coming weeks, if not coming months. But from our perspective, I think we are excited because, a, we are helping another national school assessment in another country and take our experiences from Australia and globally through exams for OECD and previously for the Singapore Examination Board and taking that to New Zealand through our best-of-breed solution and together building something which has got potential to be significant.

Thank you, Sujata. There is a question around Jai. And with respect to Jai, can we expect any visible revenue in financial year '27, if not, maybe next year?

The objective is yes. Yes, the objective is '27, yes. I think the whole -- the way we are building Jai, I think, which is a very exciting way and which slightly differentiates us from our competitors is very much we have Wayne, our Founder, who's leading on as the Director of AI Research doing a fantastic job. But what we're doing is we are openly working with customers to ensure that Jai actually does solve real life problems that our industry has in terms of item creation and then further expanding capabilities as we develop our assessment platform further. From that note, absolutely. I think there is -- we're going to continue on the journey of internal adoption of Jai, but also expanding the market penetration with Jai. So yes, I think from FY '27 onwards, we hope we have the revenues moving in the right direction.

Okay. There's a couple of questions around gross margins, so I'll pull them together into one question. So maybe Sujata and Dharmendra, could you maybe comment around the medium- and long-term expectations for gross margin? And is it likely that digital-based opportunities that are in the pipeline can lift those margins in the future?

Yes. I think the answer is yes. I think as we are bringing new customers onboard, I think the margins will keep moving in the right direction, right? But at the same time, I think what I also want to reiterate is that services is a key component of our industry. If you're offering a digital platform, that's our core competitive advantage. But what actually creates the stickiness, the market penetration, the long-term relationships, also not just providing the platform but also being able to provide the services that are required to bring the platform to life and offer seamless experience -- assessment experiences to learners. So I think -- as an organization, I think we will continue working on services. That continues being part of our offering to our customers, thereby creating the customer stickiness and long-term value creation. But of course, I think as Janison diversifies our customer base, we get a bigger pool of customers. We are also bringing those internal efficiencies through Jai and use of AI. Yes, I think we will see margin over time moving in the right direction.

Great. There's also a question around OpEx and the R&D CapEx. So maybe, Dharmendra, you could come in here as well. So effectively, the question is around do you have a view with regards to cost growth? Can you keep cost growth below revenue growth effectively?

Look, I think that's a good question, Danny. One of the things we will highlight is, I think as Sujata talked through, right, this is year 2 of our transformation plan. So we've talked about investments not only in our platform but also capabilities as well because we've got a value creation plan that spans over 3 years now. And so in the first couple of years, we would expect costs will be going up. We will obviously try and keep it below the revenue growth line. But I think as we move forward, particularly next year, that will be the second year of our transformation sort of journey. So we are expecting that our cost will go up because, as Sujata mentioned, we've now got a fully aligned and new executive team as well. So there is that. Plus we'll go back to the gross margin point. As we're supporting our customers from a direct perspective, there's a lot of support services that goes with that. Now we do expect that to moderate. But I think as we go through '26, we will see some pressures on that.

I think what our focus is in FY '25 and FY '26, out of 2 years, we are looking at building our foundation, building our capabilities, automating, bringing AI, embedding AI into our workflows so that as a result of that in future years, we can see the greater productivity, greater efficiency, greater -- as a result of that also greater improvement in margins as well. So in other words, we are not looking at the margin pressure to be a forever road unending, but we are looking at more kind of a finite a couple of years investment that creates -- that enables us then to actually kind of provide the returns as a result of those investments. And a lot of that is going to be through AI. A lot of that is going to be through automation. Along that also is going to be through just diversifying our customer pool.

Okay. As expected, there's a couple of questions around the New South Wales selective school tests. Again, I'll just ask the one question with various sub-questions. So maybe Sujata, Dharmendra, can you maybe just talk about the profitability of that contract in the first year? Did the extra exam sessions incur one-off costs that were included in the expenses line? How is revenue booked for the Platform segment?

I think, again, I think reiterating, that's a very critical project for our business. The Department of Education, New South Wales is our -- one of our largest customers, along with NAPLAN and ESA, both very long-standing customers. And I think for us, I think the profitability is more or less in line with what we had forecasted. So there's no negative impact in other words. And yes, so I think, in short, that's the answer.

Yes. And I think that we have -- so there's no difference in revenue recognition in other -- the New South Wales contract to any other contracts as well. So I think the key thing is what has impact is obviously the level of support and services that we have provided. This is the first deal of major complex, highly complicated project, right, which is digitalization of the whole ecosystem. So on that basis, I think where we've landed is a pretty decent outcome.

Great. And now there's a question around the pipeline. So in the pipeline, the validate and negotiate opportunity pipeline is $16 million. The investor is asking in regards to previously was this called the proposed pipeline and was at $10.1 million when it was last published at the half year result?

Yes. Yes, probably we'll have to look into that, Danny. But I think on the $15 million part, what we can say is that, that is the section where we moved quite positively on, and that reflects -- a large part of that is what we've talked about earlier on around the New Zealand Ministry of Education as well. So a big part of that is in that sort of section.

Great. Okay. We're down to the last 3 questions. [Operator Instructions] Okay. The next question is around where are your competitive strengths? And do you have the scale to attack the global education technology market?

So I'll answer the first one first. I think it's our competitive edge, right? I think in terms of our competitive edge, it's pretty much what I shared in the last section of the presentation, I think it's a combination of a number of stuff, right? One of them is the track record of the credentials of the organization. And if you look at NAPLAN, right, many other jurisdictions that we are talking to, they're still kind of talking about digitization of traditional assessments. But the complexity that is required because of diversity that is required, geographical diversity, infrastructure diversity, the school -- nature of the school diversity, how do you actually deliver a national school assessment with that level of diversity, right? So if you look at the NAPLAN example, right, we had to deliver, when the exam was taken online, kind of an online assessment which could work in low-bandwidth areas, high bandwidth, could work as well as in Downtown Sydney or Melbourne as it could work in a very remote community somewhere in the middle of Australia. Similarly, it had to work in any kind of device you bring in, right? Then you could have to be working in a manner that is secure and you're not accessing any other platforms or systems where you're doing the test. That level of diversity, right? That level of complexity, I think very few organizations have the ability to penetrate kind of a diverse geographical and infrastructure and cultural diversity that we penetrate through our platform to ensure that assessment at the core is what it is, where -- what is the main purpose of assessment, which is about unlocking the potential in every learner but in a manner which is equitable, accessible, reliable and scalable. And I feel at our heart that it's still our core competitive advantage and I believe that's one of the reasons why we've also been successful in New Zealand. Then of course, I think the other is, of course, now is the whole end-to-end ecosystem that we provide. We provide a very much new platform, which is now complemented by your AI platform. We provide the services. We provide school assessments. And those -- and all backed up by strong track records of high degree of scalability, security robust, so all of that. But going back to -- going to your next question about how do you scale, being a small company in Australia, right? And I think we're looking at scaling as a very pragmatic way of scaling, not kind of building a gigantic global workforce and then hoping it will come. But rather, we are looking at I think the strength of an organization like Janison is our relationships, and our relationships that the organization has for long-standing and the relationship that even I bring with my 25 years in the assessment industry across the globe. It's all about through the partnerships, what we call the best-of-breed solution. So often when we're going and talking to potential new clients, I think rather than saying we can do everything, it's about we operate in an amazing ecosystem. And a great example of that actually is what we do for the New South Wales Department of Education, where the contract is with Janison, where we provide the test venues and the digital platform. But the content, we actually work with our partners at the University of Cambridge Press & Assessment, which is one of the world leaders in school assessment. So we bring them in, they provide the content. So I think -- and the best-of-breed partnership, with having great partners across the world, allow us a scale that we could not have otherwise, being a smaller organization in Australia.

Thank you. The next question is around the leadership team. So you've recently appointed a Chief Growth Officer and also a new CFO, Dharmendra, who's on this call. How will these new leaders accelerate execution?

I think it's a very good question. I think what I'm excited about is making sure -- because if you look at the FY '25, a huge part of that growth and transformation has been delivered with a very small executive team because we're in the process of building, it's only by the time we came to the end of FY '25, the full executive team is in place. And what's really exciting is that, for example, looking at our Chief Growth Officer, Sasha Hampson. She comes as a Vice President of Pearson Test of English, 18 years building a product from inception to making it the market leaders in Australia, dislodging the incumbent market leaders. So what I'm looking at right now is that really excited that we have leaders like Sasha whose core competency is go-to-market, building those relationships and converting opportunities. So finally, I think what we have is we have a core set of competencies and capabilities in our executive that is required to make sure that the key components of an organization which are required to be amazing in order to build that scalable, sustainable organization have got leaders that they help, whether it is Dharmendra as a CFO, making sure that not only financially we are sharp, but also commercially, the commercial part of finance as well. Sasha is very much making sure that she's leading on the commercial front. Then we have our Chief People Officer, Courtney, who's also new, which is really important because any transformation, any growth, it's important that we bring our people on the journey and enable our people to actually perform their best. And so I think what I'm excited about is having all the right skills and competencies across the business together and collectively deliver on our goals.

The next question actually segues very well into it because Dharmendra gets another mention. Dharmendra, new CFO joined in early July. Welcome, and hopefully, you've settled in well. I think you have. So the question really is around the segment reporting lines in terms of -- there's been a couple of changes over the years in terms of how you report segments. Going forward and with Dharmendra joining Janison, is this how we should expect the divisionals being split, through Platforms and Product going forward?

Look, that's a good question, Danny. At the moment, there is no reason why I would sort of change that because, as Sujata mentioned, our core sort of product line is Platform. But in addition to Platform -- delivering the platform, we also provide services element, and there will be a number of that required as a lot of our customers and clients moved into the digitized ecosystem. And then the complementary side of that business is the content side which, again, has got some of our flagship products like ICAS and AAS. So at the moment, there's no reason for us to kind of really sort of explore changing that. But we -- as I sort of spend the next couple of months understanding the business a little bit more, I'll be reviewing that as well if there's a change required. But for now, I don't think there's any kind of clear reason as to why would kind of differentiate or split that.

And the final question is around your strategy. So what is the current strategy for growth? Is it a focus on geographic expansion, partnerships or deeper penetration with existing customers?

I think it's a combination of all. So I think what we're looking at doing is, as you can see, our strategy is very much having the clear focus where the platform is a center of our product offering, supported by services, by our school assessment products and all nicely wrapped up by our AI platform. Now our strategy, as I mentioned, is very much about that acceleration of go-to-market in a manner we are focusing on our platform and also continuing to drive customer excellence. But in terms of how do we grow, I think growing, we're looking at a very much a pragmatic strategy of -- these are multiple ways you can grow, right? It's very much retaining our existing customers, which is very, very critical. Our long-standing customers have been part of our Janison story for a long time. So it's important that we continue supporting them and working with them as we move into the next stage of digitization of assessment and the future of assessment. But then we take those experiences and we go into other geographies and get opportunities through those as we've done with New Zealand. But also, I think we'd love to do more work in Australia itself and looking at how can we go to other states and territories. And finally, also from an overseas point of view, given that we have our Chief Customer Officer based in the U.K., and we've built some good relationships in the U.K., I think you're looking at kind of converting some of those into -- some of those opportunities as well and then focusing on our partnerships and making sure that together with our partners, we can actually bid for opportunities that typically we couldn't have on our own. So it's a combination of our existing customers, growing our customer base in Australia and overseas and also through our partnership model.

Okay. That concludes the Q&A session. I will now hand back over to Sujata for any closing remarks.

Thank you. Thank you, Danny, and thank you. Thank you to our shareholders, and thank you, everyone, for making time today to come and listen to us. We really, really appreciate your support. I know '25 has been an exciting year. It's had a year of great achievements and great challenges as well. And what I'm very, very proud is that we've navigated year 1 of our transformation as an organization, having the laser-sharp focus on our customers and our strategy. And we've ended the year with some strong results, fully acknowledging that the journey is not done yet. We are only -- and we continue building on the great kind of momentum that we built in FY '25 and continue building up that into FY '26 as well so that we wish that there is a state in future years where we feel we've made the right level of investments and to ensure that for future years, we have what, quite rightly, the questions being asked in terms of margin improvements and so on, and we build a truly scalable and sustainable business that creates value for everyone whether shareholders, customers, our staff. So thank you very much for your support, and thank you so much for joining us today. And if any other questions, please do feel free to reach up to myself or Dharmendra directly or to Danny, our IR investor. Very happy to talk to you any time. Thank you.

Thank you all.

Thank you, Sujata. Thank you, Dharmendra, and thank you to all the participants. You may now disconnect.