IODM Limited (ASX: $IOD) Q3 FY24 highlights

IODM Limited (ASX: $IOD) has reported a significant increase in cash receipts and revenue for the third quarter of FY24. The company's cash receipts of A$640k marked a 65% rise compared to the previous corresponding period. Notably, UK cash receipts soared by 130% driven by a new commercial agreement with Convera for the UK education business, while domestic cash receipts also saw a healthy increase of 27% versus the previous corresponding period. The UK revenue surged by 196% versus the previous corresponding period, reflecting the immediate positive impact of the new Convera agreement. IODM also signed its first client in the US during this quarter, indicating a strong pipeline of opportunities in the region.

Executive Commentary

IODM CEO, Mark Reilly, expressed satisfaction with the company's performance, stating, 'IODM has had an extremely positive quarter across all sectors of its business. The immediate uplift in both cash receipts and revenue from the UK business as a direct result of the new agreement with Convera is extremely pleasing. This, combined with a strong quarter from the Australian arm, and encouraging early results from the USA, bodes very well for the ensuing quarters and we continue to look forward to updating shareholders as we progress.'

Summary

IODM's Q3 FY24 report demonstrates a robust performance, with substantial growth in cash receipts and revenue. The new commercial agreement with Convera for the UK education sector has significantly contributed to the surge in UK revenue, validating its attractiveness to IODM. The company's successful entry into the US market with the signing of its first client and the strong pipeline of opportunities further underpin its positive outlook. Additionally, the company's ability to secure funding through a share issue at $0.23 per share reflects investor confidence in IODM's future prospects. Looking ahead, IODM anticipates continued growth in cash receipts and revenue, particularly in the UK education sector, and remains focused on achieving cash flow positivity while managing capital prudently to protect shareholder value.