Last week, the Advisors at Emerald Financial recently released a Buy report on Class Ltd (ASX: Cl1).
Key Highlights include:
• Existing market leader by revenue in the Superannuation admin sector with 99% client retention;
• Expansion strategy commenced in 2019 to add new verticals
• Total addressable market increased 2.5x from $140m to $365m;
• $42.2m in acquisition spend to increase customer base by 317%;
• +17% organic growth from acquired businesses: NowInfinity Documents and Corporate Compliance Business;
• Launch of Class Trust – Greenfield market previously serviced only by Excel spreadsheets;
• H1 Revenue of $25.9m, (+27% pcp increase), H1 EBITDA of $10.4m, (+29% pcp increase)
• On track for $54m revenue for FY21, +22% pcp;
• Entering acceleration phase of business transformation with customer feedback confirming Class Trust improves back office operating efficiency by up to 68%;
• Multi-product strategy being accelerated by consolidated salesforce to drive upsell and cross-referrals;
• Further tech functionality to be added over coming 12 months to to drive fast adoption of Class Trust by customers, including ‘Lodgement’ functionality;
• Significant Total Addressable market for Class Trust estimated at $117m revenue pool with an estimated 500,000 investment trusts in Australia.
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**CL1 has engaged Principal IR, which is a related entity to Emerald Financial, on retainer to assist with Investor Communications.