Strong growth prospects on offer at 3PL
3P Learning is an education technology company with operations in Australia, Europe and the USA. Its flagship product Mathletics is the leading maths software used in Australia and UK schools. 3PL possesses numerous strong growth prospects, including: 1) deepening penetration of Mathletics in the UK and the USA, where current penetration is low relative to Australia; 2) price increases in Australia from $11/student p.a. closer to the $30 headline price. Aggressive price increase will provide funding to enhance development of Mathletics and making it more attractive relative to physical materials, creating a virtuous cycle for digital migration of text books; and 3) further development and sales of its other products including IntoScience and Reading Eggs, a suite of complementary products can leverage its current sales force to drive profit growth at low incremental cost. Ophir compares the opportunity of 3PL to that of Realestate.com.au 10 years ago. We expect 3PL to be a very rewarding long term investment, especially considering the ability of current management to execute the strategy.
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Andrew has over 15 years’ experience in portfolio management of listed companies, stockbroking and economic analysis. Prior to co-founding Ophir, Andrew worked from 2007 to 2011 as a portfolio manager at Paradice Investment Management.