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IODM Limited (ASX: IOD) (“IODM” or “the Company”), is pleased to release its Quarterly Activities Report and Appendix 4C for the period ended 30 September 2024 (“Q1 FY25” or “Quarter”).
Q1 FY25 highlights:
- Cash receipts of A$482k, +14.2% versus previous corresponding period (“pcp”);
- UK cash receipts +88% versus pcp to A$292k, driven by new commercial agreement with Convera for UK education business;
- Four additional universities implemented in the UK, making a total of nine
- Increasing number of USA and Canadian universities requesting and receiving formal presentations of the IODM solution;
- Continued engagement in respect of international licencing of the IODM solution;
- Fortification of the Australian and New Zealand business with the appointment of a new Head of Sales and complemented by an increase in sales team personnel; and
- Completed a $1.7m capital raising to institutional and sophisticated investors to enlarge sales teams both domestically and internationally.
Quarterly cash receipts in Q1 FY25 of A$482k represented an increase of 14.2% vs pcp. The revenue result accorded with Company budgeting for the Quarter given the seasonal decline in international revenues (as to which refer below).
Net cash operating outflows to $1.062m, 30.9% over pcp, driven by an increase in the Company’s sales division and supported by the successful capital raising ($1.7m).
Figure 1: IODM Quarterly Cash Receipts
UK Education Business
A strong contributor to cash receipts during the Quarter was the UK with and 88% increase on pcp to $292k. The result affirms that the re-negotiated UK educational licencing agreement (refer ASX Announcement 5 February 2024) procured an immediate positive impact on the Company in terms of revenue uplift as well as elevated recognition and speed of IODM solution rollout within the UK education sector.
At Quarter end the Company had a total of nine on-boarded universities with four implemented during the Quarter (refer 3 July 2024 ASX Announcement for further details).
Pleasingly, the IODM platform has been fully commissioned in all nine universities and the Company is primed to take advantage of the UK academic year billing cycle which commenced in September 2024. IODM’s revenue from the university sector is primarily derived from the student deposit, tuition and accommodation payments. Of the new universities on-boarded during the Quarter, the largest (in terms of international students and potential revenue to IODM) is the University of Sunderland, however – due to timing of on-boarding – provided minimal (three days) contribution to the Quarter.
As already detailed, the cash receipts and revenue observed during 1Q FY25 were both consistent with budgeting given the seasonal “quiet” period for student payments leading up to the commencement of the new academic year. Notwithstanding the forgoing, the 88% increase in cash receipts over pcp (to $282k) is a direct consequence of:
- The increased quantum of on-boarded universities; together with
- The renegotiated licencing arrangement with Convera which – amongst other advantages – is includes a guaranteed minimum payment regime.
Whereas the Convera revenue share arrangement in respect of the UK education sector has assisted the Company in both revenue and speed of university penetration, the benefits of the joint enterprise is equally attractive to Convera as evidenced by the University of Sutherland, previously a key customer of a Convera competitor, converting to the Convera payment platforms as a direct result of the IODM pipeline via a joint proposal.
Domestic Business
As previously disclosed to the market, the company raised funds, in part, to execute upon growth opportunities and initiatives which includes expanding the sales force globally.
As a result, the company has appointed Ashley (“Ash”) Clayton as head of domestic sales. Ash has over 18 years’ experience in software sales solutions and is a proven leader in his field. His experience includes enterprise software solution sales, presales and go to market across multiple regions. Mr Clayton has commenced expanding the sales desk with a recent key appointment.
As a result of the reinvigorated domestic sales team, the Company has witnessed an immediate increase in the number of enterprise companies seeking out the IODM solution and requesting presentations and contract proposals. The Company anticipates an elevated number and accelerated rate of domestic signings going forward.
Click here for the full ASX Release
This article includes content from IODM Ltd, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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IODM Ltd
Investor Insight
IODM is well-positioned in the growing fintech space to meet rising demand for accounts receivable automation, with recent North American expansion underscoring its global scalability and recurring revenue potential.
Overview
IODM (ASX:IOD) is a cloud-based working capital management software solution designed to automate and streamline the accounts receivable function for universities, commercial companies and other enterprises. This platform facilitates the collection of payments, enhances client communication, and reduces manual workload. By integrating with existing accounting systems, IODM improves cash flow management and optimizes working capital.
A key strength is IODM’s capability to manage complex billing cycles, especially for international payments. As of 2024, the platform is used by ten UK universities, and IODM is actively expanding into North America, Asia, and Europe.
In April 2025, IODM signed a revenue share agreement with leading North American payment provider Convera, targeting the large and growing international student population in the US and Canada. This partnership significantly enhances IODM’s reach in the education sector, particularly with universities seeking more efficient cross-border payment solutions.
Company Highlights
- IODM is a cloud-based accounts receivable communications platform designed to automate and streamline cash collection processes within the terms of trade.
- The platform seamlessly integrates with ERP systems like Oracle, SAP, Microsoft Dynamics and Xero, reducing the need for manual invoicing and follow-ups.
- IODM targets medium to large companies and is scalable for businesses with multiple divisions and complex reporting requirements.
- The company has experienced strong adoption among universities and enterprises, with a focus on managing complex billing cycles and cross-border payments.
- In 2024, IODM began implementing a revenue share agreement in North America through Convera, replicating its success in the UK university market.
Key Product: IODM Connect
IODM Connect is the company’s flagship intelligent accounts receivable platform, designed to automate invoice reminders, payment collections, and cash allocation. Seamlessly integrating with leading ERP systems—including Oracle, SAP, Microsoft Dynamics, and Xero—the platform can be adopted with minimal disruption to existing financial workflows.
A key strength of IODM Connect lies in its ability to streamline time-consuming receivables processes. Automated payment reminders reduce manual follow-ups, while advanced cash allocation and reconciliation tools improve accuracy and speed. This is especially valuable for organizations managing high transaction volumes or cross-border payments, where complexities around currencies and methods can lead to delays and errors.
By simplifying these processes, IODM Connect enhances efficiency, reduces administrative burden, and enables businesses to focus on core operations while maintaining tighter control over cash flow.
Strategic Partnerships
IODM has established a network of strategic global partnerships that continue to drive its international expansion. In the education sector, the company has partnered with Convera (formerly Western Union Business Solutions) to streamline cross-border tuition and fee payments. This collaboration has been pivotal in securing IODM’s strong foothold in the UK and EU university markets and is now being extended to support growth in North America.
IODM has also partnered with Corpay (NYSE:CPAY), a global leader in corporate payment solutions, to support enterprise clients in industries such as manufacturing, transport, and logistics. These partnerships provide access to key verticals and geographies without requiring a large regional sales footprint.
By leveraging the infrastructure and client networks of its partners, IODM can scale efficiently, expand its market reach, and accelerate revenue growth globally.
Target Market: Universities and Enterprise Clients
IODM continues to target education and enterprise sectors with complex billing requirements:
- In the UK, IODM has onboarded 12 universities, including the London School of Economics and Coventry University.
- Through its partnership with Convera, IODM is rapidly expanding in North America, aiming to serve international students across the US and Canada.
- The platform simplifies tuition, accommodation, and ancillary payments while reducing administrative burden and currency conversion complexities.
Market Drivers
Growing demand for IODM’s platform is fueled by key trends in the education sector and among enterprises with international operations. A major driver is the increasing population of international students, particularly in regions such as Europe, North America, and Australia. Universities are under mounting pressure to manage cross-border payments more efficiently, navigating challenges like fluctuating exchange rates, diverse payment methods, and extended processing times. IODM’s platform addresses these complexities by streamlining and automating receivables, helping institutions improve the student payment experience while optimizing operational efficiency.
Rising inflation and higher interest rates have intensified the need for effective cash flow management across both the education and enterprise sectors. Timely and accurate collection of receivables has become essential to maintaining financial resilience. IODM’s automation capabilities reduce manual workloads, minimize errors, and accelerate payment cycles, making it a critical tool for organizations striving to enhance liquidity and financial stability in a challenging economic environment.
Management Team
Mark Reilly – Chief Executive Officer
Mark Reilly has over 25 years of experience in corporate advisory and insolvency, particularly within the mining, banking, and finance sectors. He has held leadership roles at companies such as Forte Energy, Valor Resources, and BOS Global Holdings. Under his leadership since 2017, IODM has expanded its global footprint, forging strategic partnerships and driving growth in the education and enterprise sectors.
Petrina Halsall – Chief Operating Officer
Petrina Halsall worked in critical IT roles across the FMCG, automotive, transport, logistics and public sectors. Notably, she served as head of IT for the Victorian Department of Treasury and held leadership positions at GUD Holdings for seven years. Her extensive background in managing business-critical infrastructure and certified security makes her a key asset for IODM’s operational efficiency.
James Burke – Chief Technology Officer
James Burke has extensive experience in overseeing complex technological infrastructures and security systems. Before joining IODM, Burke held roles that focused on critical infrastructure management in various sectors. His leadership and technical skills in IT security have played a crucial role in developing and maintaining the robust technological infrastructure at IODM, helping the company achieve scalable growth.
Graham Smith – Head of Operations, UK and North America
Graham Smith has over six years of experience in the financial services industry. Before joining IODM, he worked at Western Union Business Solutions in various roles, including regional manager for channels and partnerships. Smith’s expertise in managing partnerships and expanding business into new regions is central to IODM’s continued growth in these key international markets.
Cloud-based cash flow optimisation solution for medium and large enterprises
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