AD1 Holdings’ (ASX: AD1) wholly-owned subsidiary Art of Mentoring (AoM) is gearing up for high growth in FY 2022 with the subsidiary posting a 60% increase in revenue for August 2021.
This 60% increase was on August 2020 levels and attributed to “notable” client wins and renewals.
AD1 managing director and chief executive officer Brendan Kavenagh said AoM had kicked off FY 2022 with the same momentum it finished FY 2021.
He said in the past seven weeks, the company had signed six new clients valued at $160,000 for FY 2022 – with the lifetime value of the contracts expected to exceed $600,000.
“Notable Australian wins include Royal Australian Air Force and Queensland Department of Premier and Cabinet.”
“AoM’s global footprint continues to quickly expand with Danone Japan and Zimmer Biomet coming onboard recently, and more in procurement waiting sign-off.”
“In addition to Australia, AoM now has clients in Asia, the US, Africa and Europe.”
Renewals contribute to growth
As well as new clients AoM has had a 100% renewal rate from existing clients since the start of July.
The existing clients have been with the company between two and six years.
“These renewals were secured since the start of July, valued at $200,000 for this financial year and $600,000 is expected over the entire contract terms,” Mr Kavenagh said.
According to Mr Kavenagh, HR technology is enjoying “explosive growth” across the world.
Driving this growth is the pandemic which has pushed employers in developing and retaining remote workforces.
“Market growth, increased market share both locally and overseas, and increased value of contracts with existing clients, are all driving strong revenue results for AoM,” Mr Kavenagh said.
To further attract new clients and lock-in renewals, Mr Kavenagh said AoM had expanded its tech team and plans to roll-out “exciting new features” in the coming months.
AoM’s HR software as a service platform has been designed to guide clients in creating, setting up and managing mentoring programs that can be fully delivered online.
“This makes mentoring connections accessible to anyone, anywhere, even during a pandemic, when human connections are all the more valuable, even if virtual.”
“AoM’s research supports widely published evidence that mentoring can contribute to well-being, improved self-awareness and confidence, a greater sense of meaning and purpose – not just to the achievement of specific development goals,” Mr Kavenagh added.