Ann: 3P Learning Investor Presentation FY2015, page-4

Hi,

Just wondering if you read the annual report?

Page 2 there is this:

"Profit for the year attributable to the owners of 3P Learning Limited - Down 19.1%"

That is not a "great little result" unless you like seeing shareholders go backwards.

Basic earnings per share = 3.04 cents. Based on close of $2.04 and using that EPS this is trading on 67x earnings. To put that into perspective, that would be the equivalent to BHP trading at $174.20 based on 2014 EPS of $2.60. Whilst they are different companies in many ways, that is a huge hurdle for any company to have to get over.

Based on the IPO price of 2.50 with EPS of 3c, the PE is 82x earnings. At $2.65 as per some analyst target based on the current earnings, then it's 87x current earnings.

Another small thing, but did you notice that the Corporate Governance is terrible. See this line?

*Timothy Power attends the Nomination and Remuneration Committee and Audit and Risk Committee meetings as an observer.


So dodgy! This is literally in textbooks about examples of bad Corporate Governance. The CEO is present as an 'observer' whilst they discuss remuneration.

Or that 92% of the CEO's pay is linked to Short Term Incentives and 1% is linked to long term incentives?

There are so many more things to mention that are dodgy. A cursory read through of the annual report is enough to highlight some of these without digging into much depth.

The product may be good and it may be helping kids learn, but this company is set up to benefit a few select people....and the shareholders aren't included in that group.

Out of interest, on what possible metrics was this a good result?