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Svetofor Group is a driver training company: it develops training programmes, equipment for driving schools and distance learning platforms. Its ordinary and preferred shares trade under the tickers SVET and SVETP.
Driver training is a market tightly defined by regulation: the curricula, the hours and the examination procedure are set by regulation, and no driving school can shorten the course at its own discretion. Demand is therefore stable and predictable, and schools compete on quality and convenience rather than on the curriculum.
The company makes its money not from the training itself but from the infrastructure behind it: it sells driving schools equipment, simulators and access to educational platforms. A supplier of this kind gets paid regardless of how many students a particular school has enrolled.
The distance format is the growth area: the theory part can be studied online, which lowers the cost of training for the school and makes it more accessible for the student.
Distance learning of the theory part for driving schools.
Simulators and training systems.
Programmes and materials that comply with regulatory requirements.
Strengths and weaknesses describe the business itself. Opportunities and threats describe what may happen around it.
The company develops programmes and platforms for distance learning for drivers, supplies driving schools with simulators and training equipment, and provides teaching materials.
Because training at a driving school is compulsory by law, and its curriculum and number of hours are approved by regulation. It is not possible to skip the course or shorten it at one's own discretion.
The supplier gets paid by all schools at once, regardless of how many students each has enrolled. Training is the business of an individual school with its local enrolment; supplying platforms and equipment is a business across the whole market.