Raffles Education (NR7) H1 2024 earnings summary

Executive summary

• H1 FY2024 revenue rose 5% YoY to $56.8m; profit after tax was $1.5m versus $5.4m, while adjusted EBITDA increased to $20.0m from $11.6m.

• Net current liabilities were $113.6m; continued operations on a going-concern basis relied on operating cash generation, lender support, refinancing, asset realisations and potential access to capital markets.

Financial highlights

• Revenue was $56.752m versus $53.842m; profit before tax fell to $1.983m from $6.350m and profit after tax to $1.481m from $5.371m.

• Basic and diluted EPS were 0.15 cents, down from 0.46 cents; net income attributable to owners was $1.171m versus $46.800m in loss in the prior period.

• Adjusted EBITDA was $19.970m versus $11.646m; finance costs rose 12% to $10.441m, while other operating expenses declined 19% to $17.332m.

• Net foreign-exchange gain was $1.293m, down from $13.240m; currency translation loss was $3.606m, mainly due to Singapore dollar strength against the renminbi.

Outlook and guidance

• No forecast was made; operations were described as generally in line with the prior FY2023 results commentary.

• Continued operational streamlining and restructuring were planned to improve cost management and efficiency; course fees collected in advance were expected to be recognised over FY2024’s next two quarters.

• Going-concern assumptions included positive operating cash flow, lender support, refinancing borrowings, property sale or lease realisations, and access to shareholder or capital-market funds.