Raffles Education (NR7) H2 2024 earnings summary

Executive summary

• FY2024 revenue edged up 1.4% YoY to S$112.5m, but net loss widened to S$24.0m from S$9.0m; cash from operations improved to S$19.4m.

• The business operates 16 institutions across 9 countries; strategy centers on strengthening academic quality, expanding existing colleges and networks, and developing education-linked assets.

Financial highlights

• Revenue rose 1.4% YoY to S$112.472m; Adjusted EBITDA fell 7.2% to S$21.124m.

• Loss before tax was S$22.562m versus S$1.861m; net loss was S$23.994m versus S$8.997m, with S$19.261m attributable to shareholders.

• Operating cash flow increased to S$19.396m from S$4.262m; year-end cash and cash equivalents were S$29.369m versus S$24.206m.

• Other operating income fell to S$14.905m from S$47.397m, mainly reflecting lower foreign exchange gains of S$13.831m versus S$46.715m.

Outlook and guidance

• Strategic priorities include improving academic quality, broadening programmes at existing colleges, expanding the institution network, growing the university group, and developing value from education assets.

• Management cited ongoing negotiations to sell 51 Merchant Road, lender support and refinancing capacity, and operating cash generation as factors supporting liquidity; forecasts covered at least 15 months from June 2024.

• A proposed unlisted five-year bond issue of up to S$20m had S$12.5m subscribed and issued after year-end.