SINGAPORE (Aug 6): MindChamps Preschool saw a near doubling of 2Q earnings to $1.3 million from $0.7 million in 2Q17 on higher revenue.

This brings the company’s earnings for the 1H ended June to $1.6 million, up 16% from its 1H17 earnings of $1.4 million previously.

Revenue for 2Q surged 60% to $7.65 million from $4.8 million a year ago due to higher income after the acquisition of seven preschool centres in Australia and Singapore, as well as $0.5 million franchise income which came mainly from the sale of a master franchise license in China.

See: MindChamps acquires 4 preschool centres in Sydney for $13.1 mil

See: MindChamps PreSchool to acquire Woodlands franchise for $1.3 mil

About $0.1 million in royalty income was also recorded over the latest quarter from the addition of franchisee-owned franchisee-operated centres (FOFOs).

Cost of sales grew 36% to $2.8 million from $2 million previously due to higher academic staff costs incurred due to the group’s recently acquired preschools.

Meanwhile, operating administrative expenses grew 84% to $3.9 million from $2.1 million in 2Q17, mainly attributable to administrative costs, professional fees and staff costs incurred from business expansion moves and SGX-related matters.

As at end-June, cash and cash equivalents fell to $33.2 million compared to $35.8 million as at end-March.

The outflows were mainly due to provision of deposit to a third party in the form of loans; considerations paid for acquisitions; and repayments of borrowings.

The group also announced in a separate SGX filing that its indirect wholly-owned subsidiary, MindChamps Early Learning & Care @ Eastwood, is acquiring the business and assets of two preschool centres in Sydney, Australia, from Smart Child Care at total consideration of A$4.9 million ($6 million).

Shares in MindChamps closed 0.7% lower at 67 cents on Monday.