SINGAPORE (Aug 29): Raffles Education Corporation swung back into profitability in FY18 ended June with $10.7 million in earnings from a net loss of $1.8 million in FY17, thanks to a net fair value gain from its investment properties.
Earnings per share came in at 0.9 cent, a reversal from a loss per share of 0.17 cent in the previous year.
Raffles Education said it benefited from a $53.0 million gain from its investment properties in OUCL and Oriental University of City Holdings (HK), a $7.7 million gain from the investment properties in Parramatta, Australia and $1.7 million gain from its investment properties in Bangkok, Thailand.
Together, the net fair value gain enjoyed was $64.9 million, up from the year ago's $12.79 million.
Revenue in the year edged up 0.6% to $96.8 million from the previous year, while operating income shrank 61% to $4.4 million, mainly due to the absence of gain due to the sale of OUCL and Oriental University of City Holdings (HK) in FY17.
The company also faced higher personnel, depreciation and amortisation and finance costs in the year. Net asset value per share shrank to 45.09 cents as at June 30, from 54.6 cents three months ago.
"The challenging global education environment, currency volatility, increasing interest rates and increasing competition continue to impact the group," says Raffles Education in its outlook.
”The group continues to streamline and restructure its operations for better cost management and improved efficiency.”
Shares in Raffles Education ended 0.3 cent lower at 15 cents on Wednesday.
