SINGAPORE (Nov 9): Raffles Education Corporation saw 1Q18 net loss widen to $5.9 million from a net loss of $1.7 million a year ago.
Revenue dipped 2% to $24.2 million in 1Q18, from $24.8 million a year ago.
This was due to lower revenue following the discontinuation and teach-out of its Raffles Shanghai joint venture college and reduction in revenue from Raffles Singapore, partially offset by an increase in revenue from Raffles American School Bangkok and Raffles American School Iskandar.
Other operating income fell 66% to $0.4 million in 1Q18, mainly due to a decrease in foreign exchange gain.
Finance costs rose 9% to $3.6 million in 1Q18, mainly due to an increase in borrowings and an increase in cost of borrowings.
The group also incurred an income tax expense of $0.5 million in 1Q18 compared to an income tax credit of $0.7 million a year ago.
As at end September, cash and cash equivalents stood at $26.0 million.
Raffles Education says its businesses are affected by unfavourable structural changes resulting from government policy changes in the education sectors of the major countries where it operates.
At the same time, it also faces increasing competition from institutes of higher education in the US, UK, and Canada, where it does not have a presence.
In addition, the group says increasing interest rate movements are also increasing its costs of borrowings.
Meanwhile, Raffles Education is convening an EGM on Nov 29 to consider the proposed resolutions from shareholders Oei Hong Leong and Oei Hong Leong Art Museum.
Among the three resolutions tabled for voting, Oei is asking for the removal of Chew Hua Seng as chairman and director of the company with effect from the date of the EGM.
Shares of Raffles Education closed flat at 33 cents on Thursday.
