SINGAPORE (Aug 23): Raffles Education Corporation posted earnings of $627,000 for FY17 ended June, a reversal from the $21.1 million loss in FY16.
This was mainly due to a reversal of tax payable for land restructuring of $30.8 million. Other income also rose 16% to $11.3 million.
Revenue for FY17 fell 13% to $96.2 million from $111 million in the previous year, largely due to the discontinuation and teach-out of its Raffles Shanghai joint venture college, as well as lower utility income from investment properties in Oriental University City (OUCL) as the provision of electricity services has been taken over by a third party.
Personnel expenses, depreciation and amortisation expenses and other operating expenses all fell between 2% and 8%.
Share of results of asscoiates also surged more than fourfold to $1 million from $0.2 million a year ago.
In its outlook, Raffles Education says unfavourable macroeconomic conditions, currency volatility and uncertain global interest rate movements have impacted its business.
It expects to continue facing increasing competition, higher manpower costs, and a more stringent regulatory environment – all of which are expected to have an adverse effect on its operations.
Shares in Raffles Education closed 1% higher at 20 cents on Wednesday.
