SINGAPORE (Aug 29): TMC Education Corporation has announced a loss of $547,000 for the full year ended June, representing a 90.7% improvement from the $5.9 million loss it reported in FY16.
This was mainly due to a fair value gain on investment properties of $2.7 million in FY17, compared to a fair value loss of $1.3 million in FY16.
In addition, the improved performance was partially attributable to the absence of a $1.2 million loss on disposal of investment properties incurred in FY16. The group last year disposed 10 office units of its investment properties to a third party for a cash consideration of $4.5 million, lower than their combined carrying amount of $5.7 million.
On top of this, the group saw a significant decline in operating expenses, which fell by 21.2% to $7.33 million from $9.3 million in the previous year, attributable mainly to a decline in student enrolment as well as the effect of cost savings from the TMC’s campus consolidation exercise, which was carried out in FY16.
Revenue for FY17, which comprises course and examination fees over the full year, fell 31.1% to $4.0 million from $5.9 million in the previous year due to a decrease in student enrolment over the period under review.
As at end June, cash and cash equivalents stood at $1.7 million.
In its outlook, the group says it continues to face challenges due to unfavourable economic situations around the world, whereas Singapore’s private education industry is also undergoing a period of change that also entails a more stringent regulatory environment.
Additionally, its board and management to look into various initiatives to increase TMC’s competitiveness and financial management, which includes evaluating its business strategies; leveraging on government grants; working with corporate partners to provide internship programmes; and continuing to streamline its process with the view to make its business more competitive.
The group adds that it will continue to explore various equity or debt fund-raising options to strengthen its financial position, and will also look into the possibility of acquiring new businesses and assets which could be injected to improve its financial performance – although these plans are currently in an exploratory stage.
“Education is a business that needs patience and commitment. Each initiative will take time to materialise and demonstrate its returns,” says TMC Education.
Shares in TMC closed 30% higher at 5.2 cents on Tuesday.
