Financials
Unaudited Condensed Interim Financial Statements For The Six Months And Full Year Ended: 31-12-2024
Financials Archive
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Condensed interim consolidated statement of comprehensive income For the six-month and full year ended 31 December 2024
Condensed interim balance sheets As at 31 December 2024
Review of performance
Review of Income statement
The Group recorded a revenue of $42.98 million for the second half year ended 31 December 2024 (H2 2024) compared to $44.24 million for the corresponding period ended 31 December 2023 (H2 2023). For the full year ended 31 December 2024 (FY 2024), total revenue was $88.52 million compared to $87.83 million for the last financial year (FY 2023).
Details of revenue lines are as follows:
Tuition fees revenue was lower at $41.09 million in H2 2024 compared to $42.29 million in H2 2023 due to the decline in student enrolment in H2 2024. Overall, tuition fees revenue ended marginally higher at $84.87 million for FY 2024 compared to $84.54 million for FY 2023 due mainly to the support of better student enrolment in the first half of FY 2024.
Registration fees revenue was $0.61 million in H2 2024 and comparable to H2 2023. Registration fees revenue was $1.23 million in FY 2024 compared to $1.19 million in FY 2023.
School shop revenue was $0.40 million in H2 2024 compared to $0.44 million in H2 2023. School shop revenue was $0.56 million in FY 2024 compared to $0.61 million in FY 2023.
Enrichment programme revenue was $0.55 million in H2 2024 and comparable to H2 2023. Enrichment programme revenue ended higher at $1.12 million in FY 2024 compared to $1.00 million in FY 2023.
Interest income was $0.31 million in H2 2024 compared to $0.33 million in H2 2023. Interest income ended higher at $0.72 million in FY 2024 compared to $0.47 million in FY 2023 due to better interest rates received on fixed deposits in first half of FY 2024.
Other income at $0.02 million in H2 2024 and $0.03 million in FY 2024 was comparable to H2 2023 and FY 2023.
Total expenses before depreciation and amortisation was higher at $34.29 million in H2 2024 compared to $33.07 million in H2 2023. For FY 2024, total expenses before depreciation and amortisation was also higher at $67.05 million compared to $64.39 million in FY 2023.
Details of expenses are as follows:
Personnel expenses were $25.75 million in H2 2024 and $50.55 million in FY 2024, compared to $24.92 million in H2 2023 and $49.11 million in FY 2023. The higher personnel expenses in FY 2024 were mainly due to requirement for additional academic staff.
School shop costs were $0.29 million in H2 2024 compared to $0.31 million in H2 2023. School shop costs were $0.38 million in FY 2024 compared to $0.42 million in FY 2023.
Enrichment programme costs were $0.38 million in H2 2024 compared to $0.34 million in H2 2023. Enrichment programme costs were $0.78 million in FY 2024 compared to $0.65 million in FY 2023.
Utilities expenses were $0.67 million in H2 2024 compared to $0.69 million in H2 2023. Utilities expenses at $1.35 million in FY 2024 was comparable to FY 2023. The School is partially using solar renewable energy as its source of electricity for the school campus.
Upkeep and maintenance expenses were $1.02 million in H2 2024 compared to $0.93 million in H2 2023. Upkeep and maintenance expenses were $1.84 million in FY 2024 compared to $1.72 million in FY 2023.
Finance costs were lower at $2.05 million in H2 2024 compared to $2.27 million in H2 2023. Finance costs were also lower at $4.21 million in FY 2024 compared to $4.44 million in FY 2023 due mainly to the declining interest rates in FY 2024.
Other operating expenses were $4.16 million in H2 2024 and $7.95 million in FY 2024, compared to $3.63 million in H2 2023 and $6.73 million in FY 2023. The higher other operating expenses in H2 2024 and FY 2024 was mainly due to higher property tax and general costs inflation.
Depreciation and amortisation expenses were $6.29 million in H2 2024 compared to $6.21 million in H2 2023. Depreciation and amortisation expenses were $12.49 million in FY 2024 compared to $12.73 million in FY 2023.
The Group recorded a $0.86 million and $0.58 million fair value loss in H2 2024 and FY 2024, compared to fair value loss of $1.52 million and $1.36 million in H2 2023 and FY2023 respectively. The fair value loss arose from fair value changes of the interest-rate-swap contracts that the Group entered to hedge against rising interest rates on bank borrowings. More information is provided in Note 10 of the Condensed Interim Consolidated Financial Statements.
Profit before taxation was $1.53 million in H2 2024 compared to $3.44 million in H2 2023. Profit before taxation for FY 2024 ended lower at $8.41 million compared to $9.34 million in FY 2023.
Income tax expense for H2 2024 and FY 2024 were $0.52 million and $2.14 million respectively. The H2 2024 and FY 2024 income tax expense comprised mainly the provision for current tax of $0.81 million and $2.69 million respectively. The reversal of net deferred tax for H2 2024 and FY 2024 were $0.30 million and $0.55 million respectively. The income tax expense in H2 2023 and FY 2023 were $1.15 million and $2.61 respectively.
Net profit after taxation for H2 2024 was $1.01 million compared to H2 2023 of $2.29 million. Net profit after taxation for FY 2024 ended at $6.27 million compared to $6.73 million for FY 2023.
Review of Balance Sheet as at 31 December 2024
Total property, plant and equipment and right-of-use assets at 31 December 2024 amounted to $212.12 million compared to $221.57 million at 31 December 2023. The decrease of $9.45 million was due mainly to the depreciation charge for the financial year, offset by the additional right-of-use assets and other plant and equipment of $3.41 million and $1.28 million respectively during the financial year.
Derivatives (current and non-current) at 31 December 2024 of $0.83 million (2023: $1.41 million) represent the fair values of interest-rate-swap contracts entered into by the Group to hedge against rising interest rates on bank borrowings. More information is provided in Note 10 of the Condensed Interim Consolidated Financial Statements.
Inventories of school uniforms, books and stationery for sale at the school shop were $0.50 million at 31 December 2024 compared to $0.45 million at 31 December 2023.
Trade receivables comprised amounts attributable to tuition fees, registration fees, school shop revenue and other revenue. Trade receivables of $0.98 million at 31 December 2024 were higher compared to $0.92 million at 31 December 2023 due mainly to the timing of collection of the receivables for the reporting year.
Other receivables and deposits at 31 December 2024 were $0.57 million compared to $0.51 million at 31 December 2023.
Prepayments at 31 December 2024 were $1.74 million compared to $1.62 million at 31 December 2023.
The Group's cash and cash equivalents amounted to $53.65 million at 31 December 2024 and $55.68 million at 31 December 2023. The decrease was due to cash movements (cash generated or cash used) in operating, investing and financing activities as explained in the Review of Group cash flow below.
Trade and other payables and liabilities were lower at $1.33 million at 31 December 2024 compared to $1.82 million at 31 December 2023 due mainly to timing of payments of operating expenses.
Total fees received in advance (current and non-current) was $32.55 million at 31 December 2024 and $36.11 million at 31 December 2023. The total fees received in advance at 31 December 2024 and 31 December 2023 comprised tuition fees collected before the commencement of the next semester in January, and registration fees collected upon enrolment. The advance collection was higher in FY 2023 due mainly to the timing of the receipts.
Lease liabilities (current and non-current) were $4.66 million at 31 December 2024 compared to $6.41 million at 31 December 2023. The variation in the lease liabilities was due to the expiration and renewal of the lease contracts for teachers' apartments.
Borrowings - Bank Loan (current and non-current) was $84.23 million at 31 December 2024 compared to $90.48 million at 31 December 2023. The Group paid the quarterly instalment of $1.54 million each in January, April, July and October 2024. More information on the bank loan facility is disclosed in Note 15 in the Condensed Interim Consolidated Financial Statements.
Goods and Services Tax payable of $3.45 million and $3.19 million at 31 December 2024 and 31 December 2023 respectively arose mainly from the billing of next semester's tuition fees. GST rate applicable in the billing was 9% in FY 2024 and 8% in FY 2023.
Deferred tax liabilities amounted to $5.41 million at 31 December 2024 compared to $5.96 million at 31 December 2023. The net deferred tax liabilities arose from the tax effect on temporary differences between the net book value and the tax-written-down-value of qualifying assets.
Review of Group cash flow for the full year ended 31 December 2024
The net cash generated from operating activities in FY 2024 was $20.52 million, which consisted of cash inflow from operating activities before working capital changes of $26.99 million, net working capital outflow of $4.14 million and interest received of $0.71 million and income tax paid of $3.04 million.
The net cash used in investing activities of $1.63 million was for the capital expenditure in the normal course of business.
The net cash used in financing activities of $20.92 million comprised lease payments of $5.14 million, lease interest paid of $0.30 million, payment of bank loan interest of $3.92 million, bank loan repayment of $6.16 million and dividends payment of $5.40 million during the reporting period.
Commentary
The Group noted that geopolitical tensions have intensified, and the global economic environment is becoming more volatile and uncertain.
The Group expects the foreign system schools' landscape and the operating environment to remain competitive and challenging.
However, the Group is cautiously optimistic that the inflow of expatriate families and student enrolment will continue to improve alongside Singapore's policies to attract foreign investments, talent and create new jobs in Singapore.
81 Pasir Ris Heights, Singapore 519292 | Tel (65) 6738 0211 | Fax (65) 6733-8825