Page 20 - ar2012

OPERATIONS & FINANCIAL
REVIEW
INCOME STATEMENT
Total Revenue
For the financial year ended 31 December 2012 (“FY2012”),
Overseas Education Limited (“OEL” or the “Group”) achieved
a 7.9% year-on-year growth in total revenue to S$96.40
million, mainly due to an increase in revenue from tuition fees
and registration fees.
• Tuition fees revenue increased by S$5.94 million from
S$85.44 million in FY2011 to S$91.38 million in FY2012
mainly attributable to tuition fees having increased by
8% to 15% across Overseas Family School (“OFS” or
the “School”) for the academic year that commenced in
August 2012.
• Revenue from registration fees increased from S$1.33
million to S$2.70 million, an increase of S$1.37 million,
primarily due to the revision of the registration fee from
S$1,000 to S$2,000 per student with effect from 9
March 2012, for all new students starting School in the
academic year that commenced in August 2012.
• Revenue from school bookshop sales remained stable
at S$1.14 million in FY2012 as compared to S$1.21
million in FY2011. Enrichment programme revenue was
unchanged at S$0.80 million in FY2012.
• Interest income was relatively stable at S$0.22 million
compared to S$0.20 million in FY2011.
• Other revenue decreased by S$0.19 million from
S$0.35 million in FY2011 to S$0.16 million in FY2012.
In FY2011, there was recognition of S$0.13 million
unclaimed excess payments as other revenue, which
comprised overpayments and student refundable
deposits which had been unclaimed and outstanding
for more than five years. There was no such write backs
during the current year.
Operating Expenses
In FY2012, the Group’s total operating expenses increased
by S$6.04 million from S$65.89 million in FY2011 to
S$71.93 million, mainly due to personnel expenses, which
increased by S$8.53 million from S$44.79 million in FY2011
to S$53.32 million in FY2012.
This was partially offset by the absence of management
fees expenses in FY2012 after the termination of the
Management Services Agreement with a director-related
company, Master Projects Pte Ltd (the previous holding
company of the Group’s subsidiaries) on 30 November
2011, compared to a management fees expense of S$2.57
million in FY2011.
The increase in personnel expenses was mainly attributable
to the increase in headcount, resulting in an increase in
salaries, bonuses and CPF contribution of S$7.49 million
and increase in other short term benefits of S$1.04 million.
Salaries, bonuses and CPF contributions increased by S$1.09
million arising from an increase in the number of academic
personnel, in line with the increase in average student
enrolment, S$2.82 million in salary adjustments made for all
academic personnel including promotion-related adjustments
and S$3.58 million for the transfer of administration staff
previously employed by Master Projects Pte Ltd to the Group,
pursuant to the termination of the Management Services
Agreement with Master Projects Pte Ltd.
Depreciation and amortisation expenses were lower by
S$0.38 million from S$4.73 million in FY2011 to S$4.35
million in FY2012, on account of lower capital expenditure in
FY2012.
Upkeep and maintenance expenses decreased by S$0.26
million in FY2012 from S$1.45 million to S$1.19 million. In
FY2011, there were major painting maintenance works done
on the School buildings.
Other operating expenses increased by S$0.59 million from
S$3.52 million in FY2011 to S$4.11 million in FY2012. The
increase was mainly attributable to directors’ fees of S$0.42
million incurred in FY2012 following the appointment of
additional directors upon incorporation of the Company on
28 October 2011 and the increase in professional fees of
S$0.19 million mainly due to the IPO exercise.
Profitability
Due to the factors above, profit before taxation increased
from S$23.45 million in FY2011 to S$24.47 million in
FY2012, an increase of S$1.02 million.
Overseas Education Limited AR 2012
Investing In Education 18
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