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OEL Group Performance
A resilient education and business model helped maintain financial performance in FY2012.
Total Revenue increased 7.9% from $89.3 million in FY2011 to $96.4 million in FY2012, mainly due to increased Fee income.
Profit after tax (PAT) increased 6.1% from $19.5 million in FY2011 to $20.7 million in FY2012.
Net Cash position at 31 December 2012 was $94 million, and the group remains debt free.
Dividends
The Board affirms the importance of aligning the financial interests of all investors. As a professional institution, no bonuses or
share option schemes based on financial performance are available to executives or employees. Dividends align the interests of
employee shareholders, majority shareholders and investors.
OEL dividend policy is to pay at least 50% of the PAT attributable to shareholders each year.
This year, the Board recommends for shareholder approval at our Annual General Meeting (AGM), a tax-exempt one-tier dividend
of 2.75 cents per ordinary share. If approved, payment will be on 21 May 2013, based on registered shareholdings at 5pm on
9 May 2013.
The proposed dividend is equivalent to 55% of FY2012 PAT, and 5.7% of the listing price.
Prospects and future plans
Looking ahead, we expect foreign direct investment to remain a key policy for Singapore’s economic growth, and that relocation
here of overseas executives, professionals and diplomats, with their families, will continue. These new residents will add to the
demand for high quality education for their children, providing a real opportunity for OFS.
OFS is now operating at near full capacity at the current site, and our new campus will provide for growth. The new campus cost
will be about $200 million. We have set aside $60 million from past profits and added $68 million from net IPO proceeds. Some
additional funding will be required from bank borrowing and/or equity.
Special Thanks
To all OEL shareholders, we thank you for choosing to invest so significantly in the education and leadership development of
the next generation.
We also very much appreciate the contribution to the development of the company by fellow directors, OFS academic and
administrative staff members and management, together with our professional advisers, outside contractors and suppliers. Their
teamwork and commitment to making OFS a successful learning institution will surely make OEL a truly significant company.
Thank you all.
David A Perry
Executive Chairman and Chief Executive Officer
Overseas Education Limited AR 2012
Investing In Education
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