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Trade payables and other payables remained stable at
$0.19 mi l l ion and $0.68 mi l l ion respectively as at 31
December 2013, compared with $0.21 million and $0.73
million respectively the previous year.
The reduction in GST payable to $2.42 million in FY2013
compared with $3.19 million in FY2012 was mainly attributed
toGST receivable on expenditure pertaining to the construction
of the new school campus offset against GST payable on the
billing of the second semester’s tuition fees.
As at 31 December 2013, the Group’s shareholders’ equity
amounted to $146.65 million compared with $67.43 million
in FY2012.
CASH FLOW STATEMENT
In FY2013, net cash generated from operating activities
was $27.23 million, comprising cash ows from operating
activities before working capital changes of $30.90 million,
net working capital out ow of $0.16 million, interest received
of $0.51 million and income tax paid of $4.02 million.
The net working capital outflow of $0.16 million mainly
comprised the increase in other receivables, deposits
and prepayments of $1.21 million and the decrease of
non-current deposits of $2.08 million following the transfer
of fee protection insurance deposits from non-current to
current assets. Overall payables also decreased by $1.09
million as a result of lower GST payable for FY2013 compared
with FY2012.
The net cash out ow in investing activities of $53.59 million
for the year was mainly due to the alienation premium paid
and capital expenditure incurred for the development of the
new school campus.
The net cash in ow from nancing activities amounted to
$56.61 million in FY2013. This was mainly due to the net
proceeds of $68.03 million received from the IPO exercise,
less the dividends paid in May 2013 which amounted to
$11.42 million.
As at 31 December 2013, the Group’s cash and bank
balances and xed deposits stood at $124.70 million, up
by $30.24 million from the $94.46 million recorded as at 31
December 2012, primarily due to the net proceeds from the
IPO and collection of second semester tuition fees less the
payment of alienation premium and capital expenditure for
the development of the new school campus.
SIGNIFICANT TRENDS AHEAD
Going forward, a higher inflationary environment may
adversely affect the Group’s results. Notably, higher
personnel expenses, which form the largest part of the
Group’s operating expenses, could impact its operational
results should the Group be unable to pass on the increased
costs to clients in the form of higher tuition fees.
The construction of the new school campus in Pasir Ris is
underway. Capital expenditure for the new school campus
will contribute to the construction-in-progress and the
cash flow required to meet its obligations to the various
contracting parties.
15
Overseas Education Limited AR 2013
INVESTING IN EDUCATION