Overseas Education FY2025 profit plunges 97% to S$0.2m as revenue slips 5% and staff costs rise; dividend cut to 0.7 cent
Summary:
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Full-year revenue fell 5.2% to S$83.9 million as tuition fees declined 4.8% to S$80.8 million on lower student enrolment, with enrichment and shop revenues also weaker.
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Net profit attributable to shareholders collapsed 96.7% to S$0.2 million from S$6.3 million, as personnel expenses rose 4.2% to S$52.7 million and profit before depreciation and amortisation dropped 31.5% to S$14.7 million.
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Operating cash flow remained solid at S$15.5 million (FY2024: S$20.5 million), but cash and cash equivalents fell to S$48.3 million from S$53.6 million after S$6.2 million of loan and lease repayments and S$5.0 million of dividends.
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Net assets eased to S$133.4 million (NAV 32.1 cents per share) from S$138.2 million, while borrowings fell to S$77.8 million and interest expense declined to S$3.3 million as average loan rates dropped from about 5.5% to 3.1–4.9%.
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The board proposes a lower final dividend of 0.7 cent per share (FY2024: 1.2 cents), citing margin pressure from rising staff and maintenance costs and ongoing investment needs for the Pasir Ris campus.