MindChamps Q4 earnings up 67%

MindChamps now has 74 centres globally, up from 59 in 2017.
MindChamps now has 74 centres globally, up from 59 in 2017.PHOTO: MINDCHAMPS

SINGAPORE - Mindchamps Preschool fourth-quarter net profit rose 67 per cent to $3.7 million, underpinned by increases in international student numbers and franchise development, the company announced on Wednesday (Feb 27) night.

Earnings per share (EPS) for the quarter came in at 1.52 cents, up from 1.18 cents a year earlier.

Shares in MindChamps closed at 56 cents apiece on Wednesday, up 2.78 per cent, or two cents.

The board has recommended a final dividend of 1.34 cents per share for the current financial period; no dividend was declared for the preceding year.

For the three months ended Dec 31, revenue rose 70 per cent to $14.1 million from a year ago, mainly due to an increase in school fees as newly acquired centres in Australia and Singapore raised the number of enrolled students.

There was also an increase of about $1.2 million in non-recurring franchise income for the quarter, MindChamps said.

For the full year, net profit rose 40 per cent to $6.4 million, as revenue grew 62 per cent to $37.0 million. This translated to EPS of 2.64 cents for the 12-month period, up from 2.45 cents previously.

 
 

Looking ahead, MindChamps noted that its increasing global presence will continue to be a strong growth contributor, with newly opened preschool and nursery centres in Singapore, Australia and Myanmar among others. The organisation now has 74 centres globally, up from 59 in 2017.

Additionally, the group is expected to further establish its network in Malaysia, with its aim to open 20 preschools there announced in October last year.

Singapore Press Holdings, which publishes The Straits Times, owns about a 20 per cent stake in MindChamps.