Fair value gain on properties helps Raffles Education Corp post full-year profit of $26.7m

Raffles Education Corp, a private education provider, posted net profit of $26.7 million for its latest financial year, reversing a loss of $66.3 million the year before.

This was despite revenue sliding 2 per cent to $128.4 million for the 12 months ended June 30, the company said on Friday.

It reported a $7.1 million decline in revenue from China, but said the loss was partially offset by a rise in contributions from the rest of the Asia-Pacific region.

Operating income fell 46.9 per cent to $67.2 million for the year as last year's figure was boosted by a government grant and one-off gains on sales of its equity interest.

Nonetheless, the company managed to post a net profit due to a fair value gain of $41.7 million on its investment properties.

Chairman and chief executive Chew Hua Seng said: "Our expansion strategy in the Asia Pacific (ex-China) region is showing a positive outcome.

"Together with our repositioned and strengthened Chinese operations, we are confident that we are on the road to long-term sustainable growth."

The company expects to see further growth in revenue contributions from Asia Pacific excluding China.

Earnings per share for the year rose to 2.68 cents, compared with a loss of 5.56 cents a share last year.

But the company's net asset value per share declined to 54.07 cents from 58.56 cents previously.

Raffles Education shares closed flat on Friday at 29.5 cents.

Follow ST on LinkedIn and stay updated on the latest career news, insights and more.