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.