Overseas Education’s earnings take 32.1% nosedive to $21.98m

Falling student enrolment numbers weighed down revenue.

Overseas Education Limited (OEL)’s FY15 net profits took a 32.1% nosedive to $21.98m as waning student enrolment battered the company’s revenue.

According to OEL’s announcement, its total revenue dipped 4.9% to $97.12m as student enrolment numbers tumbled, particularly in the junior schools.

Total operating expense inched up 5.4% to $7.75m on back of increased depreciation expenses, finance costs and utilities, offset by the absence of school lease rental after the move to the new school campus in July 2015 and reduced upkeep and maintenance expenses.

Meanwhile, finance costs of $4.15m were expensed in the second half of FY15 as they were no longer capitalised as part of construction-in-progress upon completion of the new school campus and the start of school operation from 1 July 2015.

Income tax expense for the financial year comprised mainly of the accrual of current year’s deferred tax liabilities of $2.38m due to the recognition of capital allowances on new assets acquired for the new school campus.