Raffles Education net profit fell 53% in nine months FY2011

Revenue declined 15% coupled with an increase in income tax expense and higher personnel expenses, 9MFY2011 net profit after tax was $14.6 million.

According to Raffles Education, revenue declined due mainly to the strengthening of the Singapore dollar against the Renminbi which adversely affected the Renminbi denominated revenue and lower enrolments due to a reduction in the allocation of National Education School students as a result of a drop in the number of students in China taking the Gao Kao.

Mr Chew Hua Seng, Chairman and CEO of RafflesEducationCorp, remarked, “The results reflect the effects of the strong Singapore dollar on Renminbi denominated revenue. Importantly, we have seen improvements in student enrolment numbers from our new colleges as they continue to penetrate emerging markets. ”

Outlook and Prospects

The Group will continue to build on its strong fundamentals including building depth at its existing colleges, expanding its college network, value creation of Oriental University City, enhancing its academic capability, education asset enhancement and executing strategic acquisitions.

As previously announced, the proposed S$78 million 10-year loan from IFC is a strong endorsement of the Group’s growth, particularly in emerging markets.