Raffles Education’s profit jumps 13% to S$16.9m in 1Q12

The group recorded a net gain of S$15.9m from the 50% sale of its wholly-owned subsidiary, Value Vantage.

Raffles Education Corporation Limited reported a revenue of S$35.9 million and a net profit of S$16.9 million respectively for its first quarter of FY2012, ended 30 September 2011.

Revenue increased 13% in Asia Pacific (Ex-People’s Republic of China “PRC”) validating the Group’s geographical diversification strategy. This increase was offset by a decrease in PRC revenue of 29% caused mainly by the decrease in National Education School students as a result of the decline in the overall number of students taking the Gao Kao and the increase in PRC students going for overseas studies. The revenue decline was also due to the disposal of 100% of Shaanxi Electronic Information Institute and 50% of Zhongfa College (via Value Vantage Pte Ltd).

Consequently, revenue for Q1FY2012 decreased 15% to S$35.9 million from S$42.2 million in Q1FY2011.

The Group recorded a net gain of S$15.9 million during the quarter from the 50% sale of its wholly-owned subsidiary, Value Vantage Pte Ltd in July 2011 as part of its initiative to enhance the returns of its assets.