Raffles Education records net loss of S$2.9m

Hurt by interest expense and forex losses.

Raffles Education Corporation Limited (Raffles Education Corp) reported a revenue of S$31.8 million and a loss of S$2.9 million respectively for its first quarter FY2014, ended 30 September 2013 (FY2014Q1).

Revenue for FY2014Q1 decreased 3% from S$32.8 million a year ago to S$31.8 million as the Group continues to experience a decline in PRC revenues, albeit at a slower rate, the company said in a release.

FY2014Q1 recorded a net loss of S$2.9 million as the Group took in costs related to the consolidation of non-viable operations in addition to interest expense of S$2.7 million and a net foreign exchange loss of S$1 million. Without the effects of the interest expense and foreign exchange losses, the Group said it would have achieved breakeven notwithstanding the costs it incurred to streamline its operations.

Chew Hua Seng, Chairman and CEO of Raffles Education Corp, said, “The Group will continue to reposition and implement new strategies in PRC even as our geographic diversification and expansion strategies in Ex-PRC continue to bring forth positive results."

Net cash generated from operations amounted to S$20.6 million this quarter, reflecting the strength of operations. Cash and cash equivalents as at FY2014Q1 amounted to S$101.4 million.