SINGAPORE (Aug 7): MindChamps PreSchool recorded earnings of $0.32 million for 2Q19, 74% lower than $1.26 million in 2Q18.
This brings 1H19 earnings to $0.74 million, 54% lower than $1.6 million in 1H18.
2Q19 revenue increased 64% to $12.5 million from $7.6 million a year ago, mainly attributable to an increase in school fees, which resulted from the higher number of enrolled students following the acquisitions of preschool centres in 2018 and 2019.
Correspondingly, cost of sales more than doubled to $6.0 million from $2.8 million a year ago, mainly due to higher academic staff costs incurred.
Hence, gross profit for 2Q19 came in at $6.6 million, 34% higher than $4.9 million last year.
Administrative expenses increased by 43% to $5.6 million, while marketing expenses rose 55% to $0.25 million.
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Operating profit fell 12% to $1.35 million.
Non-operating expenses were significantly higher, with finance expenses up more than sevenfold o $0.57 million and acquisitions expenses more than trebled from the previous year to $0.3 million.
As at end June, the group’s cash and cash equivalents stood at $12.6 million.
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David Chiem, founder CEO & executive chairman of MindChamps, says, “In line with MindChamps’ DNA of preparing deep and wide, when expanding into new markets, we take great care to invest in the right resources and strategies which will set us up for strong medium and then exponential long-term growth.”
On July 31, the group completed its acquisition of MindChamps PreSchool at Buangkok for $3.23 million. The group expects this acquisition to have a positive impact on its FY19 results.
Shares in MindChamps closed 5% lower on Wednesday at 57 cents before the results announcement.
