National Company for Learning and Education annual profits decline to SR24 mln by 57%

This came after the National Company for Learning and Education announced its annual financial results for the period ending on 2021-08-31.

The operational profit amounted to SR34 million during the fiscal year, compared to SR66.22 million during the previous year, a decrease of 48.41%.

The gross profit amounted to SR70.41 million during the fiscal year, compared to SR105.23 million during the previous year, a decrease of 33%.

Earnings per share during the current period amounted to SR0.57, compared to SR1.34 during the same period of the previous year.

The decrease in net profit for current year compared to the previous year is due to decrease in revenue for the current year which resulted mainly from providing discounts with different rates from 10% to 50% on the tuitions of the current academic year, concurring with the Ministry of Education announcement of the online education for the 2020/2021, and in appreciation of the Company’s clients and to maintain the students base in the educational complexes which will serve the company long term plans. Also, the total number of students enrolled in the current year decreased by 8% compared to the previous year, as 76 % of the decrease resulting from the newly enrolled students for kindergarten and first grade of primary school. In addition to the decrease in the revenues aligned with the educational process as a result of the suspension of school transportation services and canteens.

On the other side, the government grants and subsidies have increased during the current year mainly from the company benefiting from the government initiative (Saned), which is concerned with decreasing the financial implications of the Coronavirus (COVID-19).

The company continuously reviews the operating costs according to operating requirements and changing circumstances, which resulted in improving the operating costs for the current year despite the additional costs of operating Al-Qairawan complex which opened at the beginning of this year.

During the current year, National Company for learning & Education (NCLE) has acquired Refan Company for Operation & Maintenance Limited which resulted in consolidating the financial statements of the company with NCLE.