August 16, 2022
For the six months ended June 30, 2022:-
Edufocal Limited (LEARN), for the six months ended June 30, 2022, recorded revenue of $133 million, 164% more than the $50.40 million reported in the previous corresponding period. Revenue for the quarter increased 329% to $72.08 million (2021: $16.80 million). LEARN noted, “EduFocal has seen tremendous growth in Business and Partnership sales of $57.8 million respectively due to new contracts awarded, while newly acquired EduFocal LLC generated revenues of $3.4 million for the quarter under review”
Administrative and Operating expenses increased by 89% to $89.21 million relative to the $47.21 million posted for the same period last year. According to LEARN this was “driven by higher expenditures in core support areas of the business, specifically staff cost, legal and professional fees and advertising expense.”
As such, six months gross profit amounted to $43.79 million, approximately 1274% more when compared to the $3.19 million posted a year earlier. Gross profit for the quarter amounted to $27.93 million (2021: $61,975).
No other income was reported during the quarter (2021: $99,866), while impairment loss on financial asset totalled $21.57 million (2021: $83,788).
Finance cost amounted to $10.64 million (2021: $9.35 million). As such, profit before taxation amounted to $11.58 million relative to the loss before taxation of $6.15 million reported during the corresponding period in 2021.
No tax charges were incurred during the period (2021: tax credit of $901,103), as a result net profit amounted to $11.58 million compared to a net loss of $5.25 million in the comparable period last year. Net profit for the quarter was $9.54 million compared to a net loss of $5.25 million in 2021.
Total comprehensive income attributable to shareholders closed at $11.58 million versus total comprehensive loss of $5.25 million recorded twelve months earlier.
Earnings per share (EPS) amounted to $0.018 for the period relative to loss per share (LPS) of $0.008 in 2021. For the quarter, EPS amounted to $0.015 versus LPS of $0.004. The twelve months trailing earnings per share is $0.039. The number of shares used in our calculations is 648,446,094 units. Notably, LEARN’s stock price closed the trading period on August 15, 2022 at $2.88 with a corresponding P/E of 73.02 times.
Balance Sheet at a glance:-
As at June 30, 2022, total assets totalled $336.01 million, 148% more than the $135.25 million booked as at June 30, 2021. The growth was primarily due to increase in ‘Receivables and prepayments’ which closed at $208.77 million (2021: $47.69 million).
Shareholders’ equity closed at $199.44 million, up from last year’s $27.79 resulting in book value per share of $0.1 (2021: $0.0047).
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.