May 11, 2022
Edufocal Limited (LEARN), for the three months ended March 31, 2022, reported revenue of $60.92 million, 81% more than the $33.60 million reported in the previous corresponding period. LEARN noted, “This increase is indicative of our continued growth in business sales.”
Administrative and Operating expenses increased by 48% to $45.06 million relative to the $30.48 million posted for the same period last year. According to LEARN, “The Company will continue to focus on the execution of strategic initiatives and managing our administrative & other operating expenses, which have increased by $22.2 million over the corresponding period in 2021. This is mainly attributable to an increase in staff cost, consulting fees and advertising and promotional activities.”
As such, gross profit amounted to $15.86 million, approximately 408% more when compared to the $3.12 million posted a year earlier.
No other income was reported during the quarter (2021: $66,577), while impairment loss on financial asset totalled $7.85 million (2021: nil).
Finance cost amounted to $5.97 million (2021: $6.24 million). As such, profit before taxation amounted to $2.04 million relative to the loss before taxation of $3.05 million reported during the corresponding period in 2021.
No tax charges were incurred during the period (2021: $450,552), as a result net profit amounted to $2.04 million compared to a net loss of $2.60 million in the comparable period last year.
Total comprehensive income attributable to shareholders closed at $2.04 million versus total comprehensive loss of $2.60 million recorded twelve months earlier.
Earnings per share (EPS) amounted to $0.003 cents for the period relative to loss per share (LPS) of $0.004 cents in 2021. The twelve months trailing earnings per share is $0.021. The number of shares used in our calculations is 648,446,094 units. Notably, LEARN stock price close the trading period on May 10, 2022 at $3.88 with a corresponding P/E of 187.98 times.
Management noted, “Shortly after our listing, we acquired the assets of Clever School Teacher. The intellectual property assets of Clever School are held under EduFocal LLC, a US based company registered in January 2022. Consequently, EduFocal is now a Group of Companies with operations in Jamaica and the United States of America. It is important to note that owing to the closing date of the acquisition, the revenues and profits of Clever School Teacher are not reflected in our Q1 results in any substantial way.”
Balance Sheet at a glance:-
As at March 31, 2022, total assets totalled $300.40 million, 200% more than the $100.26 million booked as at March 31, 2021. The growth was primarily due to increase in ‘Receivables and prepayments’ which closed at $158.62 million (2021: $41.89 million).
Shareholders’ equity closed at $192.02 million, up from last year’s $458,000 resulting in book value per share of $0.296 (2021: $0.001).
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