July 17, 2023
One On One Educational Services Limited (ONE) for the nine months ended May 31, 2023, reported a 14% increase in Revenues from contracts with customers totaling $222.30 million compared to $194.41 million in the corresponding period last year. Revenues from contracts with customers for the third quarter experienced a 24% decline to close at $68.86 million compared to $90.21 million for the comparable quarter of 2022. Management noted that the growth in revenue was driven mainly by the B2C and B2G business lines, which benefitted from new and existing government contracts.
Direct Cost amounted to $38.54 million (2022: $37.55 million), this represents an increase of 3% year over year. Consequently, gross profit increased by 17% to $183.76 million compared to $156.85 million for the nine months ended May 31, 2022. The Company booked gross profit of $57.08 million for the third quarter versus $81.35 million reported for the similar quarter of 2022.
Administrative Expenses increased by 46% to close at $139.65 million (2022: $95.65 million), while Selling Expense increased by 130% from $11.68 million in 2022 to $26.83 million for the period under review. As a result, operating profit for the nine months amounted to $29.15 million, a 51% decrease relative to $59.01 million reported in 2022.
Finance costs totalled $4.01 million, a 61% decrease from the corresponding period last year. (2022: $10.24 million).
Profit before Taxation for the nine months amounted to $25.14 million, a 48% decrease relative to $48.77 million reported in 2022. Profit before Taxation for the third quarter amounted to $5.40 million (2022: $39.90 million).
Taxation for the nine months had a 57% decline to reach $3.74 million (2022: $8.74 million). Net Profit, being total comprehensive income for the nine months amounted to $21.39 million, a 47% fall from the $40.04 million reported in 2022. For the third quarter, Net Profit, being total comprehensive income, was $3.98 million (2022: $31.16 million).
Consequently, Earnings Per Share for the nine months amounted to $0.011 (2022: EPS: $0.042), while Earnings Per Share for the quarter totaled $0.002 (2022: EPS: $0.033). The twelve-month trailing LPS was $0.02, and the number of shares used in these calculations was 1,900,000,000.
Notably, ONE’s stock price last traded on July 17, 2023 at a price of $0.95.
Balance Sheet Highlights
The company’s assets totalled $590.42 million (2022: $400.84 million). The increase in assets was largely due to an increase of $57.39 million in ‘Intangible Assets’ to a total of $247.19 million (2022: $189.80 million).
Shareholder’s equity was $463.23 million (2022: $140.38 million), representing a book value per share of $0.23 (2022: $0.11).
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