April 17, 2023
One on One Educational Services Ltd. (ONE) for six months ended February 28, 2023 reported a 47% increase in revenues from contracts with customers totalling $153.45 million compared to $104.19 million in the corresponding period last year. According to management, this was “primarily due to increases in both the business to customers (B2C) and business to business (B2B) revenue lines. The increase in revenue was driven by new contracts acquired and on-going contracts from the previous financial year.”
Direct costs amounted to $26.76 million (2022: $28.69 million), this represents a decline of 7% year over year. It was noted that this was achieved through economies of scale in executing projects.
Gross profit increased by 68% to $126.68 million compared to $75.50 million for the period ended February 28, 2022.
Administrative expenses rose by 54% to close at $92.37 million (2022: $59.98 million). Selling expenses increased by 173% from $6.49 million in 2022 to $17.72 million in the period under review. As a result, operating profit for the six-month period amounted to $22.13 million, a 47% increase relative to $15.01 million reported twelve months earlier. ONE highlighted, “This increase was primarily due to three main factors. Firstly, the company hired new staff to improve existing product offerings and initiate new product developments, leading to increased staff costs. Secondly, as the company went public, it incurred registration fees. Finally, the company invested more in advertising and promotion to attract new users to their Learning Management System (LMS) and to increase brand awareness.”
Finance costs fell by 61% year over year, amounting to $2.39 million relative to $6.13 million recorded for the first six months of 2022.
Profit before taxation was $19.74 million relative to a profit of $8.87 million in 2022.
Taxation charge amounted to $2.33 million (2022: nil). ONE reported net profit of $17.41 million, compared to a profit of $8.87 million for the prior year’s corresponding period. Net profit for the quarter closed at $6.18 million (2022: $10.68 million).
Earnings per Share for the six-month period amounted to $0.009 (2022: $0.005). For the quarter, EPS amounted to $0.003 (2022: $0.01). The trailing twelve months earnings per share amounted to $0.01. The number of shares used in these calculations was 1,900,000,000 units. Notably, ONE’s stock price last traded on April 14, 2023 at a price of $1.17, with a corresponding P/E ratio of 106.87 times.
Balance Sheet Highlights:
The company’s assets totalled $634.86 million (2022: $331.43 million), $303.43 million more than its value as at February 2022. The increase in assets was largely due to an increase of $139.95 million in ‘Cash and Bank Balances’ to a total of $185.30 million (2022: $45.35 million).
Shareholders’ equity was $459.25 million (2022: $109.21 million), representing a book value per share of $0.24 (2022: $0.06).
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