January 18, 2024
One on One Educational Services Limited (ONE)
Unaudited financials for the first quarter ended November 30, 2023:
One on One Educational Services Limited (ONE) for the first quarter ended November 30, 2023, reported a 33% decrease in revenues from contract with customers totalling $54.46 million compared to $80.86 million in the corresponding three months last year. Management noted, “ This decline is primarily attributed to a strategic shift towards building recurring revenue through the OneAcademy revenue lines for the Teacher Availability Solution. The challenges experienced in implementing the technology during the quarter, resulted in the generation of revenue earmarked for the quarter”.
Direct Cost amounted to $13.82 million (2022: $14.92 million), this represents a decrease of 7% year over year. Consequently, gross profit decreased by 38% to $40.64 million compared to $65.94 million for the first quarter ended November 30, 2022.
Other Income decreased by 71% to close at $525,958 (2022: $1.80 million), while Administrative Expenses increased by 13% from $45.21 million in 2022 to $50.92 million for the three months. Also, Selling Expenses for the first quarter amounted to $6.95 million, a 20% decrease relative to $8.68 million reported in 2022.
ONE highlighted, “The rise in expenses is mainly attributed to increased staff costs, driven by the need to support its existing product development as well as amortization costs related to right-of-use assets for leased building space, and depreciation charges due to additions to property, plant, and equipment to support the companies recurring revenue business line under development.”
Operating Loss for the three months amounted to $16.70 million, relative to operating profit of $13.86 million reported in 2022.
Finance costs totalled $2.09 million, a 38% increase from the corresponding period last year. (2022: $1.51 million).
Loss Before Taxation for the first quarter ended November 30, 2023, amounted to $18.79 million, (2022: Profit of $12.34 million).
Taxation for the three months amounted to $2.73 million (2022: $1.11 million).
Net Loss for the three months amounted to $21.52 million, relative to net profit of $11.23 million reported in 2022.
Consequently, Loss Per Share for the three months amounted to $0.011 (2022: EPS: $0.006). The twelve-month trailing LPS was $0.04, and the number of shares used in these calculations was 1,900,000,000.
Notably, ONE’s stock price closed the trading period on January 18, 2024, at a price of $1.00.
Balance Sheet Highlights
The company’s assets totalled $565.71 million (2022: $575.16 million). ONE highlighted, “This decrease is mainly attributed to a decline in cash and bank balances, primarily due to funds invested in working capital support and loan repayment”.
Shareholder’s equity was $382.56 million (2022: $453.07 million), representing a book value per share of $0.20 (2022: $0.24).
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