REG - Fairview Intnl PLC - Pro forma results for the period to 30 June 2024
04/12/2024 10:30
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RNS Number : 7937O Fairview International PLC 04 December 2024
Fairview International PLC
("Fairview" or the "Company")
Combined Pro forma results for the period to 30 June 2024
Fairview, the operator of international schools following the International
Baccalaureate curriculum, is pleased to announce its pro forma financial
results for the 12 months ended 30 June 2024.
Highlights
· Student numbers increase by 12% to 773 (2023: 689)
· Gross profit increased by 32% to £2,395,000 (2023: £1,814,000)
· Profit before tax increased by 4% to £1,897,000 (2023: £1,820,000)
The results set out below do not constitute Fairview's statutory accounts but
are derived from the combination of the financial statements for the
pre-acquisition 12-month period to 30 June 2024 for its two Malaysian
subsidiaries (the "Operating Group") which have been audited locally under
IFRS and reviewed by the Company's UK auditors.
Further details regarding the acquisition of the two schools in Malaysia can
be found in the Company's prospectus dated 4 October 2024, which is available
on the Company's website: www.fairviewplc.uk (http://www.fairviewplc.uk) .
Daniel Chian, Chairman of Fairview, said: "I am pleased to report Fairview's
first financial results published since our IPO in October. These results of
the Operating Group are a pro forma of our two subsidiary companies but are
representative of Fairview International's performance for the period under
review.
"As education establishments around the world recover from the restrictions
during the Covid period, our performance illustrates the financial
capabilities of our schools. The key driver for everything we do is student
numbers and a 12% increase across the year is particularly pleasing.
"Two key metrics of our business model are the inherent scalability of our
business in line with student numbers and the security of our customer base.
Put simply, each new student provides incrementally higher profitability and,
once a child starts at a new school, they will very probably stay there until
the end of their secondary education.
"We pride ourselves on the breadth of educational and extra-curricular
activities that our schools offer but, as well as benefitting the children at
our schools, they of course also provide our Company with the ability to earn
further revenue from our customer base. Schools are first and foremost a
nurturing environment but, as today's results demonstrate, they can also be a
very successful business."
For further information, please contact:
Fairview International PLC
Daniel Chian, Chairman fil.chair@fairview.edu.my (mailto:fil.chair@fairview.edu.my)
Website: www.fairviewplc.uk
Optiva Securities Limited
Vishal Balasingham Tel: +44 (0) 20 3137 1903
focusIR
Kat Perez Tel: +44 (0) 7881 622 830
kat.perez@focusIR.com
About Fairview International PLC
Fairview owns and operates two private independent schools in Malaysia that
offer the International Baccalaureate programme. One of these schools is
located in Kuala Lumpur, the capital of Malaysia, and the other is located in
the southern state of Johor close to the border with Singapore. These
schools trade under the Fairview brand which was founded in 1978, and were
subsequently acquired by Agodeus Sdn Bhd, a company owned by the Chian family,
in 2012.
There are three other schools in Malaysia and one in the United Kingdom that
also trade under the Fairview brand, which are outside of the Company's
group. All schools in the Fairview network are individually recognised by
the International Baccalaureate Organisation as fully accredited to offer the
IB programme across the primary and middle years; ages 5 to 16, with Fairview
Kuala Lumpur also offering the diploma programme for 16 to 19 year olds.
Each of the schools not owned by the Company use the Fairview brand under
licence from the Company accessing the resources of the Fairview Network.
The school in Kuala Lumpur is the largest and flagship school that uses the
Fairview brand, whilst the school in Johor focuses on the expatriate market in
Singapore and so is internationally focused.
The Company plans to acquire more schools which can offer international
education including the International Baccalaureate programmes both in Asia
and the UK. The Company in particular believes there is an opportunity to
acquire underperforming private independent schools in the UK and adapt its
product offering to be authorised to offer the International Baccalaureate
programme. With a rise in popularity of the International Baccalaureate
programme in both the independent and state sector in the UK, with a growing
acceptance of International Baccalaureate graduates by UK universities, the
Directors believe that the Company's schools will appeal particularly to the
ASEAN, China and Hong Kong market; particularly families looking for an
educational foundation in the UK prior to studying at a UK University.
Website
www.fairviewplc.uk (http://www.fairviewplc.uk)
Social media
https://x.com/fairviewplc (https://x.com/fairviewplc)
https://www.linkedin.com/company/fairview-international-plc/
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect",
''will'' or the negative of those, variations or comparable expressions,
including references to assumptions. These forward-looking statements are not
based on historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the amount,
nature and sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements reflect the
Directors' current beliefs and assumptions and are based on information
currently available to the Directors.
Review of results for the year
The Operating Group has reported improvements in both revenue and profit
before tax for the year ended 30 June 2024. Revenue of £5.0 million and
profit before tax of £1.9 million, each showing growth of 4.2% on the prior
year equivalents. The financial results of the Operating Group reflect the
substantial improvement in its most important Key Performance Indicator (KPI),
namely student numbers, which finished the year at 773 representing an
increase of 84 new students over the preceding 12 months.
The Company achieved a significant milestone after the year end with its
shares being successfully admitted to the London Stock Exchange's Main Market
and commencing trading on 11 October 2024.
Fairview was incorporated on 28 February 2024 with a financial year end of 30
June to match its subsidiary companies. The Company's first statutory
accounts will be for the period from 28 February to 30 June 2025. The
effective date for the purchase of its two subsidiary companies, Fairview
Schools Berhad and Fairview International School Nusajaya Sdn Bhd, was 11
October 2024, being the date on which the Company gained control of the
management and equity of those companies.
The Directors are presenting the combined results for the Operating Group for
the financial year ended 30 June 2024 on a pro-forma basis on the assumption
that the Operating Group has been trading as a combined entity for the full 12
months ended 30 June 2024. Accordingly, the pro-forma combined results herein
have been prepared based on the 12-month results of Fairview Schools Berhad
and Fairview International School Nusajaya Sdn Bhd, ended on 30 June 2024.
Revenue
Revenue is primarily driven by student numbers which increased by 12% during
the year. The Directors consider that this increase is primarily
attributable to the post covid recovery where traveling is no longer subject
to any restrictions. This has brought expatriate families back to Malaysia
and, with that, additional student enrolments. The Operating Group has
implemented various sales and marketing strategies to appeal to these families
and so it is pleasing to see these initiatives succeed in the schools' local
communities.
Both of the Operating Group's schools have the ability to take on greater
numbers of students, with overall capacities of 1,500 and 750 in Kuala Lumpur
and Johor Bharu respectively. With the Group therefore only operating at
around one third of its maximum capacity, this trend of parents enrolling
their children back into International schools is encouraging and the
Directors are accordingly optimistic for further increases during the
financial year ending 30 June 2025.
Revenues did not rise in proportion to student numbers - revenue of £5.0
million represents a 4.2% increase over the previous year - due to a
continuation of higher rates of financial assistance that were offered to
students through bursaries. This was a considered policy of the schools in
recognition of the financial difficulty many parents had suffered during the
Covid pandemic and a show of appreciation to those parents who had remained
supportive of the schools during that period. By their nature, schools
provide a long term relationship with their customers - namely families - and
the Group determined that the gestures made during this past year would be
repaid through the ongoing loyalty of its customer base.
Average fees per student remained largely consistent at around £5,900 as the
Operating Group prioritised new enrolments over inflation-linked tuition fee
increases during the year. However, the Directors are mindful that Fairview
offers very competitive education costs, alongside a leading International
Baccalaureate curriculum, and therefore would guide investors to expect
increases in school fees in future financial years.
Gross Profit
Gross profit of £2,395,000 showed a 32.0% improvement on the previous year
(2023: £1,814,000). This improvement of over £500,000 was achieved as a
result of tighter cost controls, referred to below.
Other Operating Income
Other income comprises enrolment fees, examinations, excursions and
expeditions as well as canteen and bookshop sales. The reduction in the
current year reflects the accounting treatment of the restructuring of debt
within the Fairview network prior to the Company's IPO in October 2024. This
led to a reduction in intercompany interest income of around £350,000 and the
application of an unrealised foreign exchange loss.
Costs of Operations and Administration Expenses
The biggest contributor to costs of operations are the teachers and other
academic staff. Savings during the year of £210,000 predominantly reflect a
headcount reduction of 13 staff, of which 3 were academic staff.
Administration expenses decreased to £586,000 (2023: £597,000) during the
year, reflecting efforts to manage the cost base.
Profit before tax
Profit before tax of £1,897,000 showed a 4.2% improvement on the previous
year (2023: £1,820,000) illustrating the overall gearing effect in the
Operating Group of increasing student numbers, despite the accounting
treatment of the pre-IPO reorganisation that itself exceeded the increase in
top line revenues. The fact that this improvement was achieved despite the
challenging business and education environment post Covid is particularly
pleasing.
Taxation for the year is disproportionately high as it includes £245,000
which relates to the prior year. Tax charges in Malaysia are estimated on a
pay-as-you-earn basis with the final tax liabilities usually being determined
in the following financial year following completion of the final tax return
and audit.
Cash and cash equivalents
Cash balances as at 30 June 2024 of over £1 million do not reflect the net
proceeds of Fairview's IPO on 11 October 2024, of £1.8 million.
Risks
The principal risks and uncertainties associated with the business and
operations of Fairview are set out in the prospectus of the Company dated 4
October 2024. The Directors believe that these risks and uncertainties remain
relevant to the business at the time of finalising these accounts for the year
ended 30 June 2024.
Combined Income Statements for 12 months ended 30 June 2024
30 June 2024 30 June 2023
Key indicators:
Number of students 773 689
Classes 36 36
Average student per class 21 19
Average fee p.a. (GBP'000) 6 6
Net revenue 5,011 4,807
Gross profit margin 47.8% 37.7%
EBITDA 3,193 3,393
Profit before taxation 1,897 1,820
Profit after taxation 1,343 1,517
Audited combined Audited combined results
NOTE results 30 June 2023
30 June 2024 £'000
£'000
Revenue 4 5,011 4,807
Cost of operation (2,616) (2,993)
Gross profit 2,395 1,814
Other operating income 815 1,316
Administration expenses (586) (597)
Profit from operations 2,624 2,533
Finance costs 5 (727) (713)
Profit before tax 1,897 1,820
Income tax expenses 6 (554) (303)
Profit for the period 1,343 1,517
Total comprehensive income attributable to owners of the companies 1,343 1,517
Total comprehensive income for the period 1,343 1,517
Statement of financial position
Audited Audited
30 June 2024 30 June 2023
NOTE £'000 £'000
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 7 13,248 13,606
Right-of-use assets 8 1,471 1,480
Intangible assets 9 207 257
Total non-current assets 14,926 15,343
Assets held for sale 10 6,812 6,891
CURRENT ASSETS
Inventories 58 94
Trade receivables 9 36
Other receivables 11 6,900 16,618
Cash and bank balances 12 1,081 799
Total current assets 8,048 17,547
TOTAL ASSETS 29,786 39,781
EQUITY AND LIABILITIES
EQUITY
Share capital 13 680 677
Capital contribution 96 0
Retained earnings 1,744 19,167
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY 2,520 19,844
NON-CURRENT LIABILITIES
Deferred tax liabilities 14 2,005 1,994
Bank borrowings (secured) 15 8,609 7,223
Other payables 16 9,032 2,928
Total non-current liabilities 19,646 12,145
CURRENT LIABILITIES
School fee deposit payables 1,919 1,686
Other payables 16 1,084 2,134
Bank borrowings (secured) 15 3,603 3,036
Unearned portion of school fees received 861 903
Tax liabilities 153 33
Total current liabilities 7,620 7,792
TOTAL LIABILITIES 27,266 19,937
TOTAL EQUITY AND LIABILITIES 29,786 39,781
Statement of Combined cash flows
Audited Audited
30 June 2024 30 June 2024
£'000 £'000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax 1,897 1,820
Adjustments for:-
Amortisation of intangible asset 173 127
Depreciation of investment property 0 63
Depreciation of property, plant and equipment 322 620
Depreciation of right-of-use assets 16 4
Gain on disposal assets classified as held for sale 0 (50)
Loss on disposal of property, plant and equipment 7 0
Interest expenses 725 713
Interest income (268) (621)
(Gain)/Loss on foreign exchange - unrealised 66 (176)
Loss on disposal of subsidiary company 0 0
Operating profit before working capital changes 2,938 2,500
Decrease/(Increase) in inventories 36 (26)
Decrease/(Increase) in trade receivables 31 (10)
Decrease/(Increase) in receivables 9,903 (254)
Increase in trade payables 243 211
Increase in payables 5,563 1,873
Foreign currency translation 0 (218)
Cash from operations 18,714 4,076
Tax refund 7 0
Tax paid (444) (207)
Net cash from operating activities 18,277 3,869
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of assets held for sale 104 893
Proceeds from disposal of property, plant and equipment 31 0
Purchase of property, plant and equipment (15) (96)
Purchase of intangible assets (39) (42)
Acquisition of capital contribution 96 0
Interest income received 268 567
Net cash used in investing activities 445 1,322
CASH FLOWS FROM FINANCING ACTIVITIES
Drawdown of borrowings 4,657 1,015
Dividends paid (18,858) (2,594)
Repayment of bank borrowings (3,517) (1,829)
Interest paid (725) (651)
Foreign currency translation 0 227
Net cash used in financing activities (18,443) (3,832)
Net increase/(decrease) in cash and cash equivalents 279 1,359
Effect of changes in foreign currency translation 3 (11)
Foreign currency translation differences for foreign operations 0 50
Cash and cash equivalents at beginning of the period 799 (599)
Cash and cash equivalents at end of the period 1,081 799
NOTES TO THE FINANCIAL INFORMATION
1. General information
FSB is a public limited company incorporated and domiciled in Malaysia.
The registered office and principal place of business are as follows:
● The registered office is located at 62-2, Jalan 2A/27A, Section 1,
Wangsa Maju, 53300 Kuala Lumpur.
● The principal place of business is located at Lot 4178, Jalan
1/27D, Section 6, Wangsa Maju, 53300 Kuala Lumpur.
FJB is a private limited company incorporated and domiciled in Malaysia.
The registered office and principal place of business are as follows:
● The registered office is located at 62-2, Jalan 2A/27A, Section 1,
Wangsa Maju, 53300 Kuala Lumpur.
The Operating Group is principally engaged in the operation of an
English-Medium private international school. There have been no significant
changes in the nature of the activities during the year.
The aggregate financial statements of the Operating Group are presented in the
British pound sterling (£) currency, which is the presentation currency of
the Company. The functional currency of FSB and FJB is Ringgit Malaysia (RM)
as the sales and purchases are mainly denominated in Ringgit Malaysia and
receipts from operations are usually retained in Ringgit Malaysia and funds
from financing activities are generated in Ringgit Malaysia.
The Ringgit Malaysia is translated to British pound sterling based on the
following exchange rate:
Financial Year End: 30 June 2024 30 June 2023
Average Rate GBP 1:RM 6.0930 5.9108
Closing Rate GBP 1:RM 5.8833 5.3964
2. Basis of preparation
This combined Financial Information presents the financial track record of the
Operating Group for each of the two years ended 30 June 2024 and 2023, and the
basis of preparation is summarised below.
The Combined Financial Information has been prepared in accordance with IFRS,
issued by the International Accounting Standards Board, including
interpretations issued by the International Financial Reporting
Interpretations Committee, applicable to companies reporting under IFRS. The
directors of the Company are responsible for the preparation of this Combined
Financial Information.
The Operating Group did not form a legal group in the periods presented in the
Combined Financial Information. However, they have been under common
management and control in those years. Accordingly, a consolidation under the
requirements of IFRS 3, Business Combination and IFRS 10, Consolidated
Financial Statements have not been complied with.
The Combined Financial Information has been prepared by aggregating the
assets, liabilities, results, share capital, share premium and reserves of the
entities, after eliminating intercompany transactions, balances and unrealised
gains on transactions between the combined entities. "Share capital" and
"share premium" represent the aggregated share capital and share premiums of
the companies comprising the Combined Financial Information.
The financial information for the FSB and FJB has been audited by Messrs TKNP
International, Chartered Accountants and Messrs YPK & Associates,
Chartered Accountants, respectively have been prepared under the historical
cost convention and modified to include other bases of valuation and in
accordance with the Malaysian Accounting Standards ("MFRS") issued by the
Malaysian Accounting Standards Board ("MASB"). The Malaysian Financial
Reporting Standards (MFRS) framework is fully compliant with the International
Financial Reporting Standards (IFRS) framework. The MFRS framework was
introduced by the Malaysian Accounting Standards Board (MASB) and came into
effect on 1 January 2012. It is fully compliant with the International
Financial Reporting Standards (IFRS) framework.
There are also a number of new standards and amendments to standards and
interpretations have been issued but are not yet effective and, in some cases,
have not yet been adopted by the UK/EU. The Directors do not expect that the
adoption of these standards will have a material impact on this Financial
Information.
3. Accounting policies
3.1 Property, Plant and Equipment
All items of property, plant and equipment are initially recorded at cost. The
cost of an item of property, plant and equipment is recognised as an asset if,
and only if, it is probable that future economic benefits associated with the
item will flow to the Group and the cost of the item can be measured reliably.
Subsequent to recognition, property, plant and equipment other than freehold
land are measured at cost less accumulated depreciation and accumulated
impairment losses. When significant parts of property, plant and equipment are
required to be replaced in intervals, the Group recognises such parts as
individual assets with specific useful lives and depreciation. Likewise, when
a major inspection is performed, its cost is recognised in the carrying amount
of the property, plant and equipment as a replacement if the recognition
criteria are satisfied. All other repair and maintenance costs are recognised
in profit or loss as incurred.
Purchase of software that is integral to the functionality of the related
equipment is capitalised as part of that equipment.
Motor vehicles are depreciated on a revaluation model basis less its estimated
residual value based on observable market data. The gross carrying amount is
restated by reference to observable market data and the accumulated
depreciation at the date of the revaluation is adjusted to equal the
difference between the gross carrying amount and the carrying amount of the
asset.
No depreciation is provided on freehold land.
Depreciation on other property, plant and equipment is computed on a
straight-line basis over the estimated useful lives of the assets at the
following rates:
Rate
Building 2%
Furniture and fittings 25%
Electrical equipment 25%
Resource equipment 20%-25%
Motor vehicle 20%-25%
The carrying values of property, plant and equipment are reviewed for
impairment when events or changes in circumstances indicate that the carrying
value may not be recoverable.
The residual value, useful life and depreciation method are reviewed at each
financial year end, and adjusted prospectively, if appropriate.
An item of property, plant and equipment is derecognised upon disposal or when
no future economic benefits are expected from its use or disposal. Any gain or
loss on derecognition of the asset is included in the profit or loss in the
year the asset is derecognised.
Fully depreciated plants and equipment are retained in the financial
statements until they are no longer in use and no further charge for
depreciation is made in respect of these plants and equipment.
3.2 Impairment of non-financial assets
The Operating Group assesses at each reporting date whether there is an
indication that an asset may be impaired. If any such indication exists, or
when an annual impairment assessment for an asset is required, the Operating
Group makes an estimate of the asset's recoverable amount.
An asset's recoverable amount is the higher of its fair value, less costs to
sell and its value in use. For the purpose of assessing impairment, assets are
grouped at the lowest levels for which there are separately identifiable
cash-generating units ("CGU").
In assessing value in use, the estimated future cash flows expected to be
generated by the asset are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. Where the carrying amount of an
asset exceeds its recoverable amount, the asset is written down to its
recoverable amount. Impairment losses recognised in respect of a CGU or groups
of CGUs are allocated first to reduce the carrying amount of any goodwill
allocated to those units or groups of units and then, to reduce the carrying
amount of the other assets in the unit or groups of units on a pro-rata basis.
Impairment losses are recognised in profit or loss.
An assessment is made at each reporting date as to whether there is any
indication that previously recognised impairment losses may no longer exist or
may have decreased. A previously recognised impairment loss is reversed only
if there has been a change in the estimates used to determine the asset's
recoverable amount since the last impairment loss was recognised. If that is
the case, the carrying amount of the asset is increased to its recoverable
amount. That increase cannot exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognised
previously. Such reversal is recognised in profit or loss.
3.3 Functional and foreign currency
a) Functional and presentation currency
The individual financial statements of each entity in the Operating Group are
measured using the British pound sterling (£) currency, which is the
presentation currency.
b) Foreign currency transactions
Transactions in foreign currencies are measured in the respective functional
currencies of the Group and are recorded on initial recognition in the
functional currencies at exchange rates approximating those prevailing at the
transaction dates. Monetary assets and liabilities denominated in foreign
currencies are translated at the rate of exchange prevailing at the reporting
date. Non-monetary items denominated in foreign currencies that are measured
at historical cost are translated using the exchange rates as at the dates of
the initial transactions. Non-monetary items denominated in foreign currencies
measured at fair value are translated using the exchange rates at the date
when the fair value was determined.
3.4 Financial Instruments
Financial assets and financial liabilities are recognised in the statements of
financial position when the Operating Group has become a party to the
contractual provisions of the instruments.
Financial instruments are classified as financial assets, financial
liabilities or equity instruments in accordance with the substance of the
contractual arrangement and their definitions in IAS32. Interest, dividends,
gains and losses relating to a financial instrument classified as a liability
are reported as an expense or income. Distributions to holders of financial
instruments classified as equity are charged directly to equity.
A financial instrument is recognised initially at its fair value (other than
trade receivables without significant financing component which are measured
at transaction price as defined in IFRS 15 - Revenue from Contracts with
Customers at inception). Transaction costs that are directly attributable to
the acquisition or issue of the financial instrument (other than a financial
instrument at fair value through profit or loss) are added to/deducted from
the fair value on initial recognition, as appropriate. Transaction costs on
the financial instrument at fair value through profit or loss are recognised
immediately in profit or loss.
Financial instruments recognised in the statements of financial position are
disclosed in the individual policy statement associated with each item.
a) Financial assets
All recognised financial assets are measured subsequently in their entirety at
either amortized cost or fair value (through profit or loss, or other
comprehensive income), depending on the classification of the financial
assets.
The Group determines the classification of their financial assets at initial
recognition, and designates all the financial assets at amortized cost. The
Operating Group does not have any financial assets carried at fair value
(through profit or loss, or other comprehensive income).
Amortised cost (debt instruments)
The financial asset is held for collection of contractual cash flows where
those cash flows represent solely payments of principal and interest. Interest
income is recognised by applying the effective interest rate to the gross
carrying amount of the financial asset. When the asset has subsequently become
credit-impaired, the interest income is recognised by applying the effective
interest rate to the amortised cost of the financial asset.
The effective interest method is a method of calculating the amortised cost of
a financial asset and of allocating interest income over the relevant period.
The effective interest rate is the rate that discounts estimated future cash
receipts (including all fees and points paid or received that for GBP an
integral part of the effective interest rate, transaction costs and other
premiums or discounts), excluding expected credit losses, through the expected
life of the financial asset or a shorter period (where appropriate).
b) Financial liabilities
Other financial liabilities are subsequently measured at amortised cost using
the effective interest method.
The effective interest method is a method of calculating the amortised cost of
a financial liability and of allocating interest expense over the relevant
period.
The effective interest rate is the rate that exactly discounts estimated
future cash payments (including all fees and points paid or received that form
an integral part of the effective interest rate, transaction costs and other
premiums or discounts), through the expected life of the financial liability
or a shorter period (where appropriate).
c) Derecognition
A financial asset or part of it is derecognised when, and only when, the
contractual rights to the cash flows from the financial asset expire or when
it transfers the financial asset and substantially all the risks and rewards
of ownership of the asset to another entity. On derecognition of a financial
asset measured at amortised cost, the difference between the carrying amount
of the asset and the sum of the consideration received and receivable is
recognised in profit or loss.
A financial liability or a part of it is derecognised when, and only when, the
obligation specified in the contract is discharged or cancelled or expires. On
derecognition of a financial liability, the difference between the carrying
amount of the financial liability extinguished or transferred to another party
and the consideration paid, including any non-cash assets transferred or
liabilities assumed, is recognised in profit or loss.
d) Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is
reported in the statement of financial position if there is a currently
enforceable legal right to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the assets and settle the
liabilities simultaneously.
3.5 Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand and short-term
deposits with a maturity of three months or less, which are subject to an
insignificant risk of changes in value, net of outstanding bank overdrafts and
fixed deposits pledged. For the purpose of the statement of cash flows, cash
and cash equivalents are presented net of bank overdrafts and fixed deposits
pledged.
3.6 Equity instruments
Ordinary shares are classified as equity. Dividends on ordinary shares are
recognised in equity in the period in which they are approved for payment. The
transaction costs of an equity transaction are accounted for as a deduction
from equity. Equity transaction costs comprise only those incremental external
costs directly attributable to the equity transaction which would otherwise
have been avoided.
3.7 Inventories
Inventories are stated at the lower of cost and net realisable value. Cost
comprises direct materials, direct labour costs and overheads, where
applicable, that have been incurred in bringing the inventories to their
present location and condition. Cost is calculated using the weighted average
method. Net realisable value represents the estimated selling price less all
estimated costs of completion and costs to be incurred in marketing, selling
and distribution.
3.8 Use of assumptions and estimates
In preparing the Financial Information, the Directors have to make judgments
on how to apply the accounting policies and make estimates about the future.
The Directors do not consider there to be any critical judgments that have
been made in arriving at the amounts recognised in the Operating Group's
Financial Information.
4. Revenue
2024 2023
£'000 £'000
Revenue from contracts with customers
School fees 4,610 4,499
Applications and enrolments 161 130
Others 240 178
5,011 4,807
5. Finance costs
2024 2023
£'000 £'000
Interest expense
- Term loan, revolving credit and overdraft 727 713
- Amount due to related parties 0 0
727 713
6. Income tax expenses
2024 2023
£'000 £'000
Current tax expense 307 165
Deferred tax relating to origination and reversal of temporary differences 2 85
Under provision of income tax in prior years 245 53
554 303
2024 2023
£'000 £'000
Profit before taxation 1,897 1,820
Taxation at statutory tax rate 456 437
Difference in Tax rate for chargeable income taxed (1) (3)
Non deductible temporary difference (8) (232)
Expenses not deductible for tax purposes 98 21
Income not subject to tax (152) 27
Under provision of deferred tax in prior year (84) 0
Under provision of income tax in prior year 245 53
Tax expense for the year 554 303
7. Property, plant and equipment
Building Electrical equipment Freehold land Furniture and fittings Motor vehicle Resources equipment Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Cost
As at 1 July 2022 14,508 350 4,169 770 641 2,069 22,507
Additions 61 1 0 1 0 33 96
Disposals 0 0 0 0 0 0 0
Reclassification of asset group 507 0 0 0 0 0 507
Classified as held for sales (701) 0 (881) 0 0 0 (1,582)
Foreign currency translation (1,418) (33) (385) (73) (62) (196) (2,167)
As at 30 June 2023 12,957 318 2,903 698 579 1,906 19,361
Additions 2 0 0 1 0 12 15
Disposals 0 0 0 0 (446) 0 (446)
Reclassification of asset group 0 0 0 0 0 0 0
Foreign currency translation 174 1 (98) 4 3 7 91
As at 30 June 2024 13,133 319 2,805 703 136 1,925 19,021
Building Electrical equipment Freehold land Furniture and fittings Motor vehicle Resources equipment Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Accumulated depreciation
As at 1 July 2022 2,487 313 0 743 396 1,827 5,766
Charges for the year 291 30 0 18 125 156 620
Foreign currency translation (259) (33) 0 (72) (48) (187) (599)
Disposals 0 0 0 0 0 0 0
Classified as held for sale (32) 0 0 0 0 0 (32)
As at 30 June 2023 2,487 310 0 689 473 1,796 5,755
Charges for the year 263 5 0 7 74 58 407
Foreign currency translation 13 2 0 3 2 7 27
Disposals 0 0 0 0 (416) 0 (416)
Classified as held for sale 0 0 0 0 0 0 0
As at 30 June 2024 2,763 317 0 699 133 1,861 5,773
Carrying amount as at 30.06.2023 10,470 8 2,903 9 106 110 13,606
Carrying amount as at 30.06.2024 10,370 2 2,805 4 3 64 13,248
8. Right-of-use-assets
2024 2023
Leasehold lands
Cost £'000 £'000
At beginning and end of the year 1,610 444
Additions/ Reclassification 0 1,208
Foreign currency translation 7 (42)
1,617 1,610
Accumulated amortisation
At beginning of the period 130 139
Charge for the year 16 4
Foreign currency translation 0 (13)
At end of the period 146 130
Carrying amounts
At end of the period 1,471 1,480
9. Intangible assets
2024 2023
Intangible assets
Cost £'000 £'000
At beginning and end of the period 636 656
additions 38 42
Foreign currency translation 2 (62)
676 636
Accumulated amortisation
At beginning of the period 379 290
Charge for the year 89 127
Foreign currency translation 1 (38)
At end of the period 469 379
Carrying amounts
At end of the period 207 257
10. Non-current assets held for sale
2024 2023
£'000 £'000
At beginning and end of the period 6,891 5,081
Additional 0 5,590
Less: Accumulated depreciation 0 (837)
Disposal (112) (893)
Gain on disposal 0 50
Reclassified to right of use assets 0 (1,208)
Reclassified to fixed assets 0 (507)
Foreign currency translation 33 (385)
6,812 6,891
11. Other receivables
2024 2023
£'000 £'000
Sundry receivable 174 61
Deposits 123 129
Prepayments 149 65
Amount due from related parties 6,454 16,363
6,900 16,618
12. Cash and cash equivalents
2024 2023
£'000 £'000
Deposits placed with licensed banks 92 92
Cash at banks 989 707
1,081 799
The currency exposure profile of cash
and cash equivalents are as follows:-
British Pound Sterling 98 99
-Ringgit Malaysia 978 693
-Singapore Dollars 3 2
-Others 2 5
1,081 799
13. Share capital
2024 2023
£'000 £'000
Issued and fully paid:
Ordinary shares at RM 1 per share 680 677
The balance of the shares represents the capital of FSB and FJB that have not
yet been eliminated.
14. Deferred taxation
2024 2023
£'000 £'000
Balance at 1 July 1,994 2,117
Recognised in Statement of Comprehensive income 170 85
Foreign currency translation (159) (208)
Balance as at 30 June 2,005 1,994
Tax effect on temporary differences in respect of:-
Property, plant and equipment 1,988 1,992
Investment property 446 444
Provision (101) (100)
Unutilised capital allowance (301) (300)
Unearned school fees (27) (42)
2,005 1,994
15. Bank borrowing (secured)
2,024 2,023
£'000 £'000
Term loan 9,232 7,935
Revolving credit 1,532 1,525
Bank overdraft 1,448 799
12,212 10,259
Current
Term loan 1,305 1,391
Revolving credit 850 846
Bank overdraft 1,448 799
3,603 3,036
Non-current
Revolving credit 682 679
Term loan 7,927 6,544
8,609 7,223
16. Other payables
2024 2023
£'000 £'000
Current
School fee deposits 68 55
Advance billings 9 42
Amount due to holding company 0 138
Sundry payables 1,007 1,899
1,084 2,134
Non-current
School fee deposits 488 502
Sundry payables 8,544 2,426
9,032 2,928
17. Employee information
30 June 2024 30 June 2023
£'000 £'000
Staff cost 1,397 1,606
No. of employees No. of employees
Number of employees for the Operating Group are:
Academic staff 82 84
Support staff 73 84
155 168
18. Related Party Transactions
2024 2023
£'000 £'000
Related party transactions during the financial year are:
Administration expense payable to related party 105 117
Interest income from related parties 268 621
Rental from related parties 104 113
19. Capital Management
2024 2023
£'000 £'000
Current 3,603 3,036
Non- current 8,609 7,223
Bank borrowings 12,212 10,259
Less: Cash and bank balances 1,081 (799)
11,131 9,460
Total Equity 2,520 19,844
Debt-to-equity ratio 4.42 0.48
20. Dividends
2024 2023
£'000 £'000
Dividend declared as per audited accounts 18,739 2,683
Dividend paid during the financial year: 18,828 2,594
Nature of the financial information
The financial information presented above does not constitute statutory
accounts for the period under review.
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