Financial Statements and Related Announcement::First Quarter Results

RAFFLES EDUCATION CORPORATION LIMITED

Company registration Number: 199400712N

FINANCIAL STATEMENTS ANNOUNCEMENT FOR THE FIRST QUARTER ENDED 30 SEPTEMBER 2021

Condensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income

			Group
UNAUDITED CONSOLIDATED	Note	First Quarter	First Quarter	Change
ended	ended	%
STATEMENT OF COMPREHENSIVE	(Page 17-	30 Sept 2021	30 Sept 2020
INCOME	18)	$'000	$'000
Revenue	F 2.1	23,256	21,061	10
Other operating income	F 2.2	695	6,112	(89)
Personnel expenses		(10,073)	(9,854)	2
Other operating expenses	F 2.3	(7,857)	(5,667)	39
Finance costs	F 2.4	(6,086)	(3,576)	70
Depreciation and amortisation expenses	F 2.5	(4,791)	(4,028)	19
Share of results of joint ventures		66	(206)	NM
Share of results of associates		92	(297)	NM
Operating (loss)/profit before income tax		(4,698)	3,545	NM
Foreign exchange gain		279	593	(86)
Foreign exchange loss		(3,020)	(5,757)	(51)
Loss before income tax		(7,439)	(1,619)	NM
Income tax expense	F 2.6	(1,961)	(8)	NM
Deferred tax (expense)/credit	F 2.6	(756)	99	NM
Loss after tax		(10,156)	(1,528)	NM
Other comprehensive income
Items that may be reclassified
subsequently to profit or loss:
Currency exchange differences arising	F 2.7
on translating foreign operations		2,694	19,184	(86)
Total comprehensive (loss)/income		(7,462)	17,656	NM
Attributable to:
Equity holders of the Company		(9,569)	(1,615)	NM
Non-controlling interests		(587)	87	NM
Net loss		(10,156)	(1,528)	NM
Attributable to:
Equity holders of the Company		(7,156)	16,046	NM
Non-controlling interests		(306)	1,610	NM
Total comprehensive (loss)/income		(7,462)	17,656	NM
Earnings per share for (loss)/profit for
the period/year attributable to the
owners of the Company during the
period:
Basic (cents)		(0.69)	(0.12)
Diluted (cents)		(0.69)	(0.12)

NM - Not meaningful

Raffles Education Corporation Limited

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Condensed Interim Statements of Financial Position

		Group		Company
	Note
	(Page	30 Sept	30 Jun		30 Sept	30 Jun
UNAUDITED STATEMENTS OF	19 -	2021	2021		2021	2021
FINANCIAL POSITION	21)	$'000	$'000		$'000	$'000
Non-current assets
Property, plant and equipment	F 2.8	600,934	598,286		8	9
Right-of-use assets		4,230	4,541		-	-
Investment properties		434,479	433,873		-	-
Investment in subsidiaries		-	-		442,867	442,737
Investment in joint ventures		3,778	3,712		-	-
Investment in associates		6,137	6,079		-	-
Intangible assets		111,340	111,155		97	97
Deferred tax assets		1,318	1,381		-	-
Other receivables		4,076	4,068		43,699	35,987
Restricted bank balances		2,043	2,043		-	-
		1,168,335	1,165,138		486,671	478,830
Current assets
Inventories		77	81		-	-
Trade and other receivables	F 2.9	92,942	106,879		226,706	216,531
Cash and bank balances		92,103	84,929		12,603	493
		185,122	191,889		239,309	217,024
Non-current assets held for sale	F 2.10	25,364	25,303		-	-
		210,486	217,192		239,309	217,024
Less:
Current liabilities
Trade and other payables	F 2.11	92,693	86,945		332,754	277,988
Course fees received in advance *	F 2.12	44,629	13,756		-	-
Education facilities rental service	F 2.13
fees received in advance		2,244	1,129		-	-
Income tax payable		12,000	10,486		51	51
Borrowings	F 2.14	266,714	299,197		13,602	35,738
Lease liabilities		2,294	2,112		-	-
		420,574	413,625		346,407	313,777
Net current liabilities	F 2.15	(210,088)	(196,433)		(107,098)	(96,753)
Less:
Non-current liabilities
Trade and other payables	F 2.16	10,040	16,133		-	-
Borrowings	F 2.14	94,970	92,175		21,245	21,185
Lease liabilities		2,038	2,529		-	-
Deferred tax liabilities	F 2.17	75,144	74,351		-	-
		182,192	185,188		21,245	21,185
Net assets		776,055	783,517		358,328	360,892
Capital and reserves
Share capital		554,337	554,337		554,337	554,337
Treasury shares		(39,683)	(39,683)		(39,683)	(39,683)
Accumulated profits/(losses) and
other reserves		149,570	156,726		(156,326)	(153,762)
Equity attributable to equity holders		664,224	671,380		358,328	360,892
of the Company
Non-controlling interests		111,831	112,137		-	-
Total equity		776,055	783,517		358,328	360,892

• Due to significantly higher student enrolments

Raffles Education Corporation Limited

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Condensed Interim Statements of Changes in Equity

	Attributable to equity holders of the Company
				Share-
				based			Non-
	Share	Treasury	payment	Accumulated		controlling	Total Equity
GROUP	Capital		Shares	reserve	profits and	Total	Interests
					other
					reserves
	$'000		$'000	$'000	$'000	$'000	$'000	$'000
FY2021
Balance at 1 Jul 2021	554,337		(39,683)	2,642	154,084	671,380	112,137	783,517
Total comprehensive loss	-		-	-	(7,156)	(7,156)	(306)	(7,462)
Share-based payment	-		-	-	-	-	-	-
Acquisition of subsidiary with non-
controlling interest	-		-	-	-	-	-	-
Balance at 30 Sept 2021	554,337		(39,683)	2,642	146,928	664,224	111,831	776,055
FY2020
Balance at 1 Jul 2020	554,337		(39,683)	2,632	100,525	617,811	63,771	681,582
Total comprehensive income	-		-	-	16,046	16,046	1,610	17,656
Share-based payment	-		-	10	-	10	-	10
Acquisition of subsidiary with non-
controlling interest	-		-	-	-	-	43,628	43,628
Balance at 30 Sept 2020	554,337		(39,683)	2,642	116,571	633,867	109,009	742,876
					Share-based
	Share		Treasury	Payment	Accumulated
COMPANY	Capital			Shares	Reserve	Losses	Total
	$'000			$'000	$'000	$'000	$'000
FY2021
Balance at 1 Jul 2021	554,337		(39,683)	2,632		(156,404)	360,892
Total comprehensive loss		-		-	-		(2,564)	(2,564)
Share-based payment		-		-	-		-	-
Balance at 30 Sept 2021	554,337		(39,683)	2,642		(158,968)	358,328
FY2020
Balance at 1 Jul 2020	554,337		(39,683)	2,632		(129,547)	387,739
Total comprehensive loss		-		-	-		(5,313)	(5,313)
Share-based payment		-		-	10		-	10
Balance at 30 Sept 2020	554,337		(39,683)	2,642		(134,860)	382,436

Raffles Education Corporation Limited

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Condensed Interim Consolidated Statement of Cash Flows

		First Quarter	First Quarter
UNAUDITED	Note	ended	ended
CONSOLIDATED STATEMENT OF CASH FLOWS	(Page	30 Sept 2021	30 Sept 2020
	22)	$'000	$'000
Operating activities
Loss before income tax		(7,439)	(1,619)
Adjustments for:
Amortisation of intangible assets		70	83
Loss allowance / (reversal of loss allowance) on trade
receivables		3	(3)
Bad trade receivables written off		223	18
Depreciation for property, plant and equipment		4,391	3,416
Amortisation for right-of-use assets		330	529
Finance costs		6,086	3,576
Interest income		(129)	(828)
Net bargain purchase on acquisition of subsidiary		-	(3,257)
Unrealised foreign exchange loss		2,903	4,405
Write back of accrued capital expenditure		-	(1,724)
Share-based payment		-	10
Share of results of joint ventures		(66)	206
Share of results of associates		(92)	297
Operating cash flows before working capital changes		6,280	5,109
Working capital changes:
Trade and other receivables		(9,579)	(7,268)
Inventories		4	(5)
Course fees received in advance		31,078	25,716
Education facilities rental service received in advance		1,115	7,460
Trade and other payables		4,405	(273)
Cash generated from operations		33,303	30,739
Interest paid		(7,464)	(3,273)
Interest received		129	153
Income and withholding taxes paid		(156)	(287)
Net cash from operating activities	F 2.18	25,812	27,332
Investing activities
Additions for development cost and computer software		(9)	-
Additions of investment properties		(488)	(819)
Advance payment for construction projects		-	(7,066)
Payments for property, plant and equipment	F 2.20	(7,182)	(894)
Proceeds from disposal of non-current assets held for
sale		-	26,203
Proceeds from disposal of subsidiary	F 2.19	20,940	-
Net cash generated from investing activities		13,261	12,266

Raffles Education Corporation Limited

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Condensed Interim Consolidated Statement of Cash Flows (continued)

		First Quarter	First Quarter
		ended	ended
UNAUDITED	Note	30 Sept 2021	30 Sept 2020
CONSOLIDATED STATEMENT OF CASH FLOWS		$'000	$'000
Cash flows from financing activities
Decrease in restricted bank balances		-	1,721
Decrease/(Increase) in fixed deposit pledged	F 2.19	24,683	(833)
Repayment of loan to a director - net	F 2.20	(2,606)	(1,192)
Drawdown of bank borrowings		-	2,293
Repayment of bank borrowings	F 2.20	(29,186)	(9,931)
Repayment of principal portion of lease liabilities		(330)	(518)
Repayment of interest portion of lease liabilities		(45)	(72)
Net cash used in financing activities		(7,484)	(8,532)
Net change in cash and cash equivalents		31,589	31,066
Cash and cash equivalents at beginning of financial period		29,527	8,197
Effect of exchange rate changes on cash and cash		56	763
equivalents
Cash and cash equivalents at end of financial period -	F 2.21	61,172	40,026
Note A
Note A:
	Note	First Quarter	First Quarter
	ended	ended
		30 Sept 2021	30 Sept 2020
Cash and cash equivalents		$'000	$'000
Current
Fixed deposits with banks		30,931	27,756
Cash and bank balances		61,172	40,026
Non-current
Restricted bank balances		2,043	2,081
Cash and bank balances in the statement of financial		94,146	69,863
position
Less: pledged deposits and restricted bank balances		(32,974)	(29,837)
Cash and cash equivalents in the statement of cash
flow	F 2.21	61,172	40,026

Raffles Education Corporation Limited

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