(eng)

NCLE profits rose to SR 65.1 million by the end of the first half ending in February 2024, by 22%, compared to profits of 53.3 million riyals achieved during the same period in 2023.

The increase in profits during the current period compared to the similar period of the previous year is due to:

• Revenues increased during the current period by 29% compared to the similar period of the previous year due to the increase in the number of students enrolled in the company’s schools by 21% from 23.4 thousand students in the similar period of the previous year to 28.2 thousand students during the current period.
• The opening of two new schools under the name of International Model Education Schools in Al-Arid district and Al-Ghad National Schools in Al-Qairawan district in Riyadh at the start of the current year 2023-2024.
• The acquisition of Al-Salam Education and Training Company resulted in an increase in revenues during the current period, the results of which were included starting from the second quarter of the similar period last year.
• The increase in government grants and subsidies during the current period as compared to the same period the previous year due to the company’s increased benefits from the Human Resources Development Fund’s wage subsidy initiative for Saudi employees during the current period.

This came despite:

The increase in financing expenses during the current period compared to the same period of the previous year was caused by the impact of the lease contracts for the two schools that were opened at the beginning of the current year. In addition to the lease contracts for the company’s new projects in Hittin, Qurtuba, and Al-Narjis neighborhoods in Riyadh, as well as the impact of a loan to finance part of acquisition deal to acquire Al-salam Education and Training Company.

The increase in profits during the current quarter compared to the same quarter of the previous year is due to:

Revenues increased during the current quarter by 24% compared to the same quarter of the previous year, due to the increase in the number of students enrolled in the company’s schools by 21% from 23.4 thousand students in the same quarter of the previous year to 28.2 thousand students during Current quarter.

 This came despite:

The increase in financing expenses during the current period compared to the same period of the previous year was a result of the impact of the lease contracts for the two educational complexes that were opened at the beginning of the current year, and the lease contracts for the company’s new projects under implementation in the Hittin, Qurtuba, and Al-Narjis neighborhoods in Riyadh.

The increase in profits during the current quarter compared to the previous quarter is due to:

• The growth in the number of students enrolled in the company’s schools during the current quarter from twenty-eight thousand students in the previous quarter to 28.2 thousand students during the current quarter.
• Operating costs improved for the current quarter compared to the previous quarter.

This came despite:

 The increase in financing expenses during the current quarter compared to the previous quarter because of the decrease in the returns achieved from short-term Islamic Murabaha during the current quarter compared to the previous quarter.