(eng)

The National Company for Learning & Education reported a substantial increase in net profit after zakat and tax, reaching SR 102 million for the fiscal year ending August 31, 2023, reflecting a 43% growth from the previous year’s SR 71 million. Operating profit also exhibited a noteworthy rise, reaching SR 114 million, marking a 42.4% increase compared to the SR 80 million reported in the preceding year. Earnings per share for the current fiscal year stood at SR 2.37, demonstrating a notable improvement from the SR 1.65 recorded in the previous year, as announced in today’s disclosure of the annual financial results.

The increase in net profit during the current year compared to the previous year is due to an increase in revenues by 45% over the previous year, which is mainly due to the increase in the number of students enrolled in the company’s schools by 37% from 17.1 thousand students in the previous year to 23.4 thousand students By the end of the current year.
All of the company’s educational complexes witnessed a growth in the number of students during the current year compared to the previous year. Moreover, thanks to Allah, a new educational complex affiliated with the company, International Model Education Schools, was opened in the city of Dhahran in the Eastern Province at the beginning of the current year 2022-2023. The acquisition of Alsalam National Schools during the current year also contributed to higher revenues and increased student numbers. The item of government grants and subsidies also witnessed an increase during the current year compared to the previous year, which is mainly due to the company’s increased benefit during the current year from the wage subsidy initiative for Saudi employees from the Human Resources Development Fund.
It should be noted that there is an increase in financing costs during the current year compared to the previous year, as a result of the company obtaining a new loan during the current year to finance part of the acquisition deal for Al-Salam company for Education and Training, in addition to the beginning of the impact of the lease contracts for the company’s new projects in Hittin, Narjis, and Qordoba districts in the city of Riyadh, despite an increase in the returns achieved from short-term Islamic Murabaha during the current year compared to the previous year.
Some comparative figures for the previous year have also been reclassified to be consistent with the presentation for the current year.
During the current year, NCLE acquired Alsalam Company for Education and Training (owner of Alsalam National Schools in the city of Alkhobar). As a result of this acquisition, the financial statements of the two companies were consolidated. An independent assessment of the fair value of the net identifiable assets of Alsalam Company for Education and Training has been completed, and the goodwill resulting from the acquisition has been allocated as a cash generating unit.