Revenue for 2Q surged 60% to $7.65 million from $4.8 million a year ago due to higher income after the acquisition of seven preschool centres in Australia and Singapore, as well as $0.5 million franchise income which came mainly from the sale of a master franchise license in China.
See: MindChamps acquires 4 preschool centres in Sydney for $13.1 mil
See: MindChamps PreSchool to acquire Woodlands franchise for $1.3 mil
About $0.1 million in royalty income was also recorded over the latest quarter from the addition of franchisee-owned franchisee-operated centres (FOFOs).
See also: Keppel Pacific Oak US REIT’s 1QFY2025 distributable income falls by 19.3% y-o-y to US$9.6 mil
Cost of sales grew 36% to $2.8 million from $2 million previously due to higher academic staff costs incurred due to the group’s recently acquired preschools.
Meanwhile, operating administrative expenses grew 84% to $3.9 million from $2.1 million in 2Q17, mainly attributable to administrative costs, professional fees and staff costs incurred from business expansion moves and SGX-related matters.
As at end-June, cash and cash equivalents fell to $33.2 million compared to $35.8 million as at end-March.
See also: Keppel DC REIT reports 1QFY2025 DPU of 2.503 cents, 14.2% higher y-o-y
The outflows were mainly due to provision of deposit to a third party in the form of loans; considerations paid for acquisitions; and repayments of borrowings.
The group also announced in a separate SGX filing that its indirect wholly-owned subsidiary, MindChamps Early Learning & Care @ Eastwood, is acquiring the business and assets of two preschool centres in Sydney, Australia, from Smart Child Care at total consideration of A$4.9 million ($6 million).
Shares in MindChamps closed 0.7% lower at 67 cents on Monday.
