The consolidated revenue of Taaleem Holdings, a leading K-12 premium education provider in the UAE with a portfolio consisting of 26 schools and listed on the Dubai Financial Markets (DFM), has increased 29% Y-o-Y to $218.92 million for the full year ended 31 August 2023.
Announcing the financial performance for the above said period on Wednesday, Taaleem Holdings Chairman Khaild Al Tayer said that on a comparable basis, excluding recent acquisitions and the new schools, revenue increased a solid 14.2% Y- o-Y to $191.07 million, demonstrating the strength of its existing operations.
Including the acquisitions and new schools, the increase was underpinned by a 35.9% Y-o-Y rise in enrolments to 28,490 students for the 2022-23 academic year. Revenue for the period was also supported by the ramp-up of existing schools as well as the addition of new schools to Taaleem’s portfolio. Parallel to this, Taaleem’s premium schools saw an improvement in utilization, with the capacity-enrolment gap narrowing by 23.9% Y-o-Y at year end.
The net profits climbed 41.5% Y-o-Y to $31.94 million, with margins firming to 14.6%, up from 13.3% last year, and parallel to this, earnings per share increased by 13.8% Y-o-Y in the 2022-23 academic year.
With the infusion of IPO proceeds and careful financial management, Taaleem’s robust earnings growth has generated substantial cash reserves. As a result, net debt, has moved from $28.42 million at end of FY2021-22 to a negative $176.48 million by 31 August 2023, even after accounting for capital expenditures.
The decrease in bank borrowings by $83.09 million is a result of early debt repayment, strategically undertaken to mitigate high interest rates, and at no additional cost for early repayment. This move was partially offset by new debt raised to fund developmental projects.
As of 31 August 2023, the adjusted net debt was $19.96 million, excluding the IPO proceeds deposit. This marks a significant reduction from $28.42 million in August 2022. Notably, the debt-to-equity ratio witnessed a remarkable enhancement, declining from 35.6% to 1.6%.
Strategically, the company is focused on appropriate M&A transactions and continues to execute its greenfield strategy using a portion of the IPO proceeds, aligning its capital structure with its objectives. With robust cash position, Taaleem possesses substantial funding to sustain investments including any M&A on the table to effectively implement its growth strategy.
In his comments, Khalid Al Tayer said that Taaleem’s achievements reflected their dedication to provide quality education at an affordable price and their investment in people, programs, and facilities, guided by our 5-Year growth strategy.
“Our management team has exceeded budget expectations, ensuring a highly successful year, and I also extend my gratitude to our Board members and shareholders for their support. With a positive outlook for the UAE and significant enrolment growth across our portfolio supporting our expansion strategy, I am confident that our passionate team will continue driving Taaleem’s success in shaping regional education,” he added.
Alan Williamson, CEO of Taaleem, said that they have achieved an impressive revenue growth and a robust 18.8% y-o-y increase in EBITDA, a clear testament to their unwavering commitment to excellence.
“Looking ahead our five-year strategy remains firmly on track, with the highly anticipated openings of DBS Jumeira in September 2024 and DBS Mira in September 2025, both already seeing significant demand in waiting lists. Our plans for two further locations are progressing well and we look forward to making an announcement in the near term,” he added.
In the coming quarters, Taaleem will continue to focus on further delivering its five-year strategy which includes closing the capacity gap utilisation in its premium portfolio, ramping up new schools, developing four new greenfield schools across the UAE and assessing suitable opportunities in the market that align with Taaleem’s strict financial and education goals.