Taleem Holdings Record Strong Growth in Q1 of 2023-24

Taaleem Holdings, a leading K-12 premium education provider in the UAE with a portfolio consisting of 31 schools and listed on the Dubai Financial Market (DFM), has recorded strong top-line growth of 11.5% Y-o-Y to $70.43 million and EBITDA growth of 28.2% Y-o-Y to $27.34 million for the first quarter of 2023-24 ending 30 November 2023.

Announcing the financial results in a statement to DFM on Thursday, the company said that the net profit (before tax) increased by 60.5% Y-o-Y to $22.22 million driven by enrolment growth, additional schools, interest gains on cash reserves, and low debt position.

While the student enrolment increased by 26.6% Y-o-Y and reached 35,715, the premium school capacity utilisation increased in Q1 of 2023-24 by +8.3% Y-o-Y to 82.7%. Taleem’s Government Partnership portfolio saw the addition of five new government partnership schools including Charter School in Abu Dhabi and four more schools under the ESE ‘Ajyal’ Schools during the quarter, the company said.

Following the successful addition of five new government partnership schools, students in this vertical increased by 6,094 to 21,768, compared to 15,674 in the same period last year. The government partnerships vertical allowed Taaleem to diversify its revenue streams through a steady flow of management fees whilst contributing to the delivery of the National Agenda.

Significant Earnings

Taaleem’s prudent financial management, coupled with the use of IPO proceeds not yet fully deployed, has driven significant earnings growth and bolstered its cash reserves.

Reflecting a strong cash position and minimal debt, the company’s net debt stands negative at $134.28 million as of 30 November 2023. The deliberate reduction in bank borrowings in FY 2023 through early repayment was aimed at mitigating high interest rates without incurring additional costs.

While new debt was raised to fund the construction of Dubai British School Jumeira, this strategic move aligned with Taaleem’s overarching financial objectives. Taaleem’s focus remains on targeted M&A activities and the execution of its greenfield strategy, utilising the IPO proceeds to optimise its capital structure. This robust cash position equips Taaleem with substantial funding to support investments and potential M&A endeavors, further facilitating the effective implementation of its growth strategy.

The consolidated operating revenue for the Q1 of 2023-24 increased 11.5% Y-o-Y to $70.43 million. This growth was driven by increased student enrolment besides ramping up of existing schools as well as the addition of the five new schools within the government partnerships portfolio.

Rapid Progress

Khalid Al Tayer, Chairman of Taaleem, said that the company made substantial progress in realising its strategic vision, delivered by their passionate colleagues and enabled by the leadership in the continued growth of the UAE.

“Taaleem is committed to delivering the best possible educational outcomes in the UAE and to supporting the growth of our sector. Our results for Q1 2023/24 demonstrate this commitment as we invest in expansion, innovation and improvements for the benefit of our students and our communities,” he added.

Alan Williamson, CEO of Taaleem, said that the company was committed to growth and quality education led to more student enrolments Y-o-Y alongside the addition of five new government partnership schools.

“Our performance reflects our unwavering commitment to providing educational excellence to an increasing number of students across the UAE. The construction of Dubai British School Jumeira and progress on Dubai British School Mira demonstrate our dedication to expanding educational horizons as we continue to deliver excellence and set new benchmarks in the education landscape,” he added.