Wednesday, September 28, 2011

HELP 3Q earnings slump to RM245,000

KUALA LUMPUR: HELP INTERNATIONAL CORPORATION [] Bhd net profit for the third quarter ended July 31, 2011 slumped to RM245,000 from RM3.24 million a year earlier, due mainly to lower enrolment and higher costs incurred.

It said revenue on Wednesday, Sept 28 that revenue for the period rose marginally to RM23.96 million from RM23.38 million in 2010.

Earnings per share fell to 0.20 sen from 2.3 sen, while net assets per share was 85 sen.

For the nine months ended July 31, HELP's net profit fell 24.9% to RM9.48 million from RM12.63 million in 2010, despite its revenue rising to RM79.63 million year-on-year from RM77.87 million.

Reviewing its performance, HELP said its revenue rose marginally due to a decrease in enrolment on its franchised programmes in Vietnam.

It also said that due to the weaker US dollar and sterling pound, many Chinese students had opted to pursue their studies directly in the US and UK, adding that the trend would continue in the near future.

The group also said that recruitment activities at its local colleges were affected by delays in obtaining relevant licences and approvals for operation.

It also said in order to satisfy the requirement to be upgraded to full university status, it had to recruit more faculty with doctorate degrees to cover a wider spectrum of courses.

On its prospects, HELP said that its upgrade to a university would strengthen its position in the market and that it was confident it had strategies in place for further growth.

'With the investment in staff, facilities and the transitional period on student intakes, the directors expect financial performance of the group to be satisfactory for the financial year 2011.

'The directors remain confident that the group is fundamentally strong and the initiatives taken during this capacity building phase will prepare us to position HELP as a Glob al Education provider of quality education,' it said.


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