Friday, November 18, 2011

Masterskill 3Q net profit slumps 78.8% to RM5.55m on lower enrolment

KUALA LUMPUR (Nov 18): Masterskill Education Group Bhd (MEGB) net profit for the third quarter ended Sept 30, 2011 fell 78.8% to RM5.55 million from RM26.18 million a year earlier, due mainly to lower student enrolment and higher overheads.

MEGB said that its revenue for the quarter fell to RM61.19 million from RM80.68 million in 2010.

Earnings per share fell to 1.00 sen from 9.00 sen a year earlier, while net assets per share was RM1.31.

For the nine months ended Sept 30, MEGB's net profit fell to RM39.72 million from RM75.29 million in 2010, on the back of a dip in revenue to RM200.67 million from RM234.83 million.

Reviewing its performance, MEGB said the lower student enrolment was due to the Ministry of Higher Education's decision to align the academic term for local institutions of higher learning with that of universities abroad by moving the intake date to September from June/July.

It also said the changes toward the PTPTN loan scheme effective June 1, 2011 had impacted its revenue especially for the new student intake.

MEGB said another factor that had affected its student enrolment was the increase in the minimum entry requirement for the diploma in nursing programme from three credits to five credits at the SPM level.

The education group also said that its profits were impacted by higher operating overheads due to its growth and on-going expansion plans.

On its prospects, MEGB said it maintained profitability in 3Q with cash in hand of RM178.4 million despite a challenging market environment.

'As a result, we continue to believe that the group is well positioned for growth going forward,' it said.

MEGB said that moving forward, it would continue to pursue growth in the domestic and international markets, adding that it had received approval to conduct franchising.

'Overall, MEGB remains fundamentally strong and well-positioned to pursue growth opportunities and forge ahead with our long-term expansion plans.

'The directors are confident of achieving satisfactory results for the full financial year of 2011 given prevailing market conditions,' it said.


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