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MindChamps Q1 net profit falls 51% on cost of sales and administrative expenses

MAINBOARD-LISTED MindChamps PreSchool Limited on Monday posted a 50.6 per cent fall in net profit to S$341,000 for the first quarter, primarily due to an increase in cost of sales and administrative expenses.

Earnings per share dropped to 0.14 Singapore cent from 0.38 Singapore cent in the previous year.

However, for the three months ended March 31, revenue climbed 35.6 per cent from S$4.4 million in the year-ago period to S$6 million.

The increase was mainly attributable to an increase of approximately S$1.5 million in school fees, as a result of the increased number of enrolled students following the acquisitions of four preschool centres in Broadway, Eastwood, Cherrybrook and Hornsby in Australia in November 2017, the preschool operator said.

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MindChamps's cost of sales increased by 42 per cent to S$2.6 million, mainly due to an increase in staff cost, which resulted from the increased number of academic staff following the Australian acquisitions.

Operating administrative expenses for the period increased by approximately 63 per cent from S$2.1 million in 1Q2017 to S$3.4 million in 1Q 2018.

Net asset value per share dipped to 23.32 Singapore cents as at March 31, from 23.46 Singapore cents three months ago.

Said David Chiem, founder, CEO and executive chairman of MindChamps: "As we proudly bring our education movement to the world, we are focused on maintaining the quality of our curriculum and pedagogy at the highest standards to give our Champs an edge in their education and the opportunity to develop to their fullest potential."

MindChamps shares ended unchanged at S$0.785 on Monday before the announcement.