Durrant Pate/Contributor
Digital learning company EduFocal Limited, which trades as LEARN, is considering a Rights Issue to raise capital to, among other things, finance its expansion plans into Africa.

The board of directors of the Gordon Swaby-run company has convened a meeting for today (October 19), “at which time, directors will consider and if thought fit, recommend a rights issue to LEARN’s ordinary stockholders”.

A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. This corporate fund raising tool affords the right of an existing shareholder to purchase new shares at usually a discount to the market price on a stated future date. 

Funds needed for expansion

No details have been given on the projects or initiatives to be funded from the proposed Rights Issue, which, if accepted, would be formally executed before year-end. LEARN, which is an education technology company that focuses on digital learning experiences for companies, schools, individuals, and governments, has been growing and earlier this year expanded to Nigeria, where it established a subsidiary.

Venturing into Africa marked a significant milestone for the company, which established EduFocal Africa Inc. and EduFocal Nigeria Limited. EduFocal Africa is not just about bringing technology to Nigeria, but also revolutionising education there.

Back home, LEARN has been streamlining its management team, announcing that the contract for Kayone Haynes Burke as LEARN’s consultant chief financial officer (CFO) expired on June 17 and was not renewed. Accounting manager Fonnique Miller, who acted as interim CFO from June 17 to August 31, was promoted to chief financial officer of the group.

This appointment took effect September 1, 2023. In the meantime, the company’s financial performance thus far this year has been noteworthy, whereby in June it recorded its best-ever performance, boasting revenues of J$210 million and a net profit of J$65.8 million.

Financial highlights

For the six months ended June 30, 2023, LEARN achieved revenues of J$210.7 million, representing a J$77.7 million or 58 per cent increase relative to the preceding reporting period in 2022. The overall improved revenue performance is mainly attributable to achieved growth strategy across all divisions.

Operating profit for the first six months of 2023 was J$90.1 million, which is J$46.3 million or 106 per cent higher than the second quarter of 2022. Administrative & other operating expenses increased by J$23.5 million or 19 per cent, moving from J$121.4 million in second quarter of 2022 to J$144.9 million in the review period.

This increase reflects the LEARN’s commitment in growing operations and expanding all divisions through core business support areas, specifically staff cost, advertising cost and consulting fees. Net profit attributable to shareholders totalled J$65.8 million for the period under review, which is J$54.2 million higher than that of the preceding quarter in 2022.