Positive start to its financial year

Durrant Pate/Contributor

Jamaican listed One on One Educational Services has delivered a whopping 722 per cent increase in its net profit, as the online education company made a positive start to its financial year.

The company improved upon its loss, making J$1.8 million in the November 2021 first quarter, to post a healthy net profit of J$11.2 million, which is a 722 per cent or J$13 million increase for November 2022. One on One Educational Services delivered good financial returns for its November 2022 first quarter with total revenues of J$82.7 million, a jump of J$37.9 million or 84.6 per cent, up from J$44.8 million for the corresponding period in 2021.

The increase in revenue was primarily attributed to the acquisition of new contracts during the quarter along with the expansion of existing contracts and services to clients in the Government division.

Chairman Michael Bernard said: “The company’s revenue was also positively impacted by growing recurring revenue from the business division.”

Gross profit doubled during the period under review moving from J$30 million for the November 2021 quarter to J$65.9 million for November 2022, representing an increase of 119 per cent or J$35.9 million. Bernard advises shareholders in his quarterly report that “this increase in gross profit is a direct result (a) the company benefitting from operating at scale within the respective division (b) optimizing our host and maintenance cost with our cloud hosting provider and (c) optimising of project delivery”.

Operating expenses rising

Operating expenses for the November quarter increased by J$22 million or 70.70 per cent compared with 2021 comparative quarter. The increase in expenses was mainly in the following areas: Staff cost – as personnel was hired to fill key roles for the efficient and effective operations of the company; Registration fees, due to the company becoming public and advertising and promotion to promote the company’s product offerings to attract new users and brand awareness.

Direct cost came out at J$14.9 million compared to J$12.4 million in the same period for 2021, which is an increase of J$2.5 million, resulting from cost incurred to implement contracts. The company’s total equity amounted to J$453.1 million as at November 2022, compared to J$98.5 million at the same period in 2021.

This is an increase of J$354.6 million or 360 per cent. The increased equity was due to shares issued on the Jamaica Stock Exchange (JSE) Junior Market and retained profits. Total assets for the November 2022 quarter was J$575.2 million compared to J$334.4 million for November 2021; an increase of J$240.8 million or 72 per cent.

This increase was mainly attributed to: (1) increase in intangible assets as we continue the development of our intellectual property; (2) increased receivables due primarily to contracts with governments that takes longer to pay and one client with whom a special arrangement exists for payment and (3) increase in cash and bank balances due primarily to capital raised from our listing on the JSE Junior Market.