Despite expansion set up costs, MindChamps’ Q3 profit up 3%, revenue up 74%

Singapore, 8 November 2018 

MindChamps PreSchool Limited (MindChamps) today reported Q3 revenue of S$9.2 million, an increase of 74% from the same quarter last year.  Net profit for the quarter also increased to S$1.2 million.

Preparation for global expansion is well on track as MindChamps sets up operations in Australia and China, and beefs up a strong HQ team.  Initial set up costs were offset by new student numbers resulting from strategic acquisitions of 11 preschool centres in Australia to date, with more to come.

The increase in revenue for the quarter was mainly attributable to:

1)      School fees from the acquisition of 11 preschool centres in Australia and Singapore, which are company-owned company-operated centres (“COCOs”); and 

2)      Royalty income from the addition of franchisee-owned franchisee-operated centres (“FOFOs”).

For the nine months ended 30 September 2018, MindChamps also reported higher numbers compared to the same period a year ago:

2)      Operating profit of S$3.9 million, an increase of 34%;

3)      Profit before tax of S$3.2 million, an increase of 9%; and

4)      Profit after tax of S$2.7 million, an increase of 4%.

MindChamps recently inked a Master Franchise Agreement with Victoria Education Sdn Bhd to run 20 preschool centres in Malaysia, with plans to build the largest preschools there.  This will see an increase in global student numbers in 2019.

As of 30 September 2018, the Group has 17 COCOs and 54 FOFOs, up from 10 COCOs and 44 FOFOs during IPO (24 November 2017).