Dubai school operator Taaleem scores with Dh804m in revenue, profit gain of 41.5% in 2022-23
Taaleem's full-year 2022-23 numbers swell on record student intake, new schools
Dubai: New schools and high student intake made sure that DFM-listed Taaleem scored a 29 per cent growth in revenues to Dh804.1 million for its financial year ended August 31. Number of new students were up a substantial 35.9 per cent to 28,490 for the operator’s network of schools.
All of that worked its way to the profit, with Taaleem confirming a 41.5 per cent increase to Dh117.3 million. The company was one of the successful IPO runs the UAE stock markets witnessed in the recent past, starting with DEWA in April 2022. (Taaleem operates a mix of its own schools (10) and government-owned ones (16) that it manages. On DFM, it's trading at Dh4.11.)
“With a positive outlook for the UAE and significant enrolment growth across our portfolio supporting our expansion strategy, I am confident that our passionate team will continue driving Taaleem's success in shaping regional education,” said Al Tayer.
The company, which has more schools lined up for opening, has built up strength on its cash reserves. This is where the IPO proceeds helped, and so did the ‘careful financial management’
for a scheduled opening in September 2024. Taaleem also plans to begin construction on a fourth Dubai British School, which will be completed in 2025.
"Our 5-year strategy remains firmly on track, with the highly anticipated openings of DBS Jumeira and DBS
Mira, both already seeing significant demand in waiting lists," said Alan Williamson, CEO.
Debt side of things
Net debt is down from Dh104.4 million at the end of FY2021-22 to negative Dh648.2 million by end August ‘even after accounting for capital expenditures’.
“This positive shift primarily stems from the company's exceptionally strong cash position, which outpaces its outstanding bank borrowings,” the company said. “The decrease in bank borrowings by Dh305.2 million is a result of early debt repayment, strategically undertaken to mitigate high interest rates, and at no additional cost for early repayment.
“This move was partially offset by new debt raised to fund developmental projects.”