Raffles Education Limited (NR7) on Aug, 28 2026 reported a return to operating profit and a sharply lower debt load for the 12 months ended Jun, 30 2026.

Revenue slipped 4% year on year to 106.82 million Singapore dollars, but operating profit before tax rebounded to 16.86 million Singapore dollars from a loss of 15.40 million Singapore dollars in FY2025. A one-off increase in other operating income to 55.25 million Singapore dollars, mainly from the sale of the 51 Merchant Road property, underpinned the turnaround. Profit after tax swung to a loss of 6.11 million Singapore dollars after recognising a 29.36 million Singapore dollars non-cash write-off linked to the disposal of Raffles Hefei and a 10.08 million Singapore dollars foreign-exchange loss.

Core performance improved: adjusted EBITDA rose 53% to 29.60 million Singapore dollars and net cash generated from operations climbed 189% to 12.58 million Singapore dollars.

The balance sheet strengthened markedly. Cash and bank balances stood at 39.16 million Singapore dollars on Jun, 30 2026, up from 16.86 million Singapore dollars a year earlier. Group borrowings fell to 86.20 million Singapore dollars from 208.74 million Singapore dollars, while the Company’s standalone bank borrowings were reduced to zero. Net assets increased to 717.52 million Singapore dollars from 640.56 million Singapore dollars.

Deleveraging was aided by asset disposals. The group completed the 121.3 million Singapore dollars sale of 51 Merchant Road in Feb, 2026 and expects about 11.0 million Singapore dollars from the ongoing divestment of Raffles Hefei. In Aug, 2026 it agreed to a land reclamation compensation deal in Gu’an County, China, expected to generate approximately 50 million Singapore dollars in net proceeds after tax and costs.

Looking ahead, management said it will prioritise expanding premium K–12 enrolment in the region, drive student growth in Malaysia and Thailand, and advance plans for a new K–12 school in Jakarta while maintaining financial discipline.