Raffles Education Limited posted a net loss of S$6.1 million for the financial year ended Jun 30 2026, reversing the previous year’s S$4.4 million profit as a S$29.4 million loss on the disposal of Hefei Yuren Education Management Co. weighed on the bottom line.

Revenue slipped 4 per cent year-on-year (YoY) to S$106.8 million, reflecting the absence of contributions from the divested China unit. Basic loss per share came in at 0.35 Singapore cents against earnings per share of 0.55 cents a year earlier.

The board declared and paid a special interim cash dividend of S$0.004 per share on Apr 28 2026 under a scrip dividend scheme priced at S$0.12. A further special interim dividend of S$0.003 per share was proposed on May 11 2026, subject to shareholder approval.

Segmentally, the core Education division generated S$97.2 million in external revenue and logged a pre-tax loss of S$9.3 million, turning around from a S$26.3 million pre-tax profit the year before. Education Facilities Rental Service contributed S$8.6 million in revenue and a pre-tax loss of S$1.4 million, while Education Real Estate Investment & Development recorded S$1.0 million in revenue and a pre-tax loss of S$11.2 million. Corporate and other activities earned S$28.6 million before tax, mainly from a S$52.8 million gain on the sale of 51 Merchant Road in Singapore, lifting consolidated pre-tax profit to S$6.8 million.

Other operating income surged to S$55.2 million from S$2.9 million a year earlier on the asset disposal gain, but this was offset by a 66 per cent rise in other operating expenses to S$67.2 million, largely due to the Hefei divestment loss. Finance costs were steady at S$16.6 million. Net foreign-exchange gains narrowed to S$10.1 million from S$24.1 million amid currency volatility.

On the balance sheet, total borrowings fell to S$86.2 million from S$208.7 million after repayments and bond conversions, cutting net gearing to 7 per cent from 34 per cent. Cash and cash equivalents improved to S$39.1 million (FY2025: S$16.9 million) following asset sales and treasury-share proceeds.

Looking ahead, management flagged economic and geopolitical uncertainties that could dampen foreign-student recruitment, alongside intensifying competition and restrictive policies in key markets. Currency swings are expected to remain a risk. The group said it will continue streamlining operations, managing costs and recycling capital. Post balance-sheet, a 70 per cent-owned unit entered a RMB293.3 million (S$54 million) land-reclamation compensation agreement, with net proceeds of about S$31 million attributable to the group expected by end-2026.