NCLE says profit increase driven by higher student count, plans e-learning expansion

National Company for Learning and Education (NCLE) reported a profit rise for the fiscal year ending Aug. 31, 2020, on an increase in the number of students at its schools, chairman Khalid Al-Khudair told Argaam in a telephone interview.

The number of students saw a 24% rise by the end of the fiscal year, backed by the launch of operations at Buraydah campus, as well as the acquisition of Al-Khawarzmi and Al-Ghad schools.

Lower depreciation costs, due to changes in the useful life of some assets, also contributed to the profit growth.

On the tuition fee discounts offered by the company, Al-Khudair said that the relevant financial impact of this move is expected to show in the first quarter of the current fiscal year, adding that it will be duly disclosed.

Read: NCLE to offer tuition fee discounts for academic year 2020-2021

Moreover, NCLE also doubled the number of its schools to eight in the two years since its initial public offering.

“The company aims to push ahead with its expansions through studying available investment opportunities to acquire existing campuses or establish new educational facilities,” Al-Khudair pointed out.

Commenting on NCLE’s distance learning operations due to the COVID-19 pandemic, Al-Khudair said: “The fast response shown by NCLE through shifting to virtual classes on the designed platform in almost 24 hours from the education ministry’s decision marks a key milestone for the company.”

“The company will continue to invest in online learning through various platforms and services,” he added.

National Education has turned the COVID-19 crisis to its advantage, through developing its operations and adopting new systems to upgrade the educational process at its schools. 

The company embarked on a new strategy to expand its investments in online learning, which will be among NCLE’s core operations soon, Al-Khudair concluded. 

NCLE’s net profit after Zakat and tax increased by 15% year-on-year (YoY) to SAR 57.8 million for FY 2019/2020 ending on Aug.31, 2020, Argaam reported.