Aussie acquisitions boost revenue for Singaporean pre-school franchise
New operations in Australia have provided a boost for Singaporean-based education franchise, MindChamps PreSchool Limited (MindChamps), which saw a jump in revenue of 74 per cent over Q3.
In the company’s latest report, MindChamps reported revenue of S$9.2m for Q3, with net profit for the period hitting S$1.2m.
The results further bolster MindChamps’ global expansion efforts, with the company ramping up growth in Australia and China, and comes just weeks after a $2.9m purchase of a pre-school in Sydney.
David Chiem, MindChamps founder, CEO and executive chairman said the latest acquisitions and expansion efforts had paved the way for further international growth.
“We are excited and humbled to see our ‘3 Minds’ model of education enhanced by the teachers, students and parents in every one of the new territories that we have entered,” Chiem said.
The report, released on Thursday acknowledged that while there had been heavy initial set up costs incurred by the global expansion, they had been swiftly offset by new student numbers, encouraging further Australian growth.
“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 pre-school centres in Australia to date, with more to come,” the report said.
MindChamps attributed the increase in revenue for the period to school fees acquired through the 11 new Australian centres and royalties accrued through an increase in franchisee-operated centres.
The business’ nine month results also indicated growth across the board, with revenue up 58 per cent to S$22.8m, operating profit up 34 per cent to S$3.9m, profit before tax up nine per cent to S$3.2m and profit after tax up four per cent to S$2.7m.
For MindChamps, the strong year-to-date results follow the recent signing of a master franchise agreement with Victoria Education Sdn Bhd to run 20 pre-school centres in Malaysia, a move which is set to boost global student numbers in 2019.