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National Company for Learning and Education announces its Interim Financial Results for the Period Ending on 2020-05-31 ( Nine Months )

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 55,726,54049,384,52712.84254,355,4892.522
Gross Profit (Loss) 24,436,97221,323,52614.624,216,8000.909
Operational Profit (Loss) 14,253,70113,834,0233.03314,796,721-3.669
Net Profit (Loss) after Zakat and Tax 12,126,99613,455,935-9.87613,443,122-9.79
Total Comprehensive Income 13,165,90314,209,935-7.3478,109,15262.358
All figures are in (Actual) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Sales/Revenue 160,670,746148,613,2158.113
Gross Profit (Loss) 68,879,07763,768,6728.013
Operational Profit (Loss) 41,735,01939,911,0854.569
Net Profit (Loss) after Zakat and Tax 37,208,74437,098,4900.297
Total Comprehensive Income 36,575,78141,027,490-10.85
Total Share Holders Equity (after Deducting Minority Equity) 607,714,388592,324,6112.598
Profit (Loss) per Share 0.870.94
All figures are in (Actual) Saudi Arabia, Riyals
Element ListExplanation
Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to -the decrease in net profit for current quarter compared to the same quarter of the previous year is due to:

- Decrease in other income during the current quarter compared to the same quarter of the previous year resulting from the refund of the combined bill from the ministry of labor and social development by the support of the Private Sector Stimulus Bureau for the amount of SR 2.5 Million made during the same quarter of the previous year.

- Increase in finance cost during the current quarter as a result of IFRS 16 application on lease contracts of Al-Khawarzmi Education Company and Al-Ghad National Schools Company Limited. In addition to the decrease in earned revenue of Islamic Murabaha during the current quarter compared to the same quarter of the previous year.

- Increase in impairment of accounts receivables during the current quarter compared to the same quarter of the previous year by 39% due to precautionary action by the company to provide additional provisions to cover any economic impact of COVID-19.

- Increase in zakat expenses, increase in Iqama renewal fees for non-saudi employees and decrease in government grants and subsidization.

Moreover, the net profit has decreased despite the increase in revenues during the current quarter of NCLE educational campuses, in addition to the revenue generated by Al-Khawarzmi Education Company and Al-Ghad National Schools Company Limited . In addition to the decrease of depreciation expenses for current quarter compared to the same quarter of the previous year due to the change of the useful lives of some categories of the fixed assets during the current period.

Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to The decrease in net profit for current quarter compared to the previous quarter due to:

- Increase in impairment of accounts receivables during the current quarter compared to the previous quarter by 239% due to precautionary action by the company to provide additional provisions to cover any economic impact of COVID-19.

- Increase in finance cost during the current quarter as a result of IFRS 16 application on lease contracts of Al-Ghad National Schools Company Limited. In addition to the decrease in earned revenue of Islamic Murabaha during the current quarter compared to the previous quarter.

- Decrease in government grants and subsidization during the current quarter compared to the previous quarter.

Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to -The increase in net profit for current period compared to the previous period is due to:

- Consolidation of Al-Khawarzmi Education Company financial statements with National Company for learning & Education during the current period, which contributed to the increase in Net Profit for the period.

- Increase in revenues during the current period of NCLE educational campuses, in addition to the revenues generated by Al-Khawarzmi Education Company and Al-Ghad National Schools Company Limited.

- Decrease of depreciation expenses for current period compared to the same period of the previous year due to the change of the useful lives of some categories of the fixed assets during the period.

Moreover, the net profit has improved despite the following:

- Decrease in other income during the current period compared to the same period of the previous year resulting from the refund of the combined bill from the ministry of labor and social development by the support of the Private Sector Stimulus Bureau for the amount of SR 2.5 Million made during the same period of the previous year.

- Increase in finance cost during the current quarter as a result of IFRS 16 application on lease contracts of Al-Khawarzmi Education Company and Al-Ghad National Schools Company Limited. In addition to the decrease in earned revenue of Islamic Murabaha during the current period compared to the same period of the previous year.

- Decrease in government grants and subsidies, increase in Iqama renewal fees for non-saudi employees, and increase in zakat expenses. In addition to the increase in general & administrative expenses resulting from the financial and legal consultations expenses related to the acquisition of Al-Khawarzmi Education Company and Al-Ghad National Schools Company Limited.

Basis of the External Auditor's Opinion Unmodified opinion
Reclassification of Comparison Items Not Applicable
Additional Information Basic earnings per share is calculated by dividing income for the period attributable to the Company’s ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The weighted average number of shares as of March 31, 2020 is 43,000,000 (March 31, 2019: 39,285,714), as a result of the increase in number of shares during the comparative period of last year from 30 million shares to 43 million shares resulted from the increase in share capital from SR 300 million to SR 430 million.

On 10 Rabi I 1440H (corresponding to 18 November 2018), the company's shares were listed and started trading on Saudi Stock Exchange (Tadawul) under code (4291). The Company's share capital increased after completion of the IPO and the increase in share capital from SR 300 million (divided into 30 million shares) to SR 430 million (divided into 43 million shares) through issuing 13 million shares at a par value of SR 10 per share. The share price on the issue date was SR 19 and the share premium was SR 117 million. The IPO expenses reduced the share premium amount by SR 16 million, therefore the share premium balance became SR 100.98 million.

During the period, National Company for learning & Education (NCLE) has acquired Al-Khawarzmi Education Company and and Al-Ghad National Schools Company Limited which resulted in consolidating the financial statements of both companies with NCLE.

The fair value of identifiable net assets of Al-Khawarzmi Education Company and Al-Ghad National Schools Company Limited have been measured provisionally pending completion of an independent valuation, and the goodwill resulted from the acquisitions is considered as it is a cash generated unit. The right-of-use of assets and lease liability related to the Subsidiaries Companies lease contracts have been recognized according to the application of IFRS 16.

The Capital Market Authority and the Saudi Stock Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.

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