Dubai’s Taaleem records Dhs117.3m in full-year profit

Dubai’s Taaleem Holdings said its full-year net profit surged by 41.5 per cent to Dhs117.3m, driven by a surge in student enrollments and higher net finance income from the undeployed initial public offering (IPO) proceeds. Taaleem raised $204m from its IPO on the Dubai Financial Markets in November 2022.

The school operator added 28,490 new students for the 2022/23 academic year, a 35.9 per cent year-on-year (YoY) increase in enrolments amid an increase in the reflecting an increase in the country’s population.

Student enrollment across the group saw exceptionally strong growth in the 2022/23 academic year, driven by a substantial double YoY increase in the number of new schools added to Taaleem’s portfolio under a partnership with the government.

“With a positive outlook for the UAE and significant enrolment growth across our portfolio supporting our expansion strategy, I am confident that our passionate team will continue driving Taaleem’s success in shaping regional education,” said Khalid Al Tayer, chairman of Taaleem.

Taaleem was awarded eight new government partnership schools, including one school under the Dubai Schools agreement, four schools under the new ESE contract and three schools as part of the Charter Schools programs in Abu Dhabi.

The Dubai-listed school operator said its full-year revenue jumped 29 per cent YoY to Dhs804.1m, driven by the ramp-up of new schools in the premium portfolio and the expansion of the government public-private partnership vertical.

“As a result of being awarded eight new government partnership schools, students in this segment increased to 15,778 students compared to 9,547 students in the same period last year,” Taaleem said in a bourse filing.

The firm said its partnership with the government allows it to not only diversify its revenue streams through a steady flow of management fees but also generate significant value at highly attractive margins.

The group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) for the full year ending August 31, 2023, rose by more than 18.8 per cent YoY to Dhs205.1m, bolstered by increased asset utilisation and economies of scale.

Taaleem’s growth strategy

Meanwhile, Taaleem said it will continue to focus on delivering its five-year strategy in the coming quarters, which includes closing the capacity gap utilisation in its premium portfolio, ramping up new existing schools and developing four new greenfield schools across the UAE.

“Our 5-Year strategy remains firmly on track, with the highly anticipated openings of Dubai British School Jumeirah in September 2024 and Dubai British School Mira in September 2025, both already seeing significant demand in waiting lists,” said Alan Williamson, CEO of Taaleem. Williamson said the school operator’s plans for two additional locations are progressing well.

With the infusion of IPO proceeds, the academic group’s robust earnings growth generated substantial cash reserves.

The company’s net debt plunged from Dhs104.4m at the end of the 2021/22 financial year to a negative Dhs648.2m in August, even after accounting for capital expenditures.

Sharia-compliant saving and investment firm National Bonds Company acquired an additional 5 per cent stake in the Taaleem in June.

Founded as ‘Madaares’ in 2006, Taaleem has grown exponentially over the past 17 years to become one of the largest providers of distinguished educational services in the UAE.

Read: National Bonds increases stake in Taaleem to 22%