Informatics Education: Material uncertainty on going concern after fiscal 1Q net profit tumbles

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Informatics Education cited Friday a material uncertainty casting significant doubt on the group’s ability to continue as a growing concern.

The group’s net current liabilities were S$1.85 million and net liabilities were S$1.61 million as of end-September, Informatics said in a filing to SGX.

But it added, the board believed it was appropriate to prepare the financial statements on a going concern basis.

“The group received letter of financial support from its penultimate holding company, Berjaya Land Berhad, to provide continuing financial support to the group to enable it to continue its operations and meet its liabilities as and when they fall due,” Informatics said.

On Friday, the company reported its net profit for the fiscal first quarter ended 30 September tumbled 65 percent on-year to S$13,000.

Revenue for the quarter dropped 18 percent on-year to S$1.88 million, the company said.

“The decrease in revenue was mainly attributed to decline in students’ enrolments for courses and assessments as a result of the Covid-19 pandemic for the United Kingdom operations and due to the group’s subsidiary in Singapore, Informatics Academy Pte. Ltd., ceasing acceptance of new students since 1 April 2021,” Informatics said.

Informatics provides IT courses at foundation, diploma, undergraduate and postgraduate levels.