EDUFOCAL Narrows Losses Amid Operational Gains, Trading Remains Suspended

  • For the quarter ended March 31, 2025 (Q1 2025), Edufocal Limited (LEARN) reported a significant reduction in net losses to $1.34Mn, from $20.87Mn in Q1 2024. The improvement stems from cost-control measures and strategic efforts aimed at restoring financial stability, despite continued pressure from high finance costs, which totalled $6.95Mn (down 16.1% year-over-year).
  • Revenue held relatively steady at $29.97Mn, reflecting a marginal 0.13% decline from $30.01Mn in Q1 2024. This flat performance is consistent with the Group’s strategic focus on developing more predictable, recurring revenue streams, underpinned by continued investment in its Amigo platform, a key initiative aimed at building scalable income through a modernised business model.
  • Amid the flat revenues, effective cost-containment strategies and the streamlining of operations improved operational performance. Notably, administrative expenses fell 62.3% to $12.88Mn, largely due to internal restructuring and heightened cost efficiency. As a result, operating profits totalled $5.61Mn, a sharp turnaround from the $12.59Mn operating loss in the prior year. Consequently, operating margin improved from -41.9% to 18.7%.
  • However, impairment losses surged nine-fold to $11.25Mn largely due to provisions on trade and other receivables, including contract assets. This increase partially offsets the gains in operating performance and underscores lingering credit risks in the business. The company also contends with finance costs of $6.95Mn, which continue to weigh on performance.
  • Amid the improved Q1 Performance, LEARN remains focused on expanding its global market presence through strategic initiatives, including the closure of ‘Academy’[1] to streamline operations and the acquisition of Clever School Teacher (CST), EduFocal Nigeria and EduFocal Africa. These moves are part of a broader strategy to build a leaner, more globally competitive platform.
  • The improvement in cost control and operating margins suggest progress toward recovery; however, trading in EduFocal’s shares remains suspended as the company has not yet submitted its audited financial statements for the year ending December 31, 2024. The Jamaica Stock Exchange suspended trading on June 2, 2025, and it is unlikely that Q1 2025 results alone will lead to a reinstatement without the overdue annual report.

(Sources: Company Financials & NCBCM Research)

 

[1] EduFocal Academy is an online learning platform focused on providing educational support and resources to students, particularly those in grades 4-6, preparing for the Primary Exit Profile (PEP).