Alef Education Holding Plc has announced its financial results for the period ended December 2024, its third set of results since its listing on the Abu Dhabi Stock Exchange (ADX) in June 2024.
Publish dateSaturday 15 February 2025 - 19:38
According to Amac News, Alef Education has reported a 6% increase in profit before tax to AED 491.7 million, driven by a strong revenue base from long-term contracts and a focus on achieving significant cost savings across its operations.
Strengthening its position as a trusted partner for governments and private schools in the UAE and beyond, the company continues to offer a range of innovative and bespoke educational solutions that continue to attract high demand.
A key driver of the company’s revenues, which rose to AED 759 million, is a long-term investment-grade contract with the Abu Dhabi Education and Knowledge Authority (ADEK). The contract, which was extended for another three years in November 2024, will provide reliable revenues until 2033.
The contract covers a minimum of 80,000 students at a fixed fee per student. In addition, it allows Alef Education to charge fees for actual student numbers above the minimum required, providing a clear path to potentially increase revenues.
Alef Education’s strategic focus on cost reduction and operational efficiency has led to significant savings, driving EBITDA to AED 512.2 million, up 5% year-on-year.
The EBITDA margin also reached 68%, above industry benchmarks, while the net profit margin reached 65%, demonstrating the success of the company’s disciplined approach to cost management and strategic focus on profitability.
Revenue is expected to increase significantly from three new government contracts in the UAE, worth a combined AED 40 million. The contracts, which focus on developing and delivering personalized educational content, strengthen Alef Education’s strategic relationships with government clients.
The company delivered strong operational performance in 2024, with significant contract wins and a doubling of B2B product sales.
Notably, the number of fee-paying schools in the UAE doubled from 82 to 167 this year. This expansion will lead to increased market penetration, with private sector revenues expected to account for a larger share in the coming periods.
Strengthening its position as a trusted partner for governments and private schools in the UAE and beyond, the company continues to offer a range of innovative and bespoke educational solutions that continue to attract high demand.
A key driver of the company’s revenues, which rose to AED 759 million, is a long-term investment-grade contract with the Abu Dhabi Education and Knowledge Authority (ADEK). The contract, which was extended for another three years in November 2024, will provide reliable revenues until 2033.
The contract covers a minimum of 80,000 students at a fixed fee per student. In addition, it allows Alef Education to charge fees for actual student numbers above the minimum required, providing a clear path to potentially increase revenues.
Alef Education’s strategic focus on cost reduction and operational efficiency has led to significant savings, driving EBITDA to AED 512.2 million, up 5% year-on-year.
The EBITDA margin also reached 68%, above industry benchmarks, while the net profit margin reached 65%, demonstrating the success of the company’s disciplined approach to cost management and strategic focus on profitability.
Revenue is expected to increase significantly from three new government contracts in the UAE, worth a combined AED 40 million. The contracts, which focus on developing and delivering personalized educational content, strengthen Alef Education’s strategic relationships with government clients.
The company delivered strong operational performance in 2024, with significant contract wins and a doubling of B2B product sales.
Notably, the number of fee-paying schools in the UAE doubled from 82 to 167 this year. This expansion will lead to increased market penetration, with private sector revenues expected to account for a larger share in the coming periods.
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Source : news agency wam
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