National Learning aims to operate some projects next academic year: Chairman

National Company for Learning and Education (NCLE) aims to operate some new projects in the next academic year, Chairman Khalid Al-Khudair told Argaam in an interview.

He added that the company leased two educational buildings in Al-Arid and Al-Qairawan, Riyadh, and aims to operate them in the next academic year.

Al-Khudair added NitCLE rented three educational land plots in Qurtubah, Hittin and Narjis districts, Riyadh to build educational complexes.

The company earlier announced acquiring Al-Salam Private Schools, and is completing the acquisition procedures.

The complexes that contributed the most to the company's revenues are Al-Rawabi, Al-Rayyan and Al-Nuzha. The new complexes, which were opened over the past two years, recorded upward growth in their revenues. Al-Qairawan Complex's revenues reached SAR 41.7 million, representing 14% of the company's revenues of SAR 308 million.

Al-Arid Complex, during its first year of operation, contributed 7% to the company's revenues, driven by strong demand for high-quality education in the northern districts of Riyadh.

The government grants and subsidies declined by 36% year-on-year (YoY) to SAR 3.9 million.

Here's the interview with Al-Khudair:

Q: NCLE's earnings increased to SAR 16 million in Q4 2022, compared to SAR 7 million a year earlier. What is your comment on the results?

A: We thank the company's board members and employees for their great efforts that helped boost our earnings this year.

Actually, NCLE's profit growth is in line with revenue increase that was driven by the rise in the number of students. This is what the company aims to achieve in terms of continued growth in its business. The firm unveiled six new projects over the last three months, namely the acquisition of Al-Salam Schools in Al-Khobar, as well as the lease of two educational buildings in Al-Arid and Al-Qairawan districts, Riyadh, which we aim to operate in the next academic year. In addition, the company leased three educational land plots in Qurtuba, Hittin and Narjis districts, Riyadh to build and operate educational complexes.

Q: How much is the decline in government grants and subsidies during the current year compared to the previous year?

A: Government grants and subsidies declined by 36%, or SAR 3.9 million, compared to the previous year. This included SANED initiative grants related to mitigating the COVID-19 repercussions. This initiative proved its economic efficiency in the private sector. We extend thanks to the Kingdom's wise government for its great efforts in this regard.

Q: How many students were enrolled in schools during Q4 2022? How much is the increase in tuition fees?

A: The number of male and female students enrolled in schools reached about 17,148 by the end of Q4 2022. Tuition fees increased from the previous year, which included exceptional discounts due to the pandemic.

Q: What educational complexes contributed the most to the company's Q4 2022 revenues?​

A: Al-Rawabi, Al-Rayyan and Al-Nuzha complexes contributed the most to the company's Q4 2022 revenues.

However, the complexes that were opened during the past two years recorded upward growth in their revenues. During its second year of operation, Al-Qairawan Complex recorded SAR 41.7 million revenues, representing 14% of the company's total revenues of SAR 308 million. Al-Arid Complex, during its first year of operation, contributed 7% to NCLE's revenues, driven by the strong demand for high-quality education in the northern districts in Riyadh.

Q: What is the student capacity of schools?

A: The capacity of the company's complexes reached approximately 28,645 male and female students in 2022. This capacity will increase over the years, thanks to the company's future projects.

Q: What are your expectations for the company's performance in Q1 2023?

A: We are always optimistic about the efforts of the company's employees to achieve growth goals. During this quarter, we will witness the opening of Al Tarbiyah Al Namouthajiyah International Schools Complex in Dhahran, with a capacity of 2,625 students.

NCLE previously announced the acquisition of Al-Salam Private Schools, and is completing the relevant procedures. This will, in turn, have a positive impact on the company's results. In addition, the company targets strong growth from all educational complexes, especially the newly opened ones.