Listing impacts growth
3 April, 2018, 12:00 am
FREE Bird Institute Ltd’s (FBL) chief financial officer Waisale Iowane says the strong financial performance in 2017 is a direct result of the continual increase in the number of international students joining the institute.
“This is coupled with the increased preference of these students in taking up our in-house insurance scheme,” he said.
Mr Iowane made the comment after FBL released its audited accounts for the year ended December 31, 2017 last Friday.
Board chairman Hiroshi Taniguchi highlighted that the reported net profit before tax of $1,185,288 represented an increase of 15 per cent compared with 2016.
“As a result of being listed on the South Pacific Stock Exchange (SPSE) in 2017, the impact of the reduction in the corporate tax rate in our net profit after tax is significant, bringing our net profit after tax to $1,057,827 for 2017, which is an increase of 28 per cent compared to 2016,” Mr Taniguchi said.
The directors report had noted under unusual circumstances that in August 2017, a fatal accident involving two insured students resulted in a cash payout of $226,728 with an additional sum of $140,408 yet to be paid. These amounts are included in the in-house insurance claims expense totalling $391,722 in the statement of profit and loss.
As a result of the improved net earnings, FBL’s basic and diluted earnings per share increased from $0.41 (2016) to $0.53 as at December 31, 2017.
Meanwhile the company’s net assets increased from $2.96 million in 2016 to $3.78m in 2017 signifying that the company’s net worth had grown by around 28 per cent.