2012 Annual Report
On behalf of the Board of Directors, it is my pleasure to present the Annual Report and Audited Financial Statements of SEGi and the Group for the year ended 31 December 2012.
SEGi delivered a revenue of RM284.9 million and net profit of RM60.0 million. I am proud to announce that SEGi achieved significant milestone in 2012 with the upgrade of SEGi University to a full-fledged university status. With this new status, SEGi has strengthened its research and development capabilities to ensure a high-quality learning environment, with excellent facilities that will benefit our students.
The Malaysian economy remained resilient despite the challenging global economic environment. The progressive measures taken by the government through the Economic Transformation Programme (ETP) initiatives, particularly in education, have begun positively impact the economy.
Recognising that education plays a significant role in our nation’s development, the Group remains focused on our core business of enhancing Malaysia’s educational standards in order to support Malaysia’s dream to be the regional hub for education in Asia.
For the financial year ended 2012, SEGi delivered a revenue of RM284.9 million and a net profit of RM60.0 million, an improvement of 2.4% and a decline of 16.9% respectively, as compared to the corresponding year in 2011.
The decline in profits as compared to the previous financial year is mainly attributed to the high number of graduating students in the second half of the year. The Group has also set-up and launched a number of high ticket programmes which resulted in higher manpower and investment costs. These programmes are expected to be profitable in the medium term.
Further, the upgrade to full university status has resulted in additional costs for research and programme development. Academic staff costs have also increased with the Group further enhancing its existing post-graduate, degree and diploma programmes.
Despite the overall challenges throughout 2012, the Group has continued to keep its fundamentals and financials healthy.
The Group is in a healthy financial position with shareholders’ funds at RM266.9 million, cash and bank balances of RM108.3 million and a low gearing ratio of 0.18. This provides the Group with the capacity and flexibility to take advantage of opportunities that may arise.
The Group will continue our efforts of seeking growth opportunities while striving to establish a sustainable business to maximise long-term return on shareholders’ funds.
We remain committed to reward our shareholders. In line with the Company’s policy of rewarding shareholders for their investment, an interim single tier dividend of RM0.05 per ordinary share of RM0.25 each in respect of the financial year ended 31 December 2012, amounting to RM31M942,000, was paid on 8 January 2013.
Subsequent to the financial year under review, the Board of Directors further declared an interim single tier dividend of RM0.05 per ordinary share of RM0.25 each, amounting to RM32,062,000, in respect of the financial year ending 31 December 2013. This was paid on 25 April 2013.
While it is important to deliver shareholder value, the Board is conscious of the need to balance with this with a prudent capital management strategy.
SEGi will continue with our proven business strategy of pursuing organic growth and sustaining our premier status in the education industry after achieving our university status.
In line with the initiatives of ETP to promote skills-based training to be international market, SEGi is actively involved in the SkillsMalaysia International Technical Education and Vocational Training Programme (“SkillsMalaysia INVITE”). SEGi also participated in the development of the National Occupational Skills Standards (NOSS) for Vietnamese Government under SkillsMalaysia INVITE initiative during the year under review. The revenue from skills training is expected to be substantial in future.
I am also pleased to announce that our Diploma in Early Childhood Education (“DECE”) is now available on distance learning mode following SEGi’s appointment as initiative champion to lead a consortium to upgrade the qualification of Malaysia’s existing ECCE (Early Childhood and Childcare Edcuation) workforce in 2011. The programme will be taught during weekends or evening classes with SEGi online support which benefit working adults.
A Quality Enhancement Taskforce (“QETF’) was set up to raise the brand and quality of the Group’s institutions with the objective to drive SEGi towards Tier-1 status in 3 years’ time (“SEGi Tier-1 Initiatives”)/
Budget is allocated under SEGi Tier-1 initiatives to upgrade our existing infrastructure.
Our motto ‘Passion Guided, Industry Driven’ continues to be reflected in all aspects of our courses and delivery. We must ensure that all our lecturers and staff are passionate about their profession, their respective industries’ future, as well as the students whose minds they mould. We also strive to
maintain the integrity of our courses and graduates by continuously shaping and updating the syllabus around industry needs and trends.
SEGi provides industry driven programmes from the faculties of Business & Accountancy, Engineering & Built Environment, Creative Design & Technology, Hospitality & Tourism Management, Medical, Pharmacy, Optometry, Dentistry & Allied Health Sciences, American Degree Program, Foundation and Graduate School of Business.
With the assurance that all the Examination Departments of SEGi University Group are certified under the ISO 9001:2008 Quality Management System, we are confident that SEGi will continue to deliver proven quality
SEGi views employability as an important component in tertiary education. The introduction of Personal Professional Development Module (“PPD Programme”) will give SEGi graduates a competitive edge over other potential job-seekers. PPD Programme will enhance the graduates’ ability to communicate well, creative and critical thinking skills and various soft skills to prepare them for their working lives. In line with this goal, SEGi has established strategic alliances with value corporate partners for our students in their penultimate semester for internship or job attachment.
Finally, SEGi has built strong global connections with internationally acclaimed universities such as, University of Sunderland, University of Greenwich,
Teesside University, University of Abertay Dundee, York St. John University and University of St. Mark & St. John, from the United Kingdom; Upper Iowa University from the United States; and University of Southern Queensland from Australia.
SEGi | Annual Report 2012