Alef Education Achieves AED 759 Million Revenue Growth In 2024 Through Strategic Partnerships

Alef Education Holding Plc has shared its financial results for the year ending 31st December 2024. This marks the third report since its listing on the Abu Dhabi Securities Exchange (ADX) in June 2024. The company saw a 6% rise in profit before tax, reaching AED 491.7 million, thanks to robust revenue from long-term contracts and effective cost management.

The company's revenue climbed to AED 759 million, largely due to a long-term contract with the Abu Dhabi Department of Education and Knowledge (ADEK). This agreement was extended by three years in November 2024 and will now last until 2033. It ensures a minimum of 80,000 students with a fixed fee per student, allowing for additional charges if student numbers exceed this threshold.

Alef Education's focus on cost efficiency led to significant savings, boosting EBITDA by 5% to AED 512.2 million. The company's efforts in streamlining processes and optimising resources have been crucial in achieving this growth. The EBITDA margin stood at an impressive 68%, surpassing industry standards, while the net profit margin reached 65%, highlighting successful cost management strategies.

Geoffrey Alphonso, CEO of Alef Education, stated, "Our strong performance in 2024 underscores the resilience of our business model and the sustained demand for our innovative learning solutions. Revenue growth continues to be driven by strategic, long-term partnerships, including our extended agreement with ADEK." He also mentioned new contracts with UAE government clients and expanding collaborations across key markets as factors positioning Alef Education for further market expansion.

The company secured three new government contracts in the UAE valued at approximately AED40 million. These agreements focus on developing personalised educational content and reinforce Alef Education's strategic relationships within the B2G segment. Such wins highlight the company's commitment to enhancing its value proposition and deepening collaboration with key partners.

In addition to government contracts, Alef Education experienced a significant increase in B2B product sales. The number of paid schools in the UAE doubled from 82 to 167 this year, indicating increased market penetration. This expansion suggests that private sector revenues will play a larger role moving forward.

Commitment to Shareholders

Alef Education remains committed to delivering value to shareholders through a strong dividend program. As promised during its IPO, it guarantees a minimum dividend payout of AED135 million annually for FY2024 and FY2025 for free-float investors. In Q3 2024, AED 67.5 million was distributed as interim dividends, totalling AED 203.6 million for all shareholders.

The dividend yield for free-float shareholders reached about 8.7% based on recent share prices. This positions Alef Education as offering one of the most attractive returns in the market, reinforcing its focus on maximising shareholder value while continuing to impact students globally.

With inputs from WAM