One on One slashes deficit

One on One Educational Services Limited, provider of online classes for 250 schools, has slashed its accumulated deficit after a turnaround in profit.

That’s quite a “milestone”, Chairman Michael Bernard said.

The company reported three consecutive quarters of profit, which incrementally erased the deficit, which peaked at $51.2 million in the February 2024 second quarter.

“The company’s positive financial performance has transformed our equity position from an accumulated deficit to an accumulated surplus,” Bernard said in his report to stockholders for the November 2024 quarter.

“This achievement underscores the company’s strong financial recovery and the strides we’ve made in returning to sustained profitability, delivering increased value to our shareholders,” he said.

One on One, which offers live teaching sessions that follow the National Standards Curriculum, spun from a loss of $21.5 million to profit of $11.2 million in the November first quarter. The company benefited from a two-thirds rise in revenue to $92 million from $54.5 million in the similar period of 2023.

The revenue growth was primarily driven by the expansion of One Academy, the company’s education arm, which provides personalised educational solutions for schools, teachers, and students across the Caribbean region. By scaling the One Academy platform and enhancing client offerings, the company has strengthened its position in key markets.

The improvement in operations allowed the company to pay off its $46million bank overdraft. It ended the November quarter with a cash balance of $52 million. The company, which is led by CEO and co-founder Ricardo Allen, went public and listed on the junior stock market in 2022.

“Over 250 schools across the region are now integrated into our ecosystem, supporting long-term recurring revenue streams,” said Allen in One on One’s newly released annual report.

For its financial year ending August 2024, the company made a minor profit of just over $940,000. The first half of that year was marked by losses, but the company’s expense reductions resulted in a turnaround.

steven.jackson@gleanerjm.com