Page 278 - ALEF EDUCATION PR REPORT MAY 2024

5/20/24, 1:09 PM PRESSR: Alef Education Holding plc announces its intention to list on the Abu Dhabi Securities Exchange — TradingView News
● In Morocco, where Alef Education conducted a six-month pilot program in the

2022-2023 academic year, the Group's platforms contributed to a significant
13.3% increase in Arabic subject diagnostic test scores, a 22.7% increase in

overall final exam test scores for students and a 27% increase in test scores for

Grade 9 English students.

Alef Education’s consistently strong financial performance, high margins, and

long-term contracts provide stability and predictability, enabling it to pursue

growth initiatives and deliver value to shareholders.

● The Group’s revenues reached AED 750 million in the financial year ended 31

December 2023, a 12.4% increase from AED 667 million in 2021, with adjusted
EBITDA and adjusted net profit margins standing at 65% and 61% respectively in

2023.

● Alef Education’s financial stability is bolstered by a long-term contract with

ADEK, which makes provisions for a minimum of 80,000 students and a fixed fee

for each student. As of 2024, there are seven years remaining in the contract,

and the Group expects to renew it upon expiry. This contract gives the Group

revenue visibility and reliability.

● The Group’s business model, which emphasises embedded technology and
data-driven insights, results in sticky contracts with sound margins.

● In the B2B market, Alef Education operates on a software-as-a-service model,

providing stable recurring revenues.

● The Group has an unleveraged balance sheet, providing it with the flexibility

to tap into debt funding for expansion opportunities in new markets, investment

in research and development, and acquiring complementary businesses.

With a focus on both organic and inorganic growth strategies, Alef Education

aims to expand its market presence, diversify its offerings, and capitalise on

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