Higher finance costs also eroded profits.
Overseas Education is bracing for significantly smaller profits for the third quarter, the group revealed in an statement on the SGX.
This is mainly due to the higher depreciation charges associated with the completion of the newly completed school campus and the finance costs on bond borrowings from 1 July 2015.
“The Board of Directors of Overseas Education wishes to issue a profit guidance for the third quarter results ended 30 September 2015. Based on a preliminary review of the unaudited management accounts of the Group, the Group expects to record a materially lower profit before income tax for Q3 2015, compared to the same period last year,” the statement said.
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