Suspension of Trading in Edufocal Limited’s Ordinary Shares
The Jamaica Stock Exchange (JSE) in keeping with the Junior Market Rule Appendix 2, Part 4 (2) (e) on Audited Annual Financial Statements has suspended trading in the ordinary shares of Edufocal Limited (LEARN) pending the submission of its 2024 Audited Financial Statements. The Company’s 2024 Audited Financial Statements, due on March 1, 2025, became ninety-three (93) days overdue on June 2, 2025.
Gordon Swaby, CEO for Edufocal Limited reported in February
2025 that 2024 was a year of significant
challenges, as the company continued to navigate a difficult operating
environment characterized by declines in revenue and profitability.
Listed in 2022, the company offers e-learning services.
EduFocal since listing has incorporated new subsidiaries — EduFocal Africa Inc
in the USA and Edufocal Nigeria Limited — and also formed a strategic
partnership with Design Privacy Limited to deliver data protection e-learning
content.
The company in 2024 focused on restructuring operations, diversifying revenue
streams, and also “building a more resilient business model for sustainable
growth.”
With persisting cash flow challenges, the company is considering tapping a new
equity offer as a possible solution.
Revenue for the year 2024 was J$97.17 million, down significantly from J$263.54
million in 2023. This 63 per cent decrease was primarily due to the shift
towards “a more predictable and resilient revenue model, which has temporarily
impacted our topline performance,” management stated.
For the year ended, the company made a loss of $57,621,679 compared to losses
of $78,008,919 in 2023.
The company sought to control administrative expenses by renegotiating vendor
contracts and optimizing staffing.
While some cost savings were achieved, these were partly offset by investments
in technology, which are described as essential for future growth and
expansion.
Swaby said, “The company’s EBITDA remained negative in 2024, reflecting the
continued challenges with declining revenue. However, adjusted EBITDA showed
improvement thanks to the cost optimization measures that were implemented.
“ Net profit for the year was a loss of J$57.96 million, though this was an
improvement from the loss of J$79.48 million in 2023.”
In March 2022 EduFocal raised $116.45 million in new equity capital and
converted $13.24 million in debt to ordinary shares during its IPO, which was
priced at $1 per share. A total of $428.42 million in applications went after
the IPO.
Revenue diversification to reduce persistent losses include expansion of
EduFocal’s "Quizzitive" platform, which, along with strategic
partnerships and market expansion initiatives, is expected to generate incremental
revenue growth.
The CEO outlined, “We are also exploring the use of data analytics to better
understand user behavior and refine our offerings, maximizing customer lifetime
value.”
The company, he stated, has been looking at refinancing existing debt and
exploring equity financing options, aiming for “ a stronger capital structure
(which) will provide flexibility for growth and help navigate potential market
uncertainties.”
Swaby noted, “One of the key strategies implemented in 2024 was the diversification
of our revenue base. Recognizing the limitations of our traditional revenue
streams, we focused on expanding into new markets and exploring partnerships
that could provide recurring income.
“Though the impact of these initiatives on the full year’s revenue was limited,
the early-stage results have been promising. Management is optimistic that
these efforts will lead to a more stable and predictable revenue model in the
future.”
EduFocal, meanwhile, has begun monetizing its proprietary technology platforms,
exploring licensing agreements with the aim of unlocking new revenue channels.
Administrative changes in the year ended included staff cuts.
Photograph: Co-Founder and CEO of EduFocal, Gordon Swaby and wife Kemesha Swaby
(right). JIS
Caribbean Money Daily
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