Net loss of $21.7m in 3 months for Highlander NZ

The holding company which owns Education Perfect has reported a loss of just over $21 million for the three months to December 31, 2021.

Last year, global investment firm Kohlberg Kravis Roberts (KKR) bought a majority stake in the Dunedin-headquartered education technology company for $411 million.

According to the Companies Office website, Education Perfect is owned by holding company Highlander NZ Ltd, which in turn is majority owned by KKR.

Highlander NZ’s financial report for the three months to December 31, 2021, which was recently released to the Companies Office website, stated it had made a $21.7 million net loss after tax for the period.

While the company was started in June last year, it commenced trading in September after the acquisition of Education Perfect was settled.

Its revenue for the three months was $10.2 million, of which just over $8 million came from the company’s Australian market and $1.8 million was from New Zealand. The balance came from the rest of the world.

In December, Highlander NZ, on behalf of Education Perfect, purchased New Zealand-based software company EdPotential.

The financial report revealed the company paid just over $3 million for the firm.

Education Perfect was founded by Craig and Shane Smith in 2013 as a spin-off from Language Perfect, which was launched in 2007.

It now has offices in Australia, New Zealand, Singapore and Dubai, and is used by one million pupils and 50,000 teachers in 3000 schools across 50 countries.

In July last year, the Otago Daily Times reported that following KKR buying into the company, seven staff were laid off after it decided to outsource its lesson content rather than it being created in-house.

KKR was approached for comment about the results.

Highlander NZ’s results

Highlander NZ’s results for the three months to December 31, 2021.

Net loss after tax $21.7 million
Revenue $10.2 million
Government grants $154,000
Expenses $30.2 million
Total assets $480.5 million
Total liabilities $148 million