Bright Scholar's Q1 2025: Contradictions in Buybacks, Enrollment, and Cash Flow Strategies

Revenue and Segment Performance:
- Bright Scholar's revenue from continuing operations was GBP44.7 million in Q1 of fiscal year 2025, down from $55.5 million the previous year.
- The decrease in revenue was primarily due to the impact of the UK's new VAT policy on student enrollment and a strategic focus on optimizing operational efficiency.

Operational Efficiency Improvement:
- The company's SG&A expenses decreased significantly by 33% year-over-year to GBP8.4 million.
- This improvement was driven by ongoing efforts to optimize the cost structure, streamline operations, and enhance operational efficiency across the Schools business.

Share Repurchase Plan:
- Bright Scholar initiated a share repurchase plan, under which the company may repurchase up to US$1.2 million of its ADS over the next 12 months.
- This decision reflects the company's confidence in its growth strategies, operational performance, and a commitment to enhancing shareholder value.

Strategic Reorganization and Expansion:
- The company reorganized its business structure and segment reporting to better reflect its strategic focus.
- This change included renaming the Overseas Schools business segment to simply the Schools business and expanding its product and service offerings in international markets.

Overseas Study Counselling Revenue Growth:
- The Overseas Study Counselling business achieved a year-over-year increase in revenue, with GBP9.6 million in Q1 of fiscal 2025 compared to the previous year.
- This growth can be attributed to the expansion of the company's recruitment services in international markets, leveraging its established global network and expertise.