Asia Strategic Holdings Reports FY25 Results and Seeks Listing Restoration Amid Myanmar Earthquake Impact

Asia Strategic FY25: Revenue Up, Losses Narrow, and Listing Restoration Sought

Asia Strategic Holdings Ltd. (LSE: ASIA) has published audited FY25 results and will now request the restoration of its listing. Shares remain suspended until further notice. Despite a 7.7-magnitude earthquake in Myanmar and volatile currencies, the Group delivered topline growth, a stronger gross margin, and tighter costs, with cash generation underpinned by upfront tuition payments.

All figures are in US dollars.

Key numbers you should know

Metric	FY25	FY24	Comment
Revenue	$32.1 million	$29.7 million	Up 8%, led by Education Myanmar
Gross profit	$18.9 million	$17.0 million	Up 11%, margin improved to 59% (from 57%)
Education gross margin	71%	68%	Efficiency gains across maturing schools
Services gross margin	16%	23%	Weaker contract mix and cost inflation
Adjusted EBITDA	$(0.3) million	$(0.7) million	Near breakeven
Net loss	$(6.3) million	$(11.0) million	No repeat of FY24’s $4.6 million impairment
Operating cash flow	$3.9 million	$3.9 million	Flat, supported by advance tuition
Operating cash flow after leases	$0.7 million	$0.6 million	Positive after lease repayments
Deferred revenue	$18.9 million	$14.4 million	Cash received in advance of delivery
Capex	$0.7 million	$2.5 million	Disciplined spend
Cash and cash equivalents	$1.5 million	$0.8 million	Improved year end balance

Listing restoration: where things stand

The FY25 accounts received an unqualified audit opinion and have been or will be submitted to the National Storage Mechanism. Following this, Asia Strategic will request the restoration of its Ordinary Shares to trading. Until the FCA confirms otherwise, the shares remain suspended. For holders, this is the critical near-term catalyst.

Education drives growth, Services holds the line

Vietnam education – ongoing reset at Wall Street English, bright spots at Kids&Us and Logiscool

• Education Vietnam revenue fell 6% to $7.7 million, mainly due to Wall Street English Vietnam (WSE VN) closing two schools and shifting more to lower-priced online courses. WSE VN revenue dropped 12% to $6.7 million and students were circa 3,320 at year end.
• Kids&Us Vietnam accelerated, with revenue up 60% to $0.9 million and students up 47% to circa 1,130 as schools mature and retention improves.
• Logiscool Vietnam remains small but doubled enrolment to circa 160 students and opened a third site.

Myanmar education – broad-based growth despite the earthquake

• Education Myanmar revenue rose 19% to $17.3 million.
• Wall Street English Myanmar revenue increased 6% to $8.2 million with circa 3,290 students; pricing supported revenue but affordability is a watchpoint.
• Kids&Us Myanmar doubled revenue to $0.9 million and lifted students 27% to circa 610.
• Logiscool Myanmar scaled fast, with revenue almost sevenfold to $1.0 million and students up 166% to circa 850, supported by a low-cost cloud model.
• Yangon American International School grew revenue 46% to $1.8 million and students 27% to circa 190. A new Secondary campus in central Yangon opened in January 2026.
• Auston revenue rose 10% to $5.4 million, with enrolments stabilising under new leadership despite conscription uncertainty and the Mandalay earthquake.

Across the Group, Asia Strategic operated 35 schools serving 10,410 students at year end (FY24: 33 schools and 9,330 students).

Services – steady revenue, margin pressure, and selective expansion

• Services revenue edged up 2% to $7.1 million.
• EXERA Myanmar grew officer headcount to over 1,900 across circa 250 sites and held revenue at $7.1 million, though margins compressed to 16% at Group level due to contract mix and inflation.
• EXERA Vietnam generated $61k as a start-up and is exploring partnerships to scale.
• Ostello Bello Mandalay closed following the earthquake. No hostel revenue was recorded in FY25.

Earthquake impact and the recovery path

The 28 March 2025 earthquake in central Myanmar disrupted operations in Mandalay. Asia Strategic wrote off $0.5 million of leasehold improvements and furniture and fittings, completed structural repairs, and has reopened affected schools. Community support totalled $76,000, and EXERA assisted with on-the-ground security and logistics for relief efforts. Operational resilience was evident with swift shifts to online delivery and a return to normal service.

Cash, liquidity and the balance sheet – what matters

• Operating cash flow was $3.9 million. After lease payments (principal and interest), adjusted operating cash flow was positive $0.7 million.
• Deferred revenue increased to $18.9 million, of which $14.5 million is current. This reflects cash received in advance, an inherent strength in the model but also a liability until services are delivered.
• Cash at year end was $1.5 million. Capex was curtailed to $0.7 million, focused on selective school openings and earthquake repairs.
• A $4.5 million loan facility with MACAN, the largest shareholder, remained in place. Only $45k was drawn in FY25, leaving $0.8 million available at the report date.
• Convertible Notes were extended and increased to $7.255 million on a zero-coupon basis, classified fully as equity. Maturity is 30 October 2026, with a floor conversion price of $11.53 per share and a conversion discount up to 33.1% subject to a qualifying event.
• Management flagged a vendor payment plan of $2.334 million at 4% interest from 1 October 2025 to 30 September 2027, supporting liquidity while expansion progresses.

Important context: the Group reports that total liabilities exceeded total assets by $20.5 million at the reporting date, and current liabilities exceeded current assets by $20.7 million. Management still concludes going concern is appropriate, citing self-sustaining Myanmar operations, advance-fee models, cost control, the unutilised MACAN facility, potential bank loans, and vendor financing. FX volatility remains a swing factor, with a $2.8 million FX loss in the year.

What I like, what I don’t

Positives

• Revenue growth with better gross margin, and adjusted EBITDA close to breakeven.
• Education Myanmar delivering scale, while Kids&Us and Logiscool show strong traction.
• Yangon American’s secondary campus gives room for the next leg of growth.
• Cash generation supported by upfront tuition, with capex kept tight.
• Shareholder support visible through the MACAN facility and participation in Convertible Notes.

Challenges

• Net losses persist, with FX losses and a Services margin squeeze.
• WSE Vietnam is still in turnaround and carries lower ARPU from online mix.
• Thin year-end cash, heavy lease commitments ($17.9 million lease liabilities), and negative equity.
• Macro risks in Myanmar and ongoing affordability pressures in some segments.

What to watch next

• FCA decision on restoring the listing after FY25 accounts are live on the NSM.
• Concrete milestones at Wall Street English Vietnam – stabilised student base, margin improvement, and progress to profitability.
• Retention metrics in Kids&Us and continued scale-up in Logiscool, especially in Myanmar.
• Yangon American enrolment and utilisation of the new Secondary campus.
• EXERA Myanmar’s contract mix and pricing – key for restoring Services margins.
• FX volatility in Myanmar and Vietnam and any future accounting impacts from IAS 21 amendments.
• Capital structure moves – further bank loans, vendor financing, and any qualifying event for Convertible Notes conversion.

Josh’s take

This is a credible step forward in a very tough operating backdrop. The earnings quality improved – margins are up, costs were tight, and adjusted EBITDA neared breakeven – while new brands are gaining momentum. The flip side is that profitability remains elusive, Services margins are under pressure, and the balance sheet carries meaningful obligations alongside negative equity. The near-term share price catalyst is the restoration of the listing, followed by evidence that WSE Vietnam’s restructuring is translating into a cash-generative model.

If you are comfortable with Emerging Asia risk and can live with volatility, FY25 shows a platform that is scaling and learning. Execution in FY26 – particularly on Vietnam’s turnaround and Myanmar’s margin discipline – will determine whether Asia Strategic can convert strong enrolment pipelines and upfront cash collection into sustained profitability.