G
Green CPA · Board Decision Dashboard

Riyadh Schools — Cost Rationalization

مدارس الرياض النموذجية
Companion to Final Recommendations · scenario planning, financial impact, action progress
Final Report May 2026
POWERED BY
Current Margin
+7.7%
SAR 12.5M operating profit · FY24-25
~16pp below peer median
Year 1 Target
10%
Board commitment by 30 July 2026
+2.3pp from baseline
Year 5 Path
20.0%
FY30-31 steady state
operating margin
Net Revenue · FY24-25
162.8M
SAR · total tuitions less fee discounts · FY24-25 actuals
Net Income · FY24-25
+16.2M
after SAR 3.7M other income · 10.0% net margin
non-recurring
⚠️ BUPA expires
16 days
SAR 10.3M · 24 May 2026 · 1,244 lives
act this week
Total Employees
607
338 Saudi · 269 Expat
55.7% Saudi
Students
~3,960
Capacity 4,500 · ~173 usable Intl seats
Identified Savings
SAR 23M+
Over 3 years · steady-state run-rate
22 actions
EOSB Liability
SAR 35.5M
Conservative reserve SAR 41M
Cash Position
SAR 26.7M
FY25-26 YTD: -SAR 2.7M cash flow
deteriorating
Margin trajectory: +7.7% operating profit to ~20% by FY30-31 (net income 10.0% today)
Selected scenario plotted against NCLE / Ataa / Al-Ofok benchmarks
FY24-25 to FY30-31
Riyadh Schools is 15-21pp behind peer set
Operating margin comparison · FY24-25 baselines
Cost gaps by category, FY24-25 actual vs target
The four cost categories that drove the engagement
Year 1 profit lift by move
Base case · annualized run-rate, before transition timing
P&L: baseline → Year 1 → Year 5
FY24-25 management accounts to FY30-31 steady state
Scenario Builder
Toggle recommendations to see live P&L impact
Selected actions22 of 22
Annualized P&L liftSAR 23.5M
Year 1 capexSAR 1.5M
Year 1 EOSB cashSAR 0.6M
New margin (steady state) 21.0%
Projected P&L impact
Operating P&L in selected scenario, steady-state run-rate
Cost gaps closed in selected scenario
How much each cost category drops vs. baseline
Year 1 profit bridge: baseline to outcome
Where the lift comes from, with capex and EOSB drag
Execution progress against the 22 actions
Click any status to update: Not Started → In Progress → Blocked → Complete. Live state persists in this browser.
Total22
Not started22
In progress0
Blocked0
Complete0
SAR realizedSAR 0.0M
SAR in flightSAR 0.0M
⚠️ Expires this month
BUPA medical insurance
24 May 2026 · SAR 10.3M annual · 1,244 lives
Expires Q3 2026
3 contracts
SAR 1.7M total · review now
Expires Q4 2026
7 contracts
SAR 13.4M total · plan retender
2026 contract obligations timeline
When SAR exposure expires by month
Contract register
Sorted by expiry. Urgent items in red, high-priority in amber.
ContractAnnual SARExpiryPriorityRecommended action
Five decisions for the board this meeting
Each has an owner, a deadline, and a financial gate. None can wait.
Cash side: P&L benefit is not cash
FY24-25 ended +SAR 0.5M, FY25-26 YTD is -SAR 2.7M. Capex and EOSB land before savings do.
5-Year Financial Sustainability Model
Starting from the Year 1 post-recommendations baseline (SAR 162.8M net revenue, SAR 140.7M opex, 13.6% margin). Adjust growth assumptions to model the 5-year outlook.
5.0%
0%15%
3.0%
0%10%
Year 5 Revenue
FY30-31 projected
Year 5 Total Opex
FY30-31 projected
Year 5 Operating Profit
FY30-31 projected
Year 5 Op. Margin
FY30-31 projected
Revenue vs. Operating Expenses & Margin Trajectory
SAR M (bars, left axis) · Operating margin % (line, right axis)
Operating Profit by Year
SAR M · Green ≥ SAR 20M · Gold ≥ SAR 10M
Revenue vs. Cost Growth Index
FY24-25 baseline = 100 · Gap = margin expansion
Model assumptions: Year 1 baseline is the post-recommendations state (SAR 162.8M net revenue, SAR 140.7M opex after SAR 9.6M net savings including SAR 1.9M EOSB/transition cost). Revenue is net of fee discounts (CFO-confirmed actuals). Revenue growth is applied to Year 1 revenue each subsequent year. Opex growth is applied to Year 1 opex each subsequent year. No additional cost-saving initiatives are modelled beyond Year 1 unless the land development toggle is enabled. Figures are directional management estimates, not audited projections.
RM Academy — Net Contribution Analysis
FY26-27 budget · All figures SAR
Subscription Revenue +SAR 3,780,000
   Payroll (14 FTE) −SAR 1,981,315
   RM Franchise fee (consulting) −SAR 350,000
   Events, sport, media, other −SAR 886,177
   After-hours utilities (est.) −SAR 105,258
Gross Profit (direct costs) +SAR 562,508 (14.9%)
   Central overhead allocation (est.) −SAR 370–500K
Net contribution (fully-loaded) ⚠ SAR 0 to −SAR 130K
Action required: Commission a value review before the next RM cycle — verify after-hours utility consumption by metering, build fully-loaded P&L with overhead allocation, and quantify the enrolment/retention benefit of the RM brand.
Adjacent Land — Housing Development
Expert feasibility study, May 2026 · 102 units · SAR 26.5M project cost
📐 Expert Study Findings
Total units: 102 apartments
Unit size: 100 m² each
Spec: 2BR + living room
Build area: 11,298 m²
Basement cost: SAR 8.5M
Construction: SAR 18.0M
Total project cost: SAR 26.5M  ·  Build timeline: 1 year
30
1050
Staff units allocated: 72  ·  Rental rate: SAR 40,000 / yr / unit
Current annual housing lease cost −SAR 4.3M / yr
Lease savings (Year 2 onward) +SAR 4.3M / yr
Rental income (30 units × SAR 40K) +SAR 1.20M / yr
Total annual benefit (Year 2+) +SAR 5.50M / yr
Project cost (Year 1 capex) SAR 26.5M
Simple payback period 4.8 years
Other income current (RM + sponsors + DSS + PR) SAR 6.66M (3.4% of gross rev)
Other income with rental SAR 7.86M (4.0%)
Decision trigger: Al-Aqiq lease expires October 2026. Board approval at Oct 2026 meeting → construction during FY26-27 → staff move-in FY27-28 → full P&L benefit from Year 2. This option is now supported by a verified expert cost estimate and should graduate from flagged optionality to a board decision item. KSA peer other-income range: 3–8% of gross revenue. Current: 3.4%. With base-case rental: 4.0%.
Wave 1
Immediate
Now → Aug 2026
SAR 4.4M
year 1 savings
Wave 2
Contract renewals
Q3–Q4 2026
SAR 6.8M
potential savings
Wave 3
Org & Asset
6–18 months
SAR 6.7M
potential savings
Wave 4
RSG Migration
FY27 onward
SAR 5.2M
potential savings
Wave 5
National wind-down
Through FY30
SAR 3.8M
net benefit
Implementation Timeline
Five waves · May 2026 → FY30-31
Actions by Wave
Deadline · Category · Saving · EOSB cost
Critical Milestones
Departmental Correction Plans
Facilities Management
Suggested 3-phase roadmap from the Facilities workshop. Pending department confirmation & RSG alignment.
Facilities Correction Plan — Phases & Roadmap
Phase · Corrective action · Owner · Expected impact · RSG alignment