We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Malvern International Plc | LSE:MLVN | London | Ordinary Share | GB00BNBVJZ07 | ORD GBP0.01 |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 19.00 | 18.00 | 20.00 | 0.00 | 07:32:28 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Schools & Education Svcs,nec | 6.6M | -1.08M | -0.0443 | -4.29 | 4.64M |
TIDMAEC
RNS Number : 1593R
AEC Education plc
25 June 2015
AEC Education Plc
("AEC" or the "Company")
Final Results for the year ended 31 December 2014
Highlights:
-- Ireland demonstrated significant growth in sales and achieved a small operating profit but results in London and Singapore offset this success
-- Group revenue fell by 20% to GBP9.0 million (2013: GBP11.3 million) due largely to the reduction in business in Singapore
-- Losses before tax from continuing operations of GBP1.1 million (2013 (restated): loss before tax of GBP1.66 million)
-- Loss per share on continuing activities is 1.85p (2013 (restated): loss per share of 4.01p) -- Net cash of GBP0.36 million (2013: GBP1.48 million)
-- Malaysia continued to recover lost ground following the Middle East crisis and returned a profit before brand amortisation
-- Cyprus returned a small loss driven by a slowdown in revenue from Russia
-- The Company exited operations in Oman in the year which had returned losses up to the sale of shares to a local company
-- 2014 has been a difficult year, though the success in Ireland demonstrates the strength of the Malvern brand internationally.
Liam Swords, Chairman of AEC, commented,
"The London and Singaporean markets continue to be challenging but the Group implemented its strategy to centralise the European operations and to focus Singapore on the local market. This creates a new platform in Singapore from which we can build and helps to reduce costs in London. It is satisfying to see the continued growth in Ireland and the steady turnaround in Malaysia reflected in these accounts".
ENDS
For further information, please contact:
AEC Education Plc
Liam Swords
Tel: 07725 836811
WH Ireland Limited (NOMAD & Broker)
Andrew Kitchingman
Liam Gribben
Tel: 0113 394 6600
CHAIRMAN'S STATEMENT
Overview
The year under review continued to show mixed fortunes. Trading in London showed another downturn but by judicious cost reduction London returned a small operating loss. Cyprus was also affected by a slowing down in revenue from Russia, its largest summer school market and, whilst showing a reasonable operating result, the increased marketing costs to maintain revenue resulted in a small operating loss on our share of the joint venture. Oman declined further during the year to the point where the Board decided to transfer the operation to a local company for a price that will recover about one quarter of our original investment and advance. The residual impact from the loss of EduTrust meant that Singapore suffered a large operating loss but during the year made ground towards restructuring a new business targeting the local market. Ireland again grew substantially and showed an operating profit. Malaysia continued to recover the ground lost following the Middle East crisis and was again profitable before Malvern brand amortisation.
The market in the UK continued to be severely impacted by attitudes towards immigration and the withdrawal of the students' ability to support their costs by temporary work. However, the strategy to invest in Ireland to offset this has proven to be very successful. Additionally the positive signs in Malaysia continued during the year with strong gains in new markets and Singapore began to see some traction in the local market.
Financial results
Group revenues on continuing activities for the year to 31 December 2014 reduced by 20% to GBP9.0m (2013: GBP11.3m). The reduction was mainly due to the difficult trading conditions in London and the substantially reduced capacity in Singapore. Singapore's revenue decreased by 68% to GBP1.2m (2013: GBP3.8m) and London's revenue reduced by 11% to GBP3.3m (2013 GBP3.7m). The Group achieved significant reductions in operating costs during the year by implementing effective cost control strategies in all units. Because of this the Group's loss before tax from continuing operations was reduced to GBP1.10m (2013: GBP1.66m).
The London operation recorded an operating loss of GBP245k after brand impairment and amortisation of GBP395k which, after finance charges, resulted in a loss of GBP414k before tax. Ireland recorded turnover of GBP2.34m in 2014 (2013 - GBP1.41m), an operating profit of GBP49k. In Asia, the Singapore College recorded an operating loss of GBP420k and Malaysia returned an a profit of GBP23k before brand amortisation and an operating loss of GBP2k after brand amortisation. Additionally our share of the profit from our joint venture in Cyprus was GBP54k, which after central charges, was breakeven. Oman showed a loss of GBP81k (AEC's share GBP28k) until 31st July 2014, when the Group decided to exit the operations in Oman by selling the shares to an interested party. We expect that the initiatives we have taken in Singapore to reduce costs and to focus on the local market should return it to profit in 2015. Steps are also being taken to further reduce costs and to generate revenue from non-traditional sources to improve the results in London.
The loss per share was 1.40p (2013: Loss of 6.19p).
The net cash outflow from operating activities was GBP1.13m (2013: outflow of GBP1.51m). Net cash at the end of the year stood at GBP0.36m (2013: GBP1.48m).
Dividend
The Board does not propose the payment of a final dividend for the year ended 31 December 2014 (2013: 0.00p per share).
Business Review
In Asia, our operations in Singapore continued to be impacted by the withdrawal of EduTrust status. The revenue declined by 68% to GBP1.2m (2013: GBP3.8m) and a loss of GBP0.3m before tax. They have registered courses for diplomas / advanced diplomas in civil engineering / electrical engineering / mechanical engineering, higher diplomas in accounting and finance and Singapore Workforce Development Agency related safety short courses that are tailored and repositioned for the local market in 2015 and we expect will help to return it to profitability.
In Malaysia, revenue was lower than the previous year by 10% largely due to the fact that the contract with the University of Wales to recruit students expired in September 2014. Because of this decrease in revenue to GBP2.15m (2013: GBP2.40m), a small operating loss of GBP2k was returned (2013: loss GBP1k). However, a new contract with Leeds Beckett University will allow us to resume the recruitment of students for both undergraduate and post graduate programmes in the latter part of 2015. The introduction of new programmes ranging from post graduate to vocational studies combined with the focus on new markets should open up opportunities for growth next year.
As we have previously reported, our English language teaching operations in the UK have felt the significant effects of the changing legislation and regulations regarding visas and work permits for overseas students and the negative perception of this overseas continued during 2014. This has caused the market in the UK to drop significantly during the year with the result that revenue in our Kings Cross school was down year on year by 11% to GBP3.3m (2013: GBP3.7m). This and the consequent additional brand impairment charge of GBP350k resulted in an operating loss of GBP245k (2013: profit GBP45k). Steps have been taken to find new sources of revenue both from new products and areas of distribution which should stabilise London during 2015.
Ireland achieved revenue of GBP2.3m, a 66% increase on 2013 in its second full year of trading and produced an operating profit of GBP49k (2013: loss GBP48k). The strength of the summer school market combined with continuing strong growth in the core EFL business in Ireland leaves it with potential to show significantly improved results in 2015.
Our joint venture in Cyprus showed a reduction in revenue in the summer school mainly from Russia, its largest market. Operating profits were affected such that our share of the joint venture recorded a profit before tax of GBP54k and was breakeven before brand amortisation. The market in Russia continues to be depressed because of its political stance in Europe and the reduced value of the Rouble and we expect these conditions to remain during 2015.
Oman declined further during the year and impacted the Group results with a loss of GBP81k (AEC's share GBP28k). Due to earlier losses including the loss until 31 July 2014, we see no future for our investment in Oman. Consequently, the Board has decided to exit the operation and sold the investment to a local company for GBP41k which recovers approximately one quarter of our investment and advance given.
Staff
On behalf of the Board I would like to thank all staff for their hard work and efforts during what has been a very difficult period. Their support as we continue to implement the necessary changes to ensure the Group returns to sustainable profit is very much appreciated by the Board.
Prospects
2014 was another very difficult year in Singapore and the market in the UK remains constrained by visa restrictions and the negative perception by overseas students of UK Government policy. Our success in Ireland has demonstrated that the Malvern brand is still a major strength in international markets and we continue to pursue options to support further expansion overseas under the Malvern brand. The restructuring of the operations in Singapore and London is now almost complete and this combined with the return to profit in Malaysia and the withdrawal from Oman creates a platform from which AEC can begin to rebuild group profitability.
Liam Swords
Chairman
24 June 2015
AEC EDUCATION PLC CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2014 2014 2013 (Restated) GBP GBP Revenue Sale of services 8,520,196 10,989,755 Other income 457,972 314,123 8,978,168 11,303,878 ------------- --------------- Cost of services sold 5,136,220 6,906,791 Salaries and employees' benefits 2,059,555 2,770,010 Amortisation of brand, licences and trademarks 166,050 144,957 Depreciation of plant and equipment 203,710 437,778 Impairment or write-down of property, plant and equipment - 287,390 Other operating expenses 2,176,610 2,213,560 Brand impairment 350,000 150,000 Total operating costs and expenses 10,092,145 12,910,486 ------------- --------------- Operating loss (1,113,977) (1,606,608) ------------- --------------- Share of results of associated companies and joint ventures 53,829 (4,320) Finance costs (41,201) (45,875) Loss before income tax (1,101,349) (1,656,803) Income tax charge (28,986) (235,459) Loss for the year from continuing activities (1,130,335) (1,892,262) Profit/(loss) for the year from discontinued activities 282,419 (998,323) Loss for the year (847,916) (2,890,585) ------------- --------------- Attributable to: Equity holders of the Company (881,956) (2,832,688) Non-controlling interest 34,040 (57,897) ------------- --------------- (847,916) (2,890,585) ------------- --------------- Loss per share on continuing activities (in pence) ------------- --------------- Basic (1.85) (4.01) ------------- --------------- Diluted (1.85) (4.01) ------------- --------------- Profit /(loss) per share on discontinued activities (in pence) ------------- --------------- Basic 0.45 (2.18) ------------- --------------- Diluted 0.45 (2.18) ------------- --------------- AEC EDUCATION PLC CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2014 2014 2013 (Restated) GBP GBP Loss for the year (847,916) (2,890,585) Foreign currency translation movements 182,880 (19,465) ---------- --------------- Other comprehensive (expense)/income for the year 182,880 (19,465) ---------- --------------- Total comprehensive income for the year (665,036) (2,910,050) ---------- --------------- Attributable to: Equity holders of the parent (708,899) (2,845,515) Non-controlling interest 43,863 (64,535) ---------- --------------- Total comprehensive income for the year (665,036) (2,910,050) ---------- --------------- AEC EDUCATION PLC STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2014 Group Company 2014 2013 2014 2013 (Restated) TOTAL ASSETS GBP GBP GBP GBP Non-Current Assets Property, plant and equipment 450,042 763,033 - - Investment in subsidiary companies - - 5,260,107 5,760,107 Investment in associated - 16,668 - - companies Investment in joint ventures 97,799 26,074 - 122,039 Intangible assets 3,101,851 3,603,250 - - Goodwill 422,520 420,324 - - Deferred tax asset - - - - 4,072,212 4,829,349 5,260,107 5,882,146 ---------- -------------- ---------------- ----------- Current Assets Inventories 6,718 9,229 - - Trade receivables 677,573 908,710 - - Other receivables and prepayments 445,670 990,959 5,218 131,010 Tax recoverable 51,844 9,806 51,844 - Due from subsidiary companies - - 692,752 442,304 Due from joint ventures 46,684 95,897 41,000 94,427 Due from related parties 456 3,798 - - Cash and cash equivalents 360,746 1,475,351 14,816 1,153,035 ---------- -------------- ----------- 1,589,691 3,493,750 805,630 1,820,776 ---------- -------------- ---------------- ----------- Total Assets 5,661,903 8,323,099 6,065,737 7,702,922 ---------- -------------- ---------------- ----------- EQUITY AND LIABILITIES Non-Current Liabilities Financial liabilities 38,185 63,048 23,000 23,000 Deferred taxation liability 12,674 22,275 - - ---------- ------------ ------------ ------------ 50,859 85,323 23,000 23,000 ---------- ------------ ------------ ------------ Current Liabilities Trade payables 514,951 263,303 35,934 - Deferred income 620,389 2,160,688 - - Other payables and accruals 1,140,218 1,938,962 31,638 88,009 Due to subsidiary companies - - 1,243,545 2,090,328 Due to joint ventures 38,673 - - - Due to related parties 801,358 660,810 368,079 23,323 Financial liabilities 39,654 112,107 14,000 14,000 Provision for income tax 26,667 7,736 - - ---------- ------------ ------------ 3,181,910 5,143,606 1,693,196 2,215,660 ---------- ------------ ------------ ------------ Total liabilities 3,232,769 5,228,929 1,716,196 2,238,660 ---------- ------------ ------------ ------------ Equity attributable to equity holders of the Company Share capital 5,362,491 5,362,491 5,362,491 5,362,491 Share premium 896,111 896,111 896,111 896,111 Reserves (3,699,184) (2,990,285) (1,909,061) (794,340) -------------- ------------ ------------ ---------- 2,559,418 3,268,317 4,349,541 5,464,262 Non-controlling interests (130,284) (174,147) - - -------------- ------------ ------------ ---------- Total equity 2,429,134 3,094,170 4,349,541 5,464,262 -------------- ------------ ------------ ---------- Total Equity and Liabilities 5,661,903 8,323,099 6,065,737 7,702,922 -------------- ------------ ------------ ---------- AEC EDUCATION PLC CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2014 Share Share Other Other Other Other Attributable Non- Capital Prem-ium Reserves Reserves Reserves Reserves Total To Equity controlling Total Share-Based Retained Trans- Capital Of Holders Interests Payment Earnings lation Reserve Other Of The Reserve Reserve Reserves Company GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP Balance at 1 January 2013 as previously reported 4,419,878 707,588 328,744 (2,018,789) 1,137,715 170,560 (381,770) 4,745,696 (43,415) 4,702,281 Prior year adjustment - - - 237,000 - - 237,000 237,000 - 237,000 Balance at 1 January 2013 as restated 4,419,878 707,588 328,744 (1,781,789) 1,137,715 170,560 (144,700) 4,982,696 (43,415) 4,939,281 Loss for the year - - - (2,832,688) - - (2,832,688) (2,832,688) (57,897) (2,890,585) Total other comprehensive income - - - - (12,827) - (12,827) (12,827) (6,638) (19,465) ------------ ---------- ------------ ------------------- ------------ ---------- -------------- -------------- ------------ -------------- Total comprehensive income for the year - - - (2,832,688) (12,827) - (2,845,515) (2,845,515) (64,535) (2,910,050) ------------ ---------- ------------ ------------------- ------------ ---------- -------------- -------------- ------------ -------------- Issue of new shares 942,613 188,523 - - - - - 1,131,136 - 1,131,136 Share based compensation transfer - - (89,700) 89,700 - - - - - - ------------ ---------- ------------ ------------------- ------------ ---------- -------------- -------------- ------------ -------------- Total transactions with owners 942,613 188,523 (89,700) 89,700 - - - 1,131,136 - 1,131,136 ------------ ---------- ------------ ------------------- ------------ ---------- -------------- -------------- ------------ -------------- Non-controlling interest acquired - - - - - - - - (125,489) (125,489) Impairment of carrying value - - - - - - - - 59,292 59,292 Balance at 31 December 2013 as restated 5,362,491 896,111 239,044 (4,524,777) 1,124,888 170,560 (2,990,285) 3,268,317 (174,147) 3,094,170 ------------ ---------- ------------ ------------------- ------------ ---------- -------------- -------------- ------------ -------------- Balance at 1 January 2014 as restated 5,362,491 896,111 239,044 (4,524,777) 1,124,888 170,560 (2,990,285) 3,268,317 (174,147) 3,094,170 ------------ ---------- ------------ ------------------- ------------ ---------- -------------- -------------- ------------ -------------- Loss for the year - - - (881,956) - - (881,956) (881,956) 34,040 (847,916) Total other comprehensive income - - - - 173,057 - 173,057 173,057 9,823 182,880 ------------ ---------- ------------ ------------------- ------------ ---------- -------------- -------------- ------------ -------------- Total comprehensive income for the year - - - (881,956) 173,057 - (708,899) (708,899) 43,863 (665,036) ------------ ---------- ------------ ------------------- ------------ ---------- -------------- -------------- ------------ -------------- Share based compensation transfer - - (239,044) 239,044 - - - - - - ------------ ---------- ------------ ------------------- ------------ ---------- -------------- -------------- ------------ -------------- Total transactions with owners - - (239,044) 239,044 - - - - - - ------------ ---------- ------------ ------------------- ------------ ---------- -------------- -------------- ------------ -------------- Balance at 31 December 2014 5,362,491 896,111 - (5,167,689) 1,297,945 170,560 (3,699,184) 2,559,418 (130,284) 2,429,134 AEC EDUCATION PLC CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2014 2014 2013 GBP GBP (Restated) Cash Flows from Operating Activities Loss before income tax from continuing activities (1,101,349) (1,656,803) Profit/(loss) before income tax from discontinued activities 282,419 (998,323) Adjustments for: Amortisation of intangible assets 166,050 169,957 Depreciation of property, plant and equipment 203,710 437,778 Impairment and write down of property plant and equipment - 299,099 Impairment of intangible assets 350,000 600,000 Loss on disposal of plant and equipment 170,481 88,909 Profit on disposal of subsidiary - (215,308) Non-cash elements of profit on discontinued (52,104) - activities Interest expense 41,201 45,875 Interest income (244) (375) Impairment of goodwill and minority interest - 59,292 Share of results of associated and joint venture companies (53,829) 4,320 6,335 (1,165,579) Changes in working capital: Receivables 724,582 1,567,976 Payables (2,087,395) ( 2,551,785) Inventories 2,511 12,629 Related parties and associated companies 231,777 668,427 (1,122,190) ( 1,468,332) Taxation (4,741) ( 39,638) Net cash used from operating activities (1,126,931) (1,507,970) ------------ --------------- Cash Flows from Investing Activities Interest received 244 375 Profit distribution received from associated 40,303 - and joint venture companies Purchases of property, plant and equipment (68,254) (528,009) Purchase of trademarks and licences (14,685) (16,099) Disposal of subsidiary - (11,606) Acquisition of subsidiary - (99,541) Net cash used in investing activities (42,392) (654,880) ------------ --------------- Cash Flows from Financing Activities Share issue - 1,131,136 Interest paid (41,201) (45,875) Repayment of term loan (62,378) (267,376) Finance leases (34,939) 63,577 ------------ ------------- Net cash generated by/(used in) financing activities (138,518) 881,462 ------------ ------------- Effect of foreign exchange rate changes on consolidation 193,236 50,048 Net decrease in cash and cash equivalents (1,114,605) (1,231,340) Cash and cash equivalents at the beginning of the Year 1,475,351 2,706,691 ------------ ------------- Cash and cash equivalents at the end of the year 360,746 1,475,351 ------------ -------------
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
1 General
AEC Education plc is a public limited liability company incorporated in England and Wales on 8 July 2004. The Company was admitted to AIM on 10 December 2004. Its registered office is Witan Gate House, 500-600 Witan Gate West, Milton Keynes MK9 1SH and its principal place of business is in Singapore. The registration number of the Company is 05174452.
The principal activities of the Company are that of investment holding and provision of educational consultancy services. There have been no significant changes in the nature of these activities during the year.
The Board of Directors has authorised the issue of these financial statements on 24 June 2015.
2 Segmental Information
Segmental analysis is as follows:
Europe South East Total Asia/Middle East 2014 GBP GBP GBP Revenue from external customers 5,661,457 3,316,711 8,978,168 ------------- ------------- -------------- Depreciation, write offs and amortisation (182,036) (537,724) (719,760) ------------- ------------- -------------- Loss before taxation (50,851) (1,050,498) (1,101,349) ------------- ------------- -------------- Taxation charge (4,685) (24,301) (28,986) ------------- ------------- -------------- Profit on discontinued activities 76,313 206,106 282,419 Loss for the year 20,777 (868,693) (847,916) Segmental assets 3,706,133 1,955,770 5,661,903 ------------- ------------- -------------- Segmental liabilities (4,567,440) 1,334,671 (3,232,769) ------------- ------------- -------------- Additions to non-current assets 38,970 43,969 82,939 ------------- ------------- -------------- 2013 (Restated) Revenue from external customers 5,080,994 6,222,884 11,303,878 ------------- ------------- -------------- Depreciation, write offs and amortisation (415,496) (604,629) (1,020,125) ------------- ------------- -------------- Loss before taxation (198,939) (1,457,864) (1,656,803) ------------- ------------- -------------- Taxation charge (6,460) (228,999) (235,459) ------------- ------------- -------------- Loss on discontinued activities (380,629) (617,694) (998,323) ------------- ------------- -------------- Loss for the year (586,028) (2,304,557) (2,890,585) Segmental assets 4,194,708 4,128,391 8,323,099 ------------- ------------- -------------- Segmental liabilities (4,655,567) (573,362) (5,228,929) ------------- ------------- -------------- Additions to non-current assets 170,478 347,682 518,160 ------------- ------------- --------------
Note that the Segmental liabilities figure for South East Asia and the Middle East is shown as a net asset due to the treatment of the amount due from Europe to South East Asia for funding being shown as a liability in the former and an asset in the latter.
3 Earnings/(Loss) Per Share
The basic earnings/(loss) per share on continuing activities was based on the loss attributable to shareholders of GBP1,164,375 (2013: restated loss of GBP1,834,365) and the weighted average number of ordinary shares in issue during the year of 63,051,043 shares (2013: 45,753,464 shares).
The basic earnings/(loss) per share on discontinued activities was based on the profit attributable to shareholders of GBP282,419 (2013: loss of GBP998,323) and the weighted average number of ordinary shares in issue during the year of 63,051,043 shares (2013: 45,753,464 shares).
The diluted earnings/(loss) per ordinary share on continuing activities and the diluted earnings/(loss) per share on discontinued activities are based respectively on the loss attributable to shareholders of GBP1,164,375 (2013 (restated): loss of GBP1,834,365) and profit attributable to shareholders of GBP282,419 (2013: loss of GBP998,323) and the weighted average number of ordinary shares in issue at during the year of 63,051,043 shares (2013: 45,753,464 shares) diluted for the effect of share options and warrants.
By 31 December 2014 all previously issued options had lapsed (2013: 1,950,000 options were outstanding). At 31 December 2013 all 1,950,000 options were excluded from the diluted weighted average number of ordinary shares calculation as their effect would have been anti-dilutive.
9 Annual Report
The Annual Report will be sent to shareholders by close of business on or around 25 June 2015. Additional copies will be available to the public, free of charge, from the Company's website ww.aeceducationplc.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR FIMMTMBITTIA
1 Year Malvern Chart |
1 Month Malvern Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions