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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% | 18.50 | 18.00 | 19.00 | 18.50 | 17.80 | 18.50 | 3,000 | 08:00:24 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Schools & Education Svcs,nec | 6.6M | -1.08M | -0.0443 | -4.18 | 4.52M |
TIDMAEC
RNS Number : 9232S
AEC Education plc
30 September 2014
AIM: AEC
30 September 2014
AEC Education PLC
("AEC" or "the Company" and together with its subsidiaries, "the Group")
Half year results for the six months to 30 June 2014
Key Points
-- Revenues on continuing activities of GBP4.33m (2013: GBP5.74m) -- Operating loss of GBP0.07m (2013: loss of GBP0.53m) -- Loss before tax of GBP0.10m (2013: loss of GBP0.56m) -- Loss after tax from continuing activities of GBP0.11m (2013: loss of GBP0.58m) -- Loss per share of 0.15p (2013: 1.64p) -- Revenue decline in London offset by 53% growth in Ireland -- Singapore College returns to profit. -- Oman trading very difficult with operating losses for the half year
Liam Swords, Chairman, stated,
"The Group's results for the six months to 30 June 2014, as expected, show a significant improvement in AEC's operations. Our English language teaching operations in London showed an operating profit and our new operation in Ireland continued to grow very strongly offsetting the effect of the difficult trading conditions in London. Singapore has returned to profit albeit at a very reduced operating level.
We are encouraged by progress across our operations in London, Dublin, Cyprus and Malaysia and have begun to implement a further growth plan in Europe. Singapore is starting to build a local market and is working hard to remain in profit whilst a range of alternatives for growth are investigated. Oman has not lived up to expectations and is impacting the group negatively whilst our recovery is still in the early stages.
Nonetheless, we expect the progress achieved to date to continue into the peak summer period and
as we begin to implement strong growth plans in Europe."
Enquiries:
AEC Education PLC Tel: +44 (0) 7725 836 811 Liam Swords WH Ireland Limited (NOMAD) Tel: +44 (0)161 832 2174 Andrew Kitchingman
CHAIRMAN'S STATEMENT
Introduction
The Group's results for the six months to 30 June 2014, as expected, show a significant improvement in AEC's operations. Most importantly, our English language teaching operations in London continued to show an operating profit and our new operation in Ireland grew by 53% offsetting the effect of a very sluggish London market which recorded a drop of 19%. Singapore has also returned to profit albeit at a much reduced operating level. Malaysia has been affected by a delay in renewing University partnerships and a more competitive ACCA market and showed a small operating loss of 1% of revenue. The progress made in this period is encouraging. Trading is traditionally higher in the 2(nd) period so our predicted return to profit this year is still on track.
Financial Results
Revenues on continuing activities for the six months reduced to GBP4.33m. (2013: GBP5.74.m). The loss before tax was GBP0.07m compared to a loss of GBP0.53m in the same period last year. All of the operations, with the exception of Oman, were operating at about break - even level in this period The loss after tax was GBP0.11m (2013: GBP0.82m including GBP0.24m on discontinued activities) The loss per share was 0.15p (2013: 1.10p and 1.64p per share including discontinued activities). Cash balances as at 30 June 2014 stood at GBP0.65m (2013: GBP1.42m).
Operational Review
In Europe, Ireland has continued to grow very strongly and will benefit from the strong interest in the Summer Camp which was a very profitable feature last year during the summer months. The lower price business, from the mainly Latin markets, dominated this period but now the higher value business from Europe and Eastern Europe are beginning to feed through with order intake at the higher margins increasing strongly. Strategicaly, Ireland was developed to help to offset the difficult trading position in London and this strategy is now beginning to pay off. London remains difficult because of visa restrictions and the inability of non EU students to work part time to subsidise their learning, with the result that revenue reduced against last year. In view if this we have begun to implement further saving by centralizing sales and marketing, finance and general administration in Dublin. At the same time we have begun to develop new products and new agreements and increased the sales force across a wider range of markets. We expect these initiatives to bring London back into a growth pattern next year. The Malvern School in Limassol, Cyprus, has continued to grow strongly, with order intake on track to achieve increased revenue again this year. Additionally the Summer Camp, which just commenced for this year at the end of June, looks like repeating the success of last year and we expect our agreement with UCLAN in Cyprus to continue to develop as we go through the 2(nd) period of this year.
Oman did not achieve in this period. It generated very low revenue and sustained heavy losses relative to its size. We have not increased our investment in this venture and have been diluted because of the funding requirements which have been supported by our partners. The Board are actively seeking a solution to this drain on our results.
In Singapore, as we previously reported, we cannot recruit overseas students. The impact on our revenue is a reduction of 52% on last year. The management have focused on building a local market
and extending its range of products to suit this initiative. This has enabled it to show a small operating profit during the period and further initiatives are being developed to enable growth in the coming period. We are unlikely to reapply for EDUTrust in the near future but, instead, we are focusing on plans with partners to seek and develop opportunities in the local market.
Revenue in Malaysia continues to be affected by the upheaval in its North Africa markets, competition in its accounting markets and delays in completing University agreements. Revenue is down significantly on last year with the result it made a small operating loss of 1%. Initiatives have been taken to return the Accounting revenue to the budgeted level and the University agreements are expected to be completed shortly. As mentioned previously, Malaysia has diversified its markets and this initiative is expected to gain traction as we go through the 2(nd) period.
Outlook
Notwithstanding the issues in our market opportunities in Singapore and London, we are encouraged by progress across all our operations in very significantly improving the Group results compared to the same period last year. We anticipate further progress across all units during the next six months and all are working on initiatives that will bring the Group back into a growth pattern. In the meantime, we are pleased to have the continued support of our shareholders as we evaluate potential financing options to look to further strengthen the business.
Liam Swords
Chairman
UNAUDITED CONSOLIDATED INCOME STATEMENT
Note Six months Six months Twelve months to 30 June to 30 June to 31 December 2014 2013 2013 GBP'000 GBP'000 GBP'000 Unaudited Unaudited Audited Revenues Sales of services and other revenue 4 4,333 5,742 11,304 Cost of services sold & operating expenses (4,403) (6,267) (12,983) Operating (loss) / profit (70) (525) (1,679) (Loss) / profit from operations (70) (525) (1,679) Share of results of associated companies and joint venture (6) 22 (4) Finance costs (20) (52) (46) (Loss) / profit before taxation (96) (555) (1,729) Income tax credit / (charge) (9) (25) (235) (Loss) / profit for the period / year from continuing activities (105) (580) (1,964) (Loss) / profit for the period / year from discontinued activities - (241) (998) (Loss) / profit for the period / year (105) (821) (2,962) Minority interests 13 96 58 ------------------------- ------------------------ ------------------------- (Loss) / profit attributable to equity holders (92) (725) (2,904) (Loss) / earnings per share on continuing activities Pence Pence Pence Basic (0.15) (1.10) (4.27) Diluted (0.15) (1.10) (4.27) (Loss) / earnings per share on discontinued activities Pence Pence Pence Basic (0.54) (2.24) Diluted (0.54) (2.24)
UNAUDITED STATEMENT OF FINANCIAL POSITION
As at 30 As at 30 As at 31 June 2014 June 2013 December Note 2013 GBP'000 GBP'000 GBP'000 Unaudited Unaudited Audited Fixed assets Intangible assets 3,951 4,764 4,023 Tangible assets 650 1,176 763 Investment in associated companies - 58 17 Investment in joint venture 17 59 26 Deferred taxation - 239 4,618 6,296 4,829 -------------------------- ----------------------------- --------------------- Current assets Inventory 9 22 9 Debtors 1,848 3,386 2,010 Cash at bank and in hand 645 1,421 1,475 -------------------------- ----------------------------- --------------------- 2,502 4,829 3,494 Total assets 7,120 11,125 8,323 ========================== ============================= ===================== Creditors Amounts falling due within one year (4,375) (7,011) (5,453) Net current liabilities (1,873) (2,182) (1,959) -------------------------- ----------------------------- --------------------- Non-current liabilities Deferred income - - - Finance lease (48) - (63) Term loan (68) Deferred taxation (22) (25) (22) -------------------------- ----------------------------- --------------------- (70) (93) (85) Total liabilities (4,445) (7,104) (5,538) -------------------------- ----------------------------- --------------------- Equity attributable to equity holders of the Company Share capital 5,362 4,420 5,362 Share premium 896 708 896 Reserves (3,403) (1,018) (3,299) -------------------------- ----------------------------- --------------------- 2,855 4,110 2,959 Minority interest in equity (180) (89) (174) 2,675 4,021 2,785 -------------------------- ----------------------------- --------------------- Total equity and liabilities 7,120 11,125 8,323 ========================== ============================= =====================
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
Six months Six months Twelve months to 30 June to 30 June to 31 December Note 2014 2013 2013 GBP'000 GBP'000 GBP'000 Unaudited Unaudited Audited Cash Flows from operating activities (Loss) / profit before income tax from continuing activities (96) (555) (1,729) (Loss) / profit before income tax from discontinued activities - (241) (998) Adjustments for: Depreciation & amortisation 176 304 608 Plant and equipment written-off - 2 299 Loss on disposal of plant and equipment (11) - 89 Loss/(profit) on disposal of a subsidiary - (215) Loss/(profit) on disposal of an associate (279) - Impairment of goodwill - 59 59 Impairment of intangible assets - - 600 Interest paid (20) 52 46 Interest income - - - Share of results of associated companies and joint venture 6 (22) 4 (224) (401) (1,237) ------------------------- ------------------------- --------------------- Changes in working capital (Increase) / decrease in debtors 172 234 1,568 (Increase) / decrease in creditors (769) (644) (2,480) (Increase) / decrease in inventories - - 13 (Increase) / decrease in related parties (209) (1) 668 Cash flows from operating activities (1,030) (812) (1,468) ------------------------- ------------------------- --------------------- Taxation Taxes recovered / (paid) (20) (1) (40) Net cash used in operating activities (1,050) (813) (1,508) ------------------------- ------------------------- --------------------- Cash flows from investing activities Interest income - - - Purchase of property, plant and equipment (21) (287) (528) Purchase of intangible fixed assets (7) - (16) Acquisition of joint venture - - - Acquisition of a subsidiary - - (100) Disposal of property, plant and equipment 27 Disposal of a subsidiary - (11) Disposal of an associate 293 - - 292 (287) (655) ------------------------- ------------------------- --------------------- Cash flows from financing activities Share issue - 1,131 Interest paid - (52) (46) Dividend paid to minority shareholders - - - (Decrease) / increase in finance lease liabilities (31) (20) 63 Repayment of term loan (62) (127) (267) Dividend paid to shareholders - - - (93) (199) 881 ------------------------- ------------------------- --------------------- Effect of foreign exchange rate changes on consolidation 21 13 50 ------------------------- ------------------------- --------------------- Net increase in cash and cash equivalents (830) (1,286) (1,232) Cash and cash equivalents at beginning of period / year 1,475 2,707 2,707 Cash and cash equivalents at end of period / year 645 1,421 1,475 ------------------------- ------------------------- ---------------------
NOTES TO ACCOUNTS
1. Publication of non-statutory accounts and basis of preparation.
The financial information contained in this interim report does not constitute statutory accounts for the period ended 30 June 2014. The unaudited consolidated financial statements incorporate the unaudited financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to 30 June 2014. The comparative figures for the period ended 30 June 2013 are those as published in the Company's half year announcement made on 16 September 2013.
This report has been approved by the Board of Directors and is unaudited. This report does not comprise statutory accounts within the meaning of Section 240 of the Companies Act 1985.
2. General
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 principal activities of the subsidiary companies during the period.
3. Accounting Policies
The unaudited results for the six months ended 30 June 2014 have been prepared on the basis of International Financial Reporting standards ("IFRS") and accounting policies consistent with those adopted for the year ended 31 December 2013, and to be adopted in respect of the year ending 31 December 2014.
4. Sale of Services Six months Six months Twelve months to 30 June to 30 June to 31 December 2014 2013 2013 GBP'000 GBP'000 GBP'000 Unaudited Unaudited Audited Course fees and registration fees 3,345 5,032 9,428 Examination fees 3 8 9 Students accommodation 578 514 1,393 Others 407 188 474 4,333 5,742 11,304 ------------------- -------------------------- ---------------------------------- 5. Dividend
No interim dividend for this financial year is proposed.
6. (Loss)/ earnings per share
The basic (loss)/earnings per share is calculated by dividing the (loss)/profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the relevant period. The weighted average number of shares in issue during the period was 63,051,043 (2013: 44,198, 781).
The diluted (loss)/earnings per share is calculated by dividing the (loss)/profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the relevant period diluted for the effect of share options and warrants in existence at the relevant period. The weighted average number of shares in issue diluted for the effect of share options and warrants in existence during the period was 63,051,043 (2013: 44,198, 781).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QKCDQABKDOCB
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