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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Nord Anglia ED. | LSE:NAE | London | Ordinary Share | GB0006582729 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 461.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number:7083K
NordAnglia Education PLC
06 May 2003
Meetings today:
There will be an analysts meeting today at 10.00 am at the offices of Buchanan
Communications, 107 Cheapside, London EC2V followed by a press meeting at 11.30
am. If you would like would like to attend please call Charlie Forsyth or Lisa
Baderoon on 020 7466 5000.
FOR IMMEDIATE RELEASE 6 MAY 2003
NORD ANGLIA EDUCATION PLC
INTERIM RESULTS ANNOUNCEMENT
for the six months ended 28 February 2003
Nord Anglia Education PLC ("Nord Anglia"), the provider of education and related
educational services, is pleased to announce its results for the six months
ended 28 February 2003.
Financial Highlights
* Turnover from continuing operations (excluding teach out of London
College) up 13.1% to #41.1m (2002: #36.3m)
* Operating profit from continuing operations steady at #2.34m (2002: #2.33m)
* Underlying operating profit (excluding college teach out and the end of
one contract) up 13.9% to #2.34m (2002: #2.05m)
* Operating cash flow up 26.7% to #4.2m (2002: #3.3m)
Operational Highlights
* Half year results in line with expectations
* Underlying strength of company evident through a period of both
consolidation and investment
* New Chief Executive - CEO/Chairman role now split
* UK schools steady: overseas schools and nurseries register growth
* Outsourced contracts progressing well: pleasing increase in OfSTED
inspections won
* Service to Schools contracts increase by 25%
* Outlook for 2003/04 - growth prospects good in both divisions
On prospects, Kevin McNeany, Chairman said: "Prospects for our delivery division
are excellent and we expect further organic growth especially from the nursery
and overseas schools groups. ...In Outsourcing we continue to build our
relationships with schools, LEAs and Government to ensure that we are well
placed to seize opportunities as they arise.....The Board looks forward to
working with the new Chief Executive in the review and future development of the
business. He inherits a management team which has been substantially
strengthened in the past year and he can build on foundations which have given
the Company an excellent reputation and a wide experience of contracting and
delivery in education.
For further information, please contact:
Kevin McNeany, Chairman
David Johnson, Managing Director
Lorene Simpson, Finance Director:
Nord Anglia Education PLC Today on Tel No: 020 7466 5000
www.nordanglia.com : and thereafter on Tel No: 0161 491 4191
Lisa Baderoon (lisab@buchanan.uk.com) Mobile: 07721 413 496
Buchanan Communications: Tel No: 020 7466 5000
www.buchanan.uk.com
CHAIRMAN'S STATEMENT
I am pleased to report results for the half year which ended 28th February 2003
in line with Board expectations. While it was a period of consolidation in some
businesses and of investment in others the results demonstrate the underlying
strength of the Company. Enrolments in our schools and day care nurseries are on
target and established outsourcing contracts are progressing satisfactorily.
Total turnover of #41.2m was at a similar level to that in the six months ended
28 February 2002. After adjusting the turnover for discontinued and
discontinuing activities underlying growth was 13%. Operating profit from
underlying activities remained stable at around #2.34m. EBITDA increased from
#3.6m to #3.7m. Earnings per share fell from 6.41p to 5.13p reflecting increased
interest charges in the period arising from the investment in our Nursery Group.
An interim dividend of 1.33p net per share will be paid on 1st July 2003 to
those shareholders on the register on 30th May 2003. The interim dividend in
2002 was 1.25p.
I am especially delighted to welcome Andrew Fitzmaurice who joined the Board on
April 28th as Chief Executive. This appointment splits the roles of Chairman and
Chief Executive. I am pleased that a high calibre and motivated individual such
as Andrew has agreed to join us. The Group is at a key stage in its development
and I am sure his enthusiasm and vision will help to generate faster growth and
build greater shareholder value.
As promised the Board strengthened the senior management with the appointment in
November of a Director of Outsourcing and in December with a new Managing
Director of Schools
Delivery Division
Nord Anglia's day care nurseries branded as Princess Christian Nurseries are
performing well. Turnover increased 20% on the comparable period and includes
income generated from the three new nurseries opened last year. Occupancy levels
are also increasing as previously opened nurseries mature. The 24th nursery
opened in Leeds in February this year with pleasing initial occupancy levels.
Another three will be open by late summer, one of which is our first leasehold
in Central London. Despite the regular rollout of new units the nursery division
is now on target to contribute to Group profits in the full year.
The investment in the infrastructure of our independent schools in England is
now largely complete. Firwood Manor Preparatory School in Greater Manchester was
the last to benefit from an upgrading of facilities and the occupancy level
continues to increase in line with expectations. Overall the schools are
performing satisfactorily.
During the first half of last year we acquired the eighth school in our
international schools group in Budapest which has moved into profitability this
half-year. Last August we opened a new international school in Shanghai.
Enrolments are very good and are currently ahead of expectations. Prospects for
growth and profitability in the rapidly expanding economy of Shanghai are very
exciting. Thus leasehold negotiations are currently well advanced to enlarge the
existing campus and add a secondary school.
The British International School Moscow is also having an excellent year. We
have just signed an agreement with Rosinka, the most prestigious 'gated'
expatriate housing development in Moscow, to open our seventh campus in the city
in September this year, in a purpose built school leased from the Rosinka
company.
Overall, in overseas schools there was an increase in both student numbers and
profitability.
The residual business - the School of Finance and Management (SFM) - of the EW
Fact companies disposed of in May 2002 is due to cease trading by the end of
this financial year. The teach out of degree courses at SFM is continuing
smoothly and in line with expectations.
Outsourcing Division
The contract we hold through the joint venture vehicle, EduAction, to provide
most of the services of Waltham Forest LEA began in September 2001. In
accordance with Government policy the LEA was inspected during early autumn by
OfSTED. The inspection showed that considerable progress had been made and that
EduAction's strategic partnership with Waltham Forest is a strong one. The
contract itself is also continuing to progress in line with financial
expectations.
Nord Anglia's school inspection unit has delivered school inspections since
1994. In the latest round of contract bidding it was awarded a contract to
provide 276 school inspections for OfSTED - a 40 per cent increase on last year.
The inspections are scheduled for the next academic year. In addition to this
organic growth, our capacity to deliver school inspections has increased
following the integration of two regional providers into the school inspections
operation and we remain one of the largest providers of inspections for OfSTED.
Nord Anglia's Connexions business incorporating the careers advice and guidance
service which we have provided under contract for the past seven years continues
to progress satisfactorily.
The current Ministry of Defence (MOD) contract where we deliver the non-military
elements of education and training for the student recruits at the Army
Foundation College in Harrogate also continues to perform well. Turnover grew as
a result of additional education services secured during the period. The Board
identifies defence as a sector with excellent potential for outsourcing business
in education and training. Substantial opportunities will flow from the MOD's
Defence Training Review (DTR). Nord Anglia is part of a consortium led by
QinetiQ which has been short listed to bid for DTR work.
The level of funding flowing direct to schools continues to increase and remains
a key plank of government policy. Our commitment to the delivery of services
which schools need to improve their performance in learning and teaching and in
their back office functions continues. We are now at the end of this year's
sales cycle and the number of contracts secured in payroll, personnel, finance
and facilities management is close to 600, an increase of 25% on last year.
Despite growth in the number of contracts won, it is taking more time than the
Board had expected to achieve scale. We are therefore monitoring costs to
ensure that they remain in line with current revenues.
Prospects
Prospects for our delivery division are excellent and we expect further organic
growth especially from the nursery and overseas schools groups. New nurseries
are on track to open later this financial year and expansion in Shanghai, Moscow
and Warsaw is planned for 2004. Current world events appear not to have impacted
on pupil enrolments in our overseas schools.
In Outsourcing we continue to build our relationships with schools, LEAs and
Government to ensure that we are well placed to seize opportunities as they
arise. The new joint venture with QinetiQ should allow us to play a major role
in education and training within the MOD.
The Board looks forward to working with the new Chief Executive in the review
and future development of the business. He inherits a management team which has
been substantially strengthened in the past year and he can build on foundations
which have given the Company an excellent reputation and a wide experience of
contracting and delivery in education.
Kevin J McNeany
2 May 2003
INDEPENDENT REVIEW REPORT TO NORD ANGLIA EDUCATION PLC
We have been instructed by the company to review the financial information for
the six months ended 28 February 2003 which comprises the consolidated profit
and loss account, the consolidated balance sheet, the consolidated cash flow
statement and related notes. We have read the other information contained in
the interim report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of control and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards and therefore
provides a lower level of assurance than an audit. Accordingly we do not
express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 28 February 2003.
PKF
London
6 May 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Six months ended 28 February 2003
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
28 Feb 2003 28 Feb 2002 31 Aug 2002
#000 #000 #000 #000 #000 #000
Turnover
Group and share of joint ventures 41,240 41,765 80,452
Less: Share of joint ventures (4,005) (4,006) (8,949)
Group turnover
Continuing operations 37,235 33,333 64,396
Acquisitions - - 759
Discontinued operations - 4,426 6,348
37,235 37,759 71,503
Cost of sales (12,004) (13,065) (25,551)
Gross profit 25,231 24,694 45,952
Administrative expenses (23,228) (22,510) (41,148)
Group operating profit
Continuing activities 2,003 2,342 4,680
Acquisitions - - (138)
Discontinued activities - (158) 262
2,003 2,184 4,804
Share of operating profit in joint ventures 111 17 102
Total operating profit: group
and share of joint ventures 2,114 2,201 4,906
Exceptional loss on disposal of
discontinued operations - - (20,094)
Profit / (loss) on ordinary activities
before interest 2,114 2,201 (15,188)
Interest receivable and similar income (Group) 58 138 362
Interest receivable and similar income
(share of joint ventures) 51 30 97
Interest payable and similar charges (388) (216) (784)
Profit / (loss) on ordinary activities
before taxation 1,835 2,153 (15,513)
Tax on profit / (loss) on ordinary activities (685) (710) (1,047)
Profit / (loss) on ordinary activities
after taxation 1,150 1,443 (16,560)
Minority interest (75) (100) (119)
Profit / (loss) for the period 1,075 1,343 (16,679)
Dividends (272) (258) (835)
Retained profit / (loss) 803 1,085 (17,514)
Profit and loss reserves brought forward 7,312 6,515 6,515
Transfer of goodwill previously written off
to reserves on acquisition - - 18,260
Transfer from revaluation reserve
of additional depreciation 25 25 51
Profit and loss reserves carried forward 8,140 7,625 7,312
Basic earnings per ordinary share 5.13p 6.41p (79.64)p
Diluted earnings per ordinary share 5.13p 6.37p (79.17)p
Basic (excluding exceptional loss) 5.13p 6.41p 16.30p
Diluted excluding exceptional loss 5.13p 6.37p 16.21p
Dividends per share 1.33p 1.25p 4.00p
There are no recognised gains or losses other than the profit for the period
CONSOLIDATED BALANCE SHEET
28 February 2003
Unaudited Unaudited Audited
28 Feb 2003 28 Feb 2002 31 Aug 2002
#000 #000 #000 #000 #000 #000
Fixed Assets
Intangible assets 3,383 3,204 3,395
Tangible assets 45,784 38,971 42,897
Investments in joint ventures:
Share of gross assets 7,052 5,484 7,362
Share of gross liabilities (6,823) (5,257) (7,212)
Loans to joint ventures 255 - 190
484 227 340
49,651 42,402 46,632
Current Assets
Stock 82 365 72
Debtors 10,193 13,714 9,021
Bank deposits 215 4,916 1,963
Cash at bank and in hand 1,908 2,884 2,215
12,399 21,879 13,271
Creditors
Amounts falling due within one year (22,443) (22,891) (22,037)
Net current liabilities (10,045) (1,012) (8,766)
Total assets less current liabilities 39,606 41,390 37,866
Creditors
Amounts falling due after more than one year (12,267) (14,644) (11,435)
Provisions for liabilities and charges (251) (108) (151)
Net assets 27,088 26,638 26,280
Capital and reserves
Shareholders' funds 26,573 26,099 25,769
Minority interest 515 539 511
27,088 26,638 26,280
SUMMARISED CONSOLIDATED CASH FLOW STATEMENT
Six months ended 28 February 2003
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
28 Feb 2003 28 Feb 2002 31 Aug 2002
#000 #000 #000
Net cash inflow from operating activities 4,228 3,336 6,475
Returns on investments and servicing of finance (322) (15) (330)
Taxation (343) (250) (1,396)
Capital expenditure and financial investment (4,394) (4,643) (10,035)
Acquisitions and disposals (1,837) (89) (3,941)
Equity dividends paid (576) (517) (779)
Management of liquid resources 1,747 - 2,953
Cash outflow before financing (1,497) (2,178) (7,053)
Financing 1,467 1,138 2,899
Decrease in cash in the period (30) (1,040) (4,154)
Reconciliation of net cash flow to movement in net debt
Decrease in cash (30) (1,040) (4,154)
Cash outflow from increase in liquid resources (1,747) - (2,953)
Cash outflow from decrease in debt and lease
financing 2,742 481 4,645
Change in funds resulting from cash flows 965 (559) (2,462)
Loan notes issued - - (725)
New long term loans (2,462) (1,619) (3,857)
New finance leases (137) (125) (223)
Movement in net debt in the period (1,634) (2,303) (7,267)
Net debt at the beginning of the period (12,672) (5,405) (5,405)
Net debt at the end of the period (14,306) (7,708) (12,672)
Reconciliation of operating profit to net cash inflow from operating activities
Operating profit 2,003 2,184 4,804
Depreciation and amortisation charges 1,442 1,437 2,830
(Profit) / loss on sale of fixed assets (39) 26 130
(Increase) / decrease in stock (11) 10 21
(Increase) / decrease in debtors (1,021) (1,261) 1,558
Increase / (decrease) in creditors 1,854 940 (2,868)
Net cash inflow from operating activities 4,228 3,336 6,475
NOTES
1. Basis of preparation
The interim report has been prepared on a basis consistent with the accounting
policies adopted in the Annual Report and Accounts for the year ended 31 August
2002.
The interim report has been approved by a duly appointed committee of the Board
of Directors and is unaudited. The auditors have carried out a review and their
report is set out on page 10.
The interim report does not comprise statutory accounts within the meaning of
section240 of the Companies Act 1985. The information for the year ended 31
August 2002 is an extract from the statutory accounts to that date which have
been delivered to the Registrar of Companies. Those accounts included an audit
report which was unqualified and which did not contain a statement under Section
237(2) or (3) of the Companies Act 1985.
2. Taxation
The taxation charge is calculated by applying estimated rates, based on the
anticipated rate for the full year.
3. Earnings per share
The calculation of earnings per share is based on the profits on ordinary
activities after taxation and minority interests divided by the weighted average
number of equity shares.
For the purpose of calculating diluted earnings per share, the weighted average
number of shares outstanding has been adjusted for the dilutive effects of
options outstanding.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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