TIDMAEC
RNS Number : 5622A
AEC Education plc
29 September 2015
AEC Education PLC
("AEC" or the "Company" and together with its subsidiaries, the"
Group")
Half year results for the six months ended 30 June 2015
Key Points
-- Revenues on continuing activities of GBP3.58m (2014: GBP4.33m)
-- Operating loss of GBP0.57m (2014: loss of GBP0.07m)
-- Loss before tax of GBP0.52m (2014: loss of GBP0.10m)
-- Loss after tax from continuing activities of GBP0.52m (2014: loss of GBP0.11m)
-- Loss per share of 0.86p (2014: 0.15p)
-- Ireland, Malaysia and our Cyprus JV continue to contribute
profits but the London market is still in decline with losses
reported for the first half.
-- New initiatives have been implemented in London to assist
recovery starting from the second half of 2015.
Liam Swords, Chairman, stated,
"The Group's results for the six months ended 30 June 2015 were
disappointing with London and, to a lesser extent, Singapore,
offsetting the total gains generated by all the other operating
units. We have initiated and implemented a number of strategic
plans for these two units to gain traction in student acquisition.
These positive measures will start to take effect from the latter
months of 2015 and continue into 2016 and beyond. Nevertheless, we
are also very encouraged by the improvement generated in Dublin and
Malaysia. We are also initiating a licensing model for
non-traditional markets to expand our revenue base beyond the
current sources. These measures are expected to positively drive
the Group forward."
Enquiries:
AEC Education PLC Tel: +44 (0) 7725 836 811
Liam Swords
WH Ireland Limited (NOMAD) Tel: +44 (0)117 945 3470
Mike Coe
CHAIRMAN'S STATEMENT
Introduction
The Group's results for the six months ended 30 June 2015 were
disappointing with London and, to a lesser extent, Singapore,
offsetting the total gains generated by all the other operating
units. We have initiated and implemented a number of strategic
plans for these two units to gain traction in student acquisition.
These positive measures will start to take effect from the latter
months of 2015 and continue into 2016 and beyond. Nevertheless, we
are also very encouraged by the improvement generated in Dublin and
Malaysia. The strategic decision to build an operation in Ireland
to offset the expected decline in London is beginning to work but
visa and work restrictions in the UK have driven the market down
much quicker and with much greater impact than expected London. We
are introducing a licensing model for non-traditional markets to
expand our revenue base beyond the current sources.
Financial Results
Revenues on continuing activities for the six months reduced to
GBP3.58m. (2014: GBP4.33.m). The loss before tax was GBP0.52m
compared to a loss of GBP0.10m in the same period last year. London
and Singapore continue to struggle, a result of the previously
reported visa work ban (non-EU) and loss of the EduTrust
accreditation. Malaysia is showing a small profit and Dublin
continues to show positive numbers. The loss after tax was GBP0.52m
(2014: GBP0.11m). The loss per share was 0.86p (2014: 0.15p). Cash
balances as at 30 June 2015 stood at GBP0.36m (2014: GBP0.65m).
Operational Review
In Europe, the London revenue has been impacted greatly by the
change of policy to the working capability of non-EU students and
the continuing tightening of student visa controls. An initial
upside in the first half of 2014 was not sustained as the market
declined further. With this in mind, Management have taken the
initiative to introduce some robust programs that would force the
widening of the revenue base to cater for students outside the
visa-working requirements. This program kicked off in September
this year and we hope to see some positive outcomes over the coming
months. Ireland continues to grow strongly and to show improved
results but not sufficient to offset the very rapid decline in
London. Cyprus revenue has been affected by the decline in the
Russian market because of the current political tensions with
Europe but has grown its local adult market strongly which has
largely offset the decline in its Summer School seasonal numbers.
Cyprus had already started to focus on Europe and achieved some
success during this first period which also helped to offset some
of the decline in the Summer School numbers.
The Asian units are also experiencing mixed results. Singapore
has the same underlying revenue issues as London. The loss of
EduTrust reduced the Singapore revenue opportunities dramatically
and it has taken time to shift the focus and re-design a new
product base. A number of new programmes have been introduced which
are expected to provide increasing revenue in the coming
months.
Malaysia remains, the most diversified of all the business
units. Moreover, market conditions, especially with the weak
Ringgit should give the Malaysia a stronger position in the Asia
market and assist in its drive to increase student numbers in the
next period and continue to make a contribution.
Outlook
We look forward positively as we restructure the revenue
generation models of all our operating units to include a wider
range of products. We have also begun discussions with various
parties on the development of online teaching platforms as a
supplement to the traditional teaching methods. Further, we have
started to re-introduce licensing models to offer our educational
content and brand to non-traditional markets in Asia and the Middle
East. We strongly believe that by early 2016, all our new
initiatives and programs will begin to show an overall Group
return.
Liam Swords
Chairman
UNAUDITED CONSOLIDATED INCOME STATEMENT
Note Six months Six months Twelve months
to 30 June to 30 June to 31 December
2015 2014 2014
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
Revenues
Sales of services and other
revenue 4 3,579 4,333 8,978
Cost of services sold &
operating
expenses (4,148) (4,403) (10,092)
Operating (loss) / profit (569) (70) (1,114)
(Loss) / profit from
operations (569) (70) (1,114)
Share of results of
associated
companies and joint venture 85 (6) 54
Finance costs (33) (20) (41)
(Loss) / profit before
taxation (517) (96) (1,101)
Income tax credit / (charge) - (9) (29)
(Loss) / profit for the
period
/ year from continuing
activities (517) (105) (1,130)
(Loss) / profit for the
period
/ year from discontinued
activities - - 282
(Loss) / profit for the
period
/ year (517) (105) (848)
Minority interests (24) 13 (34)
-------------------------- ------------------------- ------------------------
(Loss) / profit attributable
to
equity holders (541) (92) (882)
(Loss) / earnings per share
on
continuing activities Pence Pence Pence
Basic (0.86) (0.15) (1.85)
Diluted (0.86) (0.15) (1.85)
(Loss) / earnings per share
on
discontinued activities Pence Pence Pence
Basic - - 0.45
Diluted - - 0.45
(MORE TO FOLLOW) Dow Jones Newswires
September 29, 2015 07:53 ET (11:53 GMT)
UNAUDITED STATEMENT OF FINANCIAL POSITION
As at 30 June As at 30 June As at 31
2015 2014 December
2014
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
Fixed assets
Intangible assets 3,240 3,951 3,524
Tangible assets 411 650 450
Investment in joint venture 182 17 98
3,833 4,618 4,072
-------------------------- ----------------------------- ---------------------
Current assets
Inventory 7 9 7
Debtors 1,391 1,848 1,221
Cash at bank and in hand 364 645 361
-------------------------- ----------------------------- ---------------------
1,762 2,502 1,589
Total assets 5,595 7,120 5,661
========================== ============================= =====================
Creditors
Amounts falling due within
one year (3,936) (4,375) (3,563)
Net current liabilities (2,174) (1,873) (1,974)
-------------------------- ----------------------------- ---------------------
Non-current liabilities
Finance lease (27) (48) (38)
Deferred taxation (13) (22) (13)
-------------------------- ----------------------------- ---------------------
(40) (70) (51)
Total liabilities (3,976) (4,445) (3,614)
-------------------------- ----------------------------- ---------------------
Equity attributable to equity
holders of the Company
Share capital 5,362 5,362 5,362
Share premium 896 896 896
Reserves (4,564) (3,403) (4,080)
-------------------------- ----------------------------- ---------------------
1,694 2,855 2,178
Minority interest in equity (75) (180) (130)
1,619 2,675 2,048
-------------------------- ----------------------------- ---------------------
Total equity and liabilities 5,595 7,120 5,662
========================== ============================= =====================
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
Six months Six months Twelve months
to 30 June to 30 June to 31 December
2015 2014 2014
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
Cash Flows from operating
activities
(Loss) / profit before income
tax from continuing activities (517) (96) (1,101)
(Loss) / profit before income
tax from discontinued activities - - 282
Adjustments for:
Depreciation & amortisation 153 176 370
Loss on disposal of plant and
equipment - (11) 170
Loss/(profit) on disposal of
an associate - (279) (52)
Impairment of intangible assets - - 350
Interest paid (20) (20) 41
Share of results of associated
companies and joint venture (85) 6 (54)
(469) (224) 6
------------------------- -------------------------- ----------------------
Changes in working capital
(Increase) / decrease in debtors (151) 172 725
(Increase) / decrease in creditors 200 (769) (2,087)
(Increase) / decrease in inventories - - 2
(Increase) / decrease in related
parties 235 ( 209) 232
Cash flows from operating activities (185) (1,030) (1,122)
------------------------- -------------------------- ----------------------
Taxation
Taxes recovered / (paid) (14) (20) (5)
Net cash used in operating
activities (199) (1,050) (1,127)
------------------------- -------------------------- ----------------------
Cash flows from investing
activities
Purchase of property, plant
and equipment (39) (21) (68)
Purchase of intangible fixed
assets - (7) (14)
Acquisition of joint venture - - 40
Disposal of property, plant
and equipment - 27 -
Disposal of an associate - 293 -
(39) 292 (42)
------------------------- -------------------------- ----------------------
Cash flows from financing
activities
Dividend paid to minority
shareholders - - (41)
(Decrease) / increase in finance
lease liabilities (21) (31) -
Repayment of term loan (37) (62) (97)
(58) (93) (138)
------------------------- -------------------------- ----------------------
Effect of foreign exchange
rate changes on consolidation 299 21 193
------------------------- -------------------------- ----------------------
Net increase in cash and cash
equivalents 3 (830) (1,114)
Cash and cash equivalents at
beginning of period / year 361 1,475 1,475
Cash and cash equivalents at
end of period / year 364 645 361
------------------------- -------------------------- ----------------------
NOTES TO ACCOUNTS
1. Publication of non-statutory accounts and basis of preparation.
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September 29, 2015 07:53 ET (11:53 GMT)
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