AEC Announces Interim Results for Six Months ending June 2007

Interim Results for the six months ended 30 June 2007

                                       AEC Education plc

                         Interim Results for the six months ended 30 June 2007

AEC Education plc (the “Group”, “AEC Education”, “AEC” or the “Company”), the provider of 
educational courses up to postgraduate degree levels in Singapore,  Malaysia and Vietnam, is 
pleased to announce it’s un-audited interim results for the six months ended 30 June 2007.


*	The Group’s revenue on continuing operations was up 34% at £1,036K (2006: £773K)
*	Profits before tax were 14% of revenue providing profits after tax and minority interests of 
£114K (2006: Loss £104K) 
*	The restructuring of the Group combined with the rationalisation of it’s product portfolio and 2 
small but focused synergistic acquisitions have provided significant revenue growth and a much 
improved bottom line for the period 

For further information, please contact:
AEC Education plc
Haider M Sithawalla
Director – Finance
AEC Edu Group Pte Ltd
email :

Nabarro Wells & Co Ltd – NOMAD
David Nabarro
Email :
Phone +44 (0)20 7710 7401 

                                       Notes to Editors

AEC Education PLC is the UK holding company for a number of companies in Singapore, Malaysia and 
Vietnam that provide educational services to approximately 16,000 students in the Asia-Pacific 
region: source of the fastest-growing market for international students.  The Group offers 
class-based instruction at its various educational campuses in the Central Business District of 
Singapore, Malaysia and Vietnam and distance learning, up to postgraduate levels.  It also 
provides degree qualifications on behalf of several leading international universities, targeting 
the large volumes of overseas students in that region in line with the Singapore Government’s 
Global Schoolhouse Vision to make Singapore an Education Hub.

AEC’s aim is to be a leader in quality education through facilitating learning, fostering 
creativity and developing knowledge, skills and confidence in its students.  The Group’s 
recognition by the Singapore Government as a prestigious and forward-moving company is shown by 
its receipt of four  Singapore Quality Class Awards.

In August 2006, AEC was again awarded the “Case Trust” Certification for Private Education 
Organizations, a student protection scheme for foreign students.  This further endorses AEC’s 
position as a recognized quality provider in the education industry. 

Chairman’s Statement

Financial Review
Unaudited results for the six months period up to 30 June 2007 showed a turnover of £1,036K – 34% 
higher than for the same period in 2006.  During this period, the Group recorded profits after tax 
and minority interests of £114K.  

The turnaround in profits reflects the strength of the programs that we introduced towards the end 
of last year and of and the Company’s  policy of making small strategic acquisitions. 

We expect the momentum of these results to continue. 

Company Strategy

We will continue to pursue synergistic acquisitions and partnerships to further build revenue and 
profits in the future.

The newly launched Hospitality program has seen immediate results and we are intending to spread 
the development of this program throughout our region. 

We have initiated a twinning program between the Singapore and Vietnam schools for the Hospitality 
Management program.  Further, our market development effort in Vietnam for the LCCI programs is 
also likely to see rewards during this year.  In anticipation of the increased demand in the 
second half of the year, the school at Ho Chi Minh City has moved to larger premises.

Smartworks in Singapore is providing a new platform for us to work closely with University of 
Southern Australia (UniSA).  We are in the midst of finalizing the details for a full-time degree 
course in Property Management to be launched in Singapore and Vietnam.

Going forward, we will be expanding the range of our twinning programs in India, Nepal and China.

We also plan to launch a Nursing Aid program later this year or early next year which will feed 
into the Nursing Diploma programs. 

A part of our strategy for growth this year is the relocation of our headquarters in Singapore and 
the associated campus to larger and more modern premises in the Bukat Merah district of Singapore. 
This new campus will have better infrastructure to meet the increased technology demands of the 
new media and communication courses that have been introduced recently.  It will cater for the 
growing number of students on campus with a larger number of classrooms and other support 

No interim dividends are recommended by the Board.

The Board is looking at complementary acquisitions in the region in order to expand it presence 
and catchment area for student recruitment. 

In the interim, it is also deepening the impact of its newly launched programs by broadening its 
existing partnerships with established Educational institutions. 

There will be a cost associated with the relocation of our Singapore headquarters later this 
year.  We anticipate that this will cost £165K which will be written off over 6 years.

The Board continues to take the necessary measures to increase revenue and, to implement strategic 
investment to strengthen long term profitability and return to shareholders.  We will also 
continue to invest in the operations so that relative costs are driven down as we expand the 
Group’s revenue base.  

Liam Swords (Chairman)


                                                        Group         Group
                                                        Six months    Six months
                                                        To            To
                                                        30 June       30 June
                                               Note     2007          2006
                                                        £’000         £’000
                                                        Unaudited     Unaudited

Sales of services and other revenue           (4)       1,036         773

Cost of Sales                                          (955)          (941)

Operating Profit/(loss)                                 81            (168)

Profit/(loss) from operations                           81            (168)

Share of results of associated                          66            60

Profit/(loss) on ordinary activities                    147           (108)
before taxation

Tax on profit on ordinary activities                    (33)          -

Profit/ (loss) on ordinary activities                   114           (108)
after taxation

Minority interests                                      -             4

Profit / (loss) for the period                          114           (104)

(Accumulated Loss) / Retained                           (242)         30
Profits brought forward
Profit/(loss) for the period                            114           (104)

Dividends                                     (6)       -             -

(Accumulated loss) carried forward                      (128)         (74)

Earnings / (Loss) per share                             Pence         Pence

Basic                                         (6)       0.8           (0.7)


                                              Note      As at         As at
                                                        30 June 2007  30 June 2006
                                                        £’000         £’000
                                                        Unaudited     Unaudited
Fixed assets
Intangible Assets                                       160           5
Tangible Assets                                         135           166
Investments in associated companies           (7)       1,352         1,437
                                                        1,647         1,608

Current Assets
Debtors                                                 921           741
Cash at bank and in hand                                164           73
                                                        1,085         814
Amounts falling due within one year                     (940)         (491)

Net Current Assets                                      145           323

Total Assets                                            1,792         1,931
Deferred taxation                                       -             -
Minority interest                                       -             (3)
                                                        1,792         1,928

Capital and Reserves
Called up share capital                                 1,491         1,491
Share Premium                                           243           243
Reserves                                                58            194

Total Equity Shareholders funds                         1,792         1,928


                                                        Six months    Six months
                                                        30 June 2007  30 June 2006
                                                        Unaudited     Unaudited

                                                        £'000         £’000

Cash flow from operating activities                     72            161

Returns on investment and servicing of finance
Interest paid                                           (3)           (4)            

Taxes paid                                              (23)          (11)

Capital expenditure and financial investment 
Purchase of tangible fixed assets                       (31)          (48)
Acquisition of subsidiary                               -             (17)

                                                        (31)          (65)

Cash flows from financing activities
Increase in finance lease liabilities                   20            -
Repayment of finance leases                             -             (2)
Minority interests                                      -             3
                                                        20            1

Net increase in cash and cash equivalents               35            82

Cash and cash equivalents at beginning of period        76            (31)

Cash and cash equivalents at end of period              111           51

Cash and cash equivalents consist of the following:

Cash and bank balances                                  164           73
Bank overdraft                                          (53)          (22)
                                                        111           51

                Reconciliation of profit before tax to cash flow

                                                        Six months    Six months
                                                        30 June 2007  30 June 2006
                                                        Unaudited     Unaudited

From operating activities
Profit / (loss) before tax                              147           (104)

Adjustments for:
Depreciation & amortisation                             27            29
Inventories written off                                 -             37
Provision for doubtful debts                            -             17
Interest paid                                           3             4
Share of results of associated companies                (66)          (60)
(Increase)/ decrease in debtors                         (205)         161
Decrease in creditors                                   158           66
Decrease in inventories                                 6             12
Translation                                             2             (1)
Cash flow from operating activities                     72            161


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 2007. The financial information for the period ended 30 June 2007 is 
derived from the unaudited consolidated accounts of AEC Edu Group Pte Ltd for the period, 
consolidated with the unaudited accounts of the Company on a merger basis. The comparative figures 
for the period ended 30 June 2006, are those as published in the Company’s half year announcement 
made on 15 September 2006. 

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 2007 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 2006, and to be adopted in respect of the year ending 31 
December 2007. 

4.	Sale of Services
                                                        June 2007     June 2006
                                                        £'000         £'000

Course fees and registration fees                       809           537
Sales of systems and support services                   165           169
Other income                                            62            67
                                                        1,036         773

5.	Dividend
During the current financial period, no dividend has been declared or recommended.

6.	Earnings per share
Basic earning per share is calculated by dividing the earnings 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 14,916,042 (2005: 

7.	Investments in Associated Companies
Details of associated companies held by AEC Edu Group Pte Ltd as at 30 June 2007 are as follows:

companies and
Country of            Principal activities                Equity held by
Incorporation         (Place of business)                 the Subsidiary
                                                        June          June
                                                        2007          2006
                                                        %             %
Keris Murni Sdn       Provides education services       30            30
Bhd                   and the operation of education
(Malaysia)            tuition centers (Malaysia)

Pusat Tuisyen         Provides education services       30            30
Kasturi Sdn Bhd       and the operation of education
(Malaysia)            tuition centres (Malaysia)

Educational           Provides consultancy              34.96         34.96
Resources Pte Ltd     services in	
(Singapore)           education, related services 
                      and business training