AEC Education Interim Results

Aec Education Interim Results

RNS Number:0276J
AEC Education plc
15 September 2006

                               AEC Education plc

       Unaudited Results for the six months ended 30 June 2006

AEC Education plc ("AEC Education", "AEC" or the "Company"), the provider of
educational courses to postgraduate degree levels in Singapore and Malaysia,
announces its unaudited interim results for the six months ended 30 June 2006.


*    The Group's revenue on continuing operations was #773K (2005: #870K).

*    Loss before tax and minority interests on continuing operations for the
     period was #108K (2005: Profit #193K).

*    Although the Malaysian operation continued to be profitable margins
     were reduced because of strong competitiveness in the market.

*    The operations in Singapore recorded significant losses. This was
     largely due to the failure of certain new products and partnerships.

*    Mr. David Ho has been appointed Chief Executive of the Group.

*    He is currently re-organizing the Company's operations in both
     Singapore and Malaysia.

*    A new finance director is being recruited.

For further information:

AEC Education plc
Haider Sithawalla
Director of Finance
Malaysia/Singapore Operations
Tel: 65 63204878

                            Notes to Editors

AEC Education Plc is the UK holding company for a number of companies in
Singapore and Malaysia (founded in 1985) 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 and Malaysia 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 line with the
Singapore Government's Global Schoolhouse Vision to make Singapore an Education
Hub for the region.

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 rare Singapore
Quality Class Awards.

In August 2005, 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 2006 showed a turnover
of #773K - 11% below the same period in 2005. During this period, the Group
recorded an operating loss of #108K. The loss arose from significant increases
in administrative costs associated with the unsuccessful launch of several new
products which had to be withdrawn. Appropriate actions have been implemented to
bring the Group back to profitability.


Mr. David Ho was appointed Chief Executive of the Group in February 2006.  A new
Finance Director is actively being recruited to replace Mr. Ramasamy who will
take up an non executive role to advise on the Group's educational

New Programmes

The Group has introduced a number of new programmes which have considerable
potential for scaling up. These include the ACCA programmes, Early Childhood
Education and Travel and Tourism. The Group will also be launching an
International Foundation Programme in the fourth quarter in conjunction with the
Northern Consortium UK which has 11 partner universities in Northern UK.


No interim dividends are recommended by the Board.


The Board is taking the necessary measures to increase revenue and reduce
operating costs to bring the Group back to profitability. Apart from the organic
growth, the Group is also looking to acquire niche education businesses in Asia
and the UK.

The Board expects to announce significant improvements during the 2nd half.

Liam Swords


                                                       Group            Group
                                                     Six months       Six months
                                                         To               To
                                                      30 June           30 June
                                         Note           2006             2005
                                                       #'000             #'000
                                                     Unaudited         Unaudited

Sales of services and other revenue      (4)             773                 870

Cost of Sales                                           (941)               (710)

Operating Profit/(loss)                                 (168)                160

Profit/(loss) from operations                           (168)                160

Share of results of associated companies                  60                  33

Profit/(loss) on ordinary activities                    (108)                193
before taxation

Tax on profit on ordinary activities                       -                 (15)

Profit/ (loss) on ordinary activities                   (108)                178
after taxation

Minority interests                                         4                   -

Profit / (loss) for the period                          (104)                178

Retained Profits brought forward                          30                  67
Profit/(loss) for the period                            (104)                178

Dividends                                (6)               -                   -

Retained Profits/(Accumulated loss)                      (74)                245
carried forward

Earnings per ordinary Share                             Pence              Pence

Basic                                    (6)            (0.7)                1.2

                                UNAUDITED CONSOLIDATED BALANCE SHEET

                                      Note            As at               As at
                                                   30 June 2006      30 June 2005
                                                      #'000              #'000
                                                   Unaudited          Unaudited
Fixed assets
Intangible Assets                                       5                    31
Tangible Assets                                       166                    72
Investments in associated companies    (7)          1,437                 1,270
                                                    1,608                 1,373

Current Assets
Debtors                                               741                 1,019
Cash at bank and in hand                               73                   109

                                                      814                 1,128

Amounts falling due within one year                  (491)                 (334)

Net Current Assets                                    323                   794

Total  Assets                                       1,931                 2,167
Deferred taxation                                       -                   (13)
Minority interest                                      (3)                    -

                                                    1,928                 2,154

Capital and Reserves
Called up share capital                             1,491                 1,491
Share Premium                                         243                   373
Reserves                                              194                   290

Total Equity Shareholders funds                     1,928                 2,154


                                            Six months               Six months
                                           30 June 2006             30 June 2005
                                             Unaudited                Unaudited

                                                #'000                     #'000

Cash flow from operating activities               161                      (301)

Returns on investment and servicing of finance

Interest paid                                      (4)                        -

Taxes paid                                        (11)                      (11)

Capital expenditure and financial investment
Purchase of tangible fixed assets                 (48)                      (33)
Acquisition of subsidiary (Note A)                (17)                        -

                                                  (65)                      (33)

Cash flows from financing activities
Repayment of finance leases                        (2)                        -
Minority interests                                  3                         -
Expenses paid in connection with share issues       -                       (11)
Dividend received                                   -                        44

                                                    1                        33

Net increase/(decrease) in cash                    82                      (312)

Cash at beginning of year                         (31)                      421

Cash at end of period                              51                       109

Reconciliation of profit before tax to cash flow

                                              Six months             Six months
                                             30 June 2006           30 June 2005
                                               Unaudited             Unaudited

From operating activities
Profit before tax                                 (104)                     193

Adjustments for:
Depreciation & amortisation                        29                        18
Inventories written off                            37                         -
Provision for doubtful debts                       17                         -
Interest paid                                       4                         -
Share of results of associated companies          (60)                      (33)
Decrease /(increase) in debtors                   161                       (79)
Decrease/(increase) in creditors                   66                      (410)
Decrease in inventories                            12                         -
Translation                                        (1)                       10

Cash flow from operating activities               161                      (301)


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 2006. The financial information
for the period ended 30 June 2006 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 2005, are those as published in the Company's half year
announcement made on 29 September 2005.

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 2006 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
2005, and to be adopted in respect of the year ending 31 December 2006.

4   Sale of Services

                                              June 2006                June 2005
                                                  #'000                    #'000

Course fees                                         537                      580
Sales of systems and support services               169                      248
Other income                                         67                       42

                                                    773                      870

5  Dividend

During the current financial period, no dividend has been declared or

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: 14,916,042).

7  Investments in Associated Companies

Details of associated companies held by AEC Edu Group Pte Ltd as at 30 June 2006
are as follows:

companies and
Country of             Principal activities                       Equity held by
Incorporation          (Place of business)                        the Subsidiary
                                                              June              June
                                                              2006              2005
                                                                 %                 %

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

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