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.
Highlights
* 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.
Organization
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
relationships.
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.
Dividends
No interim dividends are recommended by the Board.
Outlook
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
UNAUDITED CONSOLIDATED PROFIT AND LOSS STATEMENT
Group Group
Six months Six months
To To
30 June 30 June
Note 2006 2005
#'000 #'000
Unaudited Unaudited
Turnover
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
Creditors
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
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
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) -
Taxation
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)
Notes
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
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: 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:
Associated
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR AKPKNBBKDFCD