Malvern Intl Regulatory News (MLVN)

15 Sep 2006 13:53

AEC Education plc15 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 ofeducational 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 plcHaider SithawallaDirector of FinanceMalaysia/Singapore OperationsTel: 65 63204878 Notes to Editors AEC Education Plc is the UK holding company for a number of companies inSingapore and Malaysia (founded in 1985) that provide educational services toapproximately 16,000 students in the Asia-Pacific region: source of thefastest-growing market for international students. The Group offers class-basedinstruction at its various educational campuses in the Central Business Districtof Singapore and Malaysia and distance learning up to postgraduate levels. Italso provides degree qualifications on behalf of several leading internationaluniversities, targeting the large volumes of overseas students in line with theSingapore Government's Global Schoolhouse Vision to make Singapore an EducationHub 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 itsstudents. The Group's recognition by the Singapore Government as a prestigiousand forward-moving company is shown by its receipt of four rare SingaporeQuality Class Awards. In August 2005, AEC was again awarded the "Case Trust" Certification for PrivateEducation Organizations, a student protection scheme for foreign students. Thisfurther endorses AEC's position as a recognized quality provider in theeducation industry. Chairman's Statement Financial Review Unaudited results for the six months period up to 30 June 2006 showed a turnoverof £773K - 11% below the same period in 2005. During this period, the Grouprecorded an operating loss of £108K. The loss arose from significant increasesin administrative costs associated with the unsuccessful launch of several newproducts which had to be withdrawn. Appropriate actions have been implemented tobring the Group back to profitability. Organization Mr. David Ho was appointed Chief Executive of the Group in February 2006. A newFinance Director is actively being recruited to replace Mr. Ramasamy who willtake up an non executive role to advise on the Group's educationalrelationships. New Programmes The Group has introduced a number of new programmes which have considerablepotential for scaling up. These include the ACCA programmes, Early ChildhoodEducation and Travel and Tourism. The Group will also be launching anInternational Foundation Programme in the fourth quarter in conjunction with theNorthern 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 reduceoperating costs to bring the Group back to profitability. Apart from the organicgrowth, the Group is also looking to acquire niche education businesses in Asiaand 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 TurnoverSales 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) 193before taxation Tax on profit on ordinary activities - (15) Profit/ (loss) on ordinary activities (108) 178after taxation Minority interests 4 - Profit / (loss) for the period (104) 178 Retained Profits brought forward 30 67Profit/(loss) for the period (104) 178 Dividends (6) - - Retained Profits/(Accumulated loss) (74) 245carried 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 UnauditedFixed assetsIntangible Assets 5 31Tangible Assets 166 72Investments in associated companies (7) 1,437 1,270 1,608 1,373 Current AssetsDebtors 741 1,019Cash at bank and in hand 73 109 814 1,128 CreditorsAmounts falling due within one year (491) (334) Net Current Assets 323 794 Total Assets 1,931 2,167Deferred taxation - (13)Minority interest (3) - 1,928 2,154 Capital and ReservesCalled up share capital 1,491 1,491Share Premium 243 373Reserves 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) - TaxationTaxes paid (11) (11) Capital expenditure and financial investmentPurchase of tangible fixed assets (48) (33)Acquisition of subsidiary (Note A) (17) - (65) (33) Cash flows from financing activitiesRepayment 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 activitiesProfit before tax (104) 193 Adjustments for:Depreciation & amortisation 29 18Inventories 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 constitutestatutory accounts for the period ended 30 June 2006. The financial informationfor the period ended 30 June 2006 is derived from the unaudited consolidatedaccounts of AEC Edu Group Pte Ltd for the period, consolidated with theunaudited accounts of the Company on a merger basis. The comparative figures forthe period ended 30 June 2005, are those as published in the Company's half yearannouncement made on 29 September 2005. This report has been approved by the Board of Directors and is unaudited. Thisreport does not comprise statutory accounts within the meaning of Section 240 ofthe Companies Act 1985. 2. General The principal activities of the Company are that of investmentholding and provision of educational consultancy services. There have been nosignificant changes in the principal activities of the subsidiary companiesduring the period. 3 Accounting Policies The unaudited results for the six months ended 30 June 2006 have been preparedon the basis of International Financial Reporting standards ("IFRS") andaccounting policies consistent with those adopted for the year ended 31 December2005, 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 580Sales of systems and support services 169 248Other income 67 42 773 870 5 Dividend During the current financial period, no dividend has been declared orrecommended. 6 Earnings per share Basic earning per share is calculated by dividing the earnings attributable toordinary shareholders by the weighted average number of ordinary shares in issueduring the relevant period. The weighted average number of shares in issueduring 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 2006are as follows: Associatedcompanies andCountry of Principal activities Equity held byIncorporation (Place of business) the Subsidiary June June 2006 2005 % % Keris Murni Sdn Provides education services 30 30Bhd and the operation of education(Malaysia) tuition centers (Malaysia) Pusat Tuisyen Provides education services 30 30Kasturi Sdn Bhd and the operation of education(Malaysia) tuition centres (Malaysia) Educational Provides consultancy services 34.96 34.96Resources 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