Last checked at 9 Sep 2008 17:52
AEC Education PLC
Unaudited Results for the six months ended 30 June 2008
AEC Education PLC ("AEC" or the "Company"), the provider of educational courses up to postgraduate degree level in Singapore, Malaysia, China and Vietnam, is pleased to announce it's unaudited interim results for the six months ended 30 June 2008.
Highlights
Revenues up by 156% to £2.652m compared to £1.036m in the first half of 2007
Profits after tax up by 95% to £223K compared to £114K in the first half of 2007
Acquisition of Educational Resources Pte. Ltd. announced earlier in the year and the successful implementation of new programs have been the main contributors to this growth
Operating Review
The gratifying financial performance in the first half of 2008 was mainly due to:
the success of the new programs introduced in 2007 and 2008 which included Business Management, Hospitality Management, Logistics and Interactive Media at various levels.
the acquisition of the balance of 65% of the equity in Educational Resources Pte. Ltd. as announced in January 2008.
Company Strategy
The business strategy of the Company continues to be:
to improve and widen the scope of our successful existing programs and to continue to introduce new programs to meet changing demands in our markets.
to expand the twinning programs between Singapore and countries such as Vietnam, China, Myanmar etc., to enable the Company to expand its provision of good quality, value for money programs for overseas students.
to expand our links with established universities to provide pathways to degree and postgraduate qualifications.
to promote and expand LCCI (London Chamber of Commerce and Industry) International qualifications as a route to finding employment and progressing to higher education programs within the Group.
to continue with our strategy of building partnerships and acquiring synergistic educational organisations whose acquisition will provide increased platforms for growth.
These strategies have been effective in enabling the Company to expand its footprint to date.
Several new initiatives were also undertaken during the period. These included delivering diploma and degree programs offered by British Universities in Mandarin. This initiative will open up opportunities for students to work either in China or host countries dealing with China. The Company is also establishing links with several other well known universities in the UK to enable diploma holders from polytechnics in Singapore to further their studies to degree and postgraduate levels.
Outlook
The general economic climate worldwide is uncertain and we believe, unlikely to improve in the immediate future. It is difficult to say how these conditions will affect the international education market. However, your Board is optimistic that the Company's sound structures and plans should place it in a position to maintain this performance through the rest of the financial year.
Liam Swords
Chairman
UNAUDITED CONSOLIDATED PROFIT AND LOSS STATEMENT
| | | Group | Group |
| | | Six months To | Six months To |
| | | 30 June | 30 June |
| | Note | 2008 | 2007 |
| | | £’000 | £’000 |
| | | Unaudited | Unaudited |
| | | | |
| Turnover | | | |
| Sales of services and other revenue | (4) | 2,652 | 1,036 |
| | | | |
| Cost of Sales | | (2,363) | (955) |
| | | | |
| Operating Profit | | 289 | 81 |
| | | | |
| Profit from operations | | 289 | 81 |
| | | | |
| | | | |
| Share of results of associated companies | | 19 | 66 |
| | | | |
| Profit on ordinary activities before taxation | | 308 | 147 |
| | | | |
| Tax on profit on ordinary activities | | (91) | (33) |
| | | | |
| Profit on ordinary activities after taxation | | 217 | 114 |
| | | | |
| Minority interests | | 6 | - |
| | | | |
| Profit for the period | | 223 | 114 |
| | | | |
| (Accumulated Loss) brought forward | | (43) | (242) |
| Profit for the period | | 223 | 114 |
| Dividends | (6) | - | - |
| | | | |
| Retained Profits (Accumulated loss) carried forward | | 180 | (128) |
| | | | |
| Earnings per share | | Pence | Pence |
| | | | |
| Basic | (6) | 1.2 | 0.8 |
UNAUDITED CONSOLIDATED BALANCE SHEET
| | Note | As at 30 June 2008 | As at 30 June 2007 |
| | | £’000 | £’000 |
| | | Unaudited | Unaudited |
| Fixed assets | | | |
| Intangible Assets | | 2,268 | 160 |
| Tangible Assets | | 275 | 135 |
| Investments in associated companies | (7) | 65 | 1, 352 |
| | | 2,608 | 1,647 |
| | | | |
| Current Assets | | | |
| Debtors | | 1,468 | 921 |
| Cash at bank and in hand | | 982 | 164 |
| | | 2,450 | 1,085 |
| Creditors | | | |
| Amounts falling due within one year | | (2,238) | (940) |
| | | | |
| Net Current Assets | | 212 | 145 |
| | | | |
| Total Assets | | 2,820 | 1,792 |
| Non-Current liabilities | | | |
| Term loan | | (98) | - |
| Deferred taxation | | (4) | - |
| | | 2,718 | 1,792 |
| | | | |
| Equity attributable to equity holders of the Company | | | |
| Share capital | | 1,801 | 1,491 |
| Share Premium | | 286 | 243 |
| Reserves | | 584 | 58 |
| | | 2,671 | 1,792 |
| Minority interest in equity | | 47 | |
| | | 2,718 | 1,792 |
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
| | Six months | Six months |
| | 30 June 2008 | 30 June 2007 |
| | Unaudited | Unaudited |
| | | |
| | £'000 | £’000 |
| | | |
| Cash flow from operating activities | 1,023 | 72 |
| | | |
| Returns on investment and servicing of finance | | |
| Interest paid | (8) | (3) |
| | | |
| Taxation | | |
| Taxes paid | (64) | (23) |
| | | |
| Capital expenditure and financial investment | | |
| Purchase of tangible fixed assets | (65) | (31) |
| Development expenditure | (1) | - |
| Acquisition of investment in associated companies | (15) | - |
| Acquisition of subsidiary | (192) | - |
| | | |
| | (273) | (31) |
| | | |
| Cash flows from financing activities | | |
| Increase/ (decrease) in finance lease liabilities | (3) | 20 |
| Repayment of term loan | (175) | - |
| Minority interests | | - |
| | (178) | 20 |
| | | |
| Net increase in cash and cash equivalents | 500 | 35 |
| | | |
| Cash and cash equivalents at beginning of period | 310 | 76 |
| | | |
| Cash and cash equivalents at end of period | 810 | 111 |
| | | |
| | | |
| Cash and cash equivalents consist of the following: | | |
| | | |
| Cash and bank balances | 982 | 164 |
| Bank overdraft | (172) | (53) |
| | 810 | 111 |
| | | |
| | | |
| Reconciliation of profit before tax to cash flow | | |
| | Six months | Six months |
| | 30 June 2008 | 30 June 2007 |
| | Unaudited | Unaudited |
| | £'000 | £’000 |
| From operating activities | | |
| Profit before tax | 308 | 147 |
| | | |
| Adjustments for: | | |
| Depreciation & amortisation | 50 | 28 |
| Interest paid | 8 | 3 |
| Share of results of associated companies | (19) | (67) |
| (Increase)/ decrease in debtors | (513) | (168) |
| Decrease in creditors | 880 | 157 |
| (Increase)/ decrease in inventories | (19) | 6 |
| Decrease/ (increase) in related parties | 317 | (36) |
| Translation | 11 | 2 |
| Cash flow from operating activities | 1,023 | 72 |
| | | |
| June 2008 | June 2007 | |
| £'000 | £'000 | |
| Course fees and registration fees | 1,521 | 809 |
| Examination fees | 758 | - |
| Sales of systems and support services | 238 | 165 |
| Other income | 135 | 62 |
| 2,652 | 1,036 |
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 18,008,738 (2007: 14,916,042).
7 Investments in Associated Companies
Details of associated companies held by AEC Edu Group Pte Ltd as at 30 June 2008 are as follows:
| Associated |
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| companies and |
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| country of | Principal activities | Equity held by | ||
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| incorporation | (Place of business) | the Group | ||
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| 2008 |
| 2007 |
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| % |
| % |
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| Held by AEC.Edu Group Pte Ltd |
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| |
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| Keris Murni Sdn Bhd | Provides education services and the operation | 30 |
| 30 |
|
| (Malaysia) | of education tuition centers |
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| (Malaysia) |
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| Pusat Tuisyen Kasturi Sdn | Provides education services and the operation | 30 |
| 30 |
|
| Bhd | of education tuition centre |
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| (Malaysia) | (Malaysia) |
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| Kasturi Management | Provides education services and the operation | 30 |
| - |
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| Consultancy Sdn Bhd | of education tuition centre |
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| (Malaysia) | (Malaysia) |
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| IMS Professional | Provides education services and the operation | 30 |
| - |
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| Training Services Sdn | of education tuition centre |
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| Bhd | (Malaysia) |
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| (Malaysia) |
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Notes to Editors
AEC Education PLC is the UK holding company for a number of companies in Singapore, Malaysia, China 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. AEC offers class-based instruction at its various educational campuses in Singapore, Malaysia, China and Vietnam and distance learning, up to postgraduate levels. It also provides degree qualifications on behalf of several leading international universities, targeting the large numbers of overseas students in the 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 Company is recognised as a prestigious and forward thinking provider in the educational field and this is evidenced by the four sought after Singapore Quality Class Awards it has received from the Singapore Government.
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 of education.