STA.L Regulatory News (STA)

27 Jan 2005 12:24

Stagecoach Theatre Arts PLC 27 January 2005 Stagecoach Theatre Arts plc - Interim Results 2004 Stagecoach Theatre Arts plc ("Stagecoach") Announcement of Interim Results for the six months ended 30th November 2004 Stagecoach operates the UK's largest franchise network of part-time performingarts schools for young people aged between 4 and 16. Stagecoach continues toexpand its core business, whilst developing other potential growth areas. Thereare now 517 Stagecoach schools, 538 Early Stages classes and 32 SportsCoachschools in the UK, with a total of 31,100 students attending these schools(2003: 28,300 students). A summary of the Group's results and achievements during the six-month period isas follows: Franchise network turnover up 8% to £9.3 million (2003: £8.6 million) Loss of £0.19m (2003: profit £0.15 million), primarily reflecting thesignificant investment in SportsCoach and Mini Stages in the UK and new schoolsin USA and Germany First franchised schools in Germany First Mini Stages franchises A number of high profile successful events and productions during the period Stephanie Manuel and David Sprigg, Joint Managing Directors, commented: "This has been a period of further investment in and development of SportsCoach,Stagecoach USA, Stagecoach Germany and Mini Stages. We continue to implement ourstrategy for growth, whilst maintaining the very high standards of educationacross the entire network." Enquiries: Stagecoach Theatre Arts: Tel: 01932 254 333Richard Dawson, Finance Director and Investor Relations Evolution Beeson Gregory: Tel: 020 7071 4300Tom PriceHenry Turcan Public Relations, JBPR: Tel: 01629 825 777John Burley Chairman's Statement Results and Overview The Group's results for the six months ended 30th November 2004 reflect furtherexpansion in Stagecoach's core business and the continuation of development andinvestment in other potential growth areas. There are now 31,100 studentsattending Stagecoach and SportsCoach schools in the UK (2003: 28,300 students). The network turnover, which reports the underlying school fees throughout thefranchise network, was approximately £9.3 million for the period (2003: £8.6million). Group loss before tax was £189,000 (2003 profit before tax: £154,000). The lossfor this period reflects the further investment in and development ofSportsCoach, Stagecoach USA, Stagecoach Germany, and Mini Stages, and the launchof the new nationwide Stagecoach Agency during this period. Your Board expects a return to profitability in the second half of the year.There are more income generating school weeks in the second half of the yearthan the first half, whilst the costs are evenly spread throughout the year. Inaddition, we anticipate that a greater proportion of initial franchise fees willbe recognised in the second half of this financial year. Loss per share was 2.5 pence (2003 earnings per share: 1.1 pence). Operational Performance Stagecoach schools The numbers of Stagecoach Theatre Arts schools and students attending them haveincreased over the period to 517 schools and 22,500 students (2003: 477 schoolsand 21,200 students). In addition, the number of Early Stages classes hasincreased to 538 with 7,300 students attending (2003: 465 Early Stages classesand 6,500 students). Across the entire network of Stagecoach Theatre Artsschools, including the new schools and Early Stages classes opened this AutumnTerm, 96% of all available places are taken. This growth has been achievedwhilst maintaining the high standards of education throughout the network. SportsCoach schools The SportsCoach franchise network continues to expand, having first franchisedin April 2003. There are now 32 SportsCoach schools and 1,126 students (2003: 18schools and 652 students). Mini Stages Mini Stages, for six months to five-year-olds, was launched in September 2003 asa new concept to complement the existing range of educational services offered.We commenced franchising Mini Stages in the Autumn Term 2004. There are now sixMini Stages schools, of which two are franchised, divided into 23 sessions and atotal of 261 students. Overseas schools We continue to invest in and develop both our USA and German subsidiarycompanies. Stagecoach Germany's first two franchisees opened their schools lastAutumn Term, and in the USA three franchised schools opened in New York. Betweenthese two markets, there are 16 Stagecoach schools, 13 Early Stages classes anda total of 648 students. Creative and Educational The Group staged a number of very successful events during the period. Theannual Easy Stages showcase production this year was "Pirates of Penzance", andfeatured 70 Stagecoach students from schools across the country and overseas. InSeptember, over 100 Stagecoach students performed at the Cresset Theatre inPeterborough in a charity concert in aid of the NSPCC. In November, 50Stagecoach students took part in the Lord Mayor's Show and 300 Stagecoachstudents performed a selection of dance and singing routines at Her Majesty'sTheatre, London, celebrating sixteen years of Stagecoach Theatre Arts success. Dividend Stagecoach Theatre Arts plc paid a final dividend for the year ended 31st May2004 of 2 pence per share on 27th November 2004. In accordance with the existingdividend policy, no interim dividend has been proposed. Outlook The Group continues to expand its core Stagecoach business whilst investing forlong-term future growth via the new markets and broader educational offering.The prospects for the future look encouraging. Graham ColeChairman27th January 2005 INDEPENDENT REVIEW REPORT TO STAGECOACH THEATRE ARTS PLC Introduction We have been instructed by the company to review the financial information forthe six months ended 30th November 2004 which comprises the consolidated profitand loss account, consolidated balance sheet, consolidated cashflow statementand the related notes that have been reviewed. We have read the otherinformation contained in the interim report and considered whether it containsany apparent misstatements or material inconsistencies with the financialinformation. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by, the directors. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom. A reviewconsists principally of making enquiries of group management and applyinganalytical procedures to the financial information and underlying financial dataand based thereon, assessing whether the accounting policies and presentationhave been consistently applied unless otherwise disclosed. A review excludesaudit procedures such as tests of controls and verification of assets,liabilities and transactions. It is substantially less in scope than an auditperformed in accordance with United Kingdom Auditing Standards and thereforeprovides a lower level of assurance than an audit. Accordingly we do not expressan audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30th November 2004. PKFGuildford27th January 2005 Stagecoach Theatre Arts plcConsolidated Profit and Loss Account Unaudited Unaudited Audited Six months ended Six months ended Year ended 30 Nov 2004 30 Nov 2003 31 May 2004 £000 £000 £000 Turnover Continuing activities 2,520 2,385 5,124 Acquired activities 3 67 157 2,523 2,452 5,281 Operating (loss) / profit Continuing activities (199) 136 384 Acquired activities 8 5 (68) (191) 141 316 Net interest receivable 2 13 13 (Loss) / profit on ordinary activities before taxation (189) 154 329 Tax on profit on ordinary activities (57) (52) (142) (Loss) / profit on ordinary activities after taxation (246) 102 187 Minority interests 1 (1) 6 Dividends - - (195) Retained (loss) / profit for the period (245) 101 (2) (Loss)/Earnings per share, pence (2.5) 1.1 1.9 - Basic - Diluted (2.5) 1.0 1.9 Stagecoach Theatre Arts plcConsolidated Balance Sheet Unaudited Unaudited Audited 30 Nov 2004 30 Nov 2003 31 May 2004 £000 £000 £000 Fixed assets Intangible assets 827 847 835 Tangible assets 135 133 142 962 980 977 Current assets Stock 301 263 278 Debtors 1,781 1,378 2,004 Cash 274 1,169 416 2,356 2,810 2,698 Creditors Amounts falling due within one year (1,093) (1,154) (1,199) Net current assets 1,263 1,656 1,499 Total assets less current liabilities 2,225 2,636 2,476 Creditors Amounts falling due after one year - (39) - Net assets 2,225 2,597 2,476 Capital and reserves Share capital 486 486 486 Share premium 1,545 1,544 1,545 Profit and loss account 200 562 450 Equity shareholders' funds 2,231 2,597 2,481 Minority interests (6) - (5) Total capital employed 2,225 2,597 2,476 Stagecoach Theatre Arts plcConsolidated Cash Flow Statement Unaudited Unaudited Audited Six months ended Six months ended Year ended 30 Nov 2004 30 Nov 2003 31 May 2004 £000 £000 £000 Net cash inflow from operating activities 83 392 5 Returns on investments and servicing of finance 2 14 13 Taxation (1) - (277) Capital expenditure (11) (62) (98) Acquisitions and disposals (17) (25) (72) Equity dividends paid (195) (194) (194) Net cash (outflow) / inflow before financing (139) 125 (623) Financing (3) 15 10 (Decrease) / increase in cash (142) 140 (613) Stagecoach Theatre Arts plc Notes Basis of preparation The interim financial statements have been prepared on the basis of theaccounting policies set out in the statutory accounts for the year ended 31stMay 2004. The figures for the year ended 31st May 2004 have been extracted from thestatutory accounts for the year. These accounts received an unqualified auditreport and have been filed with the Registrar of Companies. On 5th August 2004, a 75% subsidiary, Stagecoach Agency (UK) Limited, wasincorporated and acquired the business operations of the former regionalagencies. The results of this subsidiary are consolidated from the date ofacquisition. The goodwill arising on consolidation in respect of acquisitions has beencapitalised and is amortised over its estimated useful life. The directorsregard 20 years as a reasonable period for the estimated life of goodwill. The half-year figures to 30th November 2004 have not been audited by the Group'sauditors and do not constitute statutory accounts within the meaning of section240 of the Companies Act 1985. Loss per share Loss per share has been calculated on losses for the period divided by theweighted average number of Ordinary shares in issue of 9,712,172 (2003:9,696,419). Fully diluted loss per share have been calculated based upon theweighted average number of ordinary shares, including options granted toemployees, of 9,804,513 (2003: 9,822,239). The average market value of thecompany's shares during the period was less than the exercise price for some260,621 of the company's options. Consequently these options are deemed to benon-dilutive. Taxation The expected rate of corporation tax for this year ending 31st May 2005 is 30%.Tax has been provided for to take account of the Group's expected corporationtax liability for the year. Dividends No interim dividend has been proposed (2003: £nil). Responsibility The Directors of the company accept responsibility for the information containedin this document and to the best of their knowledge and belief, (having takenall reasonable care to ensure that such is the case), the information containedin this announcement is in accordance with the facts and does not omit anythinglikely to affect the import of such information. Availability of Interim Report Copies of these results together with the Chairman's statement are being sent toshareholders and will also be available from the company's registered office atThe Courthouse, Elm Grove, Walton-on-Thames, Surrey KT12 1LZ. This information is provided by RNS The company news service from the London Stock Exchange