INTERIM RESULTS ANNOUNCEMENT38499| FOR IMMEDIATE RELEASE | 27 MAY 2005 |
NORD ANGLIA EDUCATION PLC
INTERIM RESULTS ANNOUNCEMENT
for the six months ended 28 February 2005
Nord Anglia Education PLC ("Nord Anglia"), the education, training and childcare company (LSE: NAE), announces its results for the six months ended 28 February 2005.
Financial Headlines
- Successful conclusion of negotiations to revise Group banking facilities
- Group turnover up 21.9% to £55.5m (2004: £45.5m) (*)
- Operating profit increased to £2.12m (2004:£0.97m)(*) (**)
- Interest charges increased to £1.84m (2004:0.31m) - reflecting increased borrowings to finance acquisitions
- Profits before taxation £1.13m (2004:£4.14m) - due to exceptional profits on disposal of discontinued operations
- Diluted EPS 2.75 pence (2004:£3.29p) -adjusted for goodwill amortisation and exceptionals
*increase attributable to Leapfrog and Jigsaw nurseries contribution
** increase reflects stabilisation of joint venture with AmeyPLC, EduAction Ltd
Key Headlines
- Nurseries
- UK's market-leading provider of nursery care following acquisitions of Leapfrog and Jigsaw in June/July 2004
- Decline in occupancy levels stabilised following successful sales and marketing campaign launched in February
- Corporate sales team established to take advantage of new childcare tax incentives
- Constructive discussions ongoing with Government on structural implications of ten year childcare strategy
- International Schools
- Strong performance during period & further uplift in pupil registrations for spring term
- Moscow operations being restructured
- Asia and Middle East two key growth areas
- Shanghai (Puxi) : new 700 place school - registrations encouraging
- Shanghia (Pudong) : further enhancement to facilities
- First 'Start British School' to open in United Arab Emirates in September - 520 place school.
- Divisional management team strengthened
- Outsourcing
- Performance in line with expectations
- Connexions : contract margin erosion and some renationalisation
- 8th April : Ofsted inspection contract won - worth £26m over 4 years
- EduAction returned to profitability
- Board Changes
- January 2005 : Alan Kelsey appointed as Non-Executive Chairman, replacing Kevin McNeany who stepped down
- 27 April : Stephen Hyde appointed Interim Group Finance Director following Lorene Simpson's departure
- Board to recruit permanent FD - process to commence shortly
ON OUTLOOK ALAN KELSEY, CHAIRMAN SAID: ""The period in review has been difficult for the Company. A changing marketplace and the shortfall in occupancy rates have adversely affected the performance of our Nurseries Division. Whilst we are encouraged by the recent uplift in occupancy achieved through the sales and marketing campaign, management's overall focus is on yield, cost control and profitability. However, the underperformance of the Nurseries Division against our original expectations will"
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