NORD ANGLIA EDUCATION PLC INTERIM RESULTS ANNOUNCEMENT for the six months ended 29 February 2004
NORD ANGLIA EDUCATION PLC
INTERIM RESULTS ANNOUNCEMENT
for the six months ended 29 February 2004
Nord Anglia Education PLC (""Nord Anglia""), the education and training company (LSE:NAE), is pleased to announce its results for the six months ended 29 February 2004.
Financial Highlights
- Turnover from continuing operations up 10.4% to £45.5m (2003: £41.2m)
- Operating profit from continuing operations £0.97m (2003: £2.1m)
- Fall due to reduced contribution following regulatory changes effecting Moscow School
- Higher than expected liabilities in JV company, EduAction
- EBITDA before exceptionals of £2.6m (2003: £3.7m)
- Basic EPS of 14.38p (2003 : 5.13p)
- Interim dividend of 1.43p net per share (2003 : 1.33p)
Operational Highlights
- Nurseries Division on target
- Improvements through management changes and re-focus
- Petits Enfants integration going well
- Schools Division
- International Schools performance ahead of plan delivering attractive returns of over 40% ROCE
- Structural changes in Moscow school will stabilise future profitability
- UK Schools: disposal negotiations underway
- Outsourcing Division
- New senior management
- Focus on expansion and development of bidding pipeline
- Higher than expected liabilities in the joint venture company, EduAction, resulting in a loss in the period of £536,000
- Issues addressed through new management support resource
Today's Announcements
- Proposed £60m acquisition of Leapfrog Day Nurseries plc (""Leapfrog"")
- A leading UK chain of 39 nurseries
- Post acquisition Nord Anglia will operate 73 nurseries in the UK
- Firm Placing and Open Offer
- Expectation to raise approximately £20.4m net
- Nord Anglia is in advanced stages of exclusive negotiations to acquire a further portfolio of nurseries
Nord Anglia has today made a separate announcement regarding the proposed acquisition of Leapfrog and a Firm Placing and Open Offer and shareholders are referred to that announcement for further details. As the issue of new shares to satisfy part of the consideration for the proposed acquisition of Leapfrog requires shareholder approval, a circular will be sent to shareholders in due course together with a notice convening an Extraordinary General Meeting.
On Outlook, Kevin McNeany, Chairman said: ""Nord Anglia is entering a new era. We have a clear development strategy for high returns in both our International Schools and Outsourcing Divisions and importantly a management team that can rise to future challenges. With the proposed acquisition of Leapfrog, Nord Anglia will become the significant consolidator in the nursery sector and the Division will become the anchor of sustainable Group earnings.""
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