AGM StatementNord Anglia Education ('Nord Anglia') is a leading provider of education,training and childcare with three distinct operating divisions - Nurseries, International Schools and Learning Services At today's Annual General Meeting of Nord Anglia, Alan Kelsey (Chairman) will make the following statement: 'Since announcing our 2004/05 results on 21 November 2005, we have completed the restructuring of our nurseries division management team, moved our head office to a new leased office building in Burton, integrated our finance function and set up new IT and HR functions. 'The newly recruited nursery management team is focussing on lifting occupancy levels and operational standards, which will increasingly improve our results although these actions will take a little time to impact fully. While there is little sign, as yet, of a significant improvement in the market background we are confident we will generate a proper return from this division in the longer term. 'Our Learning Services (formerly Outsourcing) Division has continued its strong performance from last year. The Ofsted Schools Inspections business is performing well and we have already won a number of related contracts. Our innovative Virtual-Workspace offering has proved very successful and we have been short-listed on five Building Schools for the Future bids. The Division is very well placed for a successful year. 'The International Schools Division has had a strong start to the year, with pupil registrations ahead of target across the business, with excellent performances in Warsaw and Shanghai in particular. We have completed the sale of the Ukraine schools and are working to achieve a satisfactory resolution with our partner in Moscow. We expect this strong performance to continue and the division to show good overall progress this year while the prospects, further ahead, look very encouraging. 'We have completed the sale of one non-core underperforming nursery, and have exchanged on a further two, to raise £0.5m in total. We have also raised £1.7m through the sale of other surplus properties, and are progressing the sale of our Cheadle and Burton office buildings. 'Our bridging loan, which is due for repayment by 31 May 2006, has a balance of £2.3m outstanding and we will settle this balance out of disposals in progress and operating cashflows. 'There are a number of alternatives to reduce indebtedness currently open to us and no firm decision has yet been made as to the preferred way forward while the relative benefits are being assessed, always bearing in mind the need to maximise shareholder value. The Board will update shareholders on this in due course. 'Assuming no change in the underlying nursery market, progress to date suggests that the Group's earnings for 2005/2006 will be in line with market expectations.' 27 January 2006 |
Nord Anglia Education
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