Trading Statement

RNS Number : 7874X

AEC Education plc

13 December 2010

 



AIM: AEC

AEC Education plc

("AEC" and together with its subsidiaries, "the Group")

Trading Update

AEC issues the following update on trading for the financial year ending 31 December 2010.

While AEC's Asian operations continue to perform well, with the core business showing 14% annual growth, underpinned by strong demand in Singapore and Malaysia for AEC's business and professional programmes, the continuing uncertainty surrounding the UK Government's policy on student visas and immigration has adversely impacted the performance of the UK business, Malvern House (which principally offers English Language programmes to foreign students). As a result, the Group is expected to show a loss before tax of £250,000 on revenues of approximately £17.0m. The Group's balance sheet remains strong, with net cash at the year end anticipated to stand at approximately £3.0m. In addition, the Board expects to announce a final dividend in line with market forecasts. 

In order to better position the UK business for profitable growth, management has instigated a reorganisation to realign its cost base and adjust the Malvern House business model.  As part of the reorganisation, the existing strategy to expand the Malvern House brand outside the UK will be progressed at a faster rate. Currently, Malvern House's academic and social offering is being unrolled in AEC's existing centres in Asia and management plans to introduce the Malvern House brand and experience in a number of other countries where the brand recognition is strong.

The Board believes that the actions being taken at Malvern House will enable the UK business to deliver profitable growth going forward. With the ongoing growth of the Asian businesses and demand for the Group's educational programmes overseas remaining buoyant, the Board believes that medium and long-term prospects for the Group remain very positive. 

Enquires:

AEC Education plc		Tel: [phone]
Liam Swords, Chairman
David Ho, Chief Executive
WH Ireland Limited (NOMAD & Broker)		Tel: [phone]
Dan Bates
Biddicks		Tel: [phone]
Katie Tzouliadis
Sophie Lane

 

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