Trading Update and Acquisition

RNS Number : 9168Z

AEC Education plc

23 March 2012

 



AIM: AEC

AEC Education PLC

("AEC" or "the Group")

Trading Update and Acquisition

AEC, the educational programmes and examinations provider, is pleased to provide the following trading update for the financial year to 31 December 2011.

After a very strong finish to the year by our educational operations in Singapore and taking into account one-off costs, the Board now anticipates that profit before tax for the year ended 31 December 2011 will be ahead of current market expectations on revenues of £19m.  AEC's net cash position at 31 December 2011 stood at £3.7m.

One-off costs for the year are now expected to total c.£0.53m. This comprises both the investment of £0.35m in expanding AEC's English language teaching brand, Malvern House, outside the UK and non-recurring costs of £0.18m relating to withdrawal from non-core areas. AEC's initiatives to establish Malvern House English language colleges in Ireland, Cyprus and Oman are proceeding well.

AEC is also pleased to announce that it has entered the UK government funded sector with the acquisition of training provider, Skye Training Ltd ("Skye"). The initial consideration for the acquisition is £0.1m in cash, with 75% of the issued share capital of Skye acquired at completion. The remaining 25% of the issued share capital of Skye will be transferred to AEC in four equal installments on the payment of further consideration in each of the next four years. The further consideration is calculated on the basis of a percentage of the full year post-tax profits of Skye. Established in April 2010, Skye Training generated revenues of £0.9m and a pre-tax loss of £80,000 for the year to 31 December 2011. Its order books for 2012 show significant growth potential. 

The Board looks forward to providing a further update on trading with results, which are expected to be announced in early May.

Enquiries:

AEC Education PLC		Tel: [phone]
Liam Swords
WH Ireland Limited (NOMAD)		Tel: [phone]
Dan Bate
Biddicks		Tel: [phone]
Katie Tzouliadis/ Sophie McNulty

 

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