Trading Update

RNS Number : 8283T

AEC Education plc

13 December 2011

 



AIM: AEC

AEC Education PLC

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

Trading Update

The Board of AEC, the educational programmes and examinations provider, issues the following update on trading for the financial year to 31 December 2011.

Results for the first half of the financial year showed the Group return to profitability.  The Group is also expected to deliver a profit before tax for the second half of the year, helped by a very strong performance in Singapore, however, the level of profit before tax in the second half of the year has been impacted by a weaker than expected performance from Malaysia and the LCCI examinations business. As previously noted, profitability has also been dampened by AEC's significant one-off investment programme to develop its Malvern House brand overseas in the second half of 2011.  As a result, while sales for the year are anticipated to be in line with current market forecasts at approximately £19m, profit before tax of approximately £300,000 will be below market expectations.

AEC's balance sheet at the 2011 year end is expected to show net cash of approximately £3m and the Directors expect to propose a final dividend in line with the Group's policy.

In Malaysia, student numbers continued to be affected by the turmoil of the Arab Spring, particularly from North Africa, while our LCCI examinations business saw reduced demand in Hong Kong as changes to the educational structure in region began to impact further. In response, the Board has implemented cost reductions and, at the same time, it has also taken the decision to reduce the Group's offering in Vietnam since the commercial opportunity was not proving attractive enough. The Company's flagship College in Singapore has performed excellently, supported by its enhanced status as one of only 27 private education institutions to have gained the four-year EduTrust Certificate.  In addition, in the UK, AEC's London-based English language teaching operations have performed in line with budgets. 

The Board is continuing to invest strongly in its university relationships and has also made very good progress with its initiative to develop the English language teaching brand, Malvern House, outside the UK.  The Company has agreed three local partnerships for the establishment of Malvern House colleges in Ireland, Cyprus and Oman.  These partnerships will become operational over the course of the first half of the next financial year.  The total one-off cost relating to these new ventures is expected to be approximately £0.4m which will be written off in the current financial year. 

A further update on trading will be provided in due course.

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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