RNS Number:4117Q
Stagecoach Theatre Arts PLC
31 January 2007
Stagecoach Theatre Arts plc - Interim Results 2006
Stagecoach Theatre Arts plc ("Stagecoach" or "the Group")
Announcement of Interim Results for the six months ended 30 November 2006
Stagecoach Theatre Arts plc operates the UK's largest franchise network of
part-time performing arts schools for young people aged between 4 and 16.
Stagecoach continues to expand its core UK business, whilst seeking to develop
growth areas in new markets. We now have 633 Stagecoach schools, 668 Early
Stages classes, 35 SportsCoach schools and 63 Mini Stages sessions, with a total
of over 37,000 students worldwide (2005: 34,800 students).
Franchise network turnover is up 8.5% to #11.5 million (2004: #10.6 million) for
the period.
Loss before tax of #80,000 (2005: loss #399,000) is less than expected due to
more new school openings and reductions in UK overheads and divisional costs.
The core UK Stagecoach business, which accounts for 92 per cent. of network
turnover, reported divisional profit, before allocation of general overheads, of
#1,022,000 for the six-month period (2005: #782,000) and an estimated profit
before tax of #382,000 (2005: #120,000). As forecast, each of the other
divisions reported a loss for the period.
David Sprigg and Stephanie Manuel, Joint Managing Directors, commented:
"With 30 new Stagecoach schools opening in the UK in the Autumn Term 2006, being
the largest number of new openings in a term for two years, we see that the
demand for performing arts tuition in the UK continues to grow. We have
implemented a cost reduction programme across each of the divisions, and intend
to see each division come to profitability as soon as possible, or else to
restructure them further."
Enquiries:
Stagecoach Theatre Arts: Tel: 01932 254 333
Richard Dawson, Finance Director and Investor Relations
Smith & Williamson: Tel: 020 7131 4000
John Cowie
Siobhan Sergeant
Public Relations, JBPR: Tel: 01629 825 777
John Burley
Chairman's Statement
Results and Overview
The Group's results for the six months ended 30 November 2006 reflect further
expansion in the core Stagecoach Theatre Arts business and a reduction in our
cost base.
There are now over 37,000 students attending Stagecoach, SportsCoach and Mini
Stages schools throughout the Group (2005: 34,800 students).
The network turnover, which reports the underlying school fees throughout the
franchise network, was #11.5 million for the period, an increase of 8.5% (2005:
#10.6 million).
Group loss before tax was #80,000 (2005: loss before tax #399,000). As with
prior years, we expect to make a loss in the first half of the year. There are
more income generating school weeks in the second half of the year than the
first half, whilst the costs are evenly spread throughout the year. Thus, we
expect profits of the core business to be higher in the second half of the year
than the first half.
Due to the combined effect of the increase in income from new school openings,
the reduction in overseas subsidiaries' costs and the reduction in UK overheads,
the half-year loss is significantly reduced compared to the prior year. Your
Board is committed to a programme of further reductions in administration costs
and overheads going forward.
Loss per share was 1.1 pence (2005: loss per share: 4.4 pence).
Operational Performance
Stagecoach schools UK
The numbers of Stagecoach Theatre Arts schools in the UK, and students attending
them, have increased over the period to 603 schools and 25,338 students (2005:
560 schools and 23,979 students). In the Autumn Term 2006, we opened 30 new
Stagecoach schools, the largest number of new openings in a term for two years.
In addition, the number of Early Stages classes has increased to 640 with 8,444
students attending (2005: 589 Early Stages classes and 7,736 students).
Across the UK network of Stagecoach Theatre Arts schools, including the new
schools opened this Autumn Term, 93% of all available places are taken.
The demand for performing arts tuition for children in the UK continues to
increase and given that Stagecoach Theatre Arts provides the highest standards
of education and service, and with schools geographically spread across the UK,
we are well positioned to continue to meet this increasing demand.
The core UK Stagecoach business, which accounts for 92 per cent. of network
turnover, reported divisional profit, before allocation of general overheads, of
#1,022,000 for the six-month period, (2005: #782,000) and an estimated profit
before tax of #382,000 (2005: #120,000).
As forecast, each of the other divisions reported a loss for the period.
SportsCoach schools
The SportsCoach franchise network has 27 franchisees, 35 SportsCoach schools, 10
Early Sporties Classes and 1,360 students (2005: 23 franchisees, 35 schools, 5
Early Sporties and 1,348 students). The SportsCoach division is developing new
marketing and advertising strategies to recruit students.
Mini Stages
Mini Stages, music for six-months to five-year-olds, complements the existing
range of educational services offered. We have 16 Mini Stages franchisees, 63
sessions and 523 students (2005: 10 Mini Stages franchisees, 43 sessions and 461
students). During the period, the Mini Stages business model has been revised to
help expand the Mini Stages network.
Overseas schools
During the last financial year we implemented major restructuring of the
Stagecoach USA subsidiary business operations. The cost reduction benefit of
this restructuring has been evident in this half-year, with the US subsidiary
trading near to break-even for the period.
Stagecoach Germany has expanded its network with seven new school openings and
four new Early Stages compared to the prior year. Subsequent to the half-year
end, the Stagecoach Group has agreed to acquire the outstanding 10% of
Stagecoach Germany that it does not own.
Between these two overseas markets, there are 16 franchisees, 30 Stagecoach
schools, 28 Early Stages classes, 2 Further Stages classes and a total of 1,320
students (2005: 1,051 students).
Stagecoach Agency
The Stagecoach Agency is the largest performing arts agency for children in the
UK, securing hundreds of professional auditions or actual work placements each
month for our Stagecoach students.
Creative and Educational
The annual Easy Stages showcase production this year was 'Annie', featuring 70
Stagecoach students from schools across the country and overseas. The Group
staged a number of other successful events during the period, including the
first Stagecoach choir festival at Symphony Hall Birmingham, featuring over 400
students from all the UK regional choirs and Germany. We also staged an event in
December at Her Majesty's Theatre, London, where 16 Stagecoach schools from
around the UK took part in an evening of song and dance.
The Stagecoach Foundation Course is run in collaboration with Trinity/Guildhall,
with significant workshop input from The Royal Academy of Dramatic Art
('R.A.D.A'). The course, designed with the particular needs of Stagecoach and
part-time theatre arts schools in mind, is becoming recognized nationally. It
now has accreditation from Trinity/Guildhall as part of their A.T.C.L in Musical
Theatre (Associate of Trinity College London). It is about to receive
significant accreditation from Liverpool University, to count as part of
L.I.P.A's degree course (Liverpool Institute for Performing Arts).
Dividend
No interim dividend has been proposed (2005: #nil).
Outlook
The core UK Stagecoach business continues to expand as demand for tuition in the
performing arts increases.
Whilst the Group is experiencing difficulties with expanding the other
divisions, we have implemented measures to further reduce the Group cost base
across all divisions. Your Board's primary objective continues to be to bring
each of these divisions to profitability as soon as possible, or else to
restructure them further.
Graham Cole
Chairman
30 January 2007
Consolidated Profit and Loss Account
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 Nov 2006 30 Nov 2005 31 May 2006
#'000 #'000 #'000
Turnover
Continuing activities 3,074 2,691 5,673
========== ========== ==========
Operating (loss)/profit (71) (393) 2
Exceptional costs - - (184)
Net interest payable (9) (6) (13)
---------- ---------- ----------
Loss on ordinary activities
before taxation (80) (399) (195)
Taxation on profit on ordinary
activities (30) (38) (22)
---------- ---------- ----------
Loss on ordinary activities
after taxation (110) (437) (217)
Minority interest 4 6 3
---------- ---------- ----------
Retained loss for the period (106) (431) (214)
========== ========== ==========
Loss per share, pence
- Basic (1.1) (4.4) (2.2)
- Diluted (1.1) (4.4) (2.2)
Consolidated Balance Sheet
Unaudited Unaudited Audited
30 Nov 2006 30 Nov 2005 31 May 2006
#'000 #'000 #'000
Fixed assets
Intangible assets 705 855 735
Tangible assets 692 106 673
---------- ---------- ----------
1,397 961 1,408
---------- ---------- ----------
Current assets
Stock 313 323 279
Debtors 1,288 1,892 2,128
Cash at bank and in hand 551 177 304
---------- ---------- ----------
2,152 2,392 2,711
---------- ---------- ----------
Creditors
Amounts falling due within one year (1,206) (1,203) (1,762)
---------- ---------- ----------
Net current assets 946 1,189 949
---------- ---------- ----------
Total assets less current
liabilities 2,343 2,150 2,357
Creditors
Amounts falling due after one year (152) (69) (57)
---------- ---------- ----------
Net assets 2,191 2,081 2,300
========== ========== ==========
Capital and reserves
Share capital 494 494 494
Share premium 1,601 1,601 1,601
Profit and loss account 115 4 220
---------- ---------- ----------
2,210 2,099 2,315
Minority interest (19) (18) (15)
---------- ---------- ----------
Equity shareholders' funds 2,191 2,081 2,300
========== ========== ==========
Consolidated Cash Flow Statement
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 Nov 2006 30 Nov 2005 31 May 2006
#'000 #'000 #'000
Net cash inflow/(outflow) from
operating activities 587 (305) (14)
Net returns on investments and
servicing of finance (8) (6) (13)
Taxation - (1) (59)
Capital expenditure (197) (107) (454)
---------- ---------- ----------
Net cash inflow/(outflow)/
inflow before financing 382 (419) (540)
Financing 125 92 81
---------- ---------- ----------
Increase/(decrease) in cash at
bank and in hand 507 (327) (459)
========== ========== ==========
Notes to the Interim Report
Basis of preparation
These interim financial statements have been prepared on the basis of the
accounting policies set out in the statutory accounts for the year ended 31 May
2006.
The figures for the year ended 31 May 2006 have been extracted from the
statutory accounts for the year. These accounts received an unqualified audit
report and have been filed with the Registrar of Companies.
The goodwill arising on consolidation in respect of acquisitions has been
capitalised and is amortised over its estimated useful life. The Directors
regard 20 years as a reasonable period for the estimated life of goodwill.
The six months figures to 30 November 2006 have not been audited by the Group's
auditors and do not constitute statutory accounts within the meaning of Section
240 of the Companies Act 1985.
Loss per share
Loss per share has been calculated on losses for the period divided by the
weighted average number of ordinary shares in issue of 9,879,317 (2005:
9,879,317). The average market value of the company's shares during the period
was less than the exercise price for the company's options, consequently these
options are deemed to be non-dilutive.
Taxation
The expected rate of corporation tax for the year ending 31 May 2007 is 30%. Tax
has been provided for to take account of the Group's expected corporation tax
liability for the year.
Dividends
No interim dividend has been proposed (2005: #nil).
Responsibility
The Directors of the company accept responsibility for the information contained
in this document and to the best of their knowledge and belief (having taken all
reasonable care to ensure that such is the case) the information contained in
this document is in accordance with the facts and does not omit anything likely
to affect the import of such information.
Availability of Interim Report
Copies of these results together with the Chairman's statement are available
from the Company's registered office at The Courthouse, Elm Grove,
Walton-on-Thames, Surrey KT12 1LZ, and are posted on the Company's website,
www.stagecoach.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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