TIDMSTA
RNS Number : 8633Q
Stagecoach Theatre Arts PLC
11 August 2010
11 August 2010
Stagecoach Theatre Arts plc (AIM: STA)
("Stagecoach" or "the Group")
Preliminary Announcement of Final Results
for the year ended 31 May 2010
"Stagecoach Theatre Arts plc operates the UK's largest franchise network of
part-time performing arts schools for children aged between 4 and 18"
Highlights:
Financial
· Operating profit increased by 3% to GBP720,000 (2009: GBP697,000).
· Profit before tax GBP727,000 (2009: GBP726,000).
· Franchise network fees GBP29.2m (2009: GBP29.4m).
· Healthy cash balance at year end of GBP1.1m (2009: GBP1.0m), and with no
bank debt.
· Earnings per share 5.2p (2009: 5.3p).
· Final dividend proposed of 2p per share (2009: 2p), giving total annual
dividend payments of 2.5p per share (2009: 2.5p).
Operations
· Worldwide student numbers increased by 398 over the year to 39,325
students (2009: 38,927).
· The Group's restructuring and costs saving strategy over the past three
years has put Stagecoach in a solid position to weather the recession.
· Stagecoach's key objective has been to bring each part of its business to
profitability. To that end, the Group has seen the strong expansion of
Stagecoach Germany in the period and the resulting substantial reduction in
subsidiary losses compared to the prior year. Germany saw seven new school
openings during the period and a 45% increase in student numbers to 1,083.
· Stagecoach maintains its status as the trusted brand leader in children's
performing arts and education in the UK. The Group has taken on an experienced
full time marketing and advertising executive and will invest further in the
year ahead in internet and other marketing strategies and brand building
initiatives such as Stagecoach.TV.
· In a new initiative, Stagecoach has been consulting closely with a
validating body for music and the performing arts in preparing a brand new suite
of group musical theatre examinations to be offered nationally and
internationally. These are being piloted by eight Stagecoach schools this
summer.
David Sprigg, Managing Director, commented:
"We are pleased with the overall performance of the Group during what has been
another challenging year in this difficult economic climate. Our Stagecoach
Theatre Arts schools continue to lead the way in children's education through
the performing arts.
There remain significant medium-term growth prospects in the UK and Germany, and
long-term growth potential for North America, for other overseas territories and
for SportsCoach. My thanks to all our employees for their commitment and
contribution throughout the year and I look forward to our successful progress
into the future."
ENDS
Enquiries:
+----------------------------------------+--------------------------------+
| Stagecoach Theatre Arts plc | Tel: 01932 254 333 / |
| Richard Dawson, Finance Director and | 07775 643 939 |
| Head of Investor Relations | rdawson@stagecoach.co.uk |
| | www.stagecoach.co.uk |
| | |
+----------------------------------------+--------------------------------+
| | |
+----------------------------------------+--------------------------------+
| Smith & Williamson Corporate Finance | Tel: 020 7131 4000 |
| Limited Nominated Adviser & Joint | |
| Broker | |
| David Jones / Siobhan Sergeant / | |
| Barrie Newton | |
+----------------------------------------+--------------------------------+
| | |
| Daniel Stewart & Company plc | Tel: 020 7776 6550 |
| Joint Broker | |
| Paul Shackleton / Michael Campbell | |
+----------------------------------------+--------------------------------+
| | |
| Peckwater PR | Tel: 07879 458 364 |
+----------------------------------------+--------------------------------+
| Tarquin Edwards | tarquinedwards@btinternet.com |
+----------------------------------------+--------------------------------+
Chairman's Statement
Overview
I am pleased to report on sustained profitability for the year. Despite the
difficult economic climate, student numbers have increased over the year and
profit before income tax maintained at GBP727,000 (2009: GBP726,000). Earnings
per share were 5.2 pence (2009: 5.3 pence).
Average student numbers attending each school increased compared to the prior
year, resulting in worldwide student numbers increasing by 1% to approximately
39,300 students (2009: 38,900). Network fees, being the total school fees for
the year, were GBP29.2m (2009: GBP29.4m).
I am particularly pleased with the management of our capital resources,
resulting in year-end cash balance of GBP1.1m (2009: GBP1.0m). Following the
collection of the Summer Term 2010 continuing franchise fees in June 2010, the
peak cash balance post year-end was GBP2.4m (2009: GBP2.2m). Furthermore,
during the year the Group paid the final balance owing on a four year
asset-finance loan, resulting in no debt within the Group at year-end.
We propose a final dividend of 2 pence per share (2009: 2 pence), which together
with the interim dividend of 0.5 pence per share which was paid in February
maintains the total annual dividend payment of 2.5 pence per share (2009: 2.5
pence).
Strategy
The Group restructuring and cost savings strategy over the past three years has
put us in a solid position to weather the recession and other difficulties
during the year. The key objective remains to bring each part of our business
to profitability.
We have increased our investment in marketing and advertising to maintain
Stagecoach Theatre Arts as the trusted brand leader in children's performing
arts and education in the UK. We have taken on an experienced full time
marketing and advertising executive, and invested further in internet and other
marketing strategies.
We continue to support the Stagecoach Charitable Trust, which runs InterAct
Workshops, providing inclusive performing arts tuition to children of all
abilities and needs.
Employees
I wish to express my thanks to all our employees for their commitment and
contribution throughout the year, all of which has helped to deliver this good
performance.
Prospects
Last year in my Chairman's Statement, I noted that we remain confident, based on
our experience from the previous recession, that children's education tends to
be one of the last items of expenditure to be cut from the family budget. This
has generally proved to be the case. However, large scale redundancies in
particular areas in the UK have affected individual schools and the effect of
the recession, particularly in terms of new school openings, may still be felt
further during our next financial year.
We have made good progress in developing the Stagecoach Theatre Arts network in
Germany, and we look forward to continued expansion there and in other
international territories. In the UK, I am pleased with the performance of the
Stagecoach schools network during this challenging year and, when the economic
outlook improves, I believe we will see an increase in subsequent school
openings and a boost in fees from school re-sales.
Graham Cole
Chairman
11 August 2010
Operating Review
Group Overview
We are pleased with the continued solid performance of the Group this year. Our
Stagecoach Theatre Arts schools continue to lead the way in children's education
through the performing arts. At year-end we have a total of 39,325 students
worldwide that attend our schools each week (2009: 38,927).
The Directors believe that once the economy begins to improve, the Stagecoach
Group is well positioned with its strong brand and trusted name to recommence a
period of sustained growth.
UK Operations
Stagecoach Theatre Arts UK
We report an increase in student numbers, led by an increase in the average
occupancy rates per Stagecoach school and an increase in the number of Early
Stages classes.
The number of Stagecoach Theatre Arts main schools for 6 to 16 year olds in the
UK is 613 schools with 25,584 students attending (2009: 617 schools and 25,574
students). There were a few school closures or mergers during the year in areas
particularly affected by the recession. The number of Early Stages classes,
providing performing arts tuition to younger students aged 4 to 6 years,
increased to 716 classes in the UK with 9,498 students attending (2009: 707
Early Stages classes and 9,254 students). The total number of students
attending Stagecoach schools in the UK, including Early Stages, Further Stages
and Mini Stages, increased over the year from 35,326 to 35,394 students.
The average number of students per main Stagecoach school at the year-end
increased to 41.7 (2009: 41.4), showing that the occupancy rate throughout the
network remains strong at over 92% of all available places taken, based on an
optimum number of students per school of 45.
The average number of Stagecoach schools per franchisee remained at 2.3 schools,
demonstrating that there remains further significant growth potential in the
existing network, once the economic climate improves, as many franchisees
operate three, four or five schools, and a number have yet to open a second
school.
The increase in students over the year is a result of maintaining the highest
standards of education throughout the Stagecoach network, including regular
unannounced school inspections, regional franchisee meetings and franchisee and
teacher training. Parents receive progress reports twice a year and students
receive medals for longevity and participation. The skills students learn at
Stagecoach help them to develop confidence, improve communication skills and
generally to perform better in life.
The network continues to promote the benefits of Stagecoach Theatre Arts
training and education, and we have increased our advertising budget across the
network both at an individual local school level and through national
advertising. We have devoted time and resources at Stagecoach head office to
developing our marketing and advertising, with new design materials, taking on a
full time marketing executive in March 2010, and employing the latest technology
for new marketing and brand building initiatives such as Stagecoach.TV.
Stagecoach Parties continues to operate as a complementary activity for our
Stagecoach franchisees, to help with marketing, as well as to provide a
supplemental income for them. The Montessori nursery registered 117 students at
year-end (2009: 116 students).
Stagecoach Agency
The Stagecoach Agency UK & Ireland continues to enjoy its status as Europe's
largest performing arts agency for children and young performers. In a busy year
we have provided our students with exciting and varied work across all areas of
the entertainment industry. The difficult economic climate has affected our
2010/11 student intake, which has dropped this year to 1,347 students (2009:
1,510). The total of individual submissions for jobs for the year however
increased to over 23,000, resulting in approximately 5,500 auditions and
bookings.
With much repeat business from the major media production companies, we have
maintained our excellent reputation and profile. We have seen a prolific rise in
work in the voice-over industry both in the public and corporate sector.
Children from the agency are now a regular part of many Radio 4 plays and
factual productions.
In providing casting directors and production companies with talented artistes
offering a varied and comprehensive range of services, Stagecoach students are
able to make use of their skills within a wide range of entertainment platforms.
These include TV and film, commercials and corporate videos, theatre, radio
dramas, role-playing and promotions, photo shoots and promotions, musicals and
voice-overs.
Our credits this year include: a national tour of Chitty Chitty Bang Bang across
the UK and Ireland, in which 1,000 Stagecoach students have performed or are due
to perform; Waterloo Road series 6 & 7 (our 6th and 7th consecutive booking,
providing all the background artists); Ra, Ra, The Noisy Lion, Club High School
musical 'Make it Happen' for Disney Channel for which we supplied over 600
children for the recording; roles for students in most major television series
and many other high-profile productions, both domestic and international. Such
credits include TV roles in Casualty, The Bill, Doctors, Holby City, Waking The
Dead, Miss Marple, Poirot, EastEnders, Law & Order, Dr Who, Kevin Bishop Show,
numerous Radio 4 dramas, Matilda, Emile & The Detectives, The Plantagenets,
Grandpa in My Pocket, The Shooting Party and Poetry Please. Adverts on T.V.
include: BT, Morrisons, Sainsburys, Bing, Argos, John Lewis, B & Q, American
Express and Dell. In theatre: National & European Tour of Thriller, Annie,
Priscilla Queen of The Desert, Waiting For Godot, Billy Elliot, Oliver, The
Sound of Music, Mary Poppins, Merry Wives of Windsor at The Globe and Macbeth.
Voice-over credits include Peppa Pig, Little Kingdom, Cbeebies Radio, Tommy Zoom
II, and Disney's Tigger, Pooh and Friends.
The Agency's continued success offers excellent opportunities for profile
raising and for publicity as far as individual Stagecoach schools are concerned.
In March we launched S.T.Arts Management to represent young performers aged
20-25. This has already begun to show promise with productions of Romeo &
Juliet for The BBC, Sky HD commercials and the Glee DVD series one promotions
tour.
Creative and Educational
By working closely with our franchisees, the Group continues to provide the
highest standards of performing arts education and opportunity throughout the
Stagecoach network. Our Creative and Educational team are committed to being at
the forefront of standards of education in the performing arts.
Each year the Stagecoach network provides its students with opportunities to
participate in special performances and events. The events this year included:
· in June 2009, November 2009 and March 2010 - a total of 900 Stagecoach
students from all over the UK performed a selection of dance, drama and singing
routines at Her Majesty's Theatre in London's West End;
· the annual 'Easy Stages' show-case production of Unsinkable, a musical
specially written for Stagecoach, was performed in August 2009. It featured 76
Stagecoach students from the UK, Ireland, USA, Germany and Spain; and
· in April 2010 several schools performed at the Young Enterprise finals in
London.
In a new initiative, Stagecoach has been consulting closely with a validating
body for music and the performing arts to prepare a brand new suite of group
musical theatre examinations to be offered nationally and internationally.
These are being piloted by eight Stagecoach schools this summer.
Our Foundation Certificate has now received full diploma status (Associate in
the Teaching of Performance Arts). Successful completion of an additional
in-depth viva voce is required to gain this diploma and Stagecoach are holding
"top up courses" to prepare those previous students for the diploma. Courses in
preparation for the full Diploma are being developed.
Regional workshops continue to take place around the country, offering relevant
opportunities for in-service training for principals and teachers in Stagecoach.
SportsCoach
During the year the co-founder and managing director of SportsCoach, Jon
Bennetts, left the Group with our best wishes and appreciation for the
dedication he had given to SportsCoach and all its students over the years. The
SportsCoach network remains a stable, profitable contributor to the Group. The
SportsCoach network has 20 SportsCoach schools, 10 Early Sporties classes and
850 students (2009: 20 schools, 8 Early Sporties and 876 students). Average
student numbers per SportsCoach school were 37.0 students (2009: 37.5 students).
The UK Operations, comprising Stagecoach UK, SportsCoach, Mini Stages, the
Montessori School and the Stagecoach Agency, reported profit before income tax
of GBP732,000 (2009: GBP742,000).
International Operations
The Group's international operations include wholly owned German and USA
subsidiaries (USA and Canada), each running Stagecoach Theatre Arts franchise
networks, and Stagecoach schools operated under licence or direct franchise
agreement in Australia, Greece, Ireland, Malta, Gibraltar and Spain.
Germany
We are delighted with the expansion of Stagecoach Germany over the year, and the
substantial reduction in the losses of the previous year. There were seven new
school openings, including new franchisees in Hamburg, Stuttgart and Wiesbaden
and the number of students across the country increased by 45%. Franchisees
across the German network are now also opening subsequent schools (in Berlin,
Mainz and Erlangen) thus demonstrating the success of the Stagecoach school
model in Germany. At year-end there were 10 franchisees, 22 Stagecoach schools,
15 Early Stages classes and a total of 1,083 students (2009: 741 students).
North America
The recession in the US had stalled any opportunity for growth for the network
over the year. We continue to keep costs as low as possible whilst maintaining
the high levels of support to our franchisees. At year-end there were 7
franchisees, 12 Stagecoach schools, 12 Early Stages classes, a Further Stages
class and a total of 489 students (2009: 498 students). Despite the challenges,
we are pleased to report that the Stagecoach USA subsidiary shows a modest
profit for the second consecutive year.
Other International
The planned expansion into other international markets has been hampered by the
worldwide recession. Once the economic climate shows signs of improvement, this
is likely to be a significant growth area for the Group. At year-end, there
were 7 franchisees or licensees, in Australia, Greece, Ireland, Malta, Gibraltar
and Spain, 24 Stagecoach schools, 26 Early Stages classes, a Further Stages
class, 10 Mini Stages classes and a total of 1,392 students (2009: 1,370
students).
After the allocation of a fair proportion of UK overheads and time costs, the
International Operations reported a GBP5,000 loss before income tax (2009:
GBP16,000).
Corporate Social Responsibility
We are committed to behaving ethically, safeguarding the environment and using
our skills to make a lasting contribution to communities in which our schools
operate.
Stagecoach Charitable Trust
The Group continues to support and provide management time to The Stagecoach
Charitable Trust ('SCT'), a children's charity, which amongst other activities
runs InterAct Theatre Workshops, providing inclusive performing arts tuition to
children of all abilities and needs. The feedback from the children attending
SCT and their parents has been overwhelmingly positive.
During the year SCT has taken significant steps forward in expanding its reach
and involving over 400 children and young people in ten locations through our
summer holiday workshop programme in Bristol, Cardiff, Edinburgh, Exeter,
Glasgow, Leeds, Liverpool, Luton, Nottingham and Southampton. Furthermore, SCT
has established an after school presence in Birmingham, Colchester, Croydon and
Jarrow in addition to its existing classes in Walton-on-Thames, Hampton,
Hounslow and Bournemouth. SCT has launched a new 3-year project in Moss Side,
Manchester, for disadvantaged children. SCT students have also had the
opportunity to perform with Stagecoach students at Her Majesty's Theatre,
London, as well as performing locally for family and friends.
Stagecoach Awards
In December 2009, the Directors of Stagecoach Theatre Arts proudly launched The
Stagecoach Theatre Arts Awards, acknowledging and rewarding children's
achievements during 2009/2010. The launch reception took place at The House of
Commons hosted by Ed Vaizey MP, Minister for Culture, Communications and
Creative Industries (joint Minister with Department of Business, Innovation and
Skills). Patrons of these awards are Viscountess Mackintosh of Halifax and Sir
Bernard Ingham. The awards will recognise, acknowledge and reward young people
from all walks of life who have faced adversity, demonstrated bravery, shown
courage, cared for others or been good role models for young citizens. Students
from SCT performed for guests at the awards launch party.
Environmental Issues
We manage our environmental impact responsibly, including a proactive recycling
policy and reduction of consumption of paper and utilities.
Employees
The Group aims to be a good employer and select employees on the basis of
qualifications and merit, without discrimination.
The number of employees (full time equivalents) employed by the Group as at 31
May 2010 was 53 (2009: 50).
Current Trading and Prospects
We are pleased with the overall performance of the Group during what has been
another challenging year in this difficult economic climate.
There remain significant medium-term growth prospects in the UK and Germany, and
long-term growth potential for North America, for other international
territories and for SportsCoach. Our thanks to all our employees for their
commitment and contribution throughout the year, and we look forward to our
successful progress into the future.
+-------------------------------+-------------------------------+
| David Sprigg | Stephanie Manuel |
| Joint Managing Director | Artistic Director |
| | and Joint Managing Director |
+-------------------------------+-------------------------------+
11 August 2010
Financial Review
Network Fees and Group Turnover
Network fees, reflecting the total tuition fees earned by our network of
franchisees operating Stagecoach Theatre Arts schools worldwide and SportsCoach
schools in the UK, decreased slightly to GBP29.2m (2009: GBP29.4m). This
reflects the decrease in worldwide student numbers at the end of the prior year.
However this was partially offset by the increase in student numbers over the
past two terms of this year as we emerged from the recession.
UK schools account for 93.2% of network fees (2009: 94.2%) following further
growth in the number of international schools this year.
Group turnover, made up of continuing franchise fees, initial fees, transfer
fees and other ancillary income was level at GBP6.2m (2009: GBP6.2m).
The wider effects of the recession and of the credit crunch during the first
half of the year impacted new school openings and re-sale fees. However
improved trading conditions in the second half of the year resulted in an
overall increase in initial fees for the year to GBP0.48m (2009: GBP0.37m).
These non-recurring initial fees and transfer fees represent just 8% of Group
turnover, which is a positive indicator of the stability of the core business,
with the majority of revenues now earned from the contractual continuing
franchise fees from the 307 franchisees worldwide.
Cost of Sales and Administrative Expenses
The Group cost of sales decreased slightly to GBP3.1m (2009: GBP3.2m) and Group
administrative expenses increased marginally to GBP2.4m (2009: GBP2.3m).
Profitability
Operating profit increased by 3% to GBP720,000 (2009: GBP697,000). Lower
interest rates resulted in less finance income, and thus profit before income
tax was level at GBP727,000 (2009: GBP726,000).
Taxation
The Group's effective tax rate increased to 28.9% (2009: 27.5%). In the prior
year the Group benefited from a Research and Development tax relief and tax
rebate claim.
Earnings per Share and Dividends
Earnings per share were 5.2 pence (2009: 5.3 pence).
Your Board is pleased to propose the payment of a final dividend of 2 pence per
share (2009: 2 pence). The proposed dividend, which amounts to GBP198,886
(2009: GBP198,186) will be paid, subject to shareholder approval, on 24 November
2010 to those shareholders on the register as at 29 October 2010. This dividend
has not been accounted for in this set of accounts, in line with accounting
standards, as shareholders have not yet approved the payment.
During the year an interim dividend of 0.5 pence per share was paid (2009: 0.5
pence), taking the total dividends paid or proposed for the year to 2.5 pence
per share (2009: 2.5 pence), amounting to GBP248,608 (2009: GBP246,983).
Group Structure
The Stagecoach Group consists of the Stagecoach UK business, including the UK
Agency and SportsCoach, and the wholly owned German and USA subsidiaries. The
other international operations run under licence or direct franchise.
Capital Structure
The Group manages its capital to ensure that the Group will be able to continue
as a going concern while maximising the return to shareholders through the
optimisation of debt and equity balances. In the current circumstances the
Board of Directors considers the current structure to be at the optimal level.
The capital structure of the Group consists of cash and cash equivalents, equity
attributable to equity holders of the company, comprising issued capital,
reserves and retained earnings (see statement of changes in equity). At the
reporting date there is no debt (see Note 17).
The Group reviews its capital structure on a regular basis and will balance its
overall capital structure through payments of dividends, new share issues as
well as the issue of new debt or the redemption of existing debt in line with
the financial risk policies outlined in Note 24.
The Stagecoach Group had total equity at 31 May 2010 of GBP3.5m (2009: GBP3.2m).
The increase in total equity principally relates to the retained earnings for
the year after payment of dividends to its shareholders.
Share Capital and Share Options
During the year 35,000 shares under option were exercised, increasing the share
capital to 9,944,317 ordinary shares in issue at 31 May 2010 (2009: 9,909,317).
During the year the Company cancelled 322,166 share options and 20,000 share
options lapsed during the year on employees leaving the Group. On 3 February
2010, the Company awarded 63,000 share options, thus there remain 746,189 (2009:
1,060,355) options in issue, being 7.5% of shares in issue.
Cash Flow
The Group increased its cash balances over the year by GBP82,000 to GBP1,119,000
at year-end (2009: GBP1,037,000).
Principal non-operating cash payments during the year have been:
· GBP249,000 of dividends
· GBP230,000 of corporation income tax
· GBP50,000 reduction in bank loan
· GBP62,000 of IT development capitalised expenditure
During the year the final payment of GBP50,000 was made against the four year
asset finance loan for the payment of the IT Global Reporting Management System.
Following this payment, the Stagecoach Group now has no loans or overdrafts.
The significant consequence of the positive cash flow over the past few years is
that the Group has not required the use of its overdraft facility since October
2008, and now has sufficient cash resources to trade debt free for the
foreseeable future. The Group receives the majority of its cash in-flow three
times a year, six weeks into each academic term, from continuing franchise fees
for that term.
Following the collection of the Summer Term 2010 continuing franchise fees in
June 2010, the peak cash balance post year-end was GBP2.4m (2009: GBP2.2m).
Financial Outlook
Trading post year-end has continued in line with expectations with GBP4.8m of
Stagecoach Group network fees earned in June and July 2010 and positive cash
inflow for the Group.
Once the worldwide economic climate improves, we would expect to see an increase
in initial fees turnover in international territories, particularly in Germany,
driving growth for the Group, whilst benefiting from a steady increase in
profitability from the core Stagecoach UK business.
Richard Dawson
Group Finance Director
11 August 2010
Consolidated Statement of Comprehensive Income
For the year ended 31 May 2010
+------------------------------------------+-------+----------+---------+----------+---------+
| | Notes | | 2010 | | 2009 |
+------------------------------------------+-------+----------+---------+----------+---------+
| | | | GBP'000 | | GBP'000 |
+------------------------------------------+-------+----------+---------+----------+---------+
| | | | | | |
+------------------------------------------+-------+----------+---------+----------+---------+
| | | | | | |
+------------------------------------------+-------+----------+---------+----------+---------+
| Network fees (see note) | | | 29,242 | | 29,435 |
+------------------------------------------+-------+----------+---------+----------+---------+
| | | | | | |
+------------------------------------------+-------+----------+---------+----------+---------+
| | | | | | |
+------------------------------------------+-------+----------+---------+----------+---------+
| Revenue | | | 6,219 | | 6,204 |
+------------------------------------------+-------+----------+---------+----------+---------+
| Cost of sales | | | (3,065) | | (3,203) |
+------------------------------------------+-------+----------+---------+----------+---------+
| | | | | | |
+------------------------------------------+-------+----------+---------+----------+---------+
| Gross profit | | | 3,154 | | 3,001 |
+------------------------------------------+-------+----------+---------+----------+---------+
| Other income | | | 24 | | 23 |
+------------------------------------------+-------+----------+---------+----------+---------+
| Administrative expenses | | | (2,458) | | (2,327) |
+------------------------------------------+-------+----------+---------+----------+---------+
| | | | | | |
+------------------------------------------+-------+----------+---------+----------+---------+
| Results from operating activities | | | 720 | | 697 |
+------------------------------------------+-------+----------+---------+----------+---------+
| Finance income | | | 11 | | 39 |
+------------------------------------------+-------+----------+---------+----------+---------+
| Finance expenses | | | (4) | | (10) |
+------------------------------------------+-------+----------+---------+----------+---------+
| | | | | | |
+------------------------------------------+-------+----------+---------+----------+---------+
| Net finance income | | | 7 | | 29 |
+------------------------------------------+-------+----------+---------+----------+---------+
| | | | | | |
+------------------------------------------+-------+----------+---------+----------+---------+
| Profit before income tax | | | 727 | | 726 |
+------------------------------------------+-------+----------+---------+----------+---------+
| Income tax expense | 2 | | (210) | | (200) |
+------------------------------------------+-------+----------+---------+----------+---------+
| | | | | | |
+------------------------------------------+-------+----------+---------+----------+---------+
| Profit for the year attributable to | | | 517 | | 526 |
| equity holders of the parent | | | | | |
+------------------------------------------+-------+----------+---------+----------+---------+
| | | | | | |
+------------------------------------------+-------+----------+---------+----------+---------+
| Other comprehensive income | | | | | |
+------------------------------------------+-------+----------+---------+----------+---------+
| Foreign currency translation differences | | | 11 | | (44) |
| for foreign operations | | | | | |
+------------------------------------------+-------+----------+---------+----------+---------+
| | | | | | |
+------------------------------------------+-------+----------+---------+----------+---------+
| Total comprehensive income for the year | | | 528 | | 482 |
| attributable to equity holders of the | | | | | |
| parent | | | | | |
+------------------------------------------+-------+----------+---------+----------+---------+
| | | | | | |
+------------------------------------------+-------+----------+---------+----------+---------+
| | | | | | |
+------------------------------------------+-------+----------+---------+----------+---------+
| Earnings per share (pence) | | | | | |
+------------------------------------------+-------+----------+---------+----------+---------+
| - Basic earnings per share | 4 | | 5.2 | | 5.3 |
+------------------------------------------+-------+----------+---------+----------+---------+
| - Diluted earnings per share | 4 | | 5.2 | | 5.3 |
+------------------------------------------+-------+----------+---------+----------+---------+
Note: Network fees represent total school fees earned over the year by our
franchisees from over 39,300 students that attended Stagecoach and SportsCoach
worldwide.
Statements of Changes in Equity
For the year ended 31 May 2010
+----------------------+-------+---------+---------+--------------+----------+---------+
| Group | Notes | Share | Share | Trans-lation | Retained | Total |
| | | capital | premium | reserve | earnings | equity |
+----------------------+-------+---------+---------+--------------+----------+---------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------+-------+---------+---------+--------------+----------+---------+
| | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
| Balance at 1 June | | 494 | 1,601 | (35) | 916 | 2,976 |
| 2008 | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
| Total comprehensive | | | | | | |
| income for the year | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
| Profit for the year | | - | - | - | 526 | 526 |
+----------------------+-------+---------+---------+--------------+----------+---------+
| | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
| Other comprehensive | | | | | | |
| income | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
| Foreign currency | | - | - | (44) | - | (44) |
| translation | | | | | | |
| differences for | | | | | | |
| foreign operations | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
| | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
| Contributions by and | | | | | | |
| distributions to | | | | | | |
| owners | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
| Dividends paid | 3 | - | - | - | (246) | (246) |
+----------------------+-------+---------+---------+--------------+----------+---------+
| Share based payments | | - | - | - | 7 | 7 |
| transactions | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
| Shares issued | | 1 | 8 | - | - | 9 |
+----------------------+-------+---------+---------+--------------+----------+---------+
| | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
| Balance at 31 May | | 495 | 1,609 | (79) | 1,203 | 3,228 |
| 2009 | | | | | | |
| and 1 June 2009 | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
| Total comprehensive | | | | | | |
| income for the year | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
| Profit for the year | | - | - | - | 517 | 517 |
+----------------------+-------+---------+---------+--------------+----------+---------+
| | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
| Other comprehensive | | | | | | |
| income | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
| Foreign currency | | - | - | 11 | - | 11 |
| translation | | | | | | |
| differences for | | | | | | |
| foreign operations | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
| | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
| Contributions by and | | | | | | |
| distributions to | | | | | | |
| owners | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
| Dividends paid | 3 | - | - | - | (249) | (249) |
+----------------------+-------+---------+---------+--------------+----------+---------+
| Share based payments | | - | - | - | (11) | (11) |
| transactions | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
| Shares issued | | 2 | 10 | - | - | 12 |
+----------------------+-------+---------+---------+--------------+----------+---------+
| | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
| Balance at 31 May | | 497 | 1,619 | (68) | 1,460 | 3,508 |
| 2010 | | | | | | |
+----------------------+-------+---------+---------+--------------+----------+---------+
+------------------------------+-------+---------+---------+----------+---------+
| Company | Notes | Share | Share | Retained | Total |
| | | capital | premium | earnings | equity |
+------------------------------+-------+---------+---------+----------+---------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+------------------------------+-------+---------+---------+----------+---------+
| | | | | | |
+------------------------------+-------+---------+---------+----------+---------+
| Balance at 1 June 2008 | | 494 | 1,601 | 1,166 | 3,261 |
+------------------------------+-------+---------+---------+----------+---------+
| Comprehensive income for the | | | | | |
| year | | | | | |
+------------------------------+-------+---------+---------+----------+---------+
| Profit for the year | | - | - | 367 | 367 |
+------------------------------+-------+---------+---------+----------+---------+
| | | | | | |
+------------------------------+-------+---------+---------+----------+---------+
| Contributions by and | | | | | |
| distributions to owners | | | | | |
+------------------------------+-------+---------+---------+----------+---------+
| Dividends paid | 3 | - | - | (246) | (246) |
+------------------------------+-------+---------+---------+----------+---------+
| Share based payments | | - | - | 7 | 7 |
| transactions | | | | | |
+------------------------------+-------+---------+---------+----------+---------+
| Shares issued | | 1 | 8 | - | 9 |
+------------------------------+-------+---------+---------+----------+---------+
| | | | | | |
+------------------------------+-------+---------+---------+----------+---------+
| Balance at 31 May 2009 and 1 | | 495 | 1,609 | 1,294 | 3,398 |
| June 2009 | | | | | |
+------------------------------+-------+---------+---------+----------+---------+
| Comprehensive income for the | | | | | |
| year | | | | | |
+------------------------------+-------+---------+---------+----------+---------+
| Profit for the year | | - | - | 488 | 488 |
+------------------------------+-------+---------+---------+----------+---------+
| | | | | | |
+------------------------------+-------+---------+---------+----------+---------+
| Contributions by and | | | | | |
| distributions to owners | | | | | |
+------------------------------+-------+---------+---------+----------+---------+
| Dividends paid | 3 | - | - | (249) | (249) |
+------------------------------+-------+---------+---------+----------+---------+
| Share based payments | | - | - | (11) | (11) |
| transactions | | | | | |
+------------------------------+-------+---------+---------+----------+---------+
| Shares issued | | 2 | 10 | - | 12 |
+------------------------------+-------+---------+---------+----------+---------+
| | | | | | |
+------------------------------+-------+---------+---------+----------+---------+
| Balance at 31 May 2010 | | 497 | 1,619 | 1,522 | 3,638 |
+------------------------------+-------+---------+---------+----------+---------+
Statements of Financial Position
As at 31 May 2010
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | Notes | Group | | Company |
+-------------------------------+-------+-------------------+----------+-------------------+
| | | 2010 | 2009 | | 2010 | 2009 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | GBP'000 | GBP'000 | | GBP'000 | GBP'000 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Assets | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Property, plant and equipment | | 74 | 92 | | 72 | 89 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Intangible assets | | 1,177 | 1,260 | | 938 | 1,021 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Investments in subsidiaries | | - | - | | 422 | 422 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Deferred tax assets | | 9 | - | | 9 | - |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Total non-current assets | | 1,260 | 1,352 | | 1,441 | 1,532 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Inventories | | 244 | 245 | | 242 | 243 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Trade and other receivables | | 2,402 | 2,182 | | 2,318 | 2,139 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Cash and cash equivalents | | 1,119 | 1,037 | | 1,068 | 978 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Total current assets | | 3,765 | 3,464 | | 3,628 | 3,360 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Total assets | | 5,025 | 4,816 | | 5,069 | 4,892 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Equity | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Share capital | | 497 | 495 | | 497 | 495 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Share premium | | 1,619 | 1,609 | | 1,619 | 1,609 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Translation reserve | | (68) | (79) | | - | - |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Retained earnings | | 1,460 | 1,203 | | 1,522 | 1,294 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Total equity attributable to | | 3,508 | 3,228 | | 3,638 | 3,398 |
| equity holders of the company | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Liabilities | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Deferred tax liabilities | | - | 8 | | - | 8 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Total non-current liabilities | | - | 8 | | - | 8 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Other interest-bearing loans | | - | 50 | | - | 50 |
| and borrowings | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Trade and other payables | | 1,517 | 1,530 | | 1,431 | 1,436 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Total current liabilities | | 1,517 | 1,580 | | 1,431 | 1,486 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Total liabilities | | 1,517 | 1,588 | | 1,431 | 1,494 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Total equity and liabilities | | 5,025 | 4,816 | | 5,069 | 4,892 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
Statements of Cash Flows
For the year ended 31 May 2010
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | Notes | Group | | Company |
+-------------------------------+-------+-------------------+----------+-------------------+
| | | 2010 | 2009 | | 2010 | 2009 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | GBP'000 | GBP'000 | | GBP'000 | GBP'000 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Cash flows from operating | | | | | | |
| activities | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Profit for the year | | 517 | 526 | | 488 | 367 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Adjustments for: | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Depreciation and amortisation | | 166 | 156 | | 164 | 155 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Foreign exchange differences | | 1 | (55) | | - | - |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Finance income | | (11) | (39) | | (11) | (39) |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Finance expenses | | 4 | 10 | | 4 | 10 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Loss on disposal of property, | | 5 | 3 | | 5 | 3 |
| plant and equipment | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Write-down of territories | | 23 | 45 | | 23 | 45 |
| held for re-sale | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Employee share option scheme | | 16 | 7 | | 16 | 7 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Income tax expense | | 210 | 200 | | 210 | 200 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Operating profit before | | 931 | 853 | | 899 | 748 |
| changes in working capital | | | | | | |
| and provisions | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| (Increase)/decrease in | | (21) | 13 | | (21) | 13 |
| inventories | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| (Increase)/decrease in trade | | (215) | 182 | | (179) | 283 |
| and other receivables | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Decrease in trade and other | | (8) | (288) | | (3) | (325) |
| payables | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Cash generated from | | 687 | 760 | | 696 | 719 |
| operations | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Interest received | | 11 | 39 | | 11 | 39 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Interest paid | | (4) | (10) | | (4) | (10) |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Income tax paid | | (230) | (350) | | (230) | (350) |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Net cash from operating | | 464 | 439 | | 473 | 398 |
| activities | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Cash flows from investing | | | | | | |
| activities | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Acquisition of additional | | - | (99) | | - | (99) |
| shares in subsidiaries | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Acquisition of property, | | (8) | (20) | | (7) | (20) |
| plant and equipment | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Acquisition of intangible | | (62) | (15) | | (62) | (15) |
| assets | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Net cash used in investing | | (70) | (134) | | (69) | (134) |
| activities | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Cash flows from financing | | | | | | |
| activities | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Shares issued | | 12 | 9 | | 12 | 9 |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Cancellation of share options | | (27) | - | | (27) | - |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Dividends paid | 3 | (249) | (246) | | (249) | (246) |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Repayment of borrowings | | (50) | (66) | | (50) | (66) |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Net cash used in financing | | (314) | (303) | | (314) | (303) |
| activities | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Net increase/(decrease) in | | 80 | 2 | | 90 | (39) |
| cash and cash equivalents | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Cash and cash equivalents at | | 1,037 | 1,032 | | 978 | 1,017 |
| 1 June | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Effect of exchange rate | | 2 | 3 | | - | - |
| fluctuations on cash held | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
| Cash and cash equivalents at | | 1,119 | 1,037 | | 1,068 | 978 |
| 31 May | | | | | | |
+-------------------------------+-------+---------+---------+----------+---------+---------+
Notes to the Preliminary Results
1. Accounting Policies
General
Stagecoach Theatre Arts plc is a company incorporated in the UK. The Group is
primarily involved in operating a franchise network of part-time performing arts
and sports schools.
The Company registered address is The Courthouse Elm Grove Walton-on-Thames
Surrey KT12 1LZ.
The consolidated financial statements of the Group as at and for the year ended
31 May 2010 comprise the Company and its subsidiaries (together referred to as
the 'Group'). The parent company financial statements present information about
the Company as a separate entity and not about its Group.
Statement of compliance
The Group financial statements have been prepared and approved by the Directors
in accordance with International Financial Reporting Standards as adopted by the
EU ('Adopted IFRSs'). The parent Company financial statements have been
prepared and approved by the Directors in accordance with International
Financial Reporting Standards as adopted by the EU ('Adopted IFRSs') as applied
in accordance with the provisions of the Companies Act 2006.
Basis of preparation
On publishing the parent company financial statements together with the Group
financial statements, the Company is taking advantage of the exemption in s408
of the Companies Act 2006 not to present its individual statement of
comprehensive income and related notes that form a part of the approved
financial statements.
Except as described, the same accounting policies have, unless otherwise stated,
been consistently applied to all the periods presented in the consolidated
financial statements.
Going concern
The Group has considerable financial resources together with long-term contracts
with a number of customers and suppliers across different geographic areas and
industries. As a consequence, the Directors believe that the Group is well
placed to manage its business risks successfully despite the current uncertain
economic outlook.
After making enquiries, the Directors have a reasonable expectation that the
Company and the Group have adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing the annual report and accounts.
2. Income tax expense
Recognised in the statement of comprehensive income
+----------------------------------------------+---------+----------+---------+
| | 2010 | | 2009 |
+----------------------------------------------+---------+----------+---------+
| | GBP'000 | | GBP'000 |
+----------------------------------------------+---------+----------+---------+
| Current tax expense | | | |
+----------------------------------------------+---------+----------+---------+
| Current year | 222 | | 232 |
+----------------------------------------------+---------+----------+---------+
| Adjustments for prior years | 5 | | (24) |
+----------------------------------------------+---------+----------+---------+
| Current tax expense | 227 | | 208 |
+----------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------+---------+----------+---------+
| Deferred tax credit | | | |
+----------------------------------------------+---------+----------+---------+
| Reversal and origination of temporary | (13) | | (6) |
| differences | | | |
+----------------------------------------------+---------+----------+---------+
| Adjustment to tax charge in previous periods | (4) | | (2) |
+----------------------------------------------+---------+----------+---------+
| Deferred tax credit | (17) | | (8) |
+----------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------+---------+----------+---------+
| Total tax expense in statement of | 210 | | 200 |
| comprehensive income | | | |
+----------------------------------------------+---------+----------+---------+
Deferred tax arose principally due to temporary differences between capital
allowances and depreciation.
Reconciliation of effective tax rate
The total charge for the period is higher (2009: lower) than the standard rate
of corporation tax in the UK of 28% (2009: 28%). The differences are explained
below:
+----------------------------------------------+---------+----------+---------+
| | 2010 | | 2009 |
+----------------------------------------------+---------+----------+---------+
| | GBP'000 | | GBP'000 |
+----------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------+---------+----------+---------+
| Profit for the year | 517 | | 526 |
+----------------------------------------------+---------+----------+---------+
| Total income tax expense | 210 | | 200 |
+----------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------+---------+----------+---------+
| Profit before income tax | 727 | | 726 |
+----------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------+---------+----------+---------+
| Tax using the UK corporation tax rate of 28% | 203 | | 203 |
| (2009: 28%) | | | |
+----------------------------------------------+---------+----------+---------+
| Effects of: | | | |
+----------------------------------------------+---------+----------+---------+
| Unrelieved losses of international | 3 | | 21 |
| subsidiaries | | | |
+----------------------------------------------+---------+----------+---------+
| Permanent tax differences | 3 | | 2 |
+----------------------------------------------+---------+----------+---------+
| Adjustment to tax charge in previous periods | 1 | | (26) |
+----------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------+---------+----------+---------+
| Total income tax expense | 210 | | 200 |
+----------------------------------------------+---------+----------+---------+
The GBP24,418 adjustment in 2009 to the tax charge in previous periods mainly
reflects a GBP20,906 cash payment received from HMRC relating to Research and
Development tax credits for 2004-2007 which had not been previously recognised
due to the uncertainty of recoverability of the amount.
3. Dividends
+----------------------------------------------+---------+----------+---------+
| | 2010 | | 2009 |
+----------------------------------------------+---------+----------+---------+
| | GBP'000 | | GBP'000 |
+----------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------+---------+----------+---------+
| Amounts recognised as distributions to | | | |
| equity holders in the year | | | |
+----------------------------------------------+---------+----------+---------+
| Final dividend for the year ended 31 May | 199 | | 197 |
| 2009 of 2p per ordinary share (2008: 2p). | | | |
+----------------------------------------------+---------+----------+---------+
| Interim dividend for the year ended 31 May | 50 | | 49 |
| 2010 of 0.5p per ordinary share (2009: | | | |
| 0.5p). | | | |
+----------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------+---------+----------+---------+
| | 249 | | 246 |
+----------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------+---------+----------+---------+
| Amounts proposed as distributions to equity | | | |
| holders | | | |
+----------------------------------------------+---------+----------+---------+
| Proposed final dividend for the year ended | 199 | | 198 |
| 31 May 2010 of 2p per ordinary share (2009: | | | |
| 2p). | | | |
+----------------------------------------------+---------+----------+---------+
The proposed final dividend had not been approved by shareholders at 31 May 2010
and therefore has not been included as a liability. The comparative final
dividend at 31 May 2009 was also not recognised as a liability in the prior
year.
The proposed final dividend of 2p (2009: 2p) per ordinary share will be paid on
24 November 2010 to those shareholders on the register as at 29 October 2010,
subject to approval of shareholders.
4. Earnings per share
+----------------------------------------------+--------+----------+-------+
| | 2010 | | 2009 |
+----------------------------------------------+--------+----------+-------+
| | | | |
+----------------------------------------------+--------+----------+-------+
| Earnings | | | |
+----------------------------------------------+--------+----------+-------+
| Profit for the year for basic and diluted | 517 | | 526 |
| earnings per share (GBP'000) | | | |
+----------------------------------------------+--------+----------+-------+
| | | | |
+----------------------------------------------+--------+----------+-------+
| Number of shares | | | |
+----------------------------------------------+--------+----------+-------+
| Weighted average number of shares used for | 9,938 | | 9,881 |
| basic earnings per share ('000) | | | |
+----------------------------------------------+--------+----------+-------+
| Dilutive effect of share options ('000) | 80 | | 83 |
+----------------------------------------------+--------+----------+-------+
| Fully diluted weighted average number of | 10,018 | | 9,964 |
| shares used for diluted earnings per share | | | |
| ('000) | | | |
+----------------------------------------------+--------+----------+-------+
| | | | |
+----------------------------------------------+--------+----------+-------+
| | | | |
+----------------------------------------------+--------+----------+-------+
| Basic earnings per share (pence) | 5.2 | | 5.3 |
+----------------------------------------------+--------+----------+-------+
| Diluted earnings per share (pence) | 5.2 | | 5.3 |
+----------------------------------------------+--------+----------+-------+
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the Company by the weighted average number of ordinary shares
in issue during the year.
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares outstanding by the average number of shares deemed to
be issued for no consideration (options granted to employees).
5. Extract from the Group's statutory accounts
The financial information presented in this preliminary announcement does not
constitute statutory accounts within the meaning of the Companies Act 2006. The
information has however been extracted from the Group's statutory accounts for
the year ended 31 May 2010 which were approved by the Board on 11 August 2010
and on which the Group's auditors have given an unqualified opinion.
6. 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.
7. Annual Report and Accounts available on the website
The Annual Report and Accounts, which will be posted to shareholders as soon as
practicably possible, are available to download via the website,
www.stagecoach.co.uk. A copy of the Annual Report and Accounts may be obtained
upon application to the Company Secretary, subject to availability, at the
Company's Registered Office, The Courthouse, Elm Grove, Walton-on-Thames,
Surrey, KT12 1LZ.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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