RNS Number:1108C
Creative Education Corp Plc
27 April 2006
27 April 2006
Creative Education Corporation Plc
Unaudited interim results for the six months ending 31 January 2006
Chairman's review of the six months to 31 January 2006
Turnover for the six months to 31 January 2006 increased by 120 per cent. to
#3.86m (#1.75m for the six months to 31 January 2005), reflecting the full six
month contribution from the Academy and Head start acquisitions.
The loss before tax for the period rose from #1.04m to #1.5m, a continued
reflection of the ongoing investments made to develop four of our own 'new
build' nurseries as well as investing in infrastructure required to enable the
Company to continue to take advantage of what is an increasingly fragmented
market place.
The group currently operates 29 nurseries, of which 20 are now achieving
occupancy rates above 60 per cent.
During the period the company acquired the entire issued share capital of
Conduit Square Limited which contains eight freehold premises which were leased
by the company and the freehold interest in the Primary Steps nursery at East
Sheen from Iron Founders and Allied Trade Nominees Limited.
Current Trading and prospects
While sector trading conditions remain difficult, recent performance has seen an
upturn, with a 1.5 per cent. growth in turnover over the first six month period
in the current financial year. During this period the board have instigated a
number of rationalisation and cost cutting measures allied to improvements in
business processes. Furthermore, the board are reviewing a possible fundraising
in the near future. The Directors believe that these measures will stabilise the
business and enable it to become profitable and cash generative.
In concluding, the Board of Directors feel that the business is starting to
achieve its potential.
Our confidence in our market growth strategy for the future remains strong, our
education product continues to improve, and importantly, with new recent
additions to the senior management, the quality and experience of our management
team continues to grow.
C Phillips
Chairman
Dated: 26th April 2006
GROUP PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 31 JANUARY 2006
26 weeks to 26 weeks to Year
31 January 31 January ended
31 July
2006 2005 2005
(Unaudited) (Unaudited)
Notes # # #
Turnover 1 3,855,674 1,752,261 6,076,000
Administrative
expenses (5,073,986) (2,620,492) (8,875,636)
----------- ----------- -----------
Operating loss (1,218,312) (868,231) (2,799,636)
Exceptional item
Profit on
disposal of fixed Assets - - 106,762
Share of operating loss
in associated undertaking - (159,018) (159,018)
Other income 2,942 13,706 47,822
Interest payable and
similar charges (303,873) (27,891) (138,310)
----------- ----------- -----------
Loss on ordinary activities
before taxation (1,519,243) (1,041,434) (2,942,380)
Tax on loss on ordinary activities - - -
----------- ----------- -----------
Loss on ordinary
activities after taxation 2/5 (1,519,243) (1,041,434) (2,942,380)
----------- ----------- -----------
Loss per share 3
- Basic (0.49) p (0.54) p (1.17) p
----------- ----------- -----------
- Diluted (0.49) p (0.54) p (1.17) p
----------- ----------- -----------
The profit and loss account has been prepared on the basis that all operations
are continuing operations.
There are no recognised gains and losses other than those passing through the
profit and loss account.
GROUP BALANCE SHEET
AS AT 31 JANUARY 2006
As at 31 As at 31 As at
January January 31 July
2006 2005 2005
(Unaudited) (Unaudited)
Notes # # #
Fixed assets
Intangible assets 8,655,129 7,982,336 8,844,989
Tangible assets 4 12,093,726 3,516,845 2,906,396
----------- ----------- -----------
20,748,855 11,499,181 11,751,385
----------- ----------- -----------
Current assets
Debtors 737,022 648,416 951,262
Cash at bank and in hand 10,209 2,668,084 507,100
----------- ----------- -----------
747,231 3,316,500 1,458,362
Creditors: amounts falling due within one year (3,998,323) (2,245,210) (3,439,995)
----------- ----------- -----------
Net current assets /(liabilities) (3,251,092) 1,071,290 (1,981,633)
----------- ----------- -----------
Total assets less current
liabilities 17,497,763 12,570,471 9,769,752
----------- ----------- -----------
Creditors: amounts falling due
after more than one year (10,380,342) (2,376,880) (1,111,106)
----------- ----------- -----------
7,117,421 10,193,591 8,658,646
----------- ----------- -----------
Capital and reserves
Called up share capital 3,116,160 3,036,078 3,116,160
Share premium account 5 7,613,414 7,349,477 7,635,396
Merger reserve 5 1,922,261 2,377,314 2,143,250
Profit and loss account 5 (5,534,414) (2,569,278) (4,236,160)
----------- ----------- -----------
Shareholders' funds - equity
interests 7,117,421 10,193,591 8,658,646
----------- ----------- -----------
The accounts were approved by the board on 26th April 2006
D Alexander J Macaulay
Director Director
GROUP CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 JANUARY 2006
26 weeks to 31 26 weeks to 31 Period ended 31 July
January 2006 January 2005 2005
(Unaudited) (Unaudited)
Note # # # # # #
Net cash outflow
from operating
activities (774,240) (584,955) (1,898,716)
Returns on investments
and servicing of finance
Interest paid (303,873) (27,891) (138,310)
Interest received 2,942 13,706 38,128
Rent
received/Other - - 9,694
----- ----- -----
Net cash outflow
from returns on
investments and
servicing of
finance (300,931) (14,185) (90,488)
Corporation tax (29,160) - -
Capital expenditure and
financial investment
Payments to
acquire tangible
fixed assets (286,332) (71,137) (498,920)
Payments to
acquire
investments - (799,105) (799,105)
Receipts from sale
of tangible
Fixed assets - - 1,618,945
----- ----- -----
Net cash
inflow/(outflow) from
Capital expenditure and
financial investment (286,332) (870,242) 320,920
Acquisitions and disposals
Purchase
of subsidiary
undertakings (464,376) (986,685) (2,424,326)
Net cash acquired
with subsidiaries 656 18,162 70,507
----- ----- -----
Net cash
inflow/(outflow)from
Acquisitions
and disposals (463,720) (968,523) (2,353,819)
----- ----- -----
Net cash outflow
before financing (1,854,383) (2,437,905) (4,022,103)
Financing
Issue of ordinary
share capital - 5,000,000 5,050,000
Cost of share
issue (21,982) (379,170) (423,674)
New loan notes - 400,000 400,000
New bank loans 490,896 - 573,750
Repurchase of loan
notes (150,000) - (50,000)
Repayment of bank
loans (37,769) - (1,311,435)
----- ----- -----
Net cash inflow
from financing 281,145 5,020,830 4,238,641
----- ----- -----
Increase/(decrease)
in cash (1,573,238) 2,582,925 216,538
----- ----- -----
THE CREATIVE EDUCATION CORPORATION PLC
NOTES TO THE GROUP ACCOUNTS
FOR THE SIX MONTHS ENDED 31 JANUARY 2006
1 Turnover
The total turnover of the group for the period has been derived from its
principal activity wholly undertaken in the United Kingdom.
2 Loss for the financial year
As permitted by section 230 of the Companies Act 1985, the holding company's
profit and loss account has not been included in these accounts. The loss
for the financial year is made up as follows:
26 weeks 26 weeks Period
ended 31 ended 31 ended 31
January January July 2005
2006 2005
(Unaudited) (Unaudited)
# # #
Holding company's loss for the financial (1,431,036) (782,448) (2,686,453)
year
----- ----- -----
3 Earnings per share
The calculation of the basic earnings per share and diluted earnings per
share is based on the loss attributable to ordinary shareholders of
#1,519,243 (2005: Loss #1,041,434), divided by the weighted average number
of shares in issue during the year.
The weighted average number of shares used on the calculations are set out
below:
26 weeks 26 weeks ended Period ended 31
ended 31 31 January 2005 July 2005
January 2006
(Unaudited)
(Unaudited)
Number of Number of Number of
Shares Shares Shares
311,615,930 192,743,887 250,560,104
------ ------ ------
NOTES TO THE GROUP ACCOUNTS
FOR THE SIX MONTHS ENDED 31 JANUARY 2006
4 Tangible fixed assets
Land and Fixtures, Motor Total
Buildings fittings Vehicles
&
equipment
# # # #
At 1 August 2005 2,694,397 391,601 13,127 3,099,125
Acquired with 8,187,307 - - 8,187,307
subsidiary
Additions 1,014,416 107,092 - 1,121,508
Disposals - - (4,042) (4,042)
----- ----- ----- -----
At 31 January 2006 11,896,120 498,693 9,085 12,403,898
----- ----- ----- -----
At 1 August 2005 98,278 91,898 2,553 192,729
Charge for the 70,104 46,611 1,851 118,566
period
Disposals - (1,123) (1,123)
----- ----- ----- -----
At 31 January 2006 168,382 138,509 3,281 310,172
----- ----- ----- -----
At 31 January 2006 11,727,738 360,184 5,804 12,093,726
----- ----- ----- -----
At 31 July 2005 2,596,119 299,703 10,574 2,906,396
----- ----- ----- -----
The additions arising on the acquisition of subsidiary relate to
Conduit Square Limited which was acquired on 10 October 2005.
Included in Land and Buildings additions is an amount of
#835,176 relating to the freehold interest in the Primary Steps
Nursery, East Sheen acquired from Iron Founders and Allied Trade
Nominees Limited.
NOTES TO THE GROUP ACCOUNTS
FOR THE SIX MONTHS ENDED 31 JANUARY 2006
5 Statement of movements on reserves
Profit & Loss Merger Share
Account reserve premium
account
# # #
Balance at 1 August 2005 (4,236,160) 2,143,250 7,635,396
Loss for period (1,519,243) - -
Costs of issue of shares - - (21,982)
- - -
Transfer of amortisation of goodwill to 220,989 (220,989) -
profit and loss account
----- ----- -----
Balance at 31 January 2006 (5,534,414) 1,922,261 7,613,414
----- ----- -----
6 Nature of financial Information
The interim figures for the six months ended 31 January 2006 and those for
the six months to 31 January 2005 are unaudited.
The financial information set out herein does not comprise full accounts
within the meaning of section 240 of the Companies Act 1985. the comparative
figures for the year ended 31 July 2005 are extracted from the audited
accounts for that year, which have been filed with the Registrar of
Companies. The auditors report on those accounts were unqualified and did
not contain any statement under section 237(2) or (3) of the Companies Act
1985.
The Interim Report has been prepared on the basis of the accounting policies
set out in the most recent set of annual financial statements.
Contact
Paul Ayers Creative Education Corporation Plc 020 8864 5147
Oliver Cairns Corporate Synergy Plc 020 7448 4417
END
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