RNS Number:2255R
Europasia Education PLC
14 September 2005
EUROPASIA EDUCATION PLC
INTERIM RESULTS
For The Six Months Ended 30 June 2005
Chairman's Statement
Highlights.
* Turnover up fourfold to #289,026 (2004: #74,219).
* Gross profit #190,253 (2004: #13,554)
* Operating loss before exceptional items reduced to #63,377 (2004: loss
#173,005)
* Purchase completed of a 12% stake in AGI, management company to SIIT,
a profitable Chinese University, for #1.0m.
* Record profits at AGI in year ended June 2005 of #2.4m, paving the way
for an autumn admission to Ofex
* Tangible pipeline of new investments progressing.
There has been a significant increase in group turnover, as the effects of the
acquisition of English 2000, our 100% owned UK language School, are felt.
English 2000 has altered the course mix and introduced new marketing methods in
order to grow the business. We will continue to seek ways to add value to this
investment, including developing into new markets.
The Company made an investment in February of #1 million for 12% of AGI,
management company for SIIT, a profitable Chinese University in Shandong
Province. AGI reported post tax profits of #2.4 million for the year ended 30
June 2005.
In June SIIT completed a major expansion, adding capacity for a further 5,000
students, the profits from which will feed through into 2006 results. SIIT is
planning a second phase of expansion, due to be completed in the summer of 2006,
for which AGI will raise further funds via a listing on OFEX, scheduled for this
autumn. Europasia is seeking to invest additional funds in AGI on its OFEX
float, and is currently exploring several financing options to raise the
necessary funds.
Following the success of this investment, I am pleased to report that our China
based team is seeking additional investment opportunities in China.
Due to it's small size as part of our portfolio, the board has decided to merge
Management International with other operations which will, in time, reduce
overheads and increase margins in this business. The board has therefore decided
to write off the goodwill relating to its investment in Management
International, which results in a one-off charge to the Profit and Loss account
of #173,038.
The Board has also taken the decision to provide #66,040 against its hitorical
investments in EnterpriseAsia plc, listed on AIM, and Value Convergence, listed
in Hong Kong. These investments were made by the previous management team.
As a result of the provisions against investments, totalling #239,078, the
overall loss for the period is #333,581 (2004 loss #182,083).
The Company has reached an important point in its development, with the
potential uplift on its investment in AGI, reduced overheads and increasing
contribution from E2000. I look forward to building on recent progress and
pursuing the investment opportunities currently under consideration in both the
UK and China.
James Holmes
Chairman and Chief Executive
14 September 2005
Consolidated Unaudited Unaudited Audited
Profit and Loss Account 6 months to 6 months to Year to
30 Jun 05 30 Jun 04 31 Dec 04
# # #
Turnover 289,026 74,219 360,188
Cost of Sales (98,773) (60,665) (164,818)
------ ------ ------
Gross Profit 190,253 13,554 195,370
Administrative expenses (253,630) (186,559) (482,513)
------ ------ ------
Operating loss before tax, interest,
depreciation and amortisation (63,377) (173,005) (287,143)
Amortisation of goodwill (196,804) (10,179) (40,163)
Provision against investments (66,040) - -
Depreciaton of tangible assets (10,285) (2,437) (11,948)
------ ------ ------
Operating loss (336,506) (185,621) (339,254)
Interest received 6,530 3,538 20,095
Interest payable (3,735) - (3,220)
------ ------ ------
Loss before taxation (333,711) (182,083) (322,379)
Taxation 130 - 1,359
------ ------ ------
Loss after taxation (333,581) (182,083) (321,020)
------ ------ ------
Basic loss per share (0.161p) (0.146p) (0.220p)
Consolidated Unaudited Audited
Balance Sheet as at as at
30 Jun 05 31 Dec 04
# #
Intangible assets 431,743 628,547
Tangible assets 26,793 36,767
Investments 993,861 66,040
------ ------
1,452,397 731,354
Current assets
Debtors 70,054 58,486
Cash 288,894 578,806
------ ------
358,948 637,292
Current liabilities (288,033) (349,848)
------ ------
Net current assets 70,915 287,444
Provision for deferred taxation (3,694) (3,694)
------ ------
Total assets less current liabilities 1,519,618 1,015,104
------ ------
Called up share capital 2,239,228 1,680,498
Share premium account 3,284,177 3,004,812
Profit and loss account (4,003,787) (3,670,206)
------ ------
Equity shareholders funds 1,519,618 1,015,104
------ ------
Consolidated Unaudited Unaudited Audited
Cash Flow statement 6 months to 6 months to Year to
30 Jun 05 30 Jun 04 31 Dec 04
# # #
Net cash outflow from operating activities
Operating loss (270,466) (185,621) (339,254)
Depreciation of tangible assets 10,285 2,437 11,948
Shares issued in lieu of consultancy fees - - 19,028
(Increase)/decrease in debtors (11,568) (113,353) 14,150
Increase/(decrease) in creditors (61,815) 54,859 (72,402)
Amortisation of goodwill 196,804 10,179 40,163
------ ------ ------
Net cash outflow from operating activities (136,760) (231,499) (326,367)
Interest received 6,530 3,538 20,095
Interest paid (3,735) (3,220)
Capital expenditure and financial investment
Payments to acquire tangible assets (311) - (3,895)
Payments to acquire investments (155,766) - (623,828)
------ ------ ------
Net cash outflow before management
of liquid resources and financing (289,912) (227,961) (937,215)
Financing
Issue of share capital - 539,194 539,194
Cash acquired with investments - - 475,861
------ ------ ------
Increase / (decrease) in cash in the period (289,912) 311,233 77,840
------ ------ ------
Reconciliation of net cash flow movement
Opening net funds 578,806 500,966 500,966
Increase / (decrease) in cash in period (289,912) 311,233 77,840
------ ------ ------
Closing net funds 288,894 812,199 578,806
------ ------ ------
Notes to the interim results
1 Basis of preparation
The information relating to the six month period ended 30 June 2005 is unaudited
and has not been reviewed by the Auditors. These statements have been prepared
on accounting bases and policies that are consistent with those used in the
preparation of the financial statements of the company for the year ended 31
December 2004. The information relating to the year ended 31 December 2004 is
extracted from the audited accounts of the Company, which have been filed at
Companies House and on which the auditors issued an unqualified opinion. The
financial information relating to the six month period ended 30 June 2005 does
not constitute statutory accounts within the meaning of Section 240 Companies
Act 1985. The financial information contained in this report was approved by
the Board of Directors on 14 September 2005.
2 Loss per share
Loss per share is based on the loss after tax of #333,711 on 207,562,230
ordinary shares being the weighted average number of ordinary shares in issue in
the period ended 30 June 2005. There is no dilutive effect of options.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PKNKQABKDCCD
Europasia Education (LSE:EPE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Europasia Education (LSE:EPE)
Historical Stock Chart
From Jul 2023 to Jul 2024