Final Results
Stagecoach Theatre Arts PLC
04 August 2003
Stagecoach Theatre Arts plc
4th August 2003
Stagecoach Theatre Arts plc ('Stagecoach Theatre Arts', 'Stagecoach' or the
'Group')
Preliminary Announcement of Final Results for the year ended 31st May 2003
Stagecoach Theatre Arts reports another successful year of continued expansion.
The Group has maintained its high levels of educational quality, whilst
developing new business opportunities and increasing profitability.
Stagecoach Theatre Arts was founded in 1988 and operates the UK's largest
franchise network of part-time performing arts schools for young people aged
between 4 and 19.
A summary of the Group's results and achievements during the year is as follows:
Franchise network turnover increased by 25% to £15.6m (unaudited) (2002: £12.5m)
Profit before tax increased by 14% to £0.81m (2002: £0.71m)
456 Stagecoach schools and 429 Early Stages classes in the UK as at the year end
26,200 Stagecoach students across the UK (2002: 22,300)
The launch of the first six SportsCoach franchise schools in April 2003
A number of high profile successful events and productions
Continuing support for the Stagecoach Charitable Trust
Final dividend proposed of 2 pence per share
Since the year end, further developments have been achieved overseas, with the
first Stagecoach franchise sold in the USA in June 2003, and the acquisition of
Stagecoach Germany (90% subsidiary) on 29th July 2003.
David Sprigg, Joint Managing Director, commented:
'We are delighted with the continued growth of the Group this year, and report
on another excellent set of results. This has been another very busy year for
us: increasing the number of students throughout the network by 17.5% to 26,200,
and preparing for future growth with SportsCoach, StageCoach USA and Stagecoach
Germany.'
Enquiries:
Stagecoach Theatre Arts: Tel: 01932 254 333
David Sprigg, Joint Managing Director
Richard Dawson, Finance Director
Evolution Beeson Gregory: Tel: 020 7488 4040
Tom Price
Henry Turcan
Chairman's Statement
I am pleased to announce the Group's full year results for the year ended 31st
May 2003. Stagecoach Theatre Arts was founded in 1988 and operates the UK's
largest network of part-time performing arts schools for young people aged
between 4 and 16.
Summary
This year has seen a considerable investment of time and resources in
preparation for future growth in the core business with the further development
of StageCoach USA and Stagecoach Germany. Franchise network turnover, the number
of Stagecoach schools and students, and group profitability have all increased
considerably over the year.
As part of the Group's development and expansion strategy, SportsCoach
franchising has been successfully launched with the sale of the first six
SportsCoach franchises in the UK, their new schools having opened in April 2003.
Since the year end, we have seen the sale of the first Stagecoach franchise in
the USA and have completed the negotiations to acquire and own 90% of Stagecoach
Germany.
The (unaudited) network turnover, which reflects the underlying school fees
throughout the franchisee network, for the year to 31st May 2003 has increased
by 25% to £15.6 million (2002: £12.5 million). Profit before tax for the year
has increased 14% to £0.81 million (2002: £0.71 million). Earnings per share is
5.5 pence (2002: 6.0 pence or 5.1 pence restated).
The Group continues to support Stagecoach Charitable Trust, which runs InterAct
Theatre Workshops, providing inclusive performing arts tuition to children of
all abilities and needs.
Your Board proposes the payment of a final dividend of 2 pence per share.
Strategy for growth
We have made excellent progress in fulfilling our strategy for growth, which is:
• to continue the expansion of Stagecoach in the UK;
• to develop and grow SportsCoach in the UK; and
• to expand Stagecoach and SportsCoach in USA and Germany.
Stagecoach Theatre Arts has grown by way of franchising to a network of 456
Stagecoach Schools (2002: 380 schools) and 429 Early Stages classes (2002: 344
classes) across the UK, offering part-time tuition in dance, drama and singing.
The Group has a track record of sustained growth in turnover and profits and
currently tutors over 26,000 students in the UK.
Following the success of the four pilot SportsCoach schools, the first six
SportsCoach franchise schools were successfully launched in April 2003, with
seven more SportsCoach franchise schools opening in September 2003. There are
now 326 SportsCoach students attending ten SportsCoach schools across the UK.
We have met our target to start franchising in the USA in the second half of
2003, having completed extensive legal preparations as required by the US
Federal and individual State laws to offer franchises to the general public in
certain States within the USA. We have sold the first Stagecoach franchise in St
Paul, Minnesota in June 2003.
During the year we have entered into negotiations with our German partner to
acquire an increased stake in Stagecoach Germany, and as of 29th July 2003 we
now own 90% of the German subsidiary.
Your Board is also reviewing other complementary children's activities that
would provide additional income streams.
On behalf of the Directors, I would like to take this opportunity to thank all
the staff for their continued hard work and dedication to the Group throughout
the year, and to welcome our new staff.
Further details of the operations of the business are set out in the Joint
Managing Directors' Operating Review.
Prospects
The future prospects of the Group are encouraging; we have already contracted or
have received firm indications from new and existing franchisees to open another
18 Stagecoach schools and seven SportsCoach schools in the UK in September 2003.
We have started marketing for franchisees in the USA and are preparing
Stagecoach Germany for franchising.
The expansion of the core Stagecoach business is evidenced in the 25% increase
in student fees this year to £15.6 million. In addition, the medium term to long
term earnings potential of the Group is being enhanced through the current
development plans.
The brand name of Stagecoach Theatre Arts grows stronger each year, and we look
forward to the continuing growth of the business whilst maintaining the quality
of the tuition that we provide to all our students. In summary, the prospects
for the Group remain very positive.
Graham Cole
Chairman
4th August 2003
Joint Managing Directors' Operating Review
We announce our full year results for the year ended 31st May 2003.
Operations
The principal indicator of the Group's growth is the number of schools opened
during the year and the number of students attending those schools. Our
franchisees open new schools only at the beginning of the Summer Term in April
and the Autumn Term in September.
Stagecoach schools
The numbers of Stagecoach Theatre Arts schools and of students attending them
has increased over the year to 456 schools at the year end with over 20,400
students (2002: 380 schools and 17,400 students). In addition, the number of
Early Stages classes increased over the year to 429 at the year end with 5,800
students (2002: 344 Early Stages classes and 4,900 students). This represents an
increase over the year of 17.5 per cent in the total number of students
attending a Stagecoach Theatre Arts school (for 6 to 16 year olds) or an Early
Stages class (for 4 to 6 year olds) from approximately 22,300 to 26,200
students.
The number of franchisees also increased over the period under review from 156
to 180, demonstrating that the growth in schools has come from both new
franchisees joining the network and existing franchisees expanding their
individual businesses.
SportsCoach schools
The development and expansion of SportsCoach is on schedule. SportsCoach
launched a fourth and final pilot school in September 2002, and thereafter began
offering SportsCoach franchises in the UK.
A SportsCoach franchise offers the individual the opportunity to run their own
part-time sports school, employing three sports coaches, coaching up to 48
students, divided into three 'squads' of 16 students. Typically SportsCoach
schools are operated for three hours at the weekend for 36 weeks of the year,
coaching students in team sports, individual sports and team building
challenges.
Following a successful marketing campaign, the first six SportsCoach franchises
were sold and their schools were successfully launched in April 2003. There is a
good geographical spread of these first six franchised schools, located in
Bedford, Cheam, Cyncoed, Sheffield, Torquay and Yarm.
As at the year end date, there were 326 SportsCoach students attending the 10
SportsCoach schools across the UK (2002: 3 schools and 117 students). Another
seven SportsCoach franchise schools have already been contracted to open in
September 2003, including two franchisees who are opening their second schools.
Overseas schools
On 3rd June 2002, the Group acquired the remaining 51 per cent of Stagecoach
Theatre Arts Schools Limited ('Stagecoach USA'), a company which operated five
Stagecoach schools and owns all the Stagecoach operations in the United States
of America. The Group now owns 100 per cent of Stagecoach USA.
During the year the Group invested a further $60,000 into its USA subsidiary to
prepare for the expansion of Stagecoach via franchising. Unlike the UK, there
are extensive US Federal and individual State laws governing the offering of
franchises to the general public. Having completed the legal requirements to
start franchising within certain States of the USA, and having opened a sixth
Stagecoach managed school in March 2003 in Rochester, Minnesota, under strict
franchisee test conditions, we have sold our first US Stagecoach franchise in St
Paul, Minnesota, in June 2003, as planned. The sale of this franchise included
the sale of two of the six existing managed schools in Minnesota.
Stagecoach USA's six schools and five Early Stages classes have at the year end
337 students in total. Stagecoach USA also runs a successful Summer Workshop
programme.
In the post balance sheet period, we have started our marketing campaign for new
franchisees, targeting Minnesota, where our head office is based, New York and
its surrounding states, and the city of Chicago, Illinois.
During the year we entered into negotiations with our German joint venture
partner with a view to increasing our equity stake in Stagecoach Germany. A new
subsidiary company, Stagecoach Theatre Arts Schools GmbH, was established as the
vehicle to acquire the increased stake. On 29th July 2003 the transaction was
completed, resulting in our 90% ownership of Stagecoach Germany and employing
our joint venture partner as the Chief Operating Officer. Stagecoach Germany has
five schools, five Early Stages classes and a total of 280 students in the
Nuremberg area. We intend to offer franchises in Germany from the second quarter
of 2004.
The Group continues to support its other overseas operations and interests in
Stagecoach Theatre Arts schools in Spain, Malta, Gibraltar and Australia. In the
post balance sheet period, the Group has agreed to repurchase the Master
Franchise rights for Australia. The combined contributions to turnover and
profit of the overseas operations remain minimal. However, the USA and German
markets present exciting opportunities for future growth.
Financial Review
We report a 25% increase in unaudited franchise network turnover for the year to
31st May 2003 at £15.6 million (2002: £12.5 million), whilst Group turnover in
the period increased to £5.0 million (2002: £3.5 million). Profit before tax for
the year has increased by 14% to £0.81 million (2002: £0.71 million). As at 31st
May 2003, the net cash balances of the Group stood at £1.0 million. These cash
balances reflect the effects of the late Easter, resulting in our Summer Term
2003 school fees being collected after the year end. The net cash balances of
the Group as at 30th June 2003 stood at £1.7 million.
Earnings per share for the year is 5.5 pence (2002: 6.0 pence or 5.1 pence
restated).
The Group remains a cash generative business and with the exception of the
current overseas development costs, has relatively little capital requirements.
As such, your Board has proposed a final dividend of 2 pence per share.
The Group has increased its number of employees (full time equivalents) to 50 as
at 31st May 2003, including three StageCoach USA employees, from 40 as at 31st
May 2002.
Creative and Educational Department
During this period of growth your Board is dedicated to continuing to provide
the highest standards of student education and opportunity. The Creative and
Education Department, headed by Stephanie Manuel, has five full time employees
and is committed to being at the forefront of standards of education in the
performing arts.
Evidence of the continuing success of the Stagecoach programme is best
illustrated by the achievements of its students who consistently gain places for
further education at universities and accredited drama and dance colleges. In
many cases qualified students return to take up teaching posts and even apply
for franchises.
One of the unique features of Stagecoach is that it provides students with
opportunities to participate in special performances and events each year. Over
the last year these included:
2,500 Stagecoach students performed at Her Majesty Queen Elizabeth II's Golden
Jubilee Celebrations in Trafalgar Square and The Mall on June 4th 2002.
The annual Easy Stages production at the Epsom Play House in August 2002,
featured 70 Stagecoach students from throughout the UK and overseas in 'Barnum'.
In November 2002, over 200 Stagecoach students performed at a NSPCC charity
concert at the Broadway Theatre, Peterborough.
Throughout the year, students from all over the UK were auditioned and selected
to perform at their local theatres in a professional show called 'Beyond
Broadway'.
In May 2003, Stagecoach Students performed at a charity concert at Sadlers
Wells, London in aid of Milly's Fund.
In May 2003, 1,200 Stagecoach students from the Midlands area took part in a
large concert at the National Indoor Arena Birmingham in aid of charity.
On 6th July 2003, 1,500 Stagecoach students from across the UK performed in a
charity concert, Sing-a-Single, at The Royal Albert Hall.
Stagecoach's training, together with these extra-curricular performing
opportunities, offers immense benefits to students in growth of confidence,
self-esteem as well as fostering enjoyment and well being.
The Group is committed to further investment in and development of its Creative
and Educational department, which remains at the heart of the operations of the
business.
StageCoach Charitable Trust
The Group continues to support and provide management time to the Stagecoach
Charitable Trust, which amongst other activities runs InterAct Theatre
Workshops, providing inclusive performing arts tuition to children of all
abilities and needs.
Your Board has decided that the benefits to children who have attended the three
pilot InterAct Theatre Workshops since its launch two years ago have proven so
successful and so worthwhile that we wish to support the Stagecoach Charitable
Trust on a more formal financial basis. To date over 150 children, aged 10 to
19, have benefited from the three InterAct workshops located at
Walton-on-Thames, Hampton and Hounslow. A new InterAct workshop is due to open
in Bournemouth in September 2003. The feedback from the children attending
InterAct and their parents has been overwhelmingly positive.
Your Board has decided to donate up to 4 per cent. of the Group's profit before
tax each year to the Stagecoach Charitable Trust, to fund the existing InterAct
workshops and enable the charity to encourage and provide financial support to
our franchisees across the UK to open further InterAct Theatre Workshops.
Summary
Summarising the activities of the Group for the period under review, this has
been another very successful year, during which we have achieved further growth
in the core business and have paved the way for future expansion with
SportsCoach, StageCoach USA and Stagecoach Germany.
Stephanie Manuel David Sprigg
Joint Managing Director Joint Managing Director
4th August 2003
Stagecoach Theatre Arts plc
Consolidated Profit and Loss Account
Year ended 31st May 2003
Note 2003 2002
£'000 £'000 £'000 £'000
Turnover
Continuing activities 2 4,768 3,121
Acquired activities 193 -
Discontinued activities - 334
4,961 3,455
Cost of sales 3 (2,968) (1,776)
Gross profit 1,993 1,679
Administrative expenses 3 (1,417) (1,158)
Other operating income 3 194 168
Operating profit
Continuing activities 824 815
Acquired activities (54) -
Discontinued activities - (126)
770 689
Interest receivable 39 27
Interest payable and similar charges (4) (3)
Profit on ordinary activities before taxation 805 713
Tax on profit on ordinary activities 4 (277) (218)
Profit on ordinary activities after taxation 528 495
Dividends 5 (194) (747)
Retained profit/(loss) for the financial year 334 (252)
Earnings per share, pence - Basic 6 5.5 6.0
- Basic restated 6 5.1
- Diluted 6 5.4 5.9
- Diluted restated 6 5.0
All recognised gains and losses are included in the profit and loss account.
The basis for the restated comparative earnings per share is set out in Note 6.
Stagecoach Theatre Arts plc
Consolidated Balance Sheet
As at 31st May 2003
2003 2002
£'000 £'000 £'000 £'000
Fixed assets
Intangible fixed assets 774 705
Tangible fixed assets 114 110
888 815
Current assets
Stocks 206 159
Debtors 1,671 921
Cash at bank and in hand 1,029 1,615
2,906 2,695
Creditors
Amounts falling due within one year (1,273) (1,330)
Net current assets 1,633 1,365
Total assets less current liabilities 2,521 2,180
Creditors:
Amount falling due after more than one year (44) (32)
2,477 2,148
Capital and reserves
Share capital 485 484
Share premium 1,531 1,534
Profit and loss account 461 130
Equity shareholders' funds 2,477 2,148
The financial statements were approved by the Board on 4th August 2003
Stephanie Manuel
Director
David Sprigg
Director
Stagecoach Theatre Arts plc
Company Balance Sheet
As at 31st May 2003
2003 2002
£'000 £'000 £'000 £'000
Fixed assets
Intangible fixed assets 693 705
Tangible fixed assets 110 110
Investments in subsidiaries 171 -
974 815
Current assets
Stocks 202 159
Debtors 1,643 921
Cash at bank and in hand 999 1,615
2,844 2,695
Creditors
Amounts falling due within one year (1,242) (1,330)
Net current assets 1,602 1,365
Total assets less current liabilities 2,576 2,180
Creditors:
Amount falling due after more than one year (44) (32)
2,532 2,148
Capital and reserves
Share capital 485 484
Share premium 1,531 1,534
Profit and loss account 516 130
Equity shareholders' funds 2,532 2,148
The financial statements were approved by the Board on 4th August 2003
Stephanie Manuel
Director
David Sprigg
Director
Stagecoach Theatre Arts plc
Consolidated Cash Flow Statement
Year ended 31st May 2003
Note 2003 2002
£'000 £'000 £'000 £'000
Net cash (outflow) / inflow from operating 7 (286) 73
activities
Returns on investments and servicing of finance
Interest received 39 18
Interest element of finance lease rental repayments (4) (3)
35 15
Taxation
Corporation tax paid (218) (207)
Capital expenditure
Payments to acquire tangible fixed assets (30) (56)
Payments to acquire intangible fixed assets (24) -
Sale proceeds from disposal of fixed assets - 45
(54) (11)
Acquisitions and disposals
Purchase of subsidiary (72) -
Purchase of trades - (35)
Net cash acquired with subsidiary / trades 26 73
(46) 38
Equity dividends paid - (747)
Net cash (outflow) before financing (569) (839)
Financing
Gross proceeds from the issue of shares 2 2,500
Flotation costs/costs of raising capital offset (4) (832)
against share premium
Capital element of finance lease payments (8) (9)
Capital element of bank loan payments (7) (12)
Cash (outflow) / inflow from financing (17) 1,647
(Decrease) / Increase in cash (586) 808
Reconciliation of net cash flow to movement in net funds (note 8)
2003 2002
£'000 £'000 £'000 £'000
(Decrease) / Increase in cash balances (586) 808
Capital element of finance lease payments 8 9
Capital element of bank loan payments 7 12
(571) 829
Finance leases acquired with trade - (48)
Opening balances of net funds 1,569 788
Closing balances of net funds 998 1,569
Stagecoach Theatre Arts plc
Notes to the Financial Statements
1. Basis of preparation
The financial statements have been prepared in accordance with applicable
Accounting Standards under the historical cost convention. The consolidated
financial statements include the audited financial statements of the company and
its subsidiary undertakings. Subsidiary undertakings acquired are consolidated
using the acquisition method of accounting from the effective date of
acquisition.
The financial information presented in this preliminary announcement does not
constitute statutory accounts within the meaning of the Companies Act 1985. The
information has however been extracted from the Group's statutory accounts for
the year ended 31st May 2003 which were approved by the Board on 4th August 2003
and on which the Group's auditors have given an unqualified opinion.
2. Turnover by geographical location
2003 2002
£'000 £'000
UK 4,728 3,433
Europe 40 22
Rest of the world 193 -
Total turnover 4,961 3,455
Turnover is analysed on an origination basis. It is not material or practical to
provide a similar analysis of operating profit and net assets.
3. Continuing, acquired and discontinued activities
2003 2002
£'000 £'000
Cost of sales:
Continuing activities (2,749) (1,411)
Acquired activities (219) -
Discontinued activities - (365)
Total cost of sales (2,968) (1,776)
Administrative expenses:
Continuing activities (1,380) (1,049)
Acquired activities (37) -
Discontinued activities - (109)
Total administrative expenses (1,417) (1,158)
Other operating income:
Continuing activities 185 154
Acquired activities 9 -
Discontinued activities - 14
Total other operating income 194 168
4. Taxation
Analysis of the tax charge
The tax charge on the profit on ordinary activities for the year was as follows:
2003 2002
Current tax: £'000 £'000
UK corporation tax 277 217
Adjustments in respect of previous periods - 3
Current tax charge for year 277 220
Deferred taxation - reversal of timing differences - (2)
Tax on profit on ordinary activities 277 218
UK corporation tax has been charged at 30 % (2002: 30%).
b) Reconciliation of the tax charge
2003 2002
£'000 £'000
Profit on ordinary activities before tax 805 713
Profit on ordinary activities at standard rate 242 214
of UK corporation tax of 30%
Effects of:
Unrelieved losses of overseas subsidiaries 17 -
Expenses not deductible for tax purposes 18 10
Capital allowances for period in excess of depreciation - (7)
Adjustment to tax charge in respect of previous periods - 3
Current tax charge for year 277 220
5. Dividends
2003 2002
£'000 £'000
Equity shares:
Proposed final dividend (2 pence per share) 194 -
Paid - interim dividend (£49.80 per share) - 747
194 747
6. Earnings per share
Basic earnings per share, calculated in accordance with FRS14 (Earnings per
share) of 5.5 pence (2002: 6.0 pence), is based upon the profit on ordinary
activities after tax of £0.53 million (2002: profit £0.50 million) apportioned
over the weighted average number of ordinary shares that were in issue for the
period of 9,688,780 (2002: 8,244,660). Fully diluted earnings per share is
calculated at 5.4 pence (2002: 5.9 pence), based upon weighted average number of
ordinary shares, including options granted to employees, of 9,825,682 (2002:
8,356,312). The restated comparative earnings per share is based on the
assumption that the same number of shares were in existence for the comparative
period as the current period, thus eliminating the distortions on the
comparative earnings per share arising from the effects of the flotation in
December 2001.
7. Reconciliation of operating profit to operating cash flows
2003 2002
£'000 £'000
Operating profit 770 689
Depreciation and amortisation of goodwill 71 43
Profit on sale of fixed assets - (15)
(Increase) in Stocks (43) (30)
(Increase) in debtors (748) (679)
(Decrease) / Increase in creditors (333) 65
Foreign exchange differences (3) -
Net cash (outflow) / inflow from operating activities (286) 73
8. Analysis of changes in net funds
Opening Cash Closing
balance
balance flow
£'000 £'000 £'000
Cash at bank and in hand 1,615 (586) 1,029
Finance leases and loans (46) 15 (31)
Total net funds 1,569 (571) 998
9. Post balance sheet events
On 29th July 2003, the Group acquired, via its dormant subsidiary company,
Stagecoach Theatre Arts Schools GmbH, 50 per cent of the German Stagecoach
Theatre Arts operations not already owned by the Group. The consideration
payable was 10 per cent of the equity of Stagecoach Theatre Arts Schools GmbH,
which the directors estimate to be worth £20,000.
This information is provided by RNS
The company news service from the London Stock Exchange
Monday, 20th May 2024
COMPANIES COVERED:
Latest directors dealings
- 24 minutes ago Fintel
- 25 minutes ago ADVFN
- 25 minutes ago Huddled Group
- 25 minutes ago Uniphar (CDI)
- 25 minutes ago MyCelx Technologies Corporation (DI)