Interim Results
Stagecoach Theatre Arts PLC
27 January 2003
Stagecoach Theatre Arts plc - Interim Results 2002
27th January 2003
Stagecoach Theatre Arts plc ('Stagecoach Theatre Arts', 'Stagecoach' or the
'Group')
Announcement of Interim Results for the six months ended 30th November 2002
Stagecoach Theatre Arts continues to expand its operations, with a record number
of new schools opened in the six-month period under review. 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 16.
A summary of the Group's results and achievements during the six-month period is
as follows:
• Franchise network turnover of approximately £7.5m
• Group turnover of £2.4m
• Profit of £0.35m
• 424 Stagecoach schools and 381 Early Stages classes as at 30th November
2002
• 24,200 students across the UK (2001: 20,000 students)
• Sale of the first SportsCoach franchise
• Acquired Stagecoach USA on 3rd June 2002
• A number of high profile successful events and productions during the
period
Stephanie Manuel and David Sprigg, Joint Managing Directors, commented:
'We are delighted with the continued growth of Stagecoach during this six month
period. Particularly pleasing is the further development of SportsCoach and the
sale of the first SportsCoach franchise, which commences its new school in
Durham in April 2003. We continue to meet our strategy for growth as set out at
flotation, whilst maintaining the very high standards of education across the
entire Stagecoach Theatre Arts network.'
Enquiries:
Stagecoach Theatre Arts: Tel: 01932 254 333
Stephanie Manuel, Joint Managing Director
David Sprigg, Joint Managing Director
Richard Dawson, Finance Director
Evolution Beeson Gregory: Tel: 020 7488 4040
Tom Price
Henry Turcan
Chairman's Statement
Results
The Group's results for the six months ended 30th November 2002 showed an
overall trading performance in line with expectations.
The network turnover, reflecting the underlying school fees throughout the
franchisee network, for the period was approximately £7.5 million. Group
turnover for the period was £2.4 million with profit before tax of £0.35
million. Earnings per share was 2.5 pence.
As explained in the Notes to the Results, no comparative figures are produced in
this report, as the results for the six months to 30th November 2001 would not
be directly comparable to the financial performance of the enlarged company,
following its admission to the Alternative Investment Market on 14th December
2001.
Operational Performance
The Board is pleased to report an enhancement in the operational performance of
the business, with the number of Stagecoach Theatre Arts schools totalling 424
(30th November 2001: 355 schools; and 31st May 2002: 380 schools), and 381 Early
Stages classes (30th November 2001: 303 classes; and 31st May 2002: 344
classes). In total, the number of students attending Stagecoach Theatre Arts
schools, for 6 to 16 year olds, or its Early Stages classes, for 4 to 6 year
olds, as at the period end was 24,200, an increase of 21% from this time last
year (30th November 2001: 20,000 students; and 31st May 2002: 22,000 students).
Across the entire network of Stagecoach Theatre Arts schools, including the new
schools and Early Stages classes opened this Autumn Term, over 95% of all
available places are taken.
SportsCoach opened its fourth and final pilot school in September 2002, and
continues to be a success with students and parents alike. With 177 students
during the Autumn Term 2002, three of the four SportsCoach schools were full to
capacity and the fourth school was 70% full. We have sold our first SportsCoach
franchise which commences its school in April 2003 in Durham, and have secured
firm indications of sales of a further eight franchises to commence their
SportsCoach schools in April or September 2003.
We continue to develop Stagecoach Theatre Arts Schools Limited, our wholly owned
US subsidiary acquired on 3rd June 2002. The US subsidiary contributed turnover
of £113,000 for the period from its five managed Stagecoach schools, and
reported a loss for the period of £8,000 reflecting the additional legal and
administrative costs of preparing for franchising.
Creative and Educational
The Group staged a number of very successful events during the period. On 4th
June 2002, 2,000 Stagecoach students performed at HRH Queen Elizabeth's Golden
Jubilee Celebration at Buckingham Palace. The annual Easy Stages production at
the Epsom Playhouse in August 2002, this year being 'Barnum', featured 70
Stagecoach students, and was very well received.
Board
On 1st August 2002, we were pleased to appoint Manzoor Ishani to the Board, as
Franchise Development Director.
Outlook
The business continues to grow in the UK, evidenced by the record increase in
new schools openings last Autumn Term and total number of students attending the
schools throughout the network. Plans to develop SportsCoach and the overseas
operations, particularly the USA and Germany, are in line with the strategy as
set out at flotation.
Graham Cole
Chairman
27th January 2003
INDEPENDENT REVIEW REPORT TO STAGECOACH THEATRE ARTS PLC
Introduction
We have been instructed by the company to review the financial information for
the six months ended 30th November 2002 which comprises the consolidated profit
and loss account, consolidated balance sheet, consolidated cashflow statement
and the related notes that have been reviewed. We have read the other
information contained in the interim report and considered whether it contains
any apparent misstatements or material inconsistencies with the financial
information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards and therefore
provides a lower level of assurance than an audit. Accordingly we do not express
an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30th November 2002.
PKF
Guildford
27th January 2003
Stagecoach Theatre Arts plc
Consolidated Profit and Loss Account
Unaudited Audited
Six months ended Year ended
30th November 2002 31st May 2002
£000 £000
Turnover
Continuing activities 2,244 2,655
Acquired activities 113 466
Discontinued activities - 334
2,357 3,455
Operating profit
Continuing activities 343 855
Acquired activities (8) (40)
Discontinued activities - (126)
335 689
Net interest receivable 17 24
Profit on ordinary activities before taxation 352 713
Tax on profit on ordinary activities (109) (218)
Profit on ordinary activities after taxation 243 495
Dividends - (747)
Retained profit for the period 243 (252)
Earnings per share, pence - Basic 2.5 6.0
- Diluted 2.5 5.9
Stagecoach Theatre Arts plc
Consolidated Balance Sheet
Unaudited Audited
Six months ended Year ended
30th November 2002 31st May 2002
£000 £000
Fixed assets
Intangible assets 771 705
Tangible assets 115 110
886 815
Current assets
Stock 206 159
Debtors 875 921
Cash 1,601 1,615
2,682 2,695
Creditors
Amounts falling due within one year (1,113) (1,330)
Net current assets 1,569 1,365
Total assets less current liabilities 2,455 2,180
Creditors
Amounts falling due after one year (68) (32)
Net assets 2,387 2,148
Capital and reserves
Share capital 484 484
Share premium 1,530 1,534
Profit and loss account 373 130
Equity shareholders' funds 2,387 2,148
Stagecoach Theatre Arts plc
Consolidated Cash Flow Statement
Unaudited Audited
Six months ended Year ended
30th November 2002 31st May 2002
£000 £000
Net cash inflow from operating activities 32 73
Returns on investments and servicing of finance 17 15
Taxation - (207)
Capital expenditure (21) (11)
Acquisitions and disposals (38) 38
Equity dividends paid - (747)
Net cash outflow before financing (10) (839)
Financing (4) 1,647
Increase / (decrease) in cash (14) 808
Stagecoach Theatre Arts plc
Notes
1. Basis of preparation
The interim financial statements have been prepared on the basis of the
accounting policies set out in the statutory accounts for the year ended
31st May 2002.
The figures for the year ended 31st May 2002 have been extracted from the
statutory accounts for the year. These accounts received an unqualified
audit report and have been filed with the Registrar of Companies.
As reported in the Interim Statement for the comparative period, due to the
acquisition of a number of entities by Stagecoach Theatre Arts (Regional
Schools) Limited on flotation, its stand alone interim financial statements
for the six months ended 30th November 2001 would not be directly comparable
to the financial performance of the enlarged company. Consequently no
comparative results are produced in this report.
On 3rd June 2002, Stagecoach Theatre Arts plc acquired the outstanding share
capital of Stagecoach Theatre Arts Schools Limited, a US company. The
results of this subsidiary are consolidated from the date of acquisition.
The goodwill arising on consolidation in respect of the acquisition has been
capitalised in the current period and amortised over its estimated useful
life. The directors regard 20 years as a reasonable period for the estimated
life of goodwill.
The half-year figures to 30th November 2002 have not been audited by the
Group's auditors and do not constitute statutory accounts within the meaning
of section 240 of the Companies Act 1985.
2. Earnings per share
Earnings per share have been calculated on earnings for the period divided
by the weighted average number of Ordinary shares in issue of 9,688,172
(31st May 2002: 8,244,660). Fully diluted earnings per share have been
calculated based upon the weighted average number of ordinary shares,
including options granted to employees, of 9,871,749 (31st May 2002:
8,356,312).
3. Taxation
Corporation Tax for the period has been charged at 30%, being the effective
rate for the year ended 31st May 2002, and is the current expected rate for
this year ending 31st May 2003.
4. Dividends
No interim dividend has been proposed.
5. Issue of share options
On 5th August 2002, the company granted options over 44,444 ordinary shares
of 5p each, exercisable at 112.5p per share between 5th August 2005 and 5th
August 2012.
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. Availability of Interim Report
Copies of these results together with the Chairman's statement are being sent to
shareholders and will also be available from the company's registered office at
The Courthouse, Elm Grove, Walton-on-Thames, Surrey KT12 1LZ.
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