Interim Results
Stagecoach Theatre Arts PLC
27 January 2005
Stagecoach Theatre Arts plc - Interim Results 2004
Stagecoach Theatre Arts plc ('Stagecoach')
Announcement of Interim Results for the six months ended 30th November 2004
Stagecoach operates the UK's largest franchise network of part-time performing
arts schools for young people aged between 4 and 16. Stagecoach continues to
expand its core business, whilst developing other potential growth areas. There
are now 517 Stagecoach schools, 538 Early Stages classes and 32 SportsCoach
schools in the UK, with a total of 31,100 students attending these schools
(2003: 28,300 students).
A summary of the Group's results and achievements during the six-month period is
as follows:
Franchise network turnover up 8% to £9.3 million (2003: £8.6 million)
Loss of £0.19m (2003: profit £0.15 million), primarily reflecting the
significant investment in SportsCoach and Mini Stages in the UK and new schools
in USA and Germany
First franchised schools in Germany
First Mini Stages franchises
A number of high profile successful events and productions during the period
Stephanie Manuel and David Sprigg, Joint Managing Directors, commented:
'This has been a period of further investment in and development of SportsCoach,
Stagecoach USA, Stagecoach Germany and Mini Stages. We continue to implement our
strategy for growth, whilst maintaining the very high standards of education
across the entire network.'
Enquiries:
Stagecoach Theatre Arts: Tel: 01932 254 333
Richard Dawson, Finance Director and Investor Relations
Evolution Beeson Gregory: Tel: 020 7071 4300
Tom Price
Henry Turcan
Public Relations, JBPR: Tel: 01629 825 777
John Burley
Chairman's Statement
Results and Overview
The Group's results for the six months ended 30th November 2004 reflect further
expansion in Stagecoach's core business and the continuation of development and
investment in other potential growth areas. There are now 31,100 students
attending Stagecoach and SportsCoach schools in the UK (2003: 28,300 students).
The network turnover, which reports the underlying school fees throughout the
franchise network, was approximately £9.3 million for the period (2003: £8.6
million).
Group loss before tax was £189,000 (2003 profit before tax: £154,000). The loss
for this period reflects the further investment in and development of
SportsCoach, Stagecoach USA, Stagecoach Germany, and Mini Stages, and the launch
of the new nationwide Stagecoach Agency during this period.
Your Board expects a return to profitability in the second half of the year.
There are more income generating school weeks in the second half of the year
than the first half, whilst the costs are evenly spread throughout the year. In
addition, we anticipate that a greater proportion of initial franchise fees will
be recognised in the second half of this financial year.
Loss per share was 2.5 pence (2003 earnings per share: 1.1 pence).
Operational Performance
Stagecoach schools
The numbers of Stagecoach Theatre Arts schools and students attending them have
increased over the period to 517 schools and 22,500 students (2003: 477 schools
and 21,200 students). In addition, the number of Early Stages classes has
increased to 538 with 7,300 students attending (2003: 465 Early Stages classes
and 6,500 students). Across the entire network of Stagecoach Theatre Arts
schools, including the new schools and Early Stages classes opened this Autumn
Term, 96% of all available places are taken. This growth has been achieved
whilst maintaining the high standards of education throughout the network.
SportsCoach schools
The SportsCoach franchise network continues to expand, having first franchised
in April 2003. There are now 32 SportsCoach schools and 1,126 students (2003: 18
schools and 652 students).
Mini Stages
Mini Stages, for six months to five-year-olds, was launched in September 2003 as
a new concept to complement the existing range of educational services offered.
We commenced franchising Mini Stages in the Autumn Term 2004. There are now six
Mini Stages schools, of which two are franchised, divided into 23 sessions and a
total of 261 students.
Overseas schools
We continue to invest in and develop both our USA and German subsidiary
companies. Stagecoach Germany's first two franchisees opened their schools last
Autumn Term, and in the USA three franchised schools opened in New York. Between
these two markets, there are 16 Stagecoach schools, 13 Early Stages classes and
a total of 648 students.
Creative and Educational
The Group staged a number of very successful events during the period. The
annual Easy Stages showcase production this year was 'Pirates of Penzance', and
featured 70 Stagecoach students from schools across the country and overseas. In
September, over 100 Stagecoach students performed at the Cresset Theatre in
Peterborough in a charity concert in aid of the NSPCC. In November, 50
Stagecoach students took part in the Lord Mayor's Show and 300 Stagecoach
students performed a selection of dance and singing routines at Her Majesty's
Theatre, London, celebrating sixteen years of Stagecoach Theatre Arts success.
Dividend
Stagecoach Theatre Arts plc paid a final dividend for the year ended 31st May
2004 of 2 pence per share on 27th November 2004. In accordance with the existing
dividend policy, no interim dividend has been proposed.
Outlook
The Group continues to expand its core Stagecoach business whilst investing for
long-term future growth via the new markets and broader educational offering.
The prospects for the future look encouraging.
Graham Cole
Chairman
27th January 2005
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 2004 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 2004.
PKF
Guildford
27th January 2005
Stagecoach Theatre Arts plc
Consolidated Profit and Loss Account
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 Nov 2004 30 Nov 2003 31 May 2004
£000 £000 £000
Turnover
Continuing activities 2,520 2,385 5,124
Acquired activities 3 67 157
2,523 2,452 5,281
Operating (loss) / profit
Continuing activities (199) 136 384
Acquired activities 8 5 (68)
(191) 141 316
Net interest receivable 2 13 13
(Loss) / profit on ordinary activities before taxation (189) 154 329
Tax on profit on ordinary activities (57) (52) (142)
(Loss) / profit on ordinary activities after taxation (246) 102 187
Minority interests 1 (1) 6
Dividends - - (195)
Retained (loss) / profit for the period (245) 101 (2)
(Loss)/Earnings per share, pence (2.5) 1.1 1.9
- Basic
- Diluted (2.5) 1.0 1.9
Stagecoach Theatre Arts plc
Consolidated Balance Sheet
Unaudited Unaudited Audited
30 Nov 2004 30 Nov 2003 31 May 2004
£000 £000 £000
Fixed assets
Intangible assets 827 847 835
Tangible assets 135 133 142
962 980 977
Current assets
Stock 301 263 278
Debtors 1,781 1,378 2,004
Cash 274 1,169 416
2,356 2,810 2,698
Creditors
Amounts falling due within one year (1,093) (1,154) (1,199)
Net current assets 1,263 1,656 1,499
Total assets less current liabilities 2,225 2,636 2,476
Creditors
Amounts falling due after one year - (39) -
Net assets 2,225 2,597 2,476
Capital and reserves
Share capital 486 486 486
Share premium 1,545 1,544 1,545
Profit and loss account 200 562 450
Equity shareholders' funds 2,231 2,597 2,481
Minority interests (6) - (5)
Total capital employed 2,225 2,597 2,476
Stagecoach Theatre Arts plc
Consolidated Cash Flow Statement
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 Nov 2004 30 Nov 2003 31 May 2004
£000 £000 £000
Net cash inflow from operating activities 83 392 5
Returns on investments and servicing of finance 2 14 13
Taxation (1) - (277)
Capital expenditure (11) (62) (98)
Acquisitions and disposals (17) (25) (72)
Equity dividends paid (195) (194) (194)
Net cash (outflow) / inflow before financing (139) 125 (623)
Financing (3) 15 10
(Decrease) / increase in cash (142) 140 (613)
Stagecoach Theatre Arts plc
Notes
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 2004.
The figures for the year ended 31st May 2004 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.
On 5th August 2004, a 75% subsidiary, Stagecoach Agency (UK) Limited, was
incorporated and acquired the business operations of the former regional
agencies. The results of this subsidiary are consolidated from the date of
acquisition.
The goodwill arising on consolidation in respect of acquisitions has been
capitalised and is 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 2004 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.
Loss per share
Loss per share has been calculated on losses for the period divided by the
weighted average number of Ordinary shares in issue of 9,712,172 (2003:
9,696,419). Fully diluted loss per share have been calculated based upon the
weighted average number of ordinary shares, including options granted to
employees, of 9,804,513 (2003: 9,822,239). The average market value of the
company's shares during the period was less than the exercise price for some
260,621 of the company's options. Consequently these options are deemed to be
non-dilutive.
Taxation
The expected rate of corporation tax for this year ending 31st May 2005 is 30%.
Tax has been provided for to take account of the Group's expected corporation
tax liability for the year.
Dividends
No interim dividend has been proposed (2003: £nil).
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 announcement is in accordance with the facts and does not omit anything
likely to affect the import of such information.
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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