Stagecoach Theatre Arts plc Preliminary Results

Stagecoach Theatre Arts plc Preliminary Results

Stagecoach Theatre Arts plc operates the UK's largest franchise network of part-time performing arts schools for children aged between 4 and 18.

 

Highlights:

Financial

  • Network fees increased to £29.3m (2010: £29.2m) reflecting good growth internationally and a small increase in tuition fees in September.  Group revenue was £5.9 million (2010: £6.2 million).
  • Profit before tax reduced to £650,000 (2010: £727,000) due in part to planned increased investment in new marketing and advertising material across the Group. 
  • Healthy cash balance at year end up 15 per cent. to £1.3m (2010: £1.1m).  The Group has no debt nor has it needed to use its overdraft facility during the year.
  • Earnings per share of 4.8 pence (2010: 5.2 pence).
  • Final dividend proposed of 2p per share (2010: 2p), maintaining total annual dividend payments at 2.5p per share (2010: 2.5p).

 

Operational

  • The key objective to bring each part of our business to profitability has been achieved during this year with the German subsidiary moving into profitability and the North American subsidiary further increasing its profitability, as both overseas divisions further expand their school and student numbers.
  • Average student numbers attending each school in the UK decreased slightly by 2% over the year to 40.7 students per school, although the average occupancy still remains at over 90% of all places filled.
  • Year-end worldwide student numbers were lower at 38,075 (2010: 39,325).

David Sprigg, Managing Director, commented:

"Whilst the economic downturn has impeded growth and resulted in some consolidation in our core UK business, and this may continue in the financial year ahead, over 90 per cent. of all student places remain filled. We expect to see renewed growth in the UK business once economic conditions improve. The Stagecoach Theatre Arts networks in North America and Germany have continued to expand over the year.  Both regions are nearing a critical mass of schools and brand recognition which could trigger faster organic growth in these areas, as was achieved in the UK market ten years ago.  I am also pleased to report on the successful launch of Stagecoach in South Africa, establishing a presence in a new continent."

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