11th Aug 2010 07:00
11 August 2010
Stagecoach Theatre Arts plc (AIM: STA)
("Stagecoach" or "the Group")
Preliminary Announcement of Final Results
for the year ended 31 May 2010
"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
·; Operating profit increased by 3% to £720,000 (2009: £697,000).
·; Profit before tax £727,000 (2009: £726,000).
·; Franchise network fees £29.2m (2009: £29.4m).
·; Healthy cash balance at year end of £1.1m (2009: £1.0m), and with no bank debt.
·; Earnings per share 5.2p (2009: 5.3p).
·; Final dividend proposed of 2p per share (2009: 2p), giving total annual dividend payments of 2.5p per share (2009: 2.5p).
Operations
·; Worldwide student numbers increased by 398 over the year to 39,325 students (2009: 38,927).
·; The Group's restructuring and costs saving strategy over the past three years has put Stagecoach in a solid position to weather the recession.
·; Stagecoach's key objective has been to bring each part of its business to profitability. To that end, the Group has seen the strong expansion of Stagecoach Germany in the period and the resulting substantial reduction in subsidiary losses compared to the prior year. Germany saw seven new school openings during the period and a 45% increase in student numbers to 1,083.
·; Stagecoach maintains its status as the trusted brand leader in children's performing arts and education in the UK. The Group has taken on an experienced full time marketing and advertising executive and will invest further in the year ahead in internet and other marketing strategies and brand building initiatives such as Stagecoach.TV.
·; In a new initiative, Stagecoach has been consulting closely with a validating body for music and the performing arts in preparing a brand new suite of group musical theatre examinations to be offered nationally and internationally. These are being piloted by eight Stagecoach schools this summer.
David Sprigg, Managing Director, commented:
"We are pleased with the overall performance of the Group during what has been another challenging year in this difficult economic climate. Our Stagecoach Theatre Arts schools continue to lead the way in children's education through the performing arts.
There remain significant medium-term growth prospects in the UK and Germany, and long-term growth potential for North America, for other overseas territories and for SportsCoach. My thanks to all our employees for their commitment and contribution throughout the year and I look forward to our successful progress into the future."
ENDS
Enquiries:
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Stagecoach Theatre Arts plc Richard Dawson, Finance Director and Head of Investor Relations |
Tel: 01932 254 333 / 07775 643 939 www.stagecoach.co.uk
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Smith & Williamson Corporate Finance Limited Nominated Adviser & Joint Broker David Jones / Siobhan Sergeant / Barrie Newton |
Tel: 020 7131 4000 |
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Daniel Stewart & Company plc Joint Broker Paul Shackleton / Michael Campbell |
Tel: 020 7776 6550 |
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Peckwater PR |
Tel: 07879 458 364 |
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Tarquin Edwards |
Chairman's Statement
Overview
I am pleased to report on sustained profitability for the year. Despite the difficult economic climate, student numbers have increased over the year and profit before income tax maintained at £727,000 (2009: £726,000). Earnings per share were 5.2 pence (2009: 5.3 pence).
Average student numbers attending each school increased compared to the prior year, resulting in worldwide student numbers increasing by 1% to approximately 39,300 students (2009: 38,900). Network fees, being the total school fees for the year, were £29.2m (2009: £29.4m).
I am particularly pleased with the management of our capital resources, resulting in year-end cash balance of £1.1m (2009: £1.0m). Following the collection of the Summer Term 2010 continuing franchise fees in June 2010, the peak cash balance post year-end was £2.4m (2009: £2.2m). Furthermore, during the year the Group paid the final balance owing on a four year asset-finance loan, resulting in no debt within the Group at year-end.
We propose a final dividend of 2 pence per share (2009: 2 pence), which together with the interim dividend of 0.5 pence per share which was paid in February maintains the total annual dividend payment of 2.5 pence per share (2009: 2.5 pence).
Strategy
The Group restructuring and cost savings strategy over the past three years has put us in a solid position to weather the recession and other difficulties during the year. The key objective remains to bring each part of our business to profitability.
We have increased our investment in marketing and advertising to maintain Stagecoach Theatre Arts as the trusted brand leader in children's performing arts and education in the UK. We have taken on an experienced full time marketing and advertising executive, and invested further in internet and other marketing strategies.
We continue to support the Stagecoach Charitable Trust, which runs InterAct Workshops, providing inclusive performing arts tuition to children of all abilities and needs.
Employees
I wish to express my thanks to all our employees for their commitment and contribution throughout the year, all of which has helped to deliver this good performance.
Prospects
Last year in my Chairman's Statement, I noted that we remain confident, based on our experience from the previous recession, that children's education tends to be one of the last items of expenditure to be cut from the family budget. This has generally proved to be the case. However, large scale redundancies in particular areas in the UK have affected individual schools and the effect of the recession, particularly in terms of new school openings, may still be felt further during our next financial year.
We have made good progress in developing the Stagecoach Theatre Arts network in Germany, and we look forward to continued expansion there and in other international territories. In the UK, I am pleased with the performance of the Stagecoach schools network during this challenging year and, when the economic outlook improves, I believe we will see an increase in subsequent school openings and a boost in fees from school re-sales.
Graham Cole
Chairman
11 August 2010
Operating Review
Group Overview
We are pleased with the continued solid performance of the Group this year. Our Stagecoach Theatre Arts schools continue to lead the way in children's education through the performing arts. At year-end we have a total of 39,325 students worldwide that attend our schools each week (2009: 38,927).
The Directors believe that once the economy begins to improve, the Stagecoach Group is well positioned with its strong brand and trusted name to recommence a period of sustained growth.
UK Operations
Stagecoach Theatre Arts UK
We report an increase in student numbers, led by an increase in the average occupancy rates per Stagecoach school and an increase in the number of Early Stages classes.
The number of Stagecoach Theatre Arts main schools for 6 to 16 year olds in the UK is 613 schools with 25,584 students attending (2009: 617 schools and 25,574 students). There were a few school closures or mergers during the year in areas particularly affected by the recession. The number of Early Stages classes, providing performing arts tuition to younger students aged 4 to 6 years, increased to 716 classes in the UK with 9,498 students attending (2009: 707 Early Stages classes and 9,254 students). The total number of students attending Stagecoach schools in the UK, including Early Stages, Further Stages and Mini Stages, increased over the year from 35,326 to 35,394 students.
The average number of students per main Stagecoach school at the year-end increased to 41.7 (2009: 41.4), showing that the occupancy rate throughout the network remains strong at over 92% of all available places taken, based on an optimum number of students per school of 45.
The average number of Stagecoach schools per franchisee remained at 2.3 schools, demonstrating that there remains further significant growth potential in the existing network, once the economic climate improves, as many franchisees operate three, four or five schools, and a number have yet to open a second school.
The increase in students over the year is a result of maintaining the highest standards of education throughout the Stagecoach network, including regular unannounced school inspections, regional franchisee meetings and franchisee and teacher training. Parents receive progress reports twice a year and students receive medals for longevity and participation. The skills students learn at Stagecoach help them to develop confidence, improve communication skills and generally to perform better in life.
The network continues to promote the benefits of Stagecoach Theatre Arts training and education, and we have increased our advertising budget across the network both at an individual local school level and through national advertising. We have devoted time and resources at Stagecoach head office to developing our marketing and advertising, with new design materials, taking on a full time marketing executive in March 2010, and employing the latest technology for new marketing and brand building initiatives such as Stagecoach.TV.
Stagecoach Parties continues to operate as a complementary activity for our Stagecoach franchisees, to help with marketing, as well as to provide a supplemental income for them. The Montessori nursery registered 117 students at year-end (2009: 116 students).
Stagecoach Agency
The Stagecoach Agency UK & Ireland continues to enjoy its status as Europe's largest performing arts agency for children and young performers. In a busy year we have provided our students with exciting and varied work across all areas of the entertainment industry. The difficult economic climate has affected our 2010/11 student intake, which has dropped this year to 1,347 students (2009: 1,510). The total of individual submissions for jobs for the year however increased to over 23,000, resulting in approximately 5,500 auditions and bookings.
With much repeat business from the major media production companies, we have maintained our excellent reputation and profile. We have seen a prolific rise in work in the voice-over industry both in the public and corporate sector. Children from the agency are now a regular part of many Radio 4 plays and factual productions.
In providing casting directors and production companies with talented artistes offering a varied and comprehensive range of services, Stagecoach students are able to make use of their skills within a wide range of entertainment platforms. These include TV and film, commercials and corporate videos, theatre, radio dramas, role-playing and promotions, photo shoots and promotions, musicals and voice-overs.
Our credits this year include: a national tour of Chitty Chitty Bang Bang across the UK and Ireland, in which 1,000 Stagecoach students have performed or are due to perform; Waterloo Road series 6 & 7 (our 6th and 7th consecutive booking, providing all the background artists); Ra, Ra, The Noisy Lion, Club High School musical 'Make it Happen' for Disney Channel for which we supplied over 600 children for the recording; roles for students in most major television series and many other high-profile productions, both domestic and international. Such credits include TV roles in Casualty, The Bill, Doctors, Holby City, Waking The Dead, Miss Marple, Poirot, EastEnders, Law & Order, Dr Who, Kevin Bishop Show, numerous Radio 4 dramas, Matilda, Emile & The Detectives, The Plantagenets, Grandpa in My Pocket, The Shooting Party and Poetry Please. Adverts on T.V. include: BT, Morrisons, Sainsburys, Bing, Argos, John Lewis, B & Q, American Express and Dell. In theatre: National & European Tour of Thriller, Annie, Priscilla Queen of The Desert, Waiting For Godot, Billy Elliot, Oliver, The Sound of Music, Mary Poppins, Merry Wives of Windsor at The Globe and Macbeth. Voice-over credits include Peppa Pig, Little Kingdom, Cbeebies Radio, Tommy Zoom II, and Disney's Tigger, Pooh and Friends.
The Agency's continued success offers excellent opportunities for profile raising and for publicity as far as individual Stagecoach schools are concerned.
In March we launched S.T.Arts Management to represent young performers aged 20-25. This has already begun to show promise with productions of Romeo & Juliet for The BBC, Sky HD commercials and the Glee DVD series one promotions tour.
Creative and Educational
By working closely with our franchisees, the Group continues to provide the highest standards of performing arts education and opportunity throughout the Stagecoach network. Our Creative and Educational team are committed to being at the forefront of standards of education in the performing arts.
Each year the Stagecoach network provides its students with opportunities to participate in special performances and events. The events this year included:
·; in June 2009, November 2009 and March 2010 - a total of 900 Stagecoach students from all over the UK performed a selection of dance, drama and singing routines at Her Majesty's Theatre in London's West End;
·; the annual 'Easy Stages' show-case production of Unsinkable, a musical specially written for Stagecoach, was performed in August 2009. It featured 76 Stagecoach students from the UK, Ireland, USA, Germany and Spain; and
·; in April 2010 several schools performed at the Young Enterprise finals in London.
In a new initiative, Stagecoach has been consulting closely with a validating body for music and the performing arts to prepare a brand new suite of group musical theatre examinations to be offered nationally and internationally. These are being piloted by eight Stagecoach schools this summer.
Our Foundation Certificate has now received full diploma status (Associate in the Teaching of Performance Arts). Successful completion of an additional in-depth viva voce is required to gain this diploma and Stagecoach are holding "top up courses" to prepare those previous students for the diploma. Courses in preparation for the full Diploma are being developed.
Regional workshops continue to take place around the country, offering relevant opportunities for in-service training for principals and teachers in Stagecoach.
SportsCoach
During the year the co-founder and managing director of SportsCoach, Jon Bennetts, left the Group with our best wishes and appreciation for the dedication he had given to SportsCoach and all its students over the years. The SportsCoach network remains a stable, profitable contributor to the Group. The SportsCoach network has 20 SportsCoach schools, 10 Early Sporties classes and 850 students (2009: 20 schools, 8 Early Sporties and 876 students). Average student numbers per SportsCoach school were 37.0 students (2009: 37.5 students).
The UK Operations, comprising Stagecoach UK, SportsCoach, Mini Stages, the Montessori School and the Stagecoach Agency, reported profit before income tax of £732,000 (2009: £742,000).
International Operations
The Group's international operations include wholly owned German and USA subsidiaries (USA and Canada), each running Stagecoach Theatre Arts franchise networks, and Stagecoach schools operated under licence or direct franchise agreement in Australia, Greece, Ireland, Malta, Gibraltar and Spain.
Germany
We are delighted with the expansion of Stagecoach Germany over the year, and the substantial reduction in the losses of the previous year. There were seven new school openings, including new franchisees in Hamburg, Stuttgart and Wiesbaden and the number of students across the country increased by 45%. Franchisees across the German network are now also opening subsequent schools (in Berlin, Mainz and Erlangen) thus demonstrating the success of the Stagecoach school model in Germany. At year-end there were 10 franchisees, 22 Stagecoach schools, 15 Early Stages classes and a total of 1,083 students (2009: 741 students).
North America
The recession in the US had stalled any opportunity for growth for the network over the year. We continue to keep costs as low as possible whilst maintaining the high levels of support to our franchisees. At year-end there were 7 franchisees, 12 Stagecoach schools, 12 Early Stages classes, a Further Stages class and a total of 489 students (2009: 498 students). Despite the challenges, we are pleased to report that the Stagecoach USA subsidiary shows a modest profit for the second consecutive year.
Other International
The planned expansion into other international markets has been hampered by the worldwide recession. Once the economic climate shows signs of improvement, this is likely to be a significant growth area for the Group. At year-end, there were 7 franchisees or licensees, in Australia, Greece, Ireland, Malta, Gibraltar and Spain, 24 Stagecoach schools, 26 Early Stages classes, a Further Stages class, 10 Mini Stages classes and a total of 1,392 students (2009: 1,370 students).
After the allocation of a fair proportion of UK overheads and time costs, the International Operations reported a £5,000 loss before income tax (2009: £16,000).
Corporate Social Responsibility
We are committed to behaving ethically, safeguarding the environment and using our skills to make a lasting contribution to communities in which our schools operate.
Stagecoach Charitable Trust
The Group continues to support and provide management time to The Stagecoach Charitable Trust ('SCT'), a children's charity, which amongst other activities runs InterAct Theatre Workshops, providing inclusive performing arts tuition to children of all abilities and needs. The feedback from the children attending SCT and their parents has been overwhelmingly positive.
During the year SCT has taken significant steps forward in expanding its reach and involving over 400 children and young people in ten locations through our summer holiday workshop programme in Bristol, Cardiff, Edinburgh, Exeter, Glasgow, Leeds, Liverpool, Luton, Nottingham and Southampton. Furthermore, SCT has established an after school presence in Birmingham, Colchester, Croydon and Jarrow in addition to its existing classes in Walton-on-Thames, Hampton, Hounslow and Bournemouth. SCT has launched a new 3-year project in Moss Side, Manchester, for disadvantaged children. SCT students have also had the opportunity to perform with Stagecoach students at Her Majesty's Theatre, London, as well as performing locally for family and friends.
Stagecoach Awards
In December 2009, the Directors of Stagecoach Theatre Arts proudly launched The Stagecoach Theatre Arts Awards, acknowledging and rewarding children's achievements during 2009/2010. The launch reception took place at The House of Commons hosted by Ed Vaizey MP, Minister for Culture, Communications and Creative Industries (joint Minister with Department of Business, Innovation and Skills). Patrons of these awards are Viscountess Mackintosh of Halifax and Sir Bernard Ingham. The awards will recognise, acknowledge and reward young people from all walks of life who have faced adversity, demonstrated bravery, shown courage, cared for others or been good role models for young citizens. Students from SCT performed for guests at the awards launch party.
Environmental Issues
We manage our environmental impact responsibly, including a proactive recycling policy and reduction of consumption of paper and utilities.
Employees
The Group aims to be a good employer and select employees on the basis of qualifications and merit, without discrimination.
The number of employees (full time equivalents) employed by the Group as at 31 May 2010 was 53 (2009: 50).
Current Trading and Prospects
We are pleased with the overall performance of the Group during what has been another challenging year in this difficult economic climate.
There remain significant medium-term growth prospects in the UK and Germany, and long-term growth potential for North America, for other international territories and for SportsCoach. Our thanks to all our employees for their commitment and contribution throughout the year, and we look forward to our successful progress into the future.
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David Sprigg Joint Managing Director |
Stephanie Manuel Artistic Director and Joint Managing Director |
11 August 2010
Financial Review
Network Fees and Group Turnover
Network fees, reflecting the total tuition fees earned by our network of franchisees operating Stagecoach Theatre Arts schools worldwide and SportsCoach schools in the UK, decreased slightly to £29.2m (2009: £29.4m). This reflects the decrease in worldwide student numbers at the end of the prior year. However this was partially offset by the increase in student numbers over the past two terms of this year as we emerged from the recession.
UK schools account for 93.2% of network fees (2009: 94.2%) following further growth in the number of international schools this year.
Group turnover, made up of continuing franchise fees, initial fees, transfer fees and other ancillary income was level at £6.2m (2009: £6.2m).
The wider effects of the recession and of the credit crunch during the first half of the year impacted new school openings and re-sale fees. However improved trading conditions in the second half of the year resulted in an overall increase in initial fees for the year to £0.48m (2009: £0.37m). These non-recurring initial fees and transfer fees represent just 8% of Group turnover, which is a positive indicator of the stability of the core business, with the majority of revenues now earned from the contractual continuing franchise fees from the 307 franchisees worldwide.
Cost of Sales and Administrative Expenses
The Group cost of sales decreased slightly to £3.1m (2009: £3.2m) and Group administrative expenses increased marginally to £2.4m (2009: £2.3m).
Profitability
Operating profit increased by 3% to £720,000 (2009: £697,000). Lower interest rates resulted in less finance income, and thus profit before income tax was level at £727,000 (2009: £726,000).
Taxation
The Group's effective tax rate increased to 28.9% (2009: 27.5%). In the prior year the Group benefited from a Research and Development tax relief and tax rebate claim.
Earnings per Share and Dividends
Earnings per share were 5.2 pence (2009: 5.3 pence).
Your Board is pleased to propose the payment of a final dividend of 2 pence per share (2009: 2 pence). The proposed dividend, which amounts to £198,886 (2009: £198,186) will be paid, subject to shareholder approval, on 24 November 2010 to those shareholders on the register as at 29 October 2010. This dividend has not been accounted for in this set of accounts, in line with accounting standards, as shareholders have not yet approved the payment.
During the year an interim dividend of 0.5 pence per share was paid (2009: 0.5 pence), taking the total dividends paid or proposed for the year to 2.5 pence per share (2009: 2.5 pence), amounting to £248,608 (2009: £246,983).
Group Structure
The Stagecoach Group consists of the Stagecoach UK business, including the UK Agency and SportsCoach, and the wholly owned German and USA subsidiaries. The other international operations run under licence or direct franchise.
Capital Structure
The Group manages its capital to ensure that the Group will be able to continue as a going concern while maximising the return to shareholders through the optimisation of debt and equity balances. In the current circumstances the Board of Directors considers the current structure to be at the optimal level.
The capital structure of the Group consists of cash and cash equivalents, equity attributable to equity holders of the company, comprising issued capital, reserves and retained earnings (see statement of changes in equity). At the reporting date there is no debt (see Note 17).
The Group reviews its capital structure on a regular basis and will balance its overall capital structure through payments of dividends, new share issues as well as the issue of new debt or the redemption of existing debt in line with the financial risk policies outlined in Note 24.
The Stagecoach Group had total equity at 31 May 2010 of £3.5m (2009: £3.2m). The increase in total equity principally relates to the retained earnings for the year after payment of dividends to its shareholders.
Share Capital and Share Options
During the year 35,000 shares under option were exercised, increasing the share capital to 9,944,317 ordinary shares in issue at 31 May 2010 (2009: 9,909,317).
During the year the Company cancelled 322,166 share options and 20,000 share options lapsed during the year on employees leaving the Group. On 3 February 2010, the Company awarded 63,000 share options, thus there remain 746,189 (2009: 1,060,355) options in issue, being 7.5% of shares in issue.
Cash Flow
The Group increased its cash balances over the year by £82,000 to £1,119,000 at year-end (2009: £1,037,000).
Principal non-operating cash payments during the year have been:
·; £249,000 of dividends
·; £230,000 of corporation income tax
·; £50,000 reduction in bank loan
·; £62,000 of IT development capitalised expenditure
During the year the final payment of £50,000 was made against the four year asset finance loan for the payment of the IT Global Reporting Management System. Following this payment, the Stagecoach Group now has no loans or overdrafts.
The significant consequence of the positive cash flow over the past few years is that the Group has not required the use of its overdraft facility since October 2008, and now has sufficient cash resources to trade debt free for the foreseeable future. The Group receives the majority of its cash in-flow three times a year, six weeks into each academic term, from continuing franchise fees for that term.
Following the collection of the Summer Term 2010 continuing franchise fees in June 2010, the peak cash balance post year-end was £2.4m (2009: £2.2m).
Financial Outlook
Trading post year-end has continued in line with expectations with £4.8m of Stagecoach Group network fees earned in June and July 2010 and positive cash inflow for the Group.
Once the worldwide economic climate improves, we would expect to see an increase in initial fees turnover in international territories, particularly in Germany, driving growth for the Group, whilst benefiting from a steady increase in profitability from the core Stagecoach UK business.
Richard Dawson
Group Finance Director
11 August 2010
Consolidated Statement of Comprehensive Income
For the year ended 31 May 2010
|
|
Notes |
|
2010 |
|
2009 |
|
|
|
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Network fees (see note) |
|
|
29,242 |
|
29,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
6,219 |
|
6,204 |
|
Cost of sales |
|
|
(3,065) |
|
(3,203) |
|
|
|
|
|
|
|
|
Gross profit |
|
|
3,154 |
|
3,001 |
|
Other income |
|
|
24 |
|
23 |
|
Administrative expenses |
|
|
(2,458) |
|
(2,327) |
|
|
|
|
|
|
|
|
Results from operating activities |
|
|
720 |
|
697 |
|
Finance income |
|
|
11 |
|
39 |
|
Finance expenses |
|
|
(4) |
|
(10) |
|
|
|
|
|
|
|
|
Net finance income |
|
|
7 |
|
29 |
|
|
|
|
|
|
|
|
Profit before income tax |
|
|
727 |
|
726 |
|
Income tax expense |
2 |
|
(210) |
|
(200) |
|
|
|
|
|
|
|
|
Profit for the year attributable to equity holders of the parent |
|
|
517 |
|
526 |
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
Foreign currency translation differences for foreign operations |
|
|
11 |
|
(44) |
|
Total comprehensive income for the year attributable to equity holders of the parent |
|
|
528 |
|
482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (pence) |
|
|
|
|
|
|
- Basic earnings per share |
4 |
|
5.2 |
|
5.3 |
|
- Diluted earnings per share |
4 |
|
5.2 |
|
5.3 |
Note: Network fees represent total school fees earned over the year by our franchisees from over 39,300 students that attended Stagecoach and SportsCoach worldwide.
Statements of Changes in Equity
For the year ended 31 May 2010
|
Group |
Notes |
Share capital |
Share premium |
Trans-lation reserve |
Retained earnings |
Total equity |
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
Balance at 1 June 2008 |
|
494 |
1,601 |
(35) |
916 |
2,976 |
|
Total comprehensive income for the year |
|
|
|
|
|
|
|
Profit for the year |
|
- |
- |
- |
526 |
526 |
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
Foreign currency translation differences for foreign operations |
|
- |
- |
(44) |
- |
(44) |
|
|
|
|
|
|
|
|
|
Contributions by and distributions to owners |
|
|
|
|
|
|
|
Dividends paid |
3 |
- |
- |
- |
(246) |
(246) |
|
Share based payments transactions |
|
- |
- |
- |
7 |
7 |
|
Shares issued |
|
1 |
8 |
- |
- |
9 |
|
|
|
|
|
|
|
|
|
Balance at 31 May 2009 and 1 June 2009 |
|
495 |
1,609 |
(79) |
1,203 |
3,228 |
|
Total comprehensive income for the year |
|
|
|
|
|
|
|
Profit for the year |
|
- |
- |
- |
517 |
517 |
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
Foreign currency translation differences for foreign operations |
|
- |
- |
11 |
- |
11 |
|
|
|
|
|
|
|
|
|
Contributions by and distributions to owners |
|
|
|
|
|
|
|
Dividends paid |
3 |
- |
- |
- |
(249) |
(249) |
|
Share based payments transactions |
|
- |
- |
- |
(11) |
(11) |
|
Shares issued |
|
2 |
10 |
- |
- |
12 |
|
|
|
|
|
|
|
|
|
Balance at 31 May 2010 |
|
497 |
1,619 |
(68) |
1,460 |
3,508 |
|
Company |
Notes |
Share capital |
Share premium |
Retained earnings |
Total equity |
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
|
|
Balance at 1 June 2008 |
|
494 |
1,601 |
1,166 |
3,261 |
|
Comprehensive income for the year |
|
|
|
|
|
|
Profit for the year |
|
- |
- |
367 |
367 |
|
|
|
|
|
|
|
|
Contributions by and distributions to owners |
|
|
|
|
|
|
Dividends paid |
3 |
- |
- |
(246) |
(246) |
|
Share based payments transactions |
|
- |
- |
7 |
7 |
|
Shares issued |
|
1 |
8 |
- |
9 |
|
|
|
|
|
|
|
|
Balance at 31 May 2009 and 1 June 2009 |
|
495 |
1,609 |
1,294 |
3,398 |
|
Comprehensive income for the year |
|
|
|
|
|
|
Profit for the year |
|
- |
- |
488 |
488 |
|
|
|
|
|
|
|
|
Contributions by and distributions to owners |
|
|
|
|
|
|
Dividends paid |
3 |
- |
- |
(249) |
(249) |
|
Share based payments transactions |
|
- |
- |
(11) |
(11) |
|
Shares issued |
|
2 |
10 |
- |
12 |
|
|
|
|
|
|
|
|
Balance at 31 May 2010 |
|
497 |
1,619 |
1,522 |
3,638 |
Statements of Financial Position
As at 31 May 2010
|
|
Notes |
Group |
|
Company |
||
|
|
|
2010 |
2009 |
|
2010 |
2009 |
|
|
|
£'000 |
£'000 |
|
£'000 |
£'000 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
74 |
92 |
|
72 |
89 |
|
Intangible assets |
|
1,177 |
1,260 |
|
938 |
1,021 |
|
Investments in subsidiaries |
|
- |
- |
|
422 |
422 |
|
Deferred tax assets |
|
9 |
- |
|
9 |
- |
Total non-current assets |
|
1,260 |
1,352 |
|
1,441 |
1,532 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories |
|
244 |
245 |
|
242 |
243 |
|
Trade and other receivables |
|
2,402 |
2,182 |
|
2,318 |
2,139 |
|
Cash and cash equivalents |
|
1,119 |
1,037 |
|
1,068 |
978 |
|
Total current assets |
|
3,765 |
3,464 |
|
3,628 |
3,360 |
|
|
|
|
|
|
|
|
Total assets |
|
5,025 |
4,816 |
|
5,069 |
4,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital |
|
497 |
495 |
|
497 |
495 |
|
Share premium |
|
1,619 |
1,609 |
|
1,619 |
1,609 |
|
Translation reserve |
|
(68) |
(79) |
|
- |
- |
|
Retained earnings |
|
1,460 |
1,203 |
|
1,522 |
1,294 |
|
Total equity attributable to equity holders of the company |
|
3,508 |
3,228 |
|
3,638 |
3,398 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities |
|
- |
8 |
|
- |
8 |
|
Total non-current liabilities |
|
- |
8 |
|
- |
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other interest-bearing loans and borrowings |
|
- |
50 |
|
- |
50 |
|
Trade and other payables |
|
1,517 |
1,530 |
|
1,431 |
1,436 |
|
Total current liabilities |
|
1,517 |
1,580 |
|
1,431 |
1,486 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
1,517 |
1,588 |
|
1,431 |
1,494 |
|
|
|
|
|
|
|
|
|
Total equity and liabilities |
|
5,025 |
4,816 |
|
5,069 |
4,892 |
|
|
|
|
|
|
|
|
Statements of Cash Flows
For the year ended 31 May 2010
|
|
Notes |
Group |
|
Company |
||
|
|
|
2010 |
2009 |
|
2010 |
2009 |
|
|
|
£'000 |
£'000 |
|
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
Profit for the year |
|
517 |
526 |
|
488 |
367 |
|
Adjustments for: |
|
|
|
|
|
|
|
Depreciation and amortisation |
|
166 |
156 |
|
164 |
155 |
|
Foreign exchange differences |
|
1 |
(55) |
|
- |
- |
|
Finance income |
|
(11) |
(39) |
|
(11) |
(39) |
|
Finance expenses |
|
4 |
10 |
|
4 |
10 |
|
Loss on disposal of property, plant and equipment |
|
5 |
3 |
|
5 |
3 |
|
Write-down of territories held for re-sale |
|
23 |
45 |
|
23 |
45 |
|
Employee share option scheme |
|
16 |
7 |
|
16 |
7 |
|
Income tax expense |
|
210 |
200 |
|
210 |
200 |
|
Operating profit before changes in working capital and provisions |
|
931 |
853 |
|
899 |
748 |
|
(Increase)/decrease in inventories |
|
(21) |
13 |
|
(21) |
13 |
|
(Increase)/decrease in trade and other receivables |
|
(215) |
182 |
|
(179) |
283 |
|
Decrease in trade and other payables |
|
(8) |
(288) |
|
(3) |
(325) |
|
|
|
|
|
|
|
|
|
Cash generated from operations |
|
687 |
760 |
|
696 |
719 |
|
Interest received |
|
11 |
39 |
|
11 |
39 |
|
Interest paid |
|
(4) |
(10) |
|
(4) |
(10) |
|
Income tax paid |
|
(230) |
(350) |
|
(230) |
(350) |
|
|
|
|
|
|
|
|
|
Net cash from operating activities |
|
464 |
439 |
|
473 |
398 |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
Acquisition of additional shares in subsidiaries |
|
- |
(99) |
|
- |
(99) |
|
Acquisition of property, plant and equipment |
|
(8) |
(20) |
|
(7) |
(20) |
|
Acquisition of intangible assets |
|
(62) |
(15) |
|
(62) |
(15) |
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
(70) |
(134) |
|
(69) |
(134) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
Shares issued |
|
12 |
9 |
|
12 |
9 |
|
Cancellation of share options |
|
(27) |
- |
|
(27) |
- |
|
Dividends paid |
3 |
(249) |
(246) |
|
(249) |
(246) |
|
Repayment of borrowings |
|
(50) |
(66) |
|
(50) |
(66) |
|
|
|
|
|
|
|
|
|
Net cash used in financing activities |
|
(314) |
(303) |
|
(314) |
(303) |
|
|
|
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents |
|
80 |
2 |
|
90 |
(39) |
|
Cash and cash equivalents at 1 June |
|
1,037 |
1,032 |
|
978 |
1,017 |
|
Effect of exchange rate fluctuations on cash held |
|
2 |
3 |
|
- |
- |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at 31 May |
|
1,119 |
1,037 |
|
1,068 |
978 |
Notes to the Preliminary Results
1. Accounting Policies
General
Stagecoach Theatre Arts plc is a company incorporated in the UK. The Group is primarily involved in operating a franchise network of part-time performing arts and sports schools.
The Company registered address is The Courthouse Elm Grove Walton-on-Thames Surrey KT12 1LZ.
The consolidated financial statements of the Group as at and for the year ended 31 May 2010 comprise the Company and its subsidiaries (together referred to as the 'Group'). The parent company financial statements present information about the Company as a separate entity and not about its Group.
Statement of compliance
The Group financial statements have been prepared and approved by the Directors in accordance with International Financial Reporting Standards as adopted by the EU ('Adopted IFRSs'). The parent Company financial statements have been prepared and approved by the Directors in accordance with International Financial Reporting Standards as adopted by the EU ('Adopted IFRSs') as applied in accordance with the provisions of the Companies Act 2006.
Basis of preparation
On publishing the parent company financial statements together with the Group financial statements, the Company is taking advantage of the exemption in s408 of the Companies Act 2006 not to present its individual statement of comprehensive income and related notes that form a part of the approved financial statements.
Except as described, the same accounting policies have, unless otherwise stated, been consistently applied to all the periods presented in the consolidated financial statements.
Going concern
The Group has considerable financial resources together with long-term contracts with a number of customers and suppliers across different geographic areas and industries. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully despite the current uncertain economic outlook.
After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.
2. Income tax expense
Recognised in the statement of comprehensive income
|
|
2010 |
|
2009 |
|
|
£'000 |
|
£'000 |
|
Current tax expense |
|
|
|
|
Current year |
222 |
|
232 |
|
Adjustments for prior years |
5 |
|
(24) |
|
Current tax expense |
227 |
|
208 |
|
|
|
|
|
|
Deferred tax credit |
|
|
|
|
Reversal and origination of temporary differences |
(13) |
|
(6) |
|
Adjustment to tax charge in previous periods |
(4) |
|
(2) |
|
Deferred tax credit |
(17) |
|
(8) |
|
|
|
|
|
|
|
|
|
|
|
Total tax expense in statement of comprehensive income |
210 |
|
200 |
Deferred tax arose principally due to temporary differences between capital allowances and depreciation.
Reconciliation of effective tax rate
The total charge for the period is higher (2009: lower) than the standard rate of corporation tax in the UK of 28% (2009: 28%). The differences are explained below:
|
|
2010 |
|
2009 |
|
|
£'000 |
|
£'000 |
|
|
|
|
|
|
Profit for the year |
517 |
|
526 |
|
Total income tax expense |
210 |
|
200 |
|
|
|
|
|
|
Profit before income tax |
727 |
|
726 |
|
|
|
|
|
|
Tax using the UK corporation tax rate of 28% (2009: 28%) |
203 |
|
203 |
|
Effects of: |
|
|
|
|
Unrelieved losses of international subsidiaries |
3 |
|
21 |
|
Permanent tax differences |
3 |
|
2 |
|
Adjustment to tax charge in previous periods |
1 |
|
(26) |
|
|
|
|
|
|
Total income tax expense |
210 |
|
200 |
The £24,418 adjustment in 2009 to the tax charge in previous periods mainly reflects a £20,906 cash payment received from HMRC relating to Research and Development tax credits for 2004-2007 which had not been previously recognised due to the uncertainty of recoverability of the amount.
3. Dividends
|
|
2010 |
|
2009 |
|
|
£'000 |
|
£'000 |
|
|
|
|
|
|
Amounts recognised as distributions to equity holders in the year |
|
|
|
|
Final dividend for the year ended 31 May 2009 of 2p per ordinary share (2008: 2p). |
199 |
|
197 |
|
Interim dividend for the year ended 31 May 2010 of 0.5p per ordinary share (2009: 0.5p). |
50 |
|
49 |
|
|
|
|
|
|
|
249 |
|
246 |
|
|
|
|
|
|
Amounts proposed as distributions to equity holders |
|
|
|
|
Proposed final dividend for the year ended 31 May 2010 of 2p per ordinary share (2009: 2p). |
199 |
|
198 |
The proposed final dividend had not been approved by shareholders at 31 May 2010 and therefore has not been included as a liability. The comparative final dividend at 31 May 2009 was also not recognised as a liability in the prior year.
The proposed final dividend of 2p (2009: 2p) per ordinary share will be paid on 24 November 2010 to those shareholders on the register as at 29 October 2010, subject to approval of shareholders.
4. Earnings per share
|
|
2010 |
|
2009 |
|
|
|
|
|
|
Earnings |
|
|
|
|
Profit for the year for basic and diluted earnings per share (£'000) |
517 |
|
526 |
|
|
|
|
|
|
Number of shares |
|
|
|
|
Weighted average number of shares used for basic earnings per share ('000) |
9,938 |
|
9,881 |
|
Dilutive effect of share options ('000) |
80 |
|
83 |
|
Fully diluted weighted average number of shares used for diluted earnings per share ('000) |
10,018 |
|
9,964 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (pence) |
5.2 |
|
5.3 |
|
Diluted earnings per share (pence) |
5.2 |
|
5.3 |
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year.
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding by the average number of shares deemed to be issued for no consideration (options granted to employees).
5. Extract from the Group's statutory accounts
The financial information presented in this preliminary announcement does not constitute statutory accounts within the meaning of the Companies Act 2006. The information has however been extracted from the Group's statutory accounts for the year ended 31 May 2010 which were approved by the Board on 11 August 2010 and on which the Group's auditors have given an unqualified opinion.
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. Annual Report and Accounts available on the website
The Annual Report and Accounts, which will be posted to shareholders as soon as practicably possible, are available to download via the website, www.stagecoach.co.uk. A copy of the Annual Report and Accounts may be obtained upon application to the Company Secretary, subject to availability, at the Company's Registered Office, The Courthouse, Elm Grove, Walton-on-Thames, Surrey, KT12 1LZ.
Related Shares:
STA.L