16 September 2013 – interim results
Disappointing results have been reported by AEC Education for the six months to 30 June as the problems in Singapore have had an adverse impact. Revenue on continuing operations fell to £5.7m (2012: £9.0m) resulting in a loss before tax of £0.56m (2012: loss of £0.67m). This loss included a loss of £0.42m from the Singapore operations. Progress has been made in Europe with the operations in London returning to profit, the new operation in Dublin moving into profit at the end of the period and the joint venture in Cyprus also trading profitably. Management changes have been made in Singapore and the issues there are being addressed. Although these results were disappointing it does seem as though good progress has been made in the European operations and with Singapore now being addressed and with net cash of £1.42m at the end of the period we maintain our recommendation of HOLD.