Amd Commo Exagr Regulatory News (COMG)

14 Sep 2005 07:00

Europasia Education PLC14 September 2005 EUROPASIA EDUCATION PLC INTERIM RESULTS For The Six Months Ended 30 June 2005 Chairman's Statement Highlights. • Turnover up fourfold to £289,026 (2004: £74,219). • Gross profit £190,253 (2004: £13,554) • Operating loss before exceptional items reduced to £63,377 (2004: loss £173,005) • Purchase completed of a 12% stake in AGI, management company to SIIT, a profitable Chinese University, for £1.0m. • Record profits at AGI in year ended June 2005 of £2.4m, paving the way for an autumn admission to Ofex • Tangible pipeline of new investments progressing. There has been a significant increase in group turnover, as the effects of theacquisition of English 2000, our 100% owned UK language School, are felt.English 2000 has altered the course mix and introduced new marketing methods inorder to grow the business. We will continue to seek ways to add value to thisinvestment, including developing into new markets. The Company made an investment in February of £1 million for 12% of AGI,management company for SIIT, a profitable Chinese University in ShandongProvince. AGI reported post tax profits of £2.4 million for the year ended 30June 2005. In June SIIT completed a major expansion, adding capacity for a further 5,000students, the profits from which will feed through into 2006 results. SIIT isplanning a second phase of expansion, due to be completed in the summer of 2006,for which AGI will raise further funds via a listing on OFEX, scheduled for thisautumn. Europasia is seeking to invest additional funds in AGI on its OFEXfloat, and is currently exploring several financing options to raise thenecessary funds. Following the success of this investment, I am pleased to report that our Chinabased team is seeking additional investment opportunities in China. Due to it's small size as part of our portfolio, the board has decided to mergeManagement International with other operations which will, in time, reduceoverheads and increase margins in this business. The board has therefore decidedto write off the goodwill relating to its investment in ManagementInternational, which results in a one-off charge to the Profit and Loss accountof £173,038. The Board has also taken the decision to provide £66,040 against its hitoricalinvestments in EnterpriseAsia plc, listed on AIM, and Value Convergence, listedin Hong Kong. These investments were made by the previous management team. As a result of the provisions against investments, totalling £239,078, theoverall loss for the period is £333,581 (2004 loss £182,083). The Company has reached an important point in its development, with thepotential uplift on its investment in AGI, reduced overheads and increasingcontribution from E2000. I look forward to building on recent progress andpursuing the investment opportunities currently under consideration in both theUK and China. James Holmes Chairman and Chief Executive 14 September 2005 Consolidated Unaudited Unaudited AuditedProfit and Loss Account 6 months to 6 months to Year to 30 Jun 05 30 Jun 04 31 Dec 04 £ £ £ Turnover 289,026 74,219 360,188Cost of Sales (98,773) (60,665) (164,818) ------ ------ ------Gross Profit 190,253 13,554 195,370 Administrative expenses (253,630) (186,559) (482,513) ------ ------ ------Operating loss before tax, interest,depreciation and amortisation (63,377) (173,005) (287,143)Amortisation of goodwill (196,804) (10,179) (40,163)Provision against investments (66,040) - -Depreciaton of tangible assets (10,285) (2,437) (11,948) ------ ------ ------Operating loss (336,506) (185,621) (339,254) Interest received 6,530 3,538 20,095Interest payable (3,735) - (3,220) ------ ------ ------Loss before taxation (333,711) (182,083) (322,379)Taxation 130 - 1,359 ------ ------ ------Loss after taxation (333,581) (182,083) (321,020) ------ ------ ------Basic loss per share (0.161p) (0.146p) (0.220p) Consolidated Unaudited AuditedBalance Sheet as at as at 30 Jun 05 31 Dec 04 £ £Intangible assets 431,743 628,547Tangible assets 26,793 36,767Investments 993,861 66,040 ------ ------ 1,452,397 731,354Current assetsDebtors 70,054 58,486Cash 288,894 578,806 ------ ------ 358,948 637,292Current liabilities (288,033) (349,848) ------ ------Net current assets 70,915 287,444Provision for deferred taxation (3,694) (3,694) ------ ------Total assets less current liabilities 1,519,618 1,015,104 ------ ------ Called up share capital 2,239,228 1,680,498Share premium account 3,284,177 3,004,812Profit and loss account (4,003,787) (3,670,206) ------ ------Equity shareholders funds 1,519,618 1,015,104 ------ ------ Consolidated Unaudited Unaudited AuditedCash Flow statement 6 months to 6 months to Year to 30 Jun 05 30 Jun 04 31 Dec 04 £ £ £Net cash outflow from operating activitiesOperating loss (270,466) (185,621) (339,254)Depreciation of tangible assets 10,285 2,437 11,948Shares issued in lieu of consultancy fees - - 19,028(Increase)/decrease in debtors (11,568) (113,353) 14,150Increase/(decrease) in creditors (61,815) 54,859 (72,402)Amortisation of goodwill 196,804 10,179 40,163 ------ ------ ------Net cash outflow from operating activities (136,760) (231,499) (326,367) Interest received 6,530 3,538 20,095Interest paid (3,735) (3,220) Capital expenditure and financial investmentPayments to acquire tangible assets (311) - (3,895)Payments to acquire investments (155,766) - (623,828) ------ ------ ------Net cash outflow before management of liquid resources and financing (289,912) (227,961) (937,215) FinancingIssue of share capital - 539,194 539,194Cash acquired with investments - - 475,861 ------ ------ ------Increase / (decrease) in cash in the period (289,912) 311,233 77,840 ------ ------ ------ Reconciliation of net cash flow movementOpening net funds 578,806 500,966 500,966Increase / (decrease) in cash in period (289,912) 311,233 77,840 ------ ------ ------Closing net funds 288,894 812,199 578,806 ------ ------ ------ Notes to the interim results 1 Basis of preparation The information relating to the six month period ended 30 June 2005 is unauditedand has not been reviewed by the Auditors. These statements have been preparedon accounting bases and policies that are consistent with those used in thepreparation of the financial statements of the company for the year ended 31December 2004. The information relating to the year ended 31 December 2004 isextracted from the audited accounts of the Company, which have been filed atCompanies House and on which the auditors issued an unqualified opinion. Thefinancial information relating to the six month period ended 30 June 2005 doesnot constitute statutory accounts within the meaning of Section 240 CompaniesAct 1985. The financial information contained in this report was approved bythe Board of Directors on 14 September 2005. 2 Loss per share Loss per share is based on the loss after tax of £333,711 on 207,562,230ordinary shares being the weighted average number of ordinary shares in issue inthe period ended 30 June 2005. There is no dilutive effect of options. 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