WEB NEWS Comments & Business Outlook
Consolidated Income Statement
for the three years ended 31 August 2015
2013
2014
2015
Note
$m
$m
$m
Revenue
3
323.7
474.6
577.0
Cost of sales
(190.4
)
(280.3
)
(355.9
)
Gross profit
133.3
194.3
221.1
Selling, general and administrative expenses
(64.5
)
(92.9
)
(127.0
)
Depreciation
(0.4
)
(2.0
)
(0.7
)
Amortization
12
(5.7
)
(10.4
)
(13.9
)
Other losses
5
—
—
(3.0
)
Exceptional expenses
4
(17.7
)
(100.2
)
(18.8
)
Total expenses
6
(88.3
)
(205.5
)
(163.4
)
Operating profit/(loss)
45.0
(11.2
)
57.7
Finance income
9
2.3
2.0
2.8
Finance expense
9
(51.3
)
(55.5
)
(39.7
)
Net financing expense
(49.0
)
(53.5
)
(36.9
)
(Loss)/profit before tax
(4.0
)
(64.7
)
20.8
Income tax expense
10
(19.3
)
(25.7
)
(12.2
)
(Loss)/profit for the year
(23.3
)
(90.4
)
8.6
Attributable to:
Owners of the parent
(23.3
)
(90.4
)
7.4
Non-controlling interest
—
—
1.2
(Loss)/earnings per share from continuing operations attributable to the owners of the parent during the year (expressed in $ per share):
Basic (loss)/earnings per share
28
(0.34
)
(1.07
)
0.07
Diluted (loss)/earnings per share
28
(0.34
)
(1.07
)
0.07
Deal Flow
Nord Anglia Education, Inc.
We are offering 4,800,000 ordinary shares and the selling shareholders identified in this prospectus supplement are offering an additional 1,900,000 ordinary shares. We will not receive any proceeds from the ordinary shares sold by the selling shareholders.
Price to public Underwriting(1) Proceeds, before Proceeds, before
Per share
$ $ $ $
Total
$ $ $ $
Comments & Business Outlook
Consolidated Income Statement
for the three years ended 31 August 2014
2012
2013
2014
Note
$ m
$ m
$ m
Revenue
3
274.4
323.7
474.6
Cost of sales
(126.5
)
(147.6
)
(214.4
)
Gross profit
147.9
176.1
260.2
Selling, general and administrative expenses *
(84.6
)
(96.0
)
(137.4
)
Depreciation
1 0
(9.9
)
(11.7
)
(23.4
)
Amortisation
1 1
(3.5
)
(5.7
)
(10.4
)
Impairment of goodwill
5
(10.7
)
—
—
Exceptional expense
4
(12.5
)
(17.7
)
(100.2
)
Total selling, general and administrative expenses
5
(121.2
)
(131.1
)
(271.4
)
Operating profit/(loss)
26.7
45.0
(11.2
)
Finance income
8
2.0
2.3
2.0
Finance expense
8
(49.7
)
(51.3
)
(55.5
)
Net financing expense
(47.7
)
(49.0
)
(53.5
)
Loss before tax
(21.0
)
(4.0
)
(64.7
)
Income tax expense
9
(16.4
)
(19.3
)
(25.7
)
Loss for the year
(37.4
)
(23.3
)
(90.4
)
Attributable to:
Equity holders of the company
(37.4
)
(23.3
)
(90.4
)
Loss per share from continuing operations attributable to equity holders of the company during the year (expressed in $ per share):
Basic loss per share
26
(0.52
)
(0.34
)
(1.07
)
Diluted loss per share
26
(0.52
)
(0.34
)
(1.07
)
Management Discussion and Analysis
Revenue
Revenue increased $150.9 million, or 46.6% (44.7% on a constant currency basis), from $323.7 million in fiscal 2013 to $474.6 million in fiscal 2014. The rise was due to increased revenue from our premium schools, partly offset by a decrease in other revenue.
Revenue from our premium schools increased $161.1 million, or 54.5% (51.9% on a constant currency basis), from $295.3 million in fiscal 2013 to $456.4 million in fiscal 2014. This increase was primarily due to increases in FTEs and tuition fees and the impact of the schools we acquired in Bangkok, Guangzhou, North America, Qatar and Spain in fiscal 2013 and Singapore and Cambodia in fiscal 2014. $39.1 million of our premium schools revenue in fiscal 2014 was attributable to the schools we acquired at the end of fiscal 2013 in Bangkok and Guangzhou and the schools we acquired during fiscal 2014 in Singapore and Cambodia. On a pro forma basis, including the schools we acquired as part of the acquisition of WCL Group in North America, Qatar and Spain in fiscal 2013, our premium schools revenue would have increased by 19.3% (17.9% on a constant currency basis) from $382.7 million in fiscal 2013 to $456.4 million in fiscal 2014.
Other revenue decreased $10.2 million, or 36.0%, from $28.4 million in fiscal 2013 to $18.2 million in fiscal 2014. This decrease was due to the completion of learning services contracts in Abu Dhabi, Saudi Arabia and Malaysia and reduced revenues from our remaining UK contracts.
As a result of the foregoing, our loss for the year increased from $23.3 million in fiscal 2013 to $90.4 million in fiscal 2014.
Adjusted net income increased by $25.0 million from a loss of $1.4 million in fiscal 2013 to a profit of $23.6 million in fiscal 2014.
