Education Development International plc - PowerPoint PPT Presentation

Loading...

PPT – Education Development International plc PowerPoint presentation | free to view - id: 67c3d-ZDc1Z



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Education Development International plc

Description:

Richard Price (Chairman), Sir Bryan Nicholson, Barrie Clark, Wynford Dore. Board. 11 ... Wynford Dore (GOAL plc founder) 1. 9.41% 5,178,621. Giltspur Nominees ... – PowerPoint PPT presentation

Number of Views:59
Avg rating:3.0/5.0
Slides: 25
Provided by: davidc141
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Education Development International plc


1
  • Education Development International plc
  • Background Brief and 2007 Annual Results
  • Richard Price, Chairman
  • Nigel Snook, Chief Executive

22 November 2007
2
Contents
  • Background Briefing
  • Introduction
  • Corporate development
  • Our market place
  • Financial trends
  • Business segments
  • Revenue generation
  • Organisation structure
  • 2007 Annual Results (Page 11)
  • Highlights
  • Organisation development programme
  • Business segments performance
  • Acquisitions impact
  • Financial overview
  • Income and margins
  • Cashflow
  • Balance sheet
  • Latest acquisition
  • Shareholder profile
  • Business development strategy
  • Prospects

3
Introduction
  • EDI is a leading provider of accredited
    qualifications and assessment services, and
    IT-based back office
  • administration support services. The business
    operates across three broad areas
  • UK Qualifications and Assessment Services (2007
    sales 7.75m 48 of total)
  • Accredited by the UK government qualifications
    regulators
  • Second largest provider of apprenticeship
    programme vocational qualifications
  • Only provider of a comprehensive online school
    performance and pupil assessment service
  • International Qualifications (2007 sales 5.55m
    34 of total)
  • Exporter of qualifications for over 100 years
    London Chamber of Commerce and Industry branded
  • Operating in 103 countries.
  • Business and English language qualifications
  • Support Services (2007 sales 2.63m 16 of
    total)
  • Pioneer in online assessments design and delivery
    platforms
  • Provider of specialist administrative services to
    similar organisations

4
Corporate Development
  • GOAL plc
  • - AIM float in April 2000
  • EDI formed
  • - Merger in December 2002 of GOAL plc and the
    London Chamber of Commerce and Industry
    Examinations Board
  • Educational Resources Pte Limited, Singapore
  • - Majority stake (50.4) taken in June 2004 of
    South East Asia agency operation
  • Small bolt-ons
  • - Four awarding bodies/product lines purchased
    and integrated between October 2004 and
    October 2006
  • eNVQ Limited
  • - Acquisition in May 2007 of innovative
    e-portfolio business
  • Fusion Media Networks Limited
  • - Holding increased to 75 in July 2007 of
    internet service provider (ISP) (eNVQ owned 50
    of FMN)
  • ASET Group Limited

5
Our Market Place
  • The Education Services Pyramid

Assessment and
Examinations
Suppliers Government agencies
Awarding bodies Professional
bodies Universities
Publishers
Software companies
Distribution/outsourcing companies
Customers Students Schools
Colleges Training
companies Universities Professional bodies
Employers Other awarding bodies
Learning Materials Content Publishing
Education and Training Programmes
Delivery
Specialist Administration, Platforms and
Distribution
Services
6
Financial Trends
7
Business Segments
  • UK Qualifications and Assessment Services
  • 250 approved vocational qualifications covering
    retail, hospitality, administration, care,
    customer service, financial services, key skills.
    (NVQs, Apprenticeships)
  • 1,013 registered centres. Private training
    companies, further education colleges,
    corporates.
  • 260,000 candidates and 210,000 certificates
    processed per annum plus 190,000 online tests.
  • 12 market share of programme funded
    qualifications
    - City
    and Guilds 42, Edexcel and OCR 8 each
  • Specialist schools assessment service
  • - 650 customer schools
  • - Range of 800 tests, Key Stage 1 to AS
    Level
  • - Mapped to national curriculum and fully
    online
  • - 600,000 online assessments
  • 62 associate VQ verifiers and 15 school trainers.

8
Business Segments
  • International Qualifications
  • 80 vocational examination subjects in
    book-keeping, business management and English
    language.
  • 4,200 registered centres. Secondary schools,
    private schools and colleges, universities and
    business schools, companies.
  • Operating in 103 countries, mainly South East
    Asia and Europe
  • Exclusive licence to use LCCI brand.
  • 240,000 candidates per annum.
  • Network of 32 agents and management control of
    South East Asia agent, Educational Resources Pte
    Limited.
  • 150 associate examiners.

9
Business Segments
  • Support Services
  • 12 customers including awarding and professional
    bodies, and one university.
  • Online testing, learning materials logistics,
    full back office qualifications administration
    and software development.
  • i-assess customisable assessment platform.
  • Campus online qualifications and assessments
    administration system.
  • eNVQ online learning and assessment management
    system.
  • Fusion internet service provider.
  • Logistics partner RR Donnelly printing, storage
    and distribution.

10
Revenue Generation
  • Centre registration fees 250 - 450 per annum.
  • Candidate registration 25 - 85 per candidate.
  • Certification 5 - 100 per candidate.
  • Learner administration (eNVQ) 25 - 100 per
    candidate.
  • Support materials 10 - 25 per book.
  • Schools assessment packages 299 - 5,000 per
    school per annum.
  • Software licence fees upto 6,000, plus 2 -
    8.50 per candidate.
  • Contract management fees 30,000 - 300,000,
    plus 5 per candidate.
  • Development projects priced as one-off tasks.

11
Organisation Structure
Board Board NXDs. Richard Price (Chairman), Sir Bryan Nicholson, Barrie Clark, Wynford Dore
Management Finance Director Neal Gossage Chief Executive Nigel Snook Education Development Director of Business Director of Director, Vocational ER (Singapore) Director Development Operations Programmes Managing Director Jenifer Moody Gareth Phillips Stewart Jardine Chris Daniel Sean Leslie Chief Executive Nigel Snook Education Development Director of Business Director of Director, Vocational ER (Singapore) Director Development Operations Programmes Managing Director Jenifer Moody Gareth Phillips Stewart Jardine Chris Daniel Sean Leslie
Staff Offices 112 Coventry, 6 Livingston (i-assess), 4 Limassol, 28 South East Asia (ER) Singapore, Kuala Lumpur, Hong Kong, Bejing, Shanghai and Guanzhou, 5 Southend-on-Sea (Fusion), 33 Macclesfield and York (ASET) 112 Coventry, 6 Livingston (i-assess), 4 Limassol, 28 South East Asia (ER) Singapore, Kuala Lumpur, Hong Kong, Bejing, Shanghai and Guanzhou, 5 Southend-on-Sea (Fusion), 33 Macclesfield and York (ASET)
Associates 150 international qualifications examiners, 62 vocational qualifications verifiers, 15 school trainers/test question writers 150 international qualifications examiners, 62 vocational qualifications verifiers, 15 school trainers/test question writers
Agents and Administration Partnerships West Eastern Europe Austria, Bulgaria, Croatia, Czech Republic, France, Germany, Hungary, Italy, Poland, Romania, Serbia, Slovakia, Spain, Switzerland, Ukraine Eastern Mediterranean and Middle East Cyprus, Greece, Malta, Lebanon, Oman, Kuwait, Saudi Arabia Asia Brunei, China, Hong Kong, India, Indonesia, Laos, Macau, Malaysia, Maldives, Myanmar, Nepal, Singapore, South Korea, Sri Lanka, Syria, Taiwan, Thailand, Vietnam Africa Botswana, Kenya, Malawi, Mauritius, Sierra Leone, South Africa, Swaziland, Zambia, Zimbabwe Americas Antigua, Argentina, Brazil, Guyana, Jamaica, Trinidad and Tobago, Uruguay West Eastern Europe Austria, Bulgaria, Croatia, Czech Republic, France, Germany, Hungary, Italy, Poland, Romania, Serbia, Slovakia, Spain, Switzerland, Ukraine Eastern Mediterranean and Middle East Cyprus, Greece, Malta, Lebanon, Oman, Kuwait, Saudi Arabia Asia Brunei, China, Hong Kong, India, Indonesia, Laos, Macau, Malaysia, Maldives, Myanmar, Nepal, Singapore, South Korea, Sri Lanka, Syria, Taiwan, Thailand, Vietnam Africa Botswana, Kenya, Malawi, Mauritius, Sierra Leone, South Africa, Swaziland, Zambia, Zimbabwe Americas Antigua, Argentina, Brazil, Guyana, Jamaica, Trinidad and Tobago, Uruguay
Centres 1,013 UK, 4,200 international (schools, colleges, private training companies, corporates) 1,013 UK, 4,200 international (schools, colleges, private training companies, corporates)

12
2007 Annual Results
13
Highlights
  • Results in line with upgraded expectations
    reflecting the benefits of infrastructure
    investments, organic growth and
    acquisitions.
  • Financial overview

Year ended 30/09/07 Year ended 30/09/06 Growth
Revenue (m) 16.27 14.18 14.7
Operating profit (m) 2.08 1.36 52.9
Adjusted profit (m) 2.20 1.13 94.7
Earnings per share (p) 4.20 2.30 82.6
Adjusted earnings per share (p) 4.10 2.20 86.4
Dividend 0.33 0.20 65.0
Profit on ordinary activities before taxation
adjusted for movement in the onerous lease
provision and amortisation charge on acquired
intangible assets
  • Cash inflow from operating activities of
    1.88m (2006 1.53m).
  • Final dividend of 0.23p per share recommended
    bringing total dividend for the year to 0.33p.
  • Results reflect the acquisition of eNVQ
    Limited and a 75 holding taken in Fusion Media
    Networks Limited which together contributed
    398,000 to revenue.
  • Full implementation of bespoke Campus
    administration system completed.
  • Approved by the Qualifications and Curriculum
    Authority to award the new Diploma qualifications
    for 14-19 year olds.
  • Acquisition of ASET Group Limited on 19
    November 2007.

14
Organisation Development Programme
  • Commenced July 2004
  • - Move to single site in Coventry closure of
    Sidcup and Leamington Spa offices
  • - Major staff re-organisation
  • - Modernisation and automation of business
    systems
  • Programme fully completed March 2007.
  • Total cost 1.75m - 700k capitalised.
  • Cost saving and efficiency gains of 500k per
    annum.
  • Surplus leases either assigned, under notice or
    being actively marketed.
  • Current organisation development focus on
    international agents and UK associates networks.

15
Business Segments Performance
  • UK Qualifications and Assessment Services
  • Sales up 15 at 7.75m
  • Vocational qualifications sales up 15 during
    period of system transition
  • 112 new customers and increasing penetration
    in the FE college market
  • Diploma awarding body status
  • 195 new schools signed up but renewal rate
    below expectations at 70 service
    re-launched in September 2007
  • eNVQ contribution, 185k in four months since
    acquisition
  • International Qualifications
  • Sales up 5 at 5.55m (up 9.3 excluding
    Dollar impact)
  • Impact of US Dollar weakness on sales of 220k
  • Local sales performance
  • - up 27 in Germany
  • - Up 23 on a local currency basis in Asia,
    but only up by 4 on a Sterling basis
  • Accredited programmes in Kuwait and South
    Africa
  • Support Services
  • Sales up 25 at 2.63m
  • Strong growth in i-assess revenues up 25
  • 588,000 online tests administered up 36
  • 681,000 candidates and 241,800 certificates
    administered
  • Astron acquired by RR Donnelly
  • Fusion Media Networks
  • Revenue contribution 213k in four months
    since acquisition
  • 300 plus customers
  • Investment in equipment and marketing

16
Acquisitions Impact
  • eNVQ Limited
  • - e-portfolio/learning programme management
    software
  • - Acquired 31 May 2007
  • - Fully integrated
  • - 185k revenue contribution in four months
    since acquisition
  • - Estimated 2007/08 revenue 750k
  • Fusion Media Networks Limited
  • - Internet service provider
  • - 50 holding through eNVQ acquisition on 31
    May 2007
  • - Holding increased to 75 27 July 2007
  • - Technical and sales operation based in
    Southend-on-Sea with 5 staff
  • - Business administration transferring to
    Coventry Head Office
  • - 213k revenue contribution in four months
    since acquisition
  • - Estimated 2007/08 revenue 750k

17
Financial Overview
  • Operating profit to cash conversion ratio 75
    (2006 93).
  • Cash inflow from operational activities of 1.88m
    (2006 1.53m).
  • Cash 3.1m (2006 2.3m).
  • Dollar weakness impact on revenue 220k.
  • Onerous lease provision of 758k providing full
    cover to 2011.
  • Pension fund deficit 0.2m (2006 1.4m).
  • Shareholder funds up 67 at 7.4m.

18
Income and Margins
UK International Support Fusion Other 2007 2006
Revenue 7,750 5,551 2,631 213 129 16,274 14,175
Cost of Sales (1,580) (2,285) (630) (133) - (4,628) (4,252)
Gross profit 6,170 3,266 2,001 80 129 11,646 9,923
79.6 58.8 76.1 37.6 100.0 71.6 70.0
Administration expenses (excluding amortisation charge on acquired intangible assets) (9,488) (8,759)
Net finance income/(costs) 40 (32)
Adjusted operating profit 2,198 1,132
13.5 8.0
19
Cashflow
000s 2007 2006
Profit before tax 2,120 1,330
Depreciation and amortisation 413 218
Share options 21 27
Profit on sale of assets (2) -
Working capital movement (644) (68)
Interest and tax (28) 18
Operating cash flow 1,880 1,525
Capital expenditure (163) (458)
Acquisitions (729) (313)
Purchase of own shares net of issues (95) (182)
Dividend paid (160) -
Exchange rate movements - (58)
Net increase in cash 733 514
Opening cash 2320 1806
Closing cash 3053 2320
20
Balance Sheet
000s 2007 2006
Goodwill 6,291 4,390
Other intangible assets and equipment 1,401 921
Deferred tax 556 615
8,248 5,926
Working capital (2,116) (1,178)
Cash 3,053 2,320
Provisions (758) (971)
Deferred consideration gt 1 year (326) (4)
Deferred tax liabilities (173) -
Pension liabilities (190) (1,381)
Net assets 7,738 4,712
Shareholders equity 7,437 4,443
Minority interests 301 269
Total equity 7,738 4,712
21
Latest Acquisition
  • ASET Group Limited
  • Accredited UK vocational awarding body.
  • Sound strategic fit with EDI qualifications
    range.
  • Customer base in further education sector.
  • 2006/07 revenue 2.23m, operating profit 70k
    after directors remuneration.
  • Potential for immediate savings and significant
    medium-term synergies.
  • Consideration
  • - Up to 2.9m with 2.5m paid on completion
  • - 1.7m in cash
  • - 800k in EDI shares 2,124,834
    (3.86 dilution)
  • - 200k after 90 days on successful
    transfer of certain administration functions
  • - 200k on achievement of sales targets for
    year to 31 July 2008
  • - Net assets mechanism to provide value of
    400k against completion accounts

22
Shareholder Profile
1. Wynford Dore (GOAL plc founder) 8,958,333 8,958,333 16.27 16.27
2. Giltspur Nominees/Brewins Nominees 5,178,621 5,178,621 9.41 9.41
3. Goldman Sachs International 4,622,100 4,622,100 8.39 8.39
4. HSBC Global Custody Nominees (UK) 4,026,000 4,026,000 7.31 7.31
5. Gareth Newman (Goal plc founder) (Pershing Nominee) 3,943,972 3,943,972 7.16 7.16
6. Nigel Snook (Personal/SIPP) 3,189,237 3,189,237 5.79 5.79
7. Hargreave Hale Nominees 3,108,308 3,108,308 5.64 5.64
8. EDI Employee Benefit Trust 2,955,000 2,955,000 5,37 5,37
9. Real Time Consultancy (Singapore) 2,000,000 2,000,000 3.63 3.63
10. Barnard Nominees 1,875,000 1,875,000 3.41 3.41

23
Business Development Strategy
EDI Group Strong underlying business with positive investment strategy and acquisitions programme enable maximum leverage of accredited awarding body status to drive growth
UK Qualifications Assessment Services Growth Target 15 pa Total market size 250m Become the clear number two in the funded vocational qualifications market Sign-up new centres and increase average sales value of existing customers Restructured schools assessment service to reflect market dynamics
International Qualifications Growth Target 10 pa Total market size 1bn Exploit strength of the LCCI brand to improve penetration in established markets Update existing product range and expanding English language suite Co-ordinate management of product development and agencies
Service Contracts Growth Target 10 pa Total market size 100m Continue to develop customised systems to enhance EDI service levels and offer support services to similar organisations Long-term development partnerships with existing customers Targeted marketing
Acquisitions Targets UK awarding bodies Specialist education services delivery software providers Learning and professional development support services providers

24
Prospects
  • Strong global market for education services -
    investment by UK and foreign governments,
    individuals and families in academic education
    and vocational skills.
  • Benefits of infrastructure investment, organic
    growth and acquisitions.
  • Focused on continuous improvement of service
    levels, extending product range and strengthening
    business development and sales capabilities.
  • Constant review of acquisition opportunities to
    broaden range and scope of services.
  • Progressive dividend policy.
About PowerShow.com