Stagecoach Theatre Arts FY results beat broker projections

Stagecoach Theatre Arts (LON:STA) said its revenues and profits

remained roughly flat in 2010, though broker Daniel Stewart & Company (DS&C) stated that the company still managed to beat its expectations, performing in line with the previous year despite higher marketing spend and a weak economic environment.
Revenues for the year to 31 May was flat at £6.22 million, while pre-tax profit amounted to £727,000 compared to last year’s £726,000. Earning per share declined marginally from 5.3 pence to 5.2 pence.
The operational highlights included an increase of 398 in the number of worldwide students to 39,325 and the strong expansion of Stagecoach Germany with 7 new school openings and a 45% increase in student numbers to 1,083. Stagecoach said that there were “significant” medium-term growth prospects in the UK and Germany and long-term potential for North America.

Revenues beat DS&C’s projections by 3%, while the profits of 5.3 pence were just above the forecasted 4.9 pence.

“We are pleased with the overall performance of the group during what has been another challenging year in this difficult economic climate,” said managing director David Sprigg.
In its projection for the next year, DS&C put the group’s UK revenues at £5.79 million compared to a previous forecast of £5.93 million due to expectations of lower growth in the UK. However, international revenues are expected to climb from £0.36 million in 2010 to £0.42 million in 2011 with Germany contributing the majority of the growth. In 2013, the company is expected to make revenues to £7.22 million, marking an increase of 10% over 2012, while earnings per share are expected to rise 40% over 2012 to 9.52 pence.
Shares in Stagecoach rose on the results, and were up 8.2% in early afternoon trade.