AcadeMedia’s Year-End Report 2015/16
Fourth quarter (April 2016 – June 2016)
· Net sales increased by 8.1 percent to SEK 2,378 million (2,199).
· Operating profit (EBIT) increased by 35.4 percent to SEK 218 million (161).
Adjusted for items affecting comparability the operating profit was SEK 238
million (237).
· Profit for the period was SEK 140 million (80).
· Cash flow from operating activities amounted to SEK 160 million (197).
· The average number of children and students in preschool, compulsory school
and upper secondary school during the quarter was 64,342 (61,295), which was an
increase of 5.0 percent.
· Basic earnings per share amounted to 1.63 SEK
(0.95)[*] (http://connect.ne.cision.com#_ftn1) and after dilution 1.63 SEK
(0.95).
· The Company was listed on the Nasdaq Stockholm Stock Exchange on June 15.
Full year (July 2015 – June 2016)
· Net sales increased by 5.5 percent to SEK 8,611 million (8,163).
· Operating profit (EBIT) increased by 3.5 percent to SEK 535 million (517).
Adjusted for items affecting comparability, operating profit was SEK 568 million
(596).
· Net profit for the period was SEK 319 million (222).
· Cash flow from operating activities amounted to SEK 542 million (684).
· The number of children and students in preschool, compulsory school and
upper secondary school amounted to 63,151 (60,897) which was an increase of 3.7
percent.
· Basic earnings per share amounted to 3.97 SEK
(2.63)[†] (http://connect.ne.cision.com#_ftn2) and after dilution 3,97 SEK
(2,63).
· The Board of Directors proposes that no dividend be paid for the 2015/16
financial year.
Significant events after the end of the reporting period
No significant events have occurred since the end of the reporting period.
The complete report will be made available at
https://corporate.academedia.se/en/financials/reports-presentations/
Comments from CEO Marcus Strömberg
“AcadeMedia ends the financial year with strong growth. In summary, we can
report a stable year, with good growth and an improved operating profit. Despite
major investments in new establishments and several deferred contracts in adult
education, our operating result is stable. The strong and stable growth during
the year is based on a substantial increase in the number of students and
participants, which is based on the growth of our existing operations, as well
as on new establishments and acquisitions. During the year we acquired 20 units
and completed 14 new establishments. These additions will reach full effect next
year. We are also pleased to see that we are making good progress in our quality
work and that our students are increasingly achieving their educational
objectives.
Increased proportion of students reach goals
One of AcadeMedia’s most important quality objectives as well as an important
social objective, is for all students to achieve the goals of the educational
program. In compulsory school, the preliminary grades show that 85.8 percent of
all students pass in all subjects, an increase of 1.6 percentage points compared
with the previous year. This should also be compared with the national average,
which was 77 percent for spring semester 2015. Upper secondary school also shows
progress for the financial year, as 89.7 percent of students graduated, which
was an improvement of 2.3 percentage points compared with the previous year.
AcadeMedia’s results are somewhat better than the national average, which was
89.2 percent last year.
These achievements are positive for our students and show that our quality work
pays off. We will continue to strive for even better student performance, with
the goal that 100 percent of students achieve the educational goals.
Improved performance in adult education
After a fall with postponed contracts and competitor appeals regarding contracts
we won, adult education now reports a strong performance with good margins and a
steady participant flows. The fourth quarter shows a strong improvement in
performance. Our breadth in adult education will enable us to follow the
favorable market trend, which we believe will continue. The large number of
refugees who have come to Sweden represent a great opportunity. By investing in
adult education so that they can quickly obtain jobs and contribute to society,
we solve many of the integration issues that otherwise rapidly can arise.
AcadeMedia is Sweden’s leader in integration in terms of both Swedish for
Immigrants (Sfi) and various vocational courses.
Education market set to grow
The number of students in the school system will increase substantially over the
next five years. Well over 100,000 new students are expected to enroll, both due
to an increase in the number of students in age group, and because of the large
number of immigrants. Many new schools need to be built, especially in the major
metropolitan areas, and the need for additional players is great. We also see a
growing trend toward urbanization, which entails a large migration to regions
and cities where AcadeMedia has the majority of its operations.
Student year groups in upper secondary schools are now at their lowest level and
will grow by almost 20 percent over the next five years. The need for adult
education will remain high, mainly because of the high level of immigration to
Sweden, and the need for new skills. The need for preschools in Europe remains
high since also the youngest children need and will be offered preschool
education. AcadeMedia is a leader in preschools in Europe and the Nordic
preschool model serves as a model for many countries.
Good growth forms a solid base for development
The trend for the fourth quarter regarding number of students and participants
was good and the average number of students was 5.0 percent higher year on year.
The volume growth, along with changes in price and mix, produced a revenue
increase of 8.1 percent despite a negative currency effect. Operating profit
improved in the fourth quarter mainly due to expenses affecting comparability
previous year. The number of students for the full year increased by an average
of 3.7 percent and sales rose 5.5 percent. The increase in sales was in line
with the Group’s annual growth target of 5-7 percent, excluding major
acquisitions.
During the last quarter we developed our entire organization, including
streamlining the support organization for our units. The costs for this
reorganization have been expensed in the fourth quarter. At AcadeMedia the
development of each unit is key. We have therefore focused on creating
structures that support the competitiveness of our schools.
During the year AcadeMedia launched a strategic plan “Roadmap for 2020”. The
focus of this plan is to improve both quality and efficiency. We also aim to
focus on digitization and in this context we are very excited about our recently
established partnership with Schoolidoo, which develops digital learning
materials.
Conclusion
AcadeMedia has consolidated its position as the leading education company in
Northern Europe. We are now undergoing an exciting transformation into a leading
international education company. AcadeMedia will develope through quality
improvements and growth. We have made several advances over the past financial
year, especially regarding quality performance, the acquisition in Germany and
good volume growth. This forms a good base for further growth.”
Presentation of the full year results
A web-cast telephone conference will be held at 09:30 CET the same day, where
CEO Marcus Strömberg and CFO Eola Änggård Runsten will present the report.
You can follow the presentation and the conference on the following
page: https://wonderland.videosync.fi/2016-08-30-academedia-q2-report
Or call one of the following numbers at least ten minutes before the start of
the call:
· SE: +46 8 5664 2662
· UK: +44 20 3008 9806
The presentation material will be available before the conference begins on
AcadeMedia web via https://corporate.academedia.se/en/financials/reports
-presentations/presentations/
For more information, please contact:
Marcus Strömberg, CEO
Telephone: +46 8 794 4200
E-mail: marcus.stromberg@academedia.se
Eola Änggård Runsten, CFO
Telephone: +46 8 794 4240
E-mail: eola.runsten@academedia.se
Christian Hall, Investor Relations
Telephone: +46 763-111 242
E-mail: christian.hall@academedia.se
About AcadeMedia
AcadeMedia is the leading and single largest independent education provider in
northern Europe. In 2015/16, approximately 64,000 children and students attended
AcadeMedia’s preschools, compulsory schools and upper secondary schools. An
additional 80,000 individuals participated in AcadeMedia’s adult education
courses. In 2015/16, AcadeMedia had approximately 425 preschools, compulsory
schools and upper secondary schools in Sweden and Norway and approximately 150
adult education units in Sweden. In February 2016, AcadeMedia also took a first
step in the Company’s expansion outside Scandinavia through the acquisition of
Joki, which operates seven preschools with approximately 450 children in the
Munich region of Germany. AcadeMedia has operations throughout the education
chain, from preschool, compulsory school and upper secondary school to adult
education. More information about AcadeMedia is available on www.academedia.se
This information is information that AcadeMedia AB is obliged to make public
pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The
information was submitted for publication, through the agency of the contact
persons set out above, at 08:00 CET on 30 August 2016.
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[*] (http://connect.ne.cision.com#_ftnref1) Calculated with current number of
shares basic earnings per share for the quarter amounted to 1.50 (0.85).
[†] (http://connect.ne.cision.com#_ftnref2) Calculated with current number of
shares basic earnings per share for the year amounted to 3.39 (2.36).
