Asia-focused educational courses provider AEC Education increased first half revenues by 169% to £8.64m thanks to a full six month contribution from London-based language course provider Malvern House.
There was a decline in profit from £403,000 to £346,000 in the six months to June 2010. The early part of the year was hit by the UK Border Agency’s review of its policy on student visas. That cost the business around £250,000 in lost profit.
AEC is linking with a number of UK universities in order to offer their courses and qualifications in Asia.
At 17.5p a share, AEC is valued at £7.51m.
House broker WH Ireland forecasts an increase in full year profit from £1.22m to £1.42m. The shares are trading on less than eight times prospective 2010 earnings.
Net cash was £2.41m at the end of June 2010.
This puts AEC in a strong position to make further acquisitions. AEC looked at UK acquisitions but these were too highly priced. The main strategy is to acquire in Asia but South America is another growth area.
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