Site Search
August 2019 edition out now

Not a subscriber?
To request a Two-Issue Free Trial email your details to: subs@theassignmentreport.com

Mixed performance by listed companies in 2014

publication date: Jan 4, 2015
Print

After two years of share price gains for most of the listed UK education industry companies covered by The Assignment Report’s Monthly ShareWatch, 2014 saw a majority of companies reverse recent gains and under perform their respective stock market share indices.

During 2014, the FTSE All-Share (FTAS) index fell 2.1%, ending the year at 3,533 (2013: 3,610). Out performing the FTAS were RM (up 32.2%), UNITE Group (up 15.5%), Promethean (up 11.7%) and Capita (up 4.1%). RM’s share price was partly helped by the company reporting in September 2014 that the second half of FY14 was expected to be more profitable than previously anticipated due to lower restructuring costs and higher profitability at the company’s personal computing business, which is being wound down. UNITE Group’s share price benefited from continued growth in net operating income, in part driven by the ongoing mismatch in the supply and demand of student accommodation, particularly in London.

However, there were more losers than winners, including Pearson, whose share price fell 11.3%, due to difficult markets in the US and UK, DRS Data, down 45.5% as a result of changes to the qualifications market in England, and Tribal (down 5.6%). Listed companies, in which education accounts for a minority of total revenue, for a variety of reasons fared even worse with Connect Group (owners of education supplies business The Consortium) down 34.7%, Babcock International, which includes vocational training and school support services, down 21.9%, Informa, which includes academic publishing, down 17.9% and Findel, which includes education supplies, down 17.8%.

In 2014 the FTSE AIM All-Share (FTAAS) index fell 17.5% ending the year at 702.00 (2013: 850.68. Out performing this index was new entrant Learning Technologies Group (LTG), the eLearning company, whose share price increased 73.5%. LTG was formed by the reverse takeover of In-Deed Online by Brighton-based Epic Group in November 2013, and aims to create a group of companies with revenue in excess of £50m, principally by acquisition, focused on the provision of learning technology services to global organisations. Other strong performers on AIM were learning and talent management platform provider NetDimensions (up 21.6%) and Advanced Computer Software, whose share price rocketed 33.1% following the agreed takeover of the company by Vista Equity Partners, the US-based private equity firm. AEC Education once again saw its share price decline (down 14.9%), principally reflecting the loss of income from international students at its college in Singapore.

 


 THE ASSIGNMENT REPORT MONTHLY SHAREWATCH

Company

Price @ 31 December 2014 (p)

Monthly% Change

% Change last 12 months

Advanced Computer Software

138.75

-0.5%

33.1%

AEC Education

3.30

8.2%

-14.9%

Babcock International

1,058.00

-6.9%

-21.9%

Bloomsbury

162.12

-1.1%

-8.0%

Cambian Group

202.50

-15.6%

N/A

Capita

1,081.00

1.0%

4.1%

Connect Group

154.00

-18.9%

-34.7%

DRS Data

13.50

-3.6%

-45.5%

Electric Word

3.00

0.0%

4.2%

Findel

224.25

7.2%

-17.8%

Havelock Europa

17.00

-2.9%

-12.8%

Informa

470.80

-2.3%

-17.9%

Learning Technologies

21.25

-5.6%

73.5%

Net Dimensions

71.75

0.3%

21.6%

Pearson

1,190.00

-3.3%

-11.3%

Promethean World

22.62

-5.8%

11.7%

RM

152.00

-6.2%

32.2%

Serco

160.70

-8.3%

-67.8%

Tribal

160.75

-1.2%

-5.6%

Unite Group

465.00

0.7%

15.5%

Wilmington Group

217.00

0.0%

-9.7%

Note: Cambian Group first listed on LSE in April 2014.

Source: London Stock Exchange.


Copyright Meissa Limited 2005-2019