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December 2018 edition

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The Assignment Report Events

Making a difference - Maximising learning outcomes and improving workflow in schools

14 February 2019, 13.45 to 17.45, Ironmonger's Hall, London

Confirmed panellists include: Steve Burnett, Managing Director, RM Education; Andrea Carr, Founder of Rising Stars; Paul Charman, Managing Director, FFT Education; Richard Marett, CEO, Whizz Education; Amanda Peck, Executive Director Marketing, Professional Group, McGraw-Hill Education; Josh Perry, Director, Assembly; Ian Rowe, Business Development Director, GCSEPod; and, Dan Sandhu, CEO, Sparx.

Paul Howells (CEO, Eteach Group), Julian Drinkall (CEO, AET) and Rupert Barclay (Managing Partner, Cairneagle)

Tight margins at Kids Unlimited

publication date: Mar 2, 2008
author/source: Ed Tranham
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It appears from recent filings at Companies House that Kids Unlimited (KU) has restructured its debt by substituting all or part of the £4m it owes to Bank of Scotland through the issuing of preference shares to KU’s majority shareholder, ISIS Equity Partners.

At the same time, KU’s latest set of filed accounts for the year ending 30 April 2007 continues to provide grim reading. Although sales increased by £3.75m to £27.37m, the 2007 EBITDA was up by only £613k to £931k and that’s before an exceptional charge of £350k. After depreciation, the exceptional charge and £800k of net interest payments (£457k to ISIS Equity Partners), a loss of £1.61m was reported. Over the same period, borrowings increased by £415k to £13.27m. £4m of this indebtness has now been repaid via the issue of preference shares. With debtors down, the overall balance sheet has worsened although this could look different if KU’s real estate is included at market value and the £8.9m shareholder loans treated as quasi equity.

Credit control seems to have been a problem at KU. Tucked away in the directors’ report is a note setting out KU’s new tougher regime for credit control to ensure monies are collected. Debt reports are now being run three times per month against every child!

We are sure that ISIS would exit KU if the price was right. But for the time being they will be requiring the directors to begin to squeeze out more margin from their 52 nurseries.

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