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AEC Education hit by profits warning

AEC Education's share price dived 18% after the company issued a profits warning and said that it was likely to post a full year pre-tax loss of £0.25m.

Management says that the continuing uncertainty surrounding the UK Government's policy on student visas and immigration has adversely impacted the performance of its UK business, Malvern House (which principally offers English Language programmes to foreign students).

A reorganisation of Malvern House has been instigated to realign its cost base.

The Board says that the actions being taken at Malvern House will enable the UK business to deliver profitable growth going forward.

With the ongoing growth of the Asian businesses and demand for the Group's educational programmes overseas remaining buoyant, the Board adds that medium and long-term prospects for the Group remain very positive.

The share price fell 2.5p to 11.0 - a drop of 18.5% since the market open.

Story provided by StockMarketWire.com

13/12/2010