pearson schools - company profile

Pearson Schools

September 2011

2

Contents

Executive Summary

Factsheet

Offices & Centres

Key People

SWOT Analysis

Expansion Plans

Financial Profile

Industry Analysis

Competitive Landscape

Competitive Benchmarking

Recent News

Appendix

Pearson Schools

3

Executive Summary

Company Description

• Pearson schools is a division Pearson Education Services Pvt. Ltd. operates a chain of schools across India

• The company runs a chain of around X in India and abroad

• The company’s schools are affiliated to the Y board

SWOT Analysis

• Strength 1 is one of its major strengths; however weakness 1 is one of the key areas of concern

• The company can reap significant benefits owing to opportunity 1while threat 1 may have an adverse affect on the strategic initiatives and growth prospects of the organization

Financial Profile

• Pearson Education Services Pvt. Ltd. generated total revenues of INR A mn in the fiscal year (FY) 20‐‐registering a y‐o‐y growth of B times over the previous fiscal year. It earned a net profit of INR C mn in FY 20‐‐ as compared to a net loss INR D mn in FY 20‐‐

• The financial profile of the company includes the balance sheet, profit and loss a/c and the key ratios depicting the key financial figures for FY 20‐‐, 20‐‐, 20‐‐ and 20‐‐, giving an insight into the company's financial performance

Industry Analysis

• Indian education industry is currently estimated to be valued at INR G bn and is broadly divided into education systems namely, A and B

• Formal education system includes segments such as C and D, whereas the informal education system includes key segments such as G, H and I

• The F alone accounts for x per cent of the overall Indian education industry and is expected to grow at a CAGR of y per cent to reach INR A mn by 20‐‐

• The government’s contribution towards public spending on education is r per cent of the GDP

Competitive Landscape

• Key competitors for the company can be enlisted as: Competitor 1 and Competitor 2

• Competition in the K‐12 industry is increasing steadily with many private chains opening their schools in different regions of the country

4

SAMPLE

Factsheet (1/3)Basic Information

• Pearson Schools (Pearson) is a division of Name 1 formerly known as Name 2, provides services in the X of the education sector Name 2 was formerly known as Name 3

It operates Y in India and abroad

Pearson is affiliated to Z board

• Name 2 is a joint Venture between Name 4 and Name 5• Name 4: offers A tutoring to the students

• It provides G and H courses

• Pearson encompasses P, Q and R segment It also has certain unique courses named C and D

C provides P based learning for children

D offers a range of T for the students such as:• ‐‐

• ‐‐

• ‐‐

• ‐‐

• It follows the E and F approaches to teach its students

• Pearson organizes events such as U and V for students

Brief Description

Industry ‐‐

Corporate Address ‐‐

Tel No. ‐‐

Fax No. ‐‐

Website ‐‐

Year Founded ‐‐

Year of Incorporation ‐‐

Ownership ‐‐

Revenue ‐‐

Fiscal Year End ‐‐

Auditor ‐‐

Competitors ‐‐

Brief History • 2008:

Source:

5

SAMPLE

Offices & Centres – India

HQ Office

Pearson Schools

Note:Source:

6

SAMPLE

Offices & Centres – Global

Pearson Schools

Source:

7

SAMPLE

Key People (1/3)CEO and Managing Director

Mrs. XChief Executive Officer and Managing DirectorAge : ‐‐Since: ‐‐‐‐

Current Position: • ‐‐

Professional History: • ‐‐

Qualification: • ‐‐

Others: • ‐‐

• ‐‐Qualification:

• ‐‐Others

Mr. YPresidentAge : ‐‐Since: ‐‐‐‐



President

75%

Mr. ZDirectorAge : ‐‐Since: ‐‐‐‐



Qualification: • ‐‐

Director

Source:

8

SAMPLE

SWOT Analysis

• Strength 1:

• Strength 2:

• Strength 3:

•Weakness 1:

•Weakness 2:

• Opportunity 1:

• Opportunity 2:

• Threat 1:

• Threat 2:

Strengths Weaknesses

Opportunities Threats

Source:

9

SAMPLE

Ratio AnalysisKey Ratios

Note:

Key Ratio Analysis

100%

Improved Decline

Particulars y‐o‐y change

(2010‐09)2010 2009 2008 2007

Profitability Ratios ‐ ‐ ‐ ‐ ‐

Operating Margin ‐ ‐ ‐ ‐ ‐

Net Margin ‐ ‐ ‐ ‐ ‐

Profit Before Tax Margin ‐ ‐ ‐ ‐ ‐

Return on Equity ‐ ‐ ‐ ‐ ‐

Return on Capital Employed ‐ ‐ ‐ ‐ ‐

Return on Working Capital ‐ ‐ ‐ ‐ ‐

Return on Assets ‐ ‐ ‐ ‐ ‐

Return on Fixed Assets ‐ ‐ ‐ ‐ ‐

Cost Ratios ‐ ‐ ‐ ‐ ‐

Operating costs (% of Sales) ‐ ‐ ‐ ‐ ‐

Interest costs (% of Sales) ‐ ‐ ‐ ‐ ‐

Liquidity Ratios ‐ ‐ ‐ ‐ ‐

Current Ratio ‐ ‐ ‐ ‐ ‐

Cash Ratio ‐ ‐ ‐ ‐ ‐

Leverage Ratios ‐ ‐ ‐ ‐ ‐

Debt to Equity Ratio ‐ ‐ ‐ ‐ ‐

Debt to Capital Ratio ‐ ‐ ‐ ‐ ‐

Interest Coverage Ratio ‐ ‐ ‐ ‐ ‐

Efficiency Ratios ‐ ‐ ‐ ‐ ‐

Fixed Asset Turnover ‐ ‐ ‐ ‐ ‐

Asset Turnover ‐ ‐ ‐ ‐ ‐

Current Asset Turnover ‐ ‐ ‐ ‐ ‐

Working Capital Turnover ‐ ‐ ‐ ‐ ‐

Capital Employed Turnover ‐ ‐ ‐ ‐ ‐

Source:

• Analysis Point 1







10

SAMPLE

Industry AnalysisK‐12 Market – Overview Size & Growth

Source:

Market Segmentation – No. of Schools

• The K12 Market in India is expected to grow at a CAGR of a per

cent reaching INR Y bn by 20‐‐

• It accounts for approximately z per cent of the overall education

market in India

• Among the total students enrolled in this space, c% of students

access private K12 institutions while d % of the revenues are

generated by private unaided schools

• The market is regulated by the Ministry of Human Resource

Development with institutions required to operate as not‐for‐

profit institutes set up under a Trust/ Society

• Government has taken various initiatives towards developing

the market which includes:

• Initiative 1

• Initiative 2

• Some of the major drivers identified in the market include:

• Driver 1

• Driver 2

• Driver 3

• Driver 4

0

500

1,000

1,500

2,000

INR mn

a %

2012e

Y

2008

X

Private

g%

Public

h %

11

SAMPLE

Competitive Landscape (2/2)Competitive Scenario

Company Name Billabong Edify Pearson Shemford Shemrock

Number of Centres

Study Centres ‐ ‐ ‐ ‐ ‐

Financial Information (INR mn – FY 2010)

Total Revenue ‐ ‐ ‐ ‐ ‐

Net Profit/(loss) ‐ ‐ ‐ ‐ ‐

Geographic Presence (India)

Zone 1 M NA M H H

Zone 2 NA L NA M NA

Zone 3 H M L L NA

Zone 4 L H H M NA

Major Market Segmentation (courses/subjects)

Courses Offered:

Kindergarten

Junior

Secondary

Higher Secondary

Offered Not OfferedH: High; L: Low; M: Medium

Source:

12

Thank you for the attention

www.netscribes.com

About NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.

Pearson Schools is a part of Netscribes’ Education Company Profile Series. For more detailed information or customized research requirements please contact:

This report is published for general information only. Although high standards have been used in preparing this report, Netscribes (India) Pvt. Ltd. or Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and no part may be reproduced without prior written permission.

Gagan UppalPhone: +91 22 4098 7530E‐Mail: [email protected]

Jitendra PunjabiPhone: +91 33 4064 6215E‐Mail: [email protected]