,

Good to see positive Final results today.

PBIT in line with expectation at 2.2m
EPS way ahead at 4.1p
DIV good increase to 0.33p from 0.20.
And cash is up to 3.1m from 2.3m.

Have to remember they had deferred tax allowance of 287,000 which reduced tax charge to around 9%. So EPS would have been about 3.7p on normal tax charge. I would guess the brokers would upgrade forecasts for next year, wouldn't be surprised to see pbit = 2.5m and EPS of over 4.6p.

See new broker upgrades below. With sp at 37.75 it must be a snip even in these markets.

Brewin Dolphin - 2008 profits = 2.81m and EPS = 4.84P, 2009 profits = 3.31M and EPS= 5.65p

Redmayne - 2008 profits = 2.70m and EPS= 4.7p, 2009 profits = 3.20m and EPS = 5.60p

spitfire43, Thank you for the info. Yes, worth holding onto. I saw elsewhere that the target is for 56p... that'll do for starters !

Thought it was time to remind ourselves why EDD is still such a good investment.

sp increased from August 2008 price 25p to todays price of 38.5p. = +54%

even after this 54% rise have a look at some of the fundarmentals.

cash = �3.1m / no debt

current PE = 9.46
2008 PE forecast = 8.12 - with PEG at 0.49
2009 PE forecast = 6.88 - with PEG at 0.38

Operates in Education sector, which Government has pledged to keep increasing spending.

Wouldn't even be surprised to see takeover action at some point in the future, and thats in the price for nothing. (Seems to be an agressive sector re takeovers)

I will post above on the thread ( top aim picks for 2008 ) and challenge people to find a better company on the above fundamentals, and in growth markets. I'm sure there are some but I haven't found them yet.

So have a check and see if any better shares are revealed.

When I suggested EDD could be a takeover target, I was thinking of an American company called Kaplan part of Washington Post PLC.

Kaplan is one of the largest providers of financial services training programs in the U.S. Long known as a test prep company, Kaplan has grown dramatically entering a variety of new education industries and becoming one of the largest and most diverse educational businesses in the U.S.

They acquired UK company FTC Holdings in March 2003 for 55.3m.

FTC was a leader in test preparation services for accountants and financial services professionals, with 18 training centers in the U.K. and a growing presence in Asia, including operations in Hong Kong and Singapore.

As you can see EDD would fit in with Kaplan in the very market they operate in the US. If exchange rates go towards a weaker Pound then they could be tempted into a bid.

Probably me being a bit thick, but what precisely does this company do? Who are their customers: government, private schools/colleges or individuals?

Customers in the main or colleges and schools but also individual's via online further education, They are involved in all areas of Education including Younger Kids and test and prep admission, higher education and professionals. See an overview below.

Kaplan is one of the worlds most innovative and dynamic private education providers and a wholly owned subsidiary of The Washington Post Company. The Washington Post is a venerable, highly respected publicly listed company on the New York Stock Exchange. In 2004, The Washington Post Company's revenues exceeded USD$3.3 billion. Recent Board members include Warren Buffett (CEO, Berkshire Hathaway), James Burke (CEO, Johnson & Johnson) and Don Keogh (COO, Coca Cola).

Established by Stanley H. Kaplan in 1938 and acquired by The Washington Post in 1985, Kaplan was one of the first companies to provide students with tutoring in preparation for the standardised university entrance examinations in the US. Today, Kaplan remains the market leader in test preparation having assisted more than 3 million students over its 70 year history. Driven by a successful diversification strategy, Kaplan has experienced exceptional growth over the last decade with revenues increasing 12-fold. Kaplan is now one of the largest and most diversified private education companies in the world with revenues exceeding USD$1.135 billion.

I believe the EDD business model would fit in very well, I should imagine that the low dollar against the pound may have held them back from making a bid.

Thanks for the info, spitfire. It looks interesting.

EDD mentioned in today's IC mag again. Basically says shares are cheap even if you take away their ?3.1m net cash position. Whilst not an quick multibagger this should double/triple over next year or two.... I've held for past 6months and am already 37% up.

A double/triple will do for me, thats certainly quick enough for me.

nice sp move today, 3.75p up to 42.75p. plenty of buys today, maybe after the write up in IC mag. Volume is 338k so far with one large sale recently gone through of 130k, but if anything the sp has firmed even more. Interesting.

Yep, it's looking good..

Reason for the 130k sale solved see latest news release below.

Education Development International plc ('EDI' or the 'Group') announces that
350,000 share options granted to Chief Executive, Nigel Snook, under the
company's unapproved share options scheme have achieved their performance
targets and vested with effect from 12 January 2008. Mr Snook does not intend
to exercise these options at the present time.



Separately, Mr Snook has today sold 130,000 EDI shares held in his pension fund
to meet a tax liability. Following this sale his total interest in EDI shares -
excluding the 350,000 which have recently vested - stands at 3,059,237,
representing 5.3% of the issued share capital of the company.



In addition, Mr Snook is a potential beneficiary of the 2,995,000 shares held in
the Group's Employee Benefit Trust, representing 5.1% of the issued share
capital of the company.

good to see EDD holding up well in these uncertain markets.

see latest news below........

Education Development International plc ('EDI' or 'the Group'), the leading
provider of educational qualifications and assessment services announces that it
intends to issue a trading update to the market by the end of February 2008.

This will provide an opportunity for EDI to give guidance on both progress
towards the integration of ASET Limited acquired on 19 November 2007 and Group
trading performance for the four months to 31 January 2008.

yes, they must have something good to shout about if the're prepared to issue a trading update...hopefully will see the sp gaining more ground.

EDD have risen 1.25p to 39.75, trades have nearly all been positive this week, hopefully investors are catching onto the potential of this company.

Have noticed a large increase in trades for EDD, on a average day you would have from 5k to 15k, but last Thursday saw 28k, Friday 26k then yesterday was over 200k and today over 100k so far. I can't find any press comment or new tips for the company, but will keep looking. Maybe it's the anticipation of the trading update before the end of February, whatever it is I believe the price is now breaking upwards.

It's gotta be in anticipation of the trading update due any day now..hope the news is better than excellent !

Nothing new but came in this am from Company Watch

EDI: earning full marks

With four profit upgrades in the space of seven months, you might expect the shares of Education Development International (EDI) to be trading on a pretty rich multiple.

But despite a recent trading update, which prompted the firms broker, Brewin Dolphin, to up its pre-tax profit forecast for the current year from 2.8 million to 2.9 million, the shares sell for less than 8.5 times prospective earnings. For a business that doubled earnings in 2006/07 and looks like achieving more than 25 per cent growth in 2007/08, that is a mean rating.

EDI grew out of a dot-com disaster called Global Online Assessment for Learning and it has since been transformed under chief executive Nigel Snook. The technology it inherited remains one of the keys to its success.

There are three areas to EDIs business. In the UK, it is accredited by the government to award vocational qualifications such as NVQs, delivered by further education colleges and other training providers. Increasingly, students are assessed online, which is a big plus for EDIs margins. The firm helps professional organisations, such as accountancy bodies ACCA and CIMA, run their foundation-level qualifications.

EDI is a business growing at 20 per cent or more a year. It could get even better if government moves to promote more employer-sponsored apprenticeships and other training programmes bear fruit. In a recent announcement, the government pledged an extra 250 million to aid skills training. The likes of EDI can help employers tap that money by providing a package that gives their in-house programmes official accreditation. EDIs chances of success here have been boosted by last years acquisition of another accredited awarding body, ASET Group.

Area number two for EDI is its international exam board business, London Chamber of Commerce and Industry International Qualifications (LCCI). The business is big in South East Asia and parts of Europe (Germany in particular) and is growing at five to ten per cent a year.

Finally, there is a support services operation, the core of which is an electronic platform, i-assess, which allows professional bodies to run their own online assessments. Most of the contracts here are of several years duration and are low maintenance.

EDI made three acquisitions last year and Snook is clearly looking for more. Last years deals used up what was a mounting cash pile but, with strong cash generation, the company could well have 1 million in the bank again by the September year-end. Of course, that wont happen if it buys another business before then which seems highly likely.

Brewin Dolphin is now looking for earnings of 5.7p next year, which would drop the multiple to just 7.4. The shares performed strongly in 2007 but still look to have a long way to go on a two-year view.


Recommendation: Buy
Ticker: EDD
Sector: General retailers
Listing: AIM
Mid-price: 42.25p
Market cap: 24.3m

Interesting article skyhigh, it highlights what a good company this. And the trading statement on Friday was very positive, (exceeding market expectations) thats music to my ears. On a 18 to 24 month view I have a price target of 80p, with my fingers crossed that a takeover could happen.