News

Merger of groups cuts into profits

Nord Anglia, the largest nursery chain in the UK and Ireland, has acknowledged that integrating the Leapfrog and Jigsaw groups into the business, combined with falling occupancy levels, has had 'a major impact' on the group's turnover and profit.

on the group's turnover and profit.

In preliminary results for the year to 31 August 2005, published on Monday, the nurseries division generated a turnover of 52.m and had an operating profit of 3.2m.

In a statement the company said, 'The integration of the three chains diverted management attention from sales and marketing and the move towards the higher quality Leapfrog model resulted in increased costs across the estate without corresponding improvements in turnover.'

However, the company said that it had taken steps to improve performance.

These include the appointment of Simon Cashmore as the new managing director for the nurseries division (News, 27 October), replacing other senior management, putting up for sale a number of underperforming nurseries and unifying the nurseries division under the Leapfrog brand.

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