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.
A new campaign with the Royal College of Midwives will offer all new mothers in England and Wales a one-week free trial at nursery.
Alan Kelsey, Nord Anglia's chairman, said, 'We have done much work in the nursery division to improve performance but more is needed; in particular we need to improve occupancy and we believe the strengthened management team is well positioned to do this although the market background shows little sign of improvement in the short term.'
