Harry Potter star’s drama school sold

THE founders of a drama school business whose former students include Harry Potter star Emma Watson are in line for a £3 million windfall after agreeing to sell the venture.

Drama teacher Stephanie Manuel and banker David Sprigg set up Stagecoach Theatre Arts in 1988 from three rented rooms in Surrey but now have some 700 schools globally. Other famous students include Tom Fletcher, lead singer in pop band McFly.

The £6.5m takeover offer from private investor Shirin Gandhi, who is working with the existing management team, will see Sprigg receive £1.9m and leave the company, whereas Manuel will sell about half her stake for £1m and will stay on in a part-time role.

The pair opened the school after Manuel – an actor, writer and drama teacher – spotted a niche in the market for a dance, drama and singing school for children aged four to 18.

She teamed up with Sprigg, who describes himself as a failed rock star who was “rescued” from his job at Barclays where he was a lending manager.

The business started with three schools in rented rooms, in Richmond, Redhill and Woking, but it developed into a franchise operation and now has 684 schools, including some in Australia and the United States

About 600 of its sites are in the UK, where it teaches some 34,000 students a year.

Gandhi, a partner at private equity firm Encore Capital, said the company will now be able to grow faster. He added: “I have been investing in UK companies for many years and recognise Stagecoach’s established reputation as an operator of part time theatre arts schools for children.

“I am looking forward to working with the management team to add value to the operations of Stagecoach and believe that if management, without the confines of the public markets, prioritise their opportunities then the prospects for the business will be enhanced.”

Gandhi’s company, Lifeskills Education, will pay 65p a share for Stagecoach. The stock had traded at 39p before news of a possible offer emerged last week. Shares shot up 62.8 per cent or 24.5p yesterday to close at 63.5p, having hit 66.3p earlier in the session.

Stagecoach chairman Graham Cole said: “The offer represents an opportunity for shareholders to achieve an immediate cash exit for their shareholding at a significant premium to the company’s recent share price.”

He said the offer had been conditionally accepted by the Stagecoach’s co-founders and controlling shareholders. Manuel and Sprigg hold 59 per cent of the company’s stock between them.

The company’s latest results, for the six months to 30 November, showed that a slight drop in revenues to £2.8m pushed the group to a loss of £60,000. The firm said at the time that it was bolstering its advertising spending to counteract a fall in student numbers.