CHEADLE-based Nord Anglia Education has scrapped its interim dividend after a torrid year.

The company, which runs children's nurseries, British-style schools overseas and provides inspection and training services in UK schools, said pre-tax profits in the six months to February 28 fell from '4.14m to '1.13m.

This was despite a 22 per cent increase in turnover to '55.5m, largely due to the acquisitions of the Leapfrog and Jigsaw nursery chains.

Nord Anglia had warned on profits because revenues were lower than anticipated.

Chairman Kevin McNeany stood down earlier this year and, last month, group finance director Lorene Simpson left.

New chairman Alan Kelsey said Nord Anglia had been through a difficult period but was now stabilising and had revised its banking facilities.