Show goes on at Stagecoach Theatre despite the slump

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The drama, singing and dance schools group, which counts the Harry Potter star among its alumni, has seen a 4.2% drop in student numbers but managed to offset this with a rise in fees from its franchise network of schools.

The increase in tuition charges, combined with cost-cutting, helped Stagecoach to post a 3% jump in pre-tax profits to £726,000 for the year to the end of May.

But the company, which has until now proved almost immune to the downturn, is starting to feel the effects of growing unemployment. Some of its UK schools have been hard hit by mass job losses and Stagecoach warned the pain may deepen.

The number of Stagecoach schools in the UK has fallen slightly to 617. This is the first time since it was founded more than two decades ago that the number of its students and schools has declined. It paid a total dividend of 2½p this year, an increase of a quarter.