Navitas FY profit sharply falls

Education company weighed by university writedowns, upbeat about FY15 earnings.

Navitas Limited (NVT) expects strong earnings growth in fiscal 2015 despite posting a significant fall in profit in the year to June 30.

The education company posted a $51.6 million net profit attributable to members, a 31% fall on the $74.57m posted in the previous corresponding period.

The result was weighed down by $30.5m in goodwill writedowns, mostly to its university programs division.

Navitas shares fell sharply earlier in July after Macquarie University announced it would end a partnership with the company from 2016.

But the universities division continued to grow despite the writedowns, helping to lift they company's full year revenue 20 per cent to $878.2m, a 20% increase on the $731.74m reported in fiscal 2013.

Navitas expects a significant uplift in earnings in fiscal 2015, saying it anticipates earnings before interest, tax, depreciation and amortisation of between $162m and $172m.  

The company will pay a final dividend of 10.1 cents per security on September 15 to shareholders on the register at September 1.

Combined with an interim dividend of 9.4 cents per share, the total dividend for the year is 19.5 cents per share, the same amount paid in fiscal 2013.

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