Study does it: Fresh from overhaul, Navitas looks to Asia to power profit growth
Despite reporting a flat net profit of $35.1 million for the half year to December 31, Navitas says regional student enrolments are climbing and earnings should improve.
"What we've seen over the last three to four months is a very, very significant turnaround in terms of demand out of China," said chief executive Rod Jones, who also cited Vietnam and India as key markets.
"Streamlined visas, the potential to work in Australia once they've finished studying, these things are positives from a student perspective."
The company flagged improved earnings this financial year and next. Profits were emerging from its recent restructure, while its university programs and English businesses were recovering and would support earnings growth.
More significant growth would be visible from the 2014 financial year, as student volumes continued to grow and margins improved. Mr Jones said full-time enrolments were up 2 per cent in the first half due to returning stability in Australia and Britain after regulatory changes. New student recruitment in Australia rose 7 per cent.
He denied the restructure of the professional and student recruitment divisions was a prelude to a sale, saying Navitas had dealt with issues surrounding the $2.5 million loss in its professional division.
Navitas offers programs from 30 colleges in Australia, Britain, the US, Canada, Singapore, Sri Lanka, and Africa. It declared a fully franked interim dividend of 9.3¢ a share, down from 9.4¢. Shares closed 5¢ lower at $4.90. AAP
Frequently Asked Questions about this Article…
Navitas reported a flat net profit of $35.1 million for the half year to December 31, according to the article.
Yes. The article says regional student enrolments are climbing, with full‑time enrolments up 2% in the first half. Management cited a strong turnaround in demand from China and growing interest from Vietnam and India.
Navitas expects to benefit as Asian students return to study in Australia. The company highlighted streamlined visas and the potential for international students to work after finishing study as positives that are helping recruitment and should support earnings growth.
Navitas flagged improved earnings this financial year and the next. The company said profits were beginning to emerge from a recent restructure, and recovering university programs and English businesses would support earnings growth, with more significant growth expected from the 2014 financial year as student volumes and margins improve.
Navitas restructured its professional and student recruitment divisions to address performance issues, including a $2.5 million loss in its professional division. The chief executive denied the restructure was a prelude to a sale.
Navitas declared a fully franked interim dividend of 9.3 cents a share, down slightly from 9.4 cents. The article reports Navitas shares closed 5 cents lower at $4.90.
Navitas offers international education services and programs from 30 colleges across Australia, Britain, the US, Canada, Singapore, Sri Lanka and Africa. The business includes university pathway programs and English language businesses.
The article suggests cautious optimism: enrolments are recovering and management expects improving earnings after a restructure, but the company reported a flat half‑year profit and trimmed its interim dividend slightly. Investors should weigh the improving student demand and recovery in key businesses against the near‑term financial results reported.
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