Navitas posts 20 per cent full-year profit growth, despite enrolments falling
[Thu 04/08/2011 10:57:03]
By Sam Dallas
Despite a reduction in student numbers, education provider Navitas has recorded a 20 per cent full-year profit growth.
The WA-based company – Australia’s biggest provider of university preparation, English language and migrant English courses – posted a $77.4 million profit (up from $64.3 a year ago), financial figures reveal.
The profit was assisted by February’s $289 million takeover of SAE – which is touted as one of the world’s “largest media technology training institutes”. The school’s three areas of expertise are film production, audio production and interactive media. The two-year film production degree has, importantly, not changed due to the takeover.
Navitas said, as a result, it had moved from a net cash position to a net debt position of $102.8 million.
However, the acquisition has resulted in a 131 per cent increase in total equity to $239.2 million.
Revenue increased almost 16 per cent to $643.8 million, despite “market instability”.
International student enrolments have been a problem in Australia due to the strong Aussie dollar, concerns about personal security and strong visa requirements enforced by the Federal Government.
Navitas said overall student numbers had decreased 7 per cent in this year’s second semester. However numbers were strong for the company in Singapore and Canada.
But a government review of the Australian student visa regime should have a positive effect on the Australian international education sector over time, Navitas chief executive Rod Jones told IF earlier this year.
Jones said in a statement he was happy with the “strong results”, which “demonstrate the importance of our diversity and the strength of the core University Programs model in a challenging environment”.
Jones, who is Navitas’ largest shareholder, said the company would continue to expand into new and existing markets. This year alone it has opened six new colleges – five of which are US-based. More are expected next year.
“Although facing headwinds in several markets the inherent opportunity for Navitas remains robust with demand for quality education continuing to grow as more students seek education and training overseas and at home.”
Navitas’ SAE acquisition was funded by $175 million in new debt, a $100 million equity placement and $19 million in shares to the vendor which will see the two combined businesses have more than 50,000 students enrolled across 97 global campuses.
Navitas was founded in 1994. To read the full financial report, click here.
[Thu 04/08/2011 10:57:03]