Navitas Limited (ASX: NVT), the global education provider that offers a broad range of educational services across the globe, reported full year results for FY16. The results were in line with the company’s guidance, emphasising a strong underlying growth in its business. Navitas operates across three divisions, namely University Partnerships, Professional & English programs and SAE across Australia, New Zealand, North America & the UK.
Following are some of the key highlights associated with the performance of the company and their future outlook:
Revenue exceeds the $1 billion mark: The full year group revenue crossed the $1 billion milestone for the first time, with three percent increase. The revenue break-up comprised of:
University Partnerships : 57%
Professional & English programs : 23%
SAE : 20%
However, underlying earnings before interest, tax and amortisation (EBITA) plunged around $2 million to $133.8 million while underlying net profit after tax (NPAT) attributable to shareholders fell by $1.3 million to $90.8 million. On the other hand, reported net profit after tax rose 25% over FY15.
Revenue Highlights (Source: Company Reports)
Strong underlying student growth: Global enrolments, excluding colleges which were shut down, grew by six percent during the second semester in 2016, due to -
-
High volumes in student satisfaction
-
New courses & programs
-
Expansion of campuses
-
Renewal of all maturing university partnerships
-
Optimistic student survey
-
Highly rated teaching quality & learning response
-
Streamlined visa structure in Australia
-
Supportive regulatory & immigration framework
-
Engagement with overseas Government & policymakers to support & encourage high quality education
Dividend: The company announced a dividend of 9.9 cents for every ordinary fully paid security. NVT is trading ex-dividend on August 31, 2016.
Outlook: According to company reports, the outlook for FY17 remains promising in spite of the financial impact of shutting down the Macquarie & Curtin Sydney colleges in Australia.
Demand for quality education is likely to increase due to rise in population & the mounting income of the middle class in developing countries. Revenue growth is likely to remain high due to continued demand for quality education and training and is expected across businesses with EBITDA in FY17 to be broadly in line with FY16. The company aims to be among one the most trusted learning organizations in the world through quality education & strategic partnerships, industry engagement, new business models, internal restructuring for long-term growth and efficiency, and investing in new ventures.
Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376).The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in: BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.