Shares in Navitas fell hard after the education provider flagged a decline in revenue from federal government contracts.
A short time ago, the shares were down 15% to $4.21.
Navitas says its been informed by the Department of Education and Training that there will be a smaller number of contracts to deliver its Adult Migrant English Program.
The company says this could mean a fall in earnings of between $12 million and $14 million next financial year.
“The proposed reduction in contract regions is disappointing news as Navitas has been delivering this important program to a high standard since 1998,” says CEO Rod Jones.
“However we will continue to focus on providing high quality outcomes to our clients in our remaining and new contract regions; and ensure any transition for clients is as smooth as possible.”
Navitas posted an 18% rise in net profit after tax to $53.3 million for the half year to December. However, revenue was down 7.7% to $479 million.
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