Navitas profits dive and its shares are sinking

Photo: Sean Gallup/Getty

Shares in Navitas fell hard after the education group announced a steep fall in revenue and profits for the half year to December.

A short time ago, its shares were down 7.4% to $4.85.

After tax profit fell 53.6% to $24.7 million for the six months. Revenue was down 4.6% to $456.7 million.

The profit took a hit from the closure of some colleges and by a fall in government-backed language training contracts.

The bottom line also suffered from cuts in US company taxes, which reduced carrying value of US tax loss assets.

The company maintained full franked dividend of 9.4 cents.

“Global demand for education and training continues to increase steadily providing Navitas with growth opportunities in traditional and emerging fields,” says CEO Rod Jones.

“Navitas has continued to deliver on strong academic and experience outcomes to students and partners while delivering growth and improved cash flows from our continuing operations.”

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