Winds are changing: Navitas
Market watch top headlines
Global education services provider Navitas is confident of lifting its earnings following a pick up in student enrolments.
Navitas said benefits were beginning to flow from its recent restructure, while its university programs and English businesses were recovering.
"All of these factors should support improvement in FY13 with more significant growth from FY14, as student volumes continue to grow across core divisions and margins improve," chief executive Rod Jones said in a statement.
Mr Jones' comments came as Navitas reported a first half net profit of $35.1 million for the half year to December 31, compared to $35.4 million from the same period last year.
Revenue rose four per cent to $355.4 million.
Navitas attributed the flat profit result to tax reasons and depreciation charges in the previous corresponding period.
Navitas offers pre-university and pathway programs from 30 colleges in Australia, Britain, the United States, Canada, Singapore, Sri Lanka, and Africa.
Mr Jones said Navitas' results had continued to be affected by the long-term effects of regulatory and policy changes in Australia.
However, enrolments and earnings had improved in Britain following similar policy changes.
"Student enrolments continue to improve in our core University Programs Division as planned, but the benefits are yet to materially show in our financial results due to the lag associated with the effect of lower enrolments in previous periods," he said.
Earnings at its University Programs division increased by eight per cent to $53.1 million, which Navitas attributed to a strong performance in Canada, a return to growth in the UK and a reduction in investment costs as the US college network nears the breakeven point.
However, the Navitas Professional division, suffered a loss of $2.5 million, compared to a profit of $2.9 million in the previous corresponding period.
Navitas said the disappointing result was largely due to a drop in demand for corporate training following a change in government funding requirements.
Navitas shares were seven cents, or 1.41 per cent, higher at $5.02 at 1210 AEDT.