News: Vocation loses 60% on earnings downgrade

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Education and training company Vocation Limited (ASX:VET) saw its share price sink 60 per cent yesterday after it cut its earnings forecast by around half.

 

The company says its earnings guidance for FY15 would be between $25 million to $30 million as opposed to the previous quoted range of between $53 million and $57 million.

 

The troubled company’s Chairman, John Dawkins, resigned last week on top of revelations the company had lost major government funding.

 

Group CEO Mark Hutchinson says enrolment volumes have dropped and in a bid to reduce risk the company has ended relationships with some brokers and that these factors would impact revenue. 

 

Mr Hutchinson says going forward, the company will focus on enterprise clients through the Real Institute.

 

Vocation reported a net profit of $8.3 million in the 2014 financial year.