Although ASH only has a small education business these days, I was interested to see the private equity bid for Navitas, highlighting renewed interest in the sector. The media coverage mentioned that because education businesses are so cash generative (including negative working capital as fees are paid in advance), they can be geared to 5-6x EBITDA by private equity. I think the education business remains a very attractive growth option for ASH and leaving this door open is another tick for Shrimptons mgt skill.
It would not surprise me to see this stock north of 40c in the next 12 months if they can consolidate and build on the 2018 result. Either that or Shrimpton will take it private himself.
ASH Price at posting:
29.5¢ Sentiment: Buy Disclosure: Held
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