IQE
05/08/2015 08:30
FORECAST
PRICE SENSITIVE
REL: 0830 HRS Intueri Education Group Limited
FORECAST: IQE: IQE - Intueri Trading Update
NZX RELEASE
5 August 2015
INTUERI TRADING UPDATE
Vocational education provider, Intueri Education Group Limited (Intueri)
today provides an update to the market on its first half trading performance
and expected earnings for the full year to 31 December 2015. The company
plans to release its unaudited interim results for the six months to 30 June
2015 on 20 August 2015.
First half performance, for the six months to 30 June 2015, is in line with
trends previously stated to the market, with excellent revenue growth in
Online, strong growth in International and a soft Domestic performance.
Online Courses Australia (OCA) is demonstrating excellent growth in a period
of regulatory reform, as it delivers an increasing number of higher value
Diploma courses and drives student enrolments.
In New Zealand, Intueri's International sector is delivering strong growth.
Capacity has been increased at NSIA-The Professional Hospitality Academy to
take advantage of continuing demand for this highly regarded provider.
Previously stated trends are ongoing in the New Zealand Domestic sector, with
a strong local labour market affecting domestic student recruitment in
Foundation and Youth Guarantee courses. A slower rebound in Christchurch is
continuing to affect enrolments at the Design and Arts College, and the
ongoing consequences around legacy issues at the Dive School have affected
its enrolments.
Intueri's determination to deliver quality outcomes for students, including
more robust enrolment prerequisites and additional measures to ensure
successful course completion, is impacting Quantum Education Group (Quantum)
financial performance.
Taking this and the expected timing of earnings from new acquisitions into
account, the company now anticipates FY15 underlying EBITA to be in the
range of NZD$27m to NZD$29m (down from earlier guidance of the lower end of
the forecast range of NZD$30m to NZD$33m), primarily as a result of the
softer Quantum Domestic revenues as well as higher than expected costs
associated with the company's quality and compliance drive.
Intueri has now acquired four colleges since listing in May 2014, with
settlement on the New Zealand Institute of Sport, along with its subsidiary
The New Zealand College of Massage, expected in October 2015 following
customary approvals. This increases the company's expected annualised revenue
to more than NZD$100m and annualised earnings above NZD$30m.
Intueri CEO Rob Facer said: "Given our prevailing growth strategy, we are
pleased with the performance of our Online and International sectors. A
number of initiatives are underway to mitigate the soft performance in our
Domestic sector, including the operational integration of our Academy and
Quantum colleges which will enable additional benefits, such as the roll-out
of Youth Guarantee programmes in regional centres. A review of sites and
premises across the country to ensure optimum use is also underway.
"Ensuring quality outcomes for students, including improved student
achievement and enhanced relevance of programmes, is at the heart of the
company's strategy. This has resulted in a number of reforms at Quantum
which are impacting on recruitment and completions but will provide long
term, sustainable benefits to our company, and more importantly, result in
better outcomes for a greater number of students.
"We expect to start seeing the benefits of these initiatives flowing from the
second half."
Intueri Chairman Chris Kelly said: "We remain confident in our strategy to
take advantage of the $10 billion-plus trans-Tasman tertiary education sector
through pursuing growth, driving operational efficiencies, leveraging
technology and delivering quality outcomes for students.
"Management's priority is to put in place initiatives to improve sustainable
operational performance and enable the company to continue building earnings
across all areas of our business.
"It is not expected that there will be any changes to the Intueri Dividend
Policy as a result of this update.
"The vocational education market represents an attractive investment
proposition and we are continuing to identify and assess further acquisitions
which will add value to our shareholders."
Further detail will be provided by the company in its interim results
announcement on 20 August 2015.
-ENDS-
For queries, please contact:
Rob Facer, CEO +64 (0) 27 675 3538
[email protected]
or
Rod Marvin, CFO +64 (0) 27 499 7822
[email protected]
About Intueri:
Intueri Education Group (IQE) is a New Zealand headquartered education group
dual listed on the New Zealand and Australian stock exchanges and delivering
vocational education to students in New Zealand, Australia and from around
the world.
1. Underlying EBITA is Earnings Before Interest, Tax, Amortisation of
Acquired Intangibles and Acquisition Costs. It is a non-GAAP measure. The
Board believes underlying EBITA provides the most appropriate measure of
Intueri's operating performance.
End CA:00267919 For:IQE Type:FORECAST Time:2015-08-05 08:30:09
