IQE
23/11/2015 08:39
GENERAL
PRICE SENSITIVE
REL: 0839 HRS Intueri Education Group Limited
GENERAL: IQE: IQE - Intueri Receives Notification of Review from TEC
Intueri Education Group has received notification from the Tertiary Education
Commission (TEC) that it will be undertaking reviews of two of Intueri's
schools, Quantum Education Group (Quantum) and the New Zealand School of
Outdoor Studies (the Dive School).
While the timing and terms of reference are still to be confirmed, Intueri is
committed to co-operating fully with the TEC during these reviews, which
Intueri understands will primarily focus on legacy issues.
Intueri's initial assessment of the implications of the TEC notification is
as follows:
o Due to a change in TEC's position, Intueri will be reinstating a provision
for reimbursement of funding received at the Dive School
o At this point in time no provision is required to be taken in respect to
the Quantum review
o Current discussions between TEC and Intueri, regarding funding portability
between schools within the Intueri group for 2015, are on hold until
completion of the reviews
o The potential impact on 2015 earnings of these matters is estimated at
between NZ$4-5 million
o If financial liability is established for legacy issues in respect of
either Quantum or the Dive School, then Intueri will seek recourse from the
original vendors
Dive School: The TEC has advised that it has changed its position, previously
relayed to Intueri, on historical enrolment inconsistencies at the Dive
School as identified in an EY report commissioned by Intueri at the end of
2014. Accordingly, until the outcome of the review is known, Intueri intends
to reinstate a Dive School provision of NZ$1.1 million which was reversed in
the 2015 Interim results.
Funding portability: While TEC has confirmed it is not averse to Intueri's
proposal around the transfer of Student Achievement Component (SAC) based
funding between schools within the Intueri group, they have advised that
these discussions are now on hold. This may reduce earnings by approximately
NZ$3 million for the 2015 year, unless resolved before year end.
Intueri will keep shareholders fully informed as to the outcome of these
matters.
The Directors of Intueri are unwavering in their commitment to deliver
quality education outcomes in line with the New Zealand Government's Tertiary
Education Strategy.
Ensuring quality outcomes for students, including enrolling the right
students onto the right programmes, is at the heart of Intueri's strategy.
The company has made a number of changes to schools post-acquisition to align
all enrolment and reporting measures with Intueri's best practice quality
mandate, and will continue to engage with regulatory bodies on both sides of
the Tasman to ensure quality vocational education outcomes are delivered.
-Ends-
Contact:
Rob Facer
Chief Executive & Director
+64 (0) 27 675 3538
[email protected]
Chris Kelly
Chairman
+64 (0) 27 249 8883
[email protected]
End CA:00273867 For:IQE Type:GENERAL Time:2015-11-23 08:39:36
