The positives

Ugly set of numbers there, someting I was wholeheartedly expecting.
Nevertheless, I, and others have been adding in the belief that there is a much brighter future, the dirty laundry is out of the way, and the time is to get in at these low prices.

Here are some positives from the otherwise poor result.

We have made a number of senior management changes and restructured operations into five business units, each reporting to a general manager and accountable for achieving clearly defined targets.

”The process is well under way to restore profitability to an acceptable level. After analysing the Company’s operations, business model and competitive strengths, I am confident that this can be achieved,“ said Mr Cummins.

The Company is in dialogue with IMF Bentham, which announced in August 2015 that it proposed to fund a class action against the Company on behalf of certain shareholders, with the aim of resolving the situation.

The composition of the Board is currently under review and the Company is targeting to have a majority of independent Non-Executive Directors by 30 June 2016.

Pleasingly, several new large customers have recently been secured and, following the structural and operational changes, the Division is expected to make a positive earnings contribution in the second half.

half cash flow is expected to be positive, benefiting from a moderation of the working capital peak and review of capital expenditure plans, particularly investment associated with the expansion of the international student business in Perth and Melbourne.