"the company announced that it had not been awarded any material state funding contract in NSW or Vic for 2017".
Scale back the Training Division
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As a result of the Company not being awarded any material State Funding contracts in New South Wales or Victoria for 2017, the Training division will focus on training out existing government-funded students and will operate with a significantly reduced scope with an increased emphasis on a fee-for-service basis.
* The ongoing Training division is not expected to contribute material revenues or profits/losses in the remainder of FY17.
* It is envisaged that the Company can move through this scaling down process with a cash neutral result through to 30 June 2017.
* Any ongoing surplus lease obligations post 1 July 2017 have been provided for within the first half result.
* Non-cash charges of $8.3 million have been taken in the first half result to restate the value of the Training division’s non-current assets to recoverable amounts, with a further $0.7 million taken up in relation to Training division restructuring charges.
ASH Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)