Tertiary education program provider Navitas (ASX:NVT) has reported a 20% increase in FY11 profit to $77.4 million, on solid gains across most parts of its operations.
Revenue grew 16% through the year to $643.8 million, with ebitda up 25% to $121.1 million.
In its report to shareholders, managing director Rod Jones said FY11 marked a year that the company started a “move from many years of significant earnings growth through to a period of investment and expansion,” pointing to the $294.3 million acquisition of SAE in February.
SAE, a creative media education business, contributed ebitda of $17.2 million. Jones said the unit was performing to expectations, and he looks forward to the first full year of contribution in FY12.
Earnings growth across the university programs division – where ebitda grew 9% - and the workforce and student recruitment divisions also aided the bottom line.
But the English division suffered a decline in revenue due to operating in what Jones called “an extremely challenging external environment” during the year.
Jones acknowledged that Navitas is “facing headwinds in several markets” in FY12, and forecasts minimal growth in the university programs division due to impacts from UK and Australian government policies.
But he said the opportunity for the company beyond FY12 remains “robust,” and that other units anticipate growth during the current financial year.
NVT shares fell 2.6% in Tuesday's trading to $3.750.
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