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Navitas sees FY11 growth
Written by Nicole STEVENS (AAP) | The Daily Telegraph
2010-11-24
 

EDUCATION provider Navitas Ltd says a downturn in international student enrolments in Australia is creating headwinds for the company but still expects to report earnings growth for the current financial year.

Navitas says changes to student visa requirements, the rising value of the Australian dollar and concerns about the safety of international students will continue to affect the tertiary education sector.

"Australia is currently facing a downturn in international student enrolments across all education sectors and providers," Navitas chief executive Rodney Jones told the company's annual general meeting in Perth, according to notes received by AAP.

"These conditions are creating headwinds for Navitas and are impacting on our share price, but we believe these will be short- to medium-term issues and we are already implementing mitigation strategies."

Navitas' Australian enrolments fell by four per cent in the 2010 trimester ending November when compared with the prior comparable period, Mr Jones said.

Overseas enrolments helped offset the relative local weakness, with strong growth in Singapore, Canada and UK.

Navitas chairman Harvey Collins said the company's strategic organic growth program and geographical diversity would underpin earnings growth in the current financial year.

The company would review all aspects of the business with a view to identifying cost efficiencies, Mr Jones told investors.

"Given the projected slowdown in most areas of our Australian operations, now is an opportune time to review what we are doing to ensure our organisation is operating at maximum efficiency so that we not only achieve this year's targets but continue our strong growth into the future."

Navitas plans to establish nine new colleges in the 2011 calendar year and will continue to assess opportunities for acquisitive growth.

After entering the US market in 2009/10, Navitas opened its fifth US college in the first quarter of the new financial year.

Mr Jones said the company expected solid earnings growth in 2011, but stopped short of offering solid guidance.

Navitas shares gained seven cents, or 1.86 per cent, to $3.83 on Tuesday.

 
 
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