NVT reports a bottom of the class set of full year results
- Two new colleges signed up in the US
- 5 University partnerships renewed
- SAE EBITDA margin up 0.8%
- FY Dividend flat at 19.5c
- Group EBITDA margin flat at 16.3%
- Group revenue down 5%
- Group EBITDA down 6%
- Reported NPAT down 11%
- EPS down 8% from 24c to 22.1c
- University partnerships impacted negatively by the close of Macquarie and Curtin Sydney Colleges
- Net debt increased from $56.2m to $186m
This is the third year in a row of declining operating cashflow for NVT as the loss of the Macquarie and Curtin Sydney Colleges impact the business. In 2018 no revenue will be earned from these operations further constraining earnings in FY2018. These were material contracts the key will be NVT finding new revenues to replace the lost contracts in the coming years. While it is encouraging that 5 university partnerships were renewed in FY17 there are a number that are up for renewal in FY18. NVT however still enjoys a strong macro environment in terms of the global demand for international education.
Disclosure & Disclaimer
This Research report, accurately expresses the personal view of the Author.
DJ Carmichael Pty Limited, members of the Research Team; including authors of this report, its directors and employees advise that they may hold securities, may have an interest in and/or earn brokerage and other benefits or advantages, either directly or indirectly from client transactions in stocks mentioned in this report.
DJ Carmichael Pty Limited is a wholly owned subsidiary of DJ Carmichael Group Pty Limited ACN 114 921 247.
In accordance with Section 949A of the Corporations Act 2001 DJ Carmichael Pty Limited advises this document contains general financial advice only. In preparing this document DJ Carmichael Pty Limited did not take into account the investment objectives, financial situation and particular needs (‘financial circumstances’) of any particular person. Accordingly, before acting on any advice contained in this document, you should assess whether the advice is appropriate in light of your own financial circumstances or contact your DJ Carmichael Pty Limited adviser. DJ Carmichael Pty Limited, its Directors employees and advisers may earn brokerage or commission from any transactions undertaken on your behalf as a result of acting upon this information. DJ Carmichael Pty Limited, its directors and employees advise that they may hold securities, may have an interest in and/or earn brokerage and other benefits or advantages, either directly or indirectly, from client transactions. DJ Carmichael Pty Limited believe that the advice herein is accurate however no warranty of accuracy or reliability is given in relation to any advice or information contained in this publication and no responsibility for any loss or damage whatsoever arising in any way for any representation, act or omission, whether express or implied (including responsibility to any persons by reason of negligence), is accepted by DJ Carmichael Pty Limited or any officer, agent or employee of DJ Carmichael Pty Limited. This message is intended only for the use of the individual or entity to which it is addressed and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient or employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication and its attachments is strictly prohibited.
SPECULATIVE BUY – Potential 10% or more outperformance, high risk
BUY – Potential 10% or more outperformance
HOLD – Potential 10% underperformance to 10% over performance
SELL – Potential 10% or more underperformance
Period: During the forthcoming 12 months, at any time during that period and not necessarily just at the end of those 12 months.
Stocks included in this report have their expected performance measured relative to the ASX All Ordinaries index. DJ Carmichael Pty Limited’s recommendation is made on the basis of absolute performance. Recommendations are adjusted accordingly as and when the index changes.
To elect not to receive any further direct marketing communications from us, please reply to this email and type 'opt out ' in the subject line. Please allow two weeks for request to be processed.
© 2017 No part of this report may be reproduced or distributed in any manner without permission of DJ Carmichael Pty Limited.