The Age | 28 July 2014
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The chief executive and founder of education group Navitas says it’s highly unlikely there will be any nasty surprises among the 25 other university partners for which the company runs pathways colleges as a bridge to university education, after its dumping by Macquarie University.
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Rod Jones, who co-founded Navitas in 1994 and led it through an ASX listing in 2004, says he doesn’t harbour any grudges toward Macquarie University after it made the surprise decision three weeks ago to end an 18-year arrangement, making it the first university to not renew an existing agreement in Navitas’ history.
Writedowns mainly related to the loss of a crucial contract with Macquarie University triggered a sharp slide in the bottomline profit of Navitas, which still expects solid growth in a sector undergoing major changes in funding models and policy shifts.
Navitas has foreshadowed a 31% drop in net profit after tax to $51.6 million for the 12 months ended 30 June after booking impairment charges of $30.5 million.
The bulk of that charge was incurred following a surprise decision by Macquarie University to scrap a deal with Navitas’ Sydney Institute of Business and Technology, which has been the loyal provider of on-campus “pathway’’ courses, which bridge the gap between high school and university for students. Many of those students are from overseas countries.
The company’s University Programs Division booked a $23.3 million impairment in relation to the SIBT, which worked closely with Macquarie in funnelling students into Macquarie’s university courses.
