Intueri suspends dividends on TEC review 11 Feb 2016
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- Budget provides $321m for RS&T activities News
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
Intueri suspends dividends pending TEC review; 2015 earnings meet reduced guidance
By Paul McBeth
Feb. 11 (BusinessDesk) - Intueri Education Group, the private training college under investigation by the Serious Fraud Office, has suspended dividends pending the review by the Tertiary Education Commission funding agency, and says 2015 earnings met its downgraded guidance.
The Auckland-based company won't pay any more dividends until the TEC completes its review of funding for Intueri's Quantum Education Group and Dive School units to meet the Crown entity's funding conditions, it said in a statement.
Underlying earnings before interest, tax, depreciation and amortisation was $21.5 million in calendar 2015, meeting guidance of between $20.5 million and $23.5 million which was cut three times last year. Intueri didn't provide an underlying ebitda figure for the prior year, which strips out acquisition costs, impairments and other one-off costs, instead reporting statutory ebitda of $17.9 million.
"There have been significant changes in the vocational education sector recently which are having a material impact on our operations," chief executive Rob Facer said. "Our priority is to evolve and adapt to meet these market conditions and identify opportunities for continued growth."
The Quantum school is also the subject of a SFO investigation, with the white-collar crime investigator seeking information dating back to 2012 from the college, while the TEC has restricted enrollments for unfunded students at Intueri's Quantum school. The company said the TEC restriction will reduce fee revenue by between $8 million and $9 million, and the training college has embarked on a strategic review to align capacity with the lower numbers.
Quantum generated 20 percent of Intueri's revenue in 2015 which will drop to less than 10 percent in 2016, and the company will write down the value of the college in its 2015 accounts.
"Intueri is awaiting the outcome of the TEC and SFO reviews, at which time it will consider legal remedies and recourse against the original vendors," it said.
The announcement of the SFO last month triggered a sharp selloff in Intueri's shares, which last traded at 28 cents, and have plunged 61 percent so far this year. That adds to their 72 percent slump through 2015.
The company bought the Quantum school in 2014 leading up to its listing, when Intueri raised $62 million at $2.35 a share to pay for a series of acquisitions. In December, the Financial Markets Authority said the offer document for that float could have been clearer, but wouldn't take any further action.
Intueri anticipates 2016 earnings will be "slightly lower" as a reduction in student numbers at Quantum, though it anticipates growth from its international business and flat earnings at its Australian online division.
The company still has the support of its banks, who have agreed indicative terms for an $80 million three-year refinancing of its debt facilities, which are likely to be in place by the end of the month.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more