You are using an older browser version. Please use a supported version for the best MSN experience.

Intueri directors slash fees

NZ NewswireNZ Newswire 18/05/2016 Fiona Rotherham

Directors of Intueri Education Group have cut their base director fee in half as the listed training provider seeks to cut costs, has laid off 70 staff, put dividends on hold, and seen its share price tank after ongoing reviews by the Tertiary Education Commission and Serious Fraud Office.

The savings from the director fee cut will only amount to around $200,000 a year but chairman Chris Kelly told shareholders at the annual meeting in Auckland it was a case of "all shoulders to the wheel at a particularly difficult time".

Listed two years ago, Intueri's share price has dropped from $2.35 at the time of its initial public offering to 37 cents on Wednesday. It reported a net loss of $48.5 million for the year to December 2015, mainly due to a full write-off in the value of its Quantum Education Group and impairments at its Dive School and Design & Arts College.

The directors advised shareholders on Wednesday that underlying earnings, before, interest, tax, depreciation and amortisation for the 2016 financial year will be slightly less than the $21.5 million achieved in 2015.

Directors and management faced a barrage of questions from shareholders including when dividends, which amounted to $13.7 million in the past two years, would be reinstated.

Kelly said the board would consider paying dividends again once the outcome of the TEC reviews into Quantum and the Dive School and the SFO investigation into Quantum were completed, though debt reduction also needed to be a focus for the company.

Intueri is also hampered in meeting a growing demand for online learning as a large percentage of students in its Australian-based online courses are funded through VET Fee-Help. The Australian government has imposed a cap on the scheme this year, holding all providers to their 2015 revenue levels.

The Australian Federal Department of Education and Training is conducting a review of the scheme after a Senate inquiry found rampant abuse of the system and soaring costs, and legislation is expected to be introduced early next year.

image beaconimage beaconimage beacon