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Intueri half-year profit drops 43 per cent

NZ NewswireNZ Newswire 28/08/2016 Jonathan Underhill

Intueri Education Group, whose chief executive Rob Facer left suddenly this month, has posted a 43 per cent decline in first-half profit.

Net profit fell to $3.5 million in the six months ended June 30, from $6.1m a year earlier, the Auckland-based company said on Monday.

Sales rose 17 per cent to $50.1m.

Underlying earnings before interest, tax, depreciation and amortisation were $10m in the first half, down from $10.5m a year earlier, and the company says it expects a "softer second half-year anticipated due to lower expected enrolments across all sectors".

"Our focus is on right-sizing and restructuring our organisation to meet the changing regulatory and operating environment," said chairman Chris Kelly.

Online revenue jumped 90 per cent in the first half to $18m, while domestic revenue slipped 10 per cent to $19.7m, which it said reflected a drop in net enrolments at colleges that are being restructured. International revenue rose 8 per cent to $10.9m.

Intueri's shares last traded at 30 cents and have fallen 58 per cent this year. They listed at $2.35 in May 2014 and peaked at $3.35 in September 2014. Since then the company has missed prospectus forecasts and has been investigated by the Serious Fraud Office and its Quantum Education Group and Dive School units have been reviewed by the Tertiary Education Commission. It suspended dividends in February pending the TEC review. It has shed 70 staff and in May directors agreed to cut their fees as the company sought to slash costs.

In March this year it was ordered to pay about $150,000 in reparations to the family of a foreign diving student who died during training.

In June, TEC said Intueri must refund $1.47m plus tax after an investigation into its dive school showed some student enrolments between 2009-2014 could not be validated and some courses under-delivered against funding.

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