01/04/2010 - 11:27

Navitas up on record enrolments news

01/04/2010 - 11:27

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Shares in global education services provider, Navitas have climbed after announcing its student enrolments for the first semester this year are at record highs, a 16 per cent increase on the previous corresponding period.

Shares in global education services provider, Navitas have climbed after announcing its student enrolments for the first semester this year are at record highs, a 16 per cent increase on the previous corresponding period.

Navitas said equivalent full time student unit ("EFTSU") enrolments at the University Programs existing colleges increased to 17,811, up from 15,419.

Navitas Chief Executive Officer Rod Jones said enrolments across the company's 22 colleges reiterated the success of its University Programs educational model and reinforced the strong outlook afforded by planned new colleges in growth markets.

"Our proven business model has seen new colleges consistently move to profitability within short periods, due to low capital requirements and strong enrolments," he said in a statement.

"This has been evidenced by the performance of two of our most recent start-ups in the UK, which more than doubled their enrolments, and continuing growth in other emerging colleges such as Curtin Singapore.

"And, as past performance shows, these colleges go on to perform consistently and provide a strong revenue base for the Company's growth."

Mr Jones said the pipeline of six new colleges that will open in 2010 and FY11, following the recent execution of partnership agreements in the USA, UK and Australia, compliment the company's grwoth strategy.

"Our business model is founded on driving revenue through offering high quality education programs in partnership with leading universities in markets where we operate," said Mr Jones.

"These latest enrolment figures underline the success of that strategy - the ability to offer a very high quality education service and at the same time generate satisfactory returns for our investors."

Shares in Navitas were up 19 cents, or 3.73 per cent, to $5.29 at 1420AEST.

 

Full announcement below:

 

RECENT COLLEGE START-UPS DRIVE FIRST SEMESTER ENROLMENTS TO RECORD LEVELS

Global education services provider, Navitas Limited (ASX: NVT) today announced a 16% increase in student enrolments for the first semester of 2010 ("201001").

Equivalent full time student unit ("EFTSU") enrolments at the University Programs existing colleges increased to a first semester record of 17,811, up from 15,419 in the previous corresponding period ("pcp").

Navitas Chief Executive Officer Rod Jones said enrolments across the Company's 22 colleges reiterated the success of its University Programs educational model and reinforced the strong outlook afforded by planned new colleges in growth markets.

"Our proven business model has seen new colleges consistently move to profitability within short periods, due to low capital requirements and strong enrolments," he said.

"This has been evidenced by the performance of two of our most recent start-ups in the UK, which more than doubled their enrolments, and continuing growth in other emerging colleges such as Curtin Singapore.

"And, as past performance shows, these colleges go on to perform consistently and provide a strong revenue base for the Company's growth." Mr Jones said the rapid maturation of the Colleges, as evidenced by the enrolment figures, gave the Company confidence in its next growth phase. A significant contributor to this will be the pipeline of 6 new colleges that will open in 2010 and FY11, following the recent execution of partnership agreements in the USA, UK and Australia.

"Our business model is founded on driving revenue through offering high quality education programs in partnership with leading universities in markets where we operate," said Mr Jones.

"These latest enrolment figures underline the success of that strategy - the ability to offer a very high quality education service and at the same time generate satisfactory returns for our investors."

"With our recently announced colleges to be opened in FY11, and a number of other new college agreements expected to be completed in the near term, we expect to see continued double digit enrolment growth in our University Programs into the future," said Mr Jones.

By geographical region, EFTSU growth against the pcp was:

- Australia - 8%

- UK - 88%

- Canada - 35%

- Asia/Africa - 8%

Individual colleges/campuses with absolute growth in EFTSUs of more than 150 compared to the pcp, were:

- Melbourne Institute of Business & Technology - 493 (+25%)

- Curtin Singapore - 297 (+64%)

- Cambridge Ruskin International College - 241 (+164%)

- International College of Wales, Swansea - 221 (+105%)

- International College of Portsmouth - 218 (pcp: nil)

- Macquarie City - 181 (+24%)

- Queensland Institute of Business & Technology - 164 (+10%)

- Fraser International College - 150 (+21%)


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