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Intueri Education Group Announces 2014 Interim Results

Intueri Education Group Announces 2014 Interim Results

Statutory profit after tax of NZ$1.6 million for the six months ended 30 June 2014, up from NZ$0.5 million for the prior comparable period ended 30 June 2013

Pro forma revenue of NZ$36.2 million and EBITA of NZ$10.5 million tracking ahead of expectations, above the top of the IPO guidance range by 2.3% and 3.9% respectively

International and Online sectors continue to grow strongly, ahead of expectations

New Zealand Domestic sector impacted by softer than anticipated rebound in Christchurch and a later than expected mid-year uplift in domestic enrolments at some campuses

Integration of acquired businesses is progressing well

The company maintains its FY2014 pro forma financial forecasts as outlined in the IPO prospectus

Financial Performance

Intueri Education Group’s (Intueri) financial results for the six months to 30 June 2014 indicate that it is on track to achieve the FY2014 statutory and pro forma financial forecasts outlined in the IPO prospectus dated 6 May 2014.

Unaudited statutory profit after tax (IFRS basis) for the six months ended 30 June 2014 was NZ$1.6 million, compared with NZ$0.5 million for the six months ended 30 June 2013, an increase of 227%. Revenue growth was 71% which reflects the acquisitions of a 50% shareholding in Online Courses Australia Group (OCA) and 100% of Quantum Education (Quantum) during the period. On a statutory basis, OCA has been included from 1 April 2014 while Quantum was included from 23 May 2014.

On a pro forma basis for the six months ended 30 June 2014, Intueri was ahead of expectations with revenues of NZ$36.2 million and EBITA of NZ$10.5 million, both above the top of the IPO guidance range by 2.3% and 3.9% respectively. Net profit after taxation attributable to Intueri shareholders was NZ$3.1 million and NZ$6.4 million when adjusted for amortisation costs. The pro forma results assume the combination of Intueri Education, OCA and Quantum were owned throughout 2013 and 2014 in order to show the performance of the combined business on a comparable basis.

The net assets of Intueri as at 30 June 2014 were NZ$85.2 million. Intueri remains in a negative working capital position and net debt reduced from the IPO debt level of NZ$17.5 million to NZ$15.4 million.

Operational Performance

Pro forma revenue for the six months ended 30 June 2014 was NZ$36.2 million with the International and Online segments performing ahead of expectations. Intueri experienced strong revenue growth in its OCA business and is tracking ahead of its high International revenue growth forecasts. Revenue from the New Zealand Domestic market has been impacted by a softer than anticipated rebound in Christchurch and a later than expected mid-year uplift in domestic enrolments at some campuses.

Pro forma EBITA was NZ$10.5 million, 3.9% above the top of the IPO guidance range. This was driven by the growth in the Online and International segments. The integration of the Quantum and OCA businesses is also progressing well.

Mr Rob Facer, Chief Executive Officer, commented: “We are pleased with Intueri’s progress to date since achieving the milestones of publicly listing the Group and completing the acquisitions of OCA and Quantum. Trading has been broadly in line with our expectations, and we are currently focussed on implementing the strategic initiatives required to deliver our growth targets. These include the establishment of our shared services functions for Group Marketing, Finance & IT, Human Resources and Academic & Compliance activities.”

Outlook for FY2014

Intueri reaffirms the FY2014 pro forma forecasts as outlined in the prospectus. “While trading was slightly softer in the New Zealand Domestic market, the fundamentals of the business in this important market are sound, and we are also encouraged with the strong progress made in our Online and International businesses with the positive momentum flowing into the second half.

“Intueri is well progressed with its integration plans and the full benefits of these will be realised in the 2015 financial year. Our focus is on strengthening existing operations and realising the benefits from our integration program. Acquisitions and organic growth opportunities that make a positive contribution to earnings are also being reviewed and we will update the market as appropriate.” Mr Facer said.


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