Intueri cuts full-year guidance a second time, citing softer
Intueri cuts full-year guidance a second time, citing softer Quantum Education sales
By Jonathan Underhill
Aug. 5 (BusinessDesk) - Intueri Education
Group, New Zealand's largest private training college, cut
its full-year earnings guidance for a second time, citing
weaker sales at its Quantum Education Group division and
higher-than-expected costs.
Underlying earnings before
interest, tax and amortisation is expected to be $27 million
to $29 million in calendar 2015, Auckland-based Intueri said
in a statement. It had previously said earnings would be at
the lower end of a range of $30 million to $33 million. The
reduced guidance wouldn't result in a change in its dividend
policy, the company said.
Intueri, which listed on the
New Zealand stock exchange in May last year, missed its
prospectus forecast for 2014 earnings, with net profit of $4
million compared with a projection of $7.9 million. Revenue
from its New Zealand business of $34.5 million was 13
percent below forecast, while its international revenue was
4 percent ahead of forecast at $19 million.
Today the
company said its performance in the first half "is in line
with trends previously stated to the market, with excellent
revenue growth in online, strong growth in international and
a soft domestic performance." It didn't give specific
numbers for the first half.
The company has been acquiring businesses in the past 12 months and last month agreed to buy the New Zealand Institute of Sport for $19.3 million, including its subsidiary New Zealand College of Massage, to give it scale in the sports and complementary health sectors. Settlement is expected in October. The acquisitions will help lift annualised revenue to more than $100 million and annualised earnings to more than $30 million, it said.
Intueri will release its first-half results on Aug. 20.
The shares last traded at $1.77 and have dropped 32 percent this year. They were sold in an initial public offering last year at $2.35 apiece.
(BusinessDesk)