Intueri says TEC review may dent 2015 earnings

Intueri says Tertiary Education Commission review may dent 2015 earnings by $5M

By Tina Morrison

Nov. 23 (BusinessDesk) - Intueri Education Group, New Zealand's largest private training institution, said the Tertiary Education Commission is reviewing funding at two of its schools, which could reduce 2015 earnings by between $4 million and $5 million.

The TEC will be undertaking reviews of Intueri’s Quantum Education Group and its New Zealand School of Outdoor Studies, known as its Dive School, the Auckland-based company said in a statement.

As a result, Intueri will reinstate a $1.1 million provision for reimbursement of funding received at the Dive School relating to historical enrolment inconsistencies, which it had reversed in its 2015 interim results. The company said it won’t at this point take a provision for the Quantum review but uncertainty around the transfer of funding between schools within the group may reduce earnings by about $3 million unless resolved before the end of 2015, it said.

“While the timing and terms of reference are still to be confirmed, Intueri is committed to cooperating fully with the TEC during these reviews, which Intueri understands will primarily focus on legacy issues,” the company said. If financial liability is established for legacy issues regarding Quantum or the Dive School, Intueri will seek recourse from the original vendors, it said.

Intueri has been acquiring businesses since listing on the New Zealand stock exchange in May last year.

The company’s stock last traded at $1.30 and has halved so far this year.

(BusinessDesk)

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