Navitas shares fall as profit slides

Shares in education provider Navitas have taken a sharp drop after the company's half year profit fell.

Shares in education provider Navitas have fallen almost 10 per cent after the company suffered a drop in half year profit.

The company made a net profit of $31.3 million in the six months to December 31, down 13 per cent from $36.1 million in the same period of 2013.

With goodwill writedowns excluded, profit was up 12 per cent to $40.4 million, thanks to strong growth across its university programs and its professional and english programs divisions.

Navitas shares fell 50 cents, or 9.5 per cent, to $4.75.

The education group said it was on track to deliver full year underlying earnings in the range of $162 million to $172 million.

It expects earnings from its university programs to grow at a slower rate in the second half of the 2014/15 year, as enrolments moderate in the UK and Australia.

Chief executive Rod Jones said there had been a 14 per cent rise in half year revenue.

"This has been a period of solid revenue growth across all divisions and margin improvement for university programs and professional and english programs," he said.

WRITEDOWNS DENT NAVITAS PROFIT

* Half year net profit of $31.m, down 13pct from $36.1m in 2013/14

* Revenue of $480.5m, up 14pct from $421.9m

* Interim dividend of 9.4 cents a share, unchanged


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