Profits fall for Navitas

NAVITAS shares have slumped after the education group warned a decline in government-backed language training contracts had hurt the outlook for its English language training division.

The company issued the warning as it revealed net profit fell 10.8 per cent in the year to June, to $80.3 million. Revenue was also down 5 per cent to $955.2 million.

The falls in turnover and earnings came on the back of the closure of two colleges in Sydney, Navitas said in a statement to the stockmarket.

Underlying earnings before interest, tax, depreciation and amortisation were down 5.8 per cent at $155 million, in line with the company’s forecast.