This morning higher education business Navitas Limited (ASX: NVT) posted its financial results for the half-year period ending December 31 2018. Below is a summary of the results with comparisons to relevant prior corresponding periods.
- Revenue of $477.5 million, up 5%
- EBITDA (operating income) of $49.8 million, down 25%
- Net profit after tax of $21.4 million, down 14%
- Student enrolments up 5.4% in first two semesters
- No interim dividend
- Subject to takeover bid from BGH Consortium at $5.825 per share
- Board intends to pay a dividend to distribute franking credits prior to implementation of takeover scheme
The Navitas share price is flat at $5.63 today as shareholders main focus will be on the implementation of a takeover offer for the business at $5.825 per share, which is around 19 cents or 3.4% above today's exchange traded price. The small valuation gap reflecting the time value of money alongside the risk that the takeover does not proceed despite the for profit education provider intending to approve it.
