The iCollege Ltd (ASX: ICT) share price has fallen today despite the company reporting record results in its quarterly report. The iCollege share price finished the day 4.17% lower, slumping to a price of 11.5 cents.
What iCollege does
iCollege comprises seven businesses which deliver accredited and non-accredited vocational education and training solutions throughout Australia and internationally.
iCollege is currently expanding business offerings both in terms of scope of delivery and geographical locations. It currently operates campuses in Brisbane, Gold Coast, Adelaide, Perth, Sydney and Canberra.
Record results
The company delivered record revenue and earnings for the quarter with revenue of $4.1 million and earnings before interest, tax, depreciation and amortization (EBITDA) of $686,000.
Cash collections were $3.8 million which included a $602,000 contribution from JobKeeper. In a positive leading indicator of the company's improving performance, iCollege will no longer qualify for JobKeeper payments from Q2 FY2021 as revenue continues to improve.
The company strived to focus on careful financial management as a result of uncertainty arising from the COVID-19 pandemic. As a result, iCollege delivered a cash surplus of almost $500,000 and ended the quarter with $1 million in the bank.
Despite the record results, the company did suffer some operational headwinds, such as the lack of international students. However, domestic student enrolment has come some way in making up for this with $2.3 million generated over the quarter.
Furthermore, the company announced a new campus in Perth during the quarter. The campus is in close proximity with public transport and has already seen its first enrolments.
What now for the iCollege share price?
Despite the strong results, the iCollege share price fell 4.17% in today's trading session. This suggests that investors were expecting more from the education company.
iCollege managing director Ash Katta said:
Q2 FY2021 has commenced well and we anticipate revenue from new government-funded health, aged care and infection control training programs and other courses we have introduced. iCollege has emerged from the initial COVID–19 challenges good shape and poised to continue strong organic growth.
