However, after adjusting for what the company describes as 'significant' or 'one off' items such as redundancy costs or asset sales the group reports that FY 2019 EBITDA would be $9 million, compared to $6.9 million. In theory this represents an impressive 30% EBITDA growth. 

The post Results: Why the Academies Australasia share price soared today appeared first on The Motley Fool Australia.

However, in this article I highlight Academies Australia Group Ltd (ASX: AKG), Redhill Education Ltd (ASX: RDH) and Ashley Services Group Ltd (ASX: ASH) as worthy of investor attention.

Now rebadged as VSL (VET Student Loans), there are signs that things have bottomed in the sector. The move by State government departments, such as Victoria, to hand out only one year contracts is now being reversed.

This is not only due to pressure from providers but also  due to the administrative burden on local departments. The new Victoria tenders are for two years. This will give providers much needed visibility.

The other thing, of course is that although VET-FEE loans shrunk last year to only $1.5 billion, there are far less competitors to share the pie, and those who survived will now have far more rigorous systems in place to take advantage of it.

The demand for vocational training has not gone away, so I see the market quietly growing over the next few years.

So which stocks do I expect to benefit?

Academies Australia Group Ltd swung from a loss of $4m to a profit of $3m in the last year. The current year should see further improvement in revenue and margins. It's worth noting that directors have been substantial buyers.

Redhill Education has already delivered a 158% jump in 2016/17 EBITDA to $3.9m and a return to the dividend list. The Company expects profits in the first half of 2017/8 to be significantly ahead of last year.

Ashley Services Group had a torrid time in its Training Division over the last two years. Luckily it had a substantial Labour Hire business to see it through. Training is now making a small profit, but that will change if its tender in Victoria is successful.

Foolish takeway

As confidence returns to a battered sector, I expect a more predictable future for those players that remain. That is not reflected in the share price ratings of the stocks listed above.

The post 3 bargain small caps to profit from the education sector appeared first on The Motley Fool Australia.

Motley Fool contributor, Mitch Sonogan, is part way through a series of excellent articles, The Mining Investor's Handbook, which take a detailed look at the current state of mining. As a former industry insider with five years of operational work experience as an engineer on various mines in Australia, Mitch has a detailed knowledge of the industry. So far he has provided an overview of commodities and looked in depth at iron ore, gold, coal and aluminium.

Anyway, back to this week's news.

Fortescue Metals Group Limited (ASX: FMG) provides its quarterly production report

Fourth-largest iron ore miner in the world, Fortescue Metals Group, shipped 42.4 million tonnes of ore in the June quarter, up 10% from the same period last year. The company's latest estimated breakeven price is US$39 per dry metric tonne (/dmt), compared to current prices of just over US$50/dmt. Fortescue is heavily indebted presenting another reason, aside from falling prices, to avoid the company.

Newcrest Mining Limited (ASX: NCM) releases strong June quarterly report

Whilst the price of gold has fallen below US$1,100 per ounce this week, its lowest level for over five years, Australia's largest gold producer, Newcrest Mining, reported strong production and reduced costs for the June quarter. It produced 673,542 ounces in the period, up from 610,186 ounces in the March quarter. Perhaps more significantly, the company revealed that its All-in Sustaining Cost (AISC) fell from US$897 per ounce to US$789 per ounce between 2014 and 2015, a reduction of 12%. Some may see the operational improvements as reason to buy the stock, whilst others may be put off by the falling price of gold.

BHP Billiton Limited (ASX: BHP) presents its 2015 operational review

In what appears to be a trend in the sector, mining giant BHP Billiton announced that it has increased production in its key commodities whilst reducing costs. Unlike most of its ASX listed peers, BHP is a well-diversified resources company but pretty much all commodity prices are falling and so currently such diversification is of little value. Here are five key facts you should know about BHP's operations report.

South32 Ltd (ASX: S32) releases its maiden quarterly report

In its first production report since it was spun off from BHP Billiton, South32 announced it has broken four new production records at sites for aluminium, manganese and coal. BHP divested the South32 assets earlier this year to focus on its key commodities and if resource prices improve then South32 could represent good value for investors. Personally, I think that miners require too much capital investment and are less sustainable than other types of businesses, but every stock is a buy at a certain price.

Other large-cap stories

Engineering firm Cimic Group Ltd (ASX: CIM), formerly known as Leighton Holdings, flagged a strong half-year profit result. The engineering sector has struggled recently thanks to its exposure to mining and so the result is particularly impressive.

Macquarie Group Ltd (ASX: MQG) informed the market that it expects its financial year 2016 results to be up on 2015 at its annual general meeting. It stated that both its annuity-style and capital markets businesses contributed significantly more in the first quarter of 2016, compared to the same period last year.

Building materials company Boral Limited (ASX: BLD) guided $240 million to $250 million profit before significant items for the 2015 financial year up from $176 million last year.

Gaming and hospitality business Echo Entertainment Group Ltd (ASX: EGP) announced that it has been selected by the Queensland government as preferred bidder for the Queen's Wharf Brisbane project, beating rival Crown Resorts Ltd (ASX: CWN).

Stories from the smaller end of the market

On Thursday, software company Infomedia Limited (ASX: IFM) announced that it expects net profit after tax to be $13.2 million to June 2015, up from $12.3 million in 2014.

Caravan and temporary accommodation manufacturer Fleetwood Corporation Limited (ASX: FWD) announced that it has been awarded a contract to construct the Osprey Key Worker Village and will receive a government guaranteed income stream for 15 years.

Software developer Prophecy International Holding Limited (ASX: PRO) announced that normalised profit before tax will be $4.1 million this year, up more than 110% on last year.

IT consultancy Data#3 Limited (ASX: DTL) said on Wednesday that profit after tax will be $10 million to $11 million to June 2015, up more than 35% compared to 2014.

On Monday, branded dairy company A2 MILK FPO NZ (ASX: A2M) provided a market update showing that revenue is up 39% to NZ$154 million in 2015.

Training and education provider Academies Australasia Group Ltd (ASX: AKG) advised that although revenue was 43% higher in 2015 over 2014, earnings before interest, tax, depreciation and amortisation are expected to be sharply down from $5.6 million to $2.3 million.

The post Did you miss the major news on the ASX this week? appeared first on The Motley Fool Australia.

Here are four companies that are performing particularly poorly today…

DUET Group (ASX: DUE) has emerged from a two-day trading halt, only to fall 8.4% to $2.18 per share. Duet, which is a $3.5 billion energy infrastructure group, is raising $1.67 billion in capital to fund the acquisition of Energy Developments Limited (ASX: ENE). This will significantly dilute shareholder ownership. The institutional component was oversubscribed allowing the company to raise $806 million so far.

Lynas Corporation Limited (ASX: LYC) experienced a strong lift last week after the rare earths miner released its latest quarterly cash flow report, revealing $6.4 million in free cash flow for the period. The stock hit a high of 4.7 cents – up from 3.9 cents prior to the release – although it has since retreated back to just 3.7 cents. It's down 5.1% today.

Tabcorp Holdings Limited (ASX: TAH) fell 3% to $4.83 after the Australian Transaction Reports and Analysis Centre, or AUSTRAC, announced legal proceedings against the company. AUSTRAC, which is Australia's anti-money laundering agency, has alleged that three of Tabcorp's businesses had failed to comply with legislation. Tabcorp said that it is reviewing the nature of the proceedings and will inform the market of its intended response.

Academies Australasia Group Ltd (ASX: AKG) shed 20% of its market value, falling to just 52 cents per share following a revised earnings guidance provided late Tuesday afternoon. Academies Australasia expects financial year 2015 (FY15) revenues to climb 43% compared to the prior corresponding period, driven predominantly by acquisitions, while earnings before interest, tax, depreciation and amortisation (EBITDA) is tipped to fall 59% to $2.3 million compared to last year's result.

The post Why these 4 ASX stocks are getting hammered today appeared first on The Motley Fool Australia.

The group is now forecasting full year earnings of $2.3 million, compared to $5.6 million last year. The big drop has been blamed on a steep decline in earnings from a flat-lining Western Australian economy, corporate restructure costs and provisions over student refunds for third party courses that have been cancelled.

Despite the international and for-profit higher education sectors being identified as the next growth areas many listed education businesses have struggled to harness the tailwinds, just as they have in the tourism or agriculture sectors for example.

Take businesses like Vocation Ltd (ASX: VET) and Navitas Limited (ASX: NVT), both of which have demonstrated the risks of investing in businesses that are reliant on the largesse of the government, public sector, or universities. A single contract loss or failed audit can result in sudden and significant downturns.

Another education giant SEEK Limited (ASX: SEK) recently blamed "incomplete enrolments and very high withdrawal" rates at TAFE NSW as partly responsible for its profit downgrade. While it also conceded that Liberal government reforms on VET FEE HELP designed to stop the incentivisation of students to enroll on courses may also have a negative impact on certain SEEK Learning partners.

SEEK also recently announced it still hopes to put for initial public offer its 50% ownership interest in IDP Education in 2015. This is a business reportedly valued at up to $450 million, with exclusive rights to providing and charging for the lucrative IELTS tests, although the IPO is yet to materialise despite reports of it dating back to 2013.

In my opinion some of the problems in the sector mean many of the businesses in it are ones to avoid, despite the obvious growth appeal of the international education sector in Australia.

There are exceptions with SEEK more focused on the online advertising space, while Kip McGrath Education Centres Limited (ASX: KME) looks another well managed option.

The post Academies Australasia Group Ltd gives another tough lesson to investors in education sector appeared first on The Motley Fool Australia.

"Dividend week" cranks up a notch today with six Motley Fool contributors each naming one of their favourite ASX dividend-paying stocks.

As you'll see, the dividend yields on all six stocks sure beats the pants off the low interest rates on offer from the RBA.

Of course, unlike term deposits, any share market investment comes with risk. As the old disclaimer says, shares can go down as well as up.

But cash is not without risk either. Your bank balance may not fluctuate on a daily basis, but the longer you stay in cash, especially in this low interest rate environment, the greater the chance of you losing to inflation.

On that very point, back in 2008, in typically blunt fashion, Warren Buffett said…

"Today people who hold cash equivalents feel comfortable. They shouldn't. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value."

The same could be said today. With the RBA cash rate at just 2%, and with some pundits suggesting it could go as low as 1.5% before the year is out, cash does indeed pay "virtually nothing."

Here's my two-step plan for all those income-starved investors out there.

1) Keep some cash. It's a free insurance policy against a market correction. It pays the bills, instantly. It also helps you sleep well at night.

2) Buy at least one dividend-paying stock per month, every month. Get in a routine.

Either choose your own stocks, or have a dividend expert do it for you.

I'm leaving my stock picking to The Motley Fool's resident dividend expert, Andrew Page.

Every month, exclusively for Motley Fool Dividend Investor members, he recommends a new stock.

Every month, I buy the dividend stock Andrew recommends to members, after they've had the chance to buy, of course.

Job done. Andrew tracks the stocks, keeps me updated on everything that's happening, and tells me when to sell. Couldn't be easier.

For those of you looking to go down the do-it-yourself route, here are a selection of six dividend stock ideas from our Motley Fool contributors.

Mike King — Contango Microcap Limited (ASX: CTN)

Contango Microcap has to be one of the best dividend stocks on the ASX. Currently trading on a forecast dividend yield of 7.1%, franked to 50%, the listed investment company has a consistent record of paying out high dividends – averaging more than 7% over the past 10 years.

Another bonus is that Contango's net tangible assets at the end of April stood at $1.21, while the current share price is $1.08.

In other words, investors are getting the shares held by Contango at a 10% discount. When that includes a number of high quality small-to-medium caps like Infomedia Limited (ASX: IFM), Altium Limited (ASX: ALU) and SG Fleet Group Limited (ASX: SGF), Contango really is one of the best no-brainer dividend stocks on the ASX.

Disclosure: Mike King and Bruce Jackson both own shares in Contango Microcap. Bruce Jackson also owns shares in Infomedia and Altium.

Matt Joass — Prophecy International Holdings (ASX:PRO)​

Prophecy is a small cap software developer. Its star product is a hacker-fighting tool called Snare that can be used to identify intrusions and provide an audit trail for network investigators. Sales of Snare are up 106% so far this year and the company is riding a wave of new distribution agreements with global players such as Dell.

Prophecy has just started paying tax and so franking credits are now becoming available. ​The company trades on a grossed up forward dividend yield of 4.6%. With $6 million in net cash and Snare's continued growth, that yield should increase in the future.

Disclosure: Matt Joass owns shares in Prophecy International.

Claude Walker — Academies Australasia Group (ASX: AKG)

Academies Australasia is a vocational education provider that disappointed the market recently when it surprised with subdued half year results.

After the ensuing share price fall, and even after reducing the dividend, the company is trading on a 2015 yield of 3.8%, fully franked, assuming it matches its interim dividend in the second half. This assumption, while reasonable, is not guaranteed.

While there's no doubt some of the company's recent acquisitions have been a disappointment, it has been profitable since 2008 and paid a dividend since 2011. This sets it apart from other operators in the higher education sector.

Should it improve the operations of its recently acquired colleges, shareholders will be well rewarded. In the meantime, they are no doubt taking heart from relentless director buying both before, and after, the disappointing results.

Disclosure: Claude Walker owns shares in Academies Australasia

Tim McArthur — Advanced Share Registry Limited (ASX: ASW)

Compared with the global operations of Computershare Limited (ASX: CPU), Advanced Share Registry is a veritable minnow with a market capitalisation of just $27 million. Despite its small size, the company — which provides share registry services — enjoys a sticky client base which means steady revenues and earnings.

Over the past five years the fully franked dividend has remained near 3.7 cents per share (cps) highlighting the fact that Advanced Share Registry isn't experiencing much growth. An increase in the recent interim dividend from 1.85 cps to 2 cps however suggests shareholders could possibly be set to enjoy a full year increase this year.

Based on last year's 3.7 cps, at today's share price of 62.5 cents, investors have the opportunity to own a stock that pays a fully franked yield of 5.9% which equates to 8.5% grossed-up.

Disclosure: Tim McArthur owns shares in Advanced Share Registry Limited. Bruce Jackson owns shares in Computershare.

Owen Raszkiewicz — AMA Group Ltd (ASX: AMA)

AMA is a small-cap aftermarket automotive parts retailer and panel beater.

Although shares in the $184 million company have soared more than 130% in the past year, the long-term upside of its push in panel-beating continues to bode well for future returns. Indeed, with the recent acquisition of Melbourne's Woods Accident Repair Centres, management forecast strong growth it its Vehicle Panel Repair business.

For dividend-hungry investors willing to venture into the small-cap space, I think AMA's trailing 2.94% fully franked dividend will grow healthily over time since the company is very well placed for long-term growth.

Disclosure: Owen Raszkiewicz does not own shares of AMA Group. Bruce Jackson does own shares in AMA Group.

Ryan Newman — Woolworths Limited (ASX: WOW)

While the near-term outlook remains cloudy with a chance of rain, there are perhaps no greater bets for the long-term than Woolworths right now.

While investors are justifiably concerned about its supermarket and Masters home improvement chains, those concerns appear to have been baked into the price with the stock sitting near a three-year low.

Woolworths has an incredible track record for revenue and earnings growth while it has also consistently lifted its dividend. Right now, the stock is giving investors the chance of a lifetime, offering a remarkable 4.9% dividend yield, fully franked. Grossed up, that's a 7.1% yield!

Disclosure: Ryan Newman does not own shares of Woolworths. Bruce Jackson does own shares in Woolworths.

Happy dividend investing!

The post 6 ASX Dividend Stocks To Beat The RBA's Record Low Interest Rates appeared first on The Motley Fool Australia.

Still, it wasn't as bad as these four, which all fell more than 10% today…

Academies Australasia Group Ltd (ASX: AKG) plummeted more than 37% after the education provider reported a 64% fall in net profit. The company said that it was forced to make substantial refunds and saw reduced enrolments during the six months to December 2014. Add in the uncertainty in the sector following the Vocation Ltd (ASX: VET) issues, and investors are obviously jumping ship.

Mining products supplier Bradken Limited (ASX: BKN) continues to fall, losing another 12.7% today to close at $2.14. Yesterday shares plunged 25% after the company said it would not pay a dividend, following a 64% decline in underlying net profit. It seems potential suitors for the company have all walked away – given the issues the mining services sector is facing.

Mineral Deposits Limited (ASX: MDL), a mineral sands company, saw its shares hammered down 10.7% to 75 cents, despite no news from the company. Mineral Deposits owns 50% of the Grande Côte mineral sands operation in Senegal, West Africa, in conjunction with French company Eramet. Late last month the company reported that mining operations continue to ramp up operations and were at 61% of capacity in December 2014.

Peninsula Energy Ltd (ASX: PEN) fell 10.5% to 1.7 cents. Peninsula is developing uranium assets, primarily in the US state of Wyoming. The company recently raised $69.4 million from institutional investors and retail shareholders, which will be used to fund the remaining construction and ramp up to positive cashflow operations at the Wyoming projects.

The post 4 stocks falling more than 10% on the ASX today appeared first on The Motley Fool Australia.