Navitas Limited
(ASX:NVT) plunged to yesterday’s worst performer after announcing Macquarie University has pulled out of its 18-year partnership.
The global education services provider says it will extend its current arrangement will Macquarie until 2016 but the university will then create its own pathway college.
The development will see Navitas move off the Macquarie campus and the company’s Sydney Institute of Business and Technology move to Sydney’s CBD.
CEO Rod Jones has warned the decision will likely result in a one-off decline in growth in university programs earnings but says the impact will be mitigated by growth initiatives.
The company has affirmed its fiscal 2014 EBITDA guidance and advised it will book an impairment charge of up to $40 million.
Shares in Navitas plunged 30.97 per cent to close at $4.86 following the announcement.
Navitas reported a net profit of $36 million in the first half of the 2014 financial year
