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Not surprised. Not much $$$ resources coming to our campus
The company’s shares fell more than 7 per cent when the market opened, down 33c to $4.23.
The company recorded $10.5m in goodwill impairments during the last six months, writing off its Study Overseas Limited and Navitas Resources Institute businesses.
In the first half of the financial year Navitas had written off the entire $19.5m book value of the Sydney Institute of Business and Technology at Macquarie University, which decided not to renew its contract with the company last year, resulting in a 30 per cent share fall.
The loss of that key contract will affect earnings most significantly in the 12 months from February 2016. UBS last year estimated the Macquarie loss would carve off $25m of Navitas’s annual earnings.