August 6, 2018 / 11:38 PM / 2 months ago

UPDATE 1-Australia's Navitas swings to FY loss on restructuring costs

(Adds revenue, background, dividend)

Aug 7 (Reuters) - Australian adult education firm Navitas Ltd swung to an annual loss on Tuesday, hurt by restructuring costs related to the closure of two U.S. colleges and an Australian division.

The net loss was A$55.8 million ($41.2 million) for the year to June 30, from a profit of A$80.3 million a year earlier. Revenue fell 2.5 percent to A$931 million.

The net loss after tax was predominantly related to the careers and industry division rationalisation, the company said.

The Perth-based company said last month it would embark on a restructuring that would cost A$130 million, focusing on the United States which accounted for about 17 percent of the division’s revenue and comprises eight SAE colleges.

Navitas’s U.S. operations have experienced a change in fortune. Once expected to be its next growth leg, they have underperformed as Trump’s immigration policy limits international student volumes.

The U.S. issues have prompted Australia’s largest listed private education firm to seek opportunities elsewhere, including a joint venture with Swansea University and a move into into the Netherlands.

Navitas declared a fully franked final dividend of 8.0 cents per share. ($1 = 1.3545 Australian dollars) (Reporting by Aditya Soni in Bengaluru; Editing by Stephen Coates)

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