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IEL, IDP EDUCATION LIMITED
nipper
post Posted: Apr 5 2021, 03:35 PM
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Another ASX growth share to look at is IDP Education. It is a leading provider of international student placement and English language testing services.

The last 12 months have been tough for the company due to the pandemic’s impact on demand for its services. However, trading conditions are improving as vaccines are rolled out across the world. In addition, pent up demand looks likely to lead to a surge in demand once the crisis passes.

One broker that is particularly positive on the company is Macquarie. It currently has an outperform rating and $30.80 price target on the company’s shares.

It notes that IELTS testing is expected to return to pre-COVID levels by December. It also expects the company’s investments in its digital business to support margin improvements



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Mar 12 2021, 08:31 AM
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In Reply To: nipper's post @ Mar 12 2021, 08:15 AM

Thirty-eight Australian universities stand to raise nearly $70 million each following a proposal for a restructure within IDP Education that would give each institution direct control over its stake in the company.

Under the proposal, the universities, which own 40 per cent of a holding company called Education Australia, would see 25 per cent distributed to each university with the remaining 15 per cent stake sold via a block trade valued at nearly $1 billion by December 11.

Shares in IDP dropped sharply after the announcement, ending the day 5.65 per cent lower at $22.86. At that price the company is valued at $6.36 billion, putting a price tag of $954 million on the parcel being put up for sale this year – or $25 million for each university – and $1.6 billion on the shares being retained.

Restrictions placed around the sale of shares by the 38 universities include that they would not be able to dispose of any IDP shares until May 2022, and in the following six months would be only able to dispose of up to 50 per cent of their stakes

Education Australia was created in the late 1960s as the Colombo Plan brought international students, particularly from Asia, into the country, as a measure in soft diplomacy. IDP Education was created in 2015, with [b]universities retaining a 40 per cent stake.[/b]

IDP education owns the International English Language Testing System, along with the British Council and the University of Cambridge. IELTS, long considered the gold standard in English-language testing, is an international standardised test of English-language proficiency for non-native speakers wishing to study in another country.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Mar 12 2021, 08:15 AM
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Posts: 8,696
Thanks: 2713


IDP Education Limited (IEL) is a provider of international student placement services and high-stakes English language testing services. It also owns and operates English language schools in South East Asia and organises educational events and conferences globally. The Company is headquartered in Melbourne, Australia.


Admitted to the official list in Nov 2015, IEL now has a market cap over $6B. The share price has moved up from $2.50 to over $22, though the last few years have been choppy.

Andrew Barkla, IDP Chief Executive Officer and Managing Director, commended the IDP global team for delivering solid results in August 2020, after the first wave of Covid:
QUOTE
Our results reflect strong momentum in the first of the half year, followed by a pivot towards disciplined capital management and product innovation in the second half.... Our recent investment in digital talent and our technology platform has enabled us to respond to COVID-19 restrictions with agility and customer centricity, he said.



Key highlights of the year included:
• Accelerated digital strategy delivery, resulting in an industry-leading virtual counselling and event platform
• Rapid roll-out of IELTS Indicator, an online IELTS test to help students progress applications where in-centre testing was suspended
• An increase in student placement volumes of three per cent to 51,000 - underpinned by a 28 per cent increase in multi-destination volumes
• Strong B2B client orders, reflecting the industry’s demand for data-driven insights
• Balance sheet enhanced by the $254 million equity raise and $175 million working capital facility
• Disciplined cost control measures that delivered $35 million in overhead savings in H2 c/f with H1
• Cash balance of $307 million as of 30 June


Mr Barkla said although many international students’ plans were on hold due to travel restrictions, demand for international education remained strong.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 



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