EDU Holdings Limited (ASX:EDU) Reports Record FY24 and Proposes Delisting
Financial Performance
EDU Holdings Limited reported a record revenue of $42.3 million for FY24, nearly doubling the previous comparable period and achieving a net profit after tax of $2.6 million, reversing three years of losses.
Operational Achievements
The company’s tertiary education arm, Ikon, saw student enrolments reach a record 2,492 in Trimester 3, 2024, growing at a compound annual rate of 38% over five years. ALG, the vocational education business, achieved its seventh consecutive term of growth with 1,608 enrolments, a 40% increase on the prior comparable period. Additionally, Ikon secured accreditation for four new courses, including three postgraduate programmes.
Regulatory Environment
EDU Holdings faces ongoing regulatory uncertainty in the international student market. While the ESOS Amendment Bill was not enacted, Ministerial Direction 111 was implemented, prioritising offshore visa processing. This has led to a decline in visa approval rates, particularly affecting the vocational sector, with visa grants decreasing significantly over the past year.
Trading Update
In Q1 2025, EDU Holdings experienced a 129% increase in revenue compared to the same period last year, and EBITDA grew from $0.8 million to $5.4 million. However, increased costs are expected to temper profit growth for the remainder of the year as the company deploys additional resources to support a strong influx of students.
Delisting Proposal
The Board of Directors has proposed to delist EDU Holdings from the ASX due to low trading liquidity, increased volatility, and regulatory uncertainties that discourage new investors. An equal access buy-back of up to 75 million shares at $0.165 per share is being offered to provide an orderly exit for shareholders. The proposal aims to enhance shareholder value and allow the company to execute strategic opportunities more effectively.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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