International pathway provider Study Group will take over operations of ANU College at the Australian National University (ANU) it was announced last week. Providing English language and pathway courses at a top-50 ranked Australian institution will enhance Study Group’s portfolio as it seeks to ensure it strengthens operations beyond the UK.
The move was made public at the same time the company’s third quarter (Q3) results were released showing an 8% increase in revenue from the same time last year but a fall in year to year actual earnings before interest, tax, depreciation and amortisation (EBITDA) to £7.27 million from £8 million in 2012 (reflecting the phasing of one-off cost benefits, said the company in a statement).
However, combined results from the first nine months of the year show that despite the Q3 depression in EBITDA, over the nine-month Q1-Q3 period, EBITDA increased 26% to £29.6 million.
Financial growth over the year has been driven by Study Group’s traditionally strong UK HE-led programming but the takeover of ANU College marks the company’s efforts to grow operations in other markets.
CEO David Leigh said he expects the programme to be profitable throughout next year, generating more than £4 million in revenue in 2014.
“Frankly to be able to do that in the first year of picking up a relationship is pretty unusual and I think it reflect two things: that this is an existing operation and the confidence that we have in the ANU brand and our ability to market that,” he told The PIE News.
Previously run by the university itself, ANU College offers two pathway programmes – either two semesters or three – that feed directly into degree programmes at the university.
Study Group says the partnership will have no impact on students, staff or location and the college will remain a pathway into study at ANU.
“We are confident in its ability to extent the educational pathways into the university”
Leigh confirmed that the company will focus on recruitment and expanding the course curriculum. ANU Deputy Vice-Chancellor (Academic), Professor Marnie Hughes-Warrington, added that Study Group was an excellent partner and, “we are confident in its ability to extent the educational pathways into the university.”
“With our marketing platform across Asia and other parts of the non-English speaking world, we think we’ve got a good story to take ANU to a bigger map of the world,” Leigh said, adding that further development of programmes available at ANU College was on the horizon.
With operations in the USA, Australia and the UK spanning pathway programmes, career education and English language schools, the group says its career education offering is showing good growth, driven by strong performances from the Australian Institute of Applied Sciences (AIAS).
After a slump in sales at Embassy, particularly due to bad performance in its 2012 London summer school programme, the group reports this division has improved revenue on the previous year.
The group’s seven North American pathway partnerships are its youngest venture and still make up a small portion of the total finances, having reported profit falls over the past two years.
“[US operations] still a profitable part of the business in terms of something we want to continue to grow and invest in, but it’s not a material contributor to the group finance,” confirmed Leigh.
In September, Study Group raised £205 million through its first ever bond issue of senior secured notes in order to refinance debt.
