From my understanding of the sale of Endeavour and Perth Colleges is that there is deferred consideration of up to $10m and $1m respectively yet to be received. Presumably over a 1-2 year period.
Therefore, with estimated current debt of around $15m they should be in a position to knock a lot of that off.
This would then leave a very small debt pile and two main valuable assets. With the reduction in courses/staff etc it would be good to get a feel for what the EBIT is going to look like moving forward.
Current management clearly want to ensure they don't mislead market so not providing any estimates. Good to hear the at least have a step action plan to turnaround this company.
One for the brave but potentially a multi bagger in year(s) to come.
VET Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
