• FY24 revenue grew 96% to $42.3m, returning EDU to profitability
• Ikon tertiary enrolments up 113%, ALG vocational enrolments recovering
• Regulatory uncertainty around international student market remains a concern

EDU Holdings Limited reported a landmark year in FY24, with significant achievements across financial, operational, and strategic fronts. Total revenue grew to $42.3m, nearly doubling the prior year, and net profit after tax improved by $5.6m, returning the company to profitability. Ikon, the tertiary education business, reported record student enrolments of 2,492 in Trimester 3, 2024, while ALG's vocational enrolments continued to recover. The company also secured accreditation for four new courses, including three postgraduate programs. However, the Board recognizes the ongoing regulatory uncertainty in the international student market, which accounted for 84% of FY24 revenue. While the anticipated ESOS Amendment Bill was not enacted, the government introduced Ministerial Direction 111, which utilizes enrolment caps to prioritize offshore visa processing. This, along with other visa policy changes, has led to a decline in visa grants, particularly in the vocational sector. In response, the Board is actively working on strategies to mitigate the potential risk, including increasing focus on the domestic student market. The company has started FY25 on a positive note, with revenue and EBITDA growth in the first quarter. However, the Board has proposed to voluntarily delist the company from the ASX, citing low trading liquidity, increased volatility, and the ongoing regulatory uncertainty as factors that make the ASX listing no longer serving the best interests of shareholders.

Revenue, EBITDA and NPAT expected to be materially up on FY24, despite declining year-on-year new student enrolments (NSEs) in line with broader VET sector trends and contracting market size. Total enrolments expected to be up on the prior corresponding period, but declining term-on-term.

The company plans to focus on organic growth by expanding its course offering within existing verticals, with an increased focus on the domestic student market, as well as exploring new verticals and extending its campus footprint. The company will also consider M&A opportunities that are immediately or imminently earnings accretive and provide strategic benefits.