Navitas shares plunge 32%

Shares in education services provider Navitas have plunged more than 30 per cent after losing a major contract with Sydney's Macquarie University.

Macquarie announced that from 2016 it would replace Navitas by establishing its own college for domestic and international students seeking a pathway from high school into university.

Navitas had been providing that service through an agreement with Sydney Institute of Business and Technology.

Navitas and Macquarie have agreed to end the current partnership in February 2016.

Shares in Navitas had plummeted $2.235, or 32 per cent, to $4.805 by 1100 AEST on the news, wiping off nearly one third of its $2.65 billion market capitalisation.

Navitas chief executive Rod Jones said the end of the agreement was disappointing.

"(It) will likely result in a one off decline in growth in university programs earnings which will impact the second half of FY16 and the first half of FY17," Mr Jones said.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.7499+0.0022+0.29%
    AUDUSD=X
    0.4821+0.0012+0.25%
    AUDGBP=X
    0.6780-0.003-0.45%
    AUDEUR=X