Informatics

Informatics: Full year earnings slipped 5% to $2.9m, as a result of the absence of tax refunds that the group had the previous year. Earnings before tax improved 20% to $3.0m due to the downsizing of employees resulting in lower operating costs. Revenues declined 12% to $28.7m, mainly due to a lower number of students enrolled in UK, Hong Kong, Sri Lanka and Singapore. The decline in the countries except Singapore were attributed to stringent student visa entry requirements, as well as the depreciating pound and the downsizing of Hong Kong and Sri Lanka operations. Informatics intends to introduce competitive pricing in the current quarter in view of widening its market, as well as to offer more market relevant products. At the last closing price of $0.0970, Informatics trading at a high trailing P/E of 48.5x. Compared to private education peer Overseas Education's trailing P/E of 9.3x.