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iCollege (ASX:ICT) posts record quarterly revenue
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  • Vocational training specialist iCollege (ICT) has posted a record $4.55 million in quarterly revenue for the March 2021 quarter
  • The company highlighted the figure, which is 52 per cent higher than March quarter 2020 revenue, in its latest quarterly financial report released today
  • What's more, iCollege posted this strong revenue figure despite receiving no JobKeeper assistance over the past quarter
  • With international borders still closed, the majority of iCollege's revenue came from domestic training. mainly in the hospitality and aged care sectors
  • Today's quarterly update comes not long after iCollege first lobbed a $50.3 million takeover bid for fellow ASX-listed Redhill Education (RDH)
  • iCollege says it is expecting a strong final quarter of the financial year, which will help underpin the highest full-year revenue result for iCollege since its listing on the ASX
  • Shares in iCollege closed a neat 15.38 per cent higher this afternoon at 15 cents each

Vocational training specialist iCollege (ICT) has posted a record $4.55 million in quarterly revenue for the March 2021 quarter.

The company released its latest quarterly financial report today, highlighting sturdy revenue and strong earnings despite ongoing economic challenges from the COVID-19 pandemic.

The $4.55 million quarterly revenue is 52 per cent higher than iCollege's March quarter revenue in 2020, which came in at just under $3 million.

What's more, iCollege posted this record revenue figure despite not receiving any JobKeeper assistance over the quarter.

The strong revenue translated to an unaudited earnings before interest, tax, depreciation and amortisation (EBITDA) figure of just over $1 million.

iCollege Managing Director Ashish Katta said the strong quarterly result was largely driven by domestic training students.

"Obviously, with international borders remaining closed, our international student business is limited to onshore international recruitment activities which remain stable month-on-month," he said.

Nevertheless, onshore international recruitment still accounted for almost half of iCollege's quarterly revenue, generating just over $1.5 million in enrolment value.

Quarterly revenue was split 53 per cent domestic and 47 per cent international. As far as sectors are concerned, training for hospitality and aged care combined accounted for two-thirds of revenue, with the rest split between construction, business, and more.

Over the quarter, iCollege completed and fitted out a major new Perth campus, and even with the associated expenses, the company managed to end the quarter with a positive operating cashflow of $137,000.

The Redhill offer

Today's news comes not long after iCollege first lobbed a major takeover bid for fellow ASX-listed Redhill Education (RDH).

iCollege is offering an all-scrip deal valuing Redhill at $50.3 million, or 99 cents per share.

"The proposed off-market (all scrip) takeover offer for Redhill Education is a compelling opportunity for iCollege and will create what we believe will be one of the leading and most diversified education and training businesses in Australia," Ashish said.

"As a company, we believe this combination of both entities will create significant and sustainable value for the shareholders of both businesses," he said.

iCollege has submitted its bidder's statement justifying the buyout, though no deal has been signed with Redhill just yet.

What's next?

iCollege said it is expecting a strong final quarter of the financial year, which will help underpin the highest full-year revenue result for iCollege since its listing on the ASX.

At the same time, the company is pursuing expansion opportunities in the form of acquisitions, like the proposed Redhill deal. The purpose of the planned expansion is to chase more opportunities in New South Wales and Victoria.

Shares in iCollege closed a neat 15.38 per cent higher this afternoon at 15 cents. The company has an $87 million market cap.

ICT by the numbers
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