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IDP Education Rallies 28%+ on the back of H1 FY20 results

Tim Montague-Jones

Tim Montague-Jones has over 20 year investment management experience working in the financial markets. Previous experience includes a ten year stint at Morningstar as a Senior Equity Analyst/Portfolio Manager, founding the Morningstar Growth Portfolio and a founding member of their Investment Committee. Tim was also a Senior Equity Analyst for Macquarie Group and a member of the winning team to obtain the 2016 LONSEC Fund Manager of the Year award.

IDP Education Limited (ASX: IEL) announced its results for the first half of FY20 (ending December 31, 2019) shortly before market open this morning. IDP Education is an international education organization offering student placement in Australia, New Zealand, the USA, UK, Ireland the Canada.




The company reported total revenue of $379 million, a 35 per cent increase when compared to H1 FY19. Furthermore, earnings before interest and tax (EBIT) came in at $86.9 million, representing a 49 per cent increase when compared to H1 FY19. This culminated in 42 per cent growth in NPATA when compared to H1 FY19.

The company attributes these strong growth numbers to the successful implementation of their growth strategy, vision and digital plan. Chief Executive Officer and Managing Director Andrew Barkla claims that:

our organization has pivoted to focus deeply on the experience of our customers, which is delivering strong returns across all business lines.

IEL has experienced strong margin improvement, 30 per cent volume growth in the student placement business and product innovation in their digital campus space. This has all culminated in an adjusted EPS of 23.4 cents, a 41 per cent increase when compared to H1 FY19.

The company also announced it will be delivering a 16.5 cent per share dividend (equating to a 1% yield for the period), franked at 17%.

The market obviously reacted favorably to these strong results, with the share price spiking 28%, making it easily the best performer in the ASX200 today. The stock now trades at around $21.40 per share, making its one year return a tick over 45%. The stock has provided nearly a 530% return since floating in late 2015.



This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.


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