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Navitas falls on slowing growth

Navitas chief executive Rod Jones. Picture: Guy Magowan/The West Australian.

Shares in Navitas fell after the company said growth in student enrolments was moderating across its Australian and UK colleges.

The company announced a 3 per cent increase in student enrolments for the first semester of 2015 for its University Programs colleges.

Navitas attributed the moderating growth rates to a reduction in enrolments from Nepal and India compared to the previous corresponding period and a significant decline in Australian domestic student enrolments at its Sydney Institute of Business and Technology (SIBT).

The falling enrolment from Indian and Nepalese students was attributed to the application of stricter assessment criteria on student applications.

Navitas said the measures were instigated following higher than acceptable levels of non-genuine student applications from those countries in 2013 and early 2014.

However Navitas chief executive Rod Jones said growth from the region should start to return to more normal patterns over the coming semesters.

"In addition, the intake was affected by a reduction in the number of students enrolling at SIBT where the impact of the non-renewal of the college agreement by Macquarie University has materially reduced domestic enrolments," he said.

Navitas said its New Zealand college continued to grow strongly more than doubling its intake since opening in late 2013.

As announced in early March, equivalent full time student units grew by 16 per cent in Canada, 15 per cent in the US and one per cent in the UK in the first semester of 2015.

Mr Jones said despite slowing growth rates in Australia and the UK due to self-imposed stricter student assessment criteria, demand for tertiary education remained strong across all key source countries and globally enrolments continue to grow solidly.

"The number of students choosing to study overseas continues to increase and with colleges in the top education destinations the University Programs division remains well positioned for future long term sustainable growth," he said.

Shares in Navitas were off 22 cents, or 4.49 per cent, to $4.69 shortly before the close.