IDP Education : Appendix 4D and Interim Financial Report for the halfOpens in a new Window

IDP EDUCATION LIMITED

ABN 59 117 676 463

Interim Financial Report

For the half-year ended 31 December 2020

Appendix 4D

IDP EDUCATION LIMITED ABN 59 117 676 463

Half-year ended 31 December 2020

Results for Announcement to the Market

31 December 2020

Revenue from ordinary activities
Net profit for the period attributable to
the owners of IDP Education Limited
Dividends	Amount per	Franked amount per
ordinary share	ordinary share
cents	cents
FY20 final dividend	-	-
FY21 interim dividend (declared after balance date)	8.00	-
Record date for determining entitlements to the dividends	5 March 2021
Dividend payment date	26 March 2021
Net tangible assets per ordinary share	31 December 2020	30 June 2020
cents	cents
Net tangible assets per share	100.92	92.94
Net assets per share	149.24	141.29

31 December 2019	Movement	Movement
$000	$000	$000	%
269,051	378,968	(109,917)	(29)
29,814	57,891	(28,077)	(49)

Net tangible assets are defined as the net assets less intangible assets and capitalised development costs.

A significant proportion of the Group's assets are intangible in nature totalling $134.5m, including software, goodwill, identifiable intangible assets relating to businesses acquired and capitalised development costs. These assets are excluded from the calculation of net tangible assets per share.

Other information required by Listing Rule 4.2A

The remainder of information requiring disclosure to comply with Listing Rule 4.2A is contained in the Interim Financial Report (which includes the Directors' report).

Contents

Directors' report ......................................................................................................................................................................... 3

Auditor's independence declaration ........................................................................................................................................ 7

Consolidated statement of profit or loss ................................................................................................................................. 8

Consolidated statement of comprehensive income ............................................................................................................... 9

Consolidated statement of financial position ........................................................................................................................ 10

Consolidated statement of changes in equity ....................................................................................................................... 11

Consolidated statement of cash flow ..................................................................................................................................... 13

Notes to the financial statements .............................................................................................................................................. 14

• 1. Significant accounting policies ......................................................................................................................................... 14

• 2. Segment information ........................................................................................................................................................ 17

• 3. Revenue .......................................................................................................................................................................... 18

• 4. Expenses ......................................................................................................................................................................... 18

• 5. Income taxes ................................................................................................................................................................... 19

• 6. Earnings per share .......................................................................................................................................................... 19

• 7. Leases ............................................................................................................................................................................. 20

• 8. Intangible assets .............................................................................................................................................................. 21

• 9. Borrowings ....................................................................................................................................................................... 22

• 10. Contributed equity ............................................................................................................................................................ 22

• 11. Dividends ......................................................................................................................................................................... 23

• 12. Subsequent events .......................................................................................................................................................... 23

Directors' declaration .............................................................................................................................................................. 24

Independent auditor's review report to the members ........................................................................................................... 25

Corporate Directory ................................................................................................................................................................. 27

IDP Education Limited

Directors' report

The Directors of IDP Education Limited present the interim financial report of IDP Education Limited (the Company) and its controlled entities (the Group) for the half-year ended 31 December 2020.

Directors

The following persons were directors of IDP Education Limited during the half-year and up to the date of this report unless otherwise stated:

Name	Particulars
Peter Polson	Non-Executive Director and Chairman
Andrew Barkla	Managing Director and Chief Executive Officer
Ariane Barker	Non-Executive Director
Professor David Battersby AM	Non-Executive Director
Chris Leptos AM	Non-Executive Director
Professor Colin Stirling	Non-Executive Director
Greg West	Non-Executive Director
Review of operations
Group result

A summary of IDP Education Limited's consolidated financial results for the half-year ended 31 December 2020 (H1 FY21) is set out below. The financial performance of the Group, as expected during the period, was impacted by the restrictions on operations caused by COVID-19 with half-year revenue and earnings declining compared to the same period in FY20.

The pandemic impacted each of IDP's business lines with various government restrictions across all geographies reducing sales during the period. From an operational perspective the impacts were broadly as follows:

•  English Language Testing - IELTS testing centres in many locations were forced to close with government lockdowns or restrictions on business activity impacting the Group's ability to conduct IELTS tests. In many locations where testing was able to be conducted, social distancing measures reduced capacity and limited the number of tests that could be delivered.

•  Student Placement - Travel restrictions, border closures and health concerns around the pandemic impacted student sentiment and reduced the number of enrolments that IDP was able to facilitate. Many of the Group's student placement offices were also forced to close during the period due to government restrictions which impacted on the normal interaction of our staff with prospective students.

•  English Language Teaching - The Group's English schools in Cambodia were closed at the start of the period with classes being held online. The schools reopened in September but operated at reduced capacity due to social distancing requirements which impacted class sizes and unfortunately because of a further breakout of COVID-19 closed again in November, moving classes online. The schools in Vietnam returned to normal operations at the start of the period with most COVID-19 restrictions in Vietnam being lifted.

•  Digital Marketing and Events - From an operational perspective, digital marketing activities were able to continue largely unaffected and the Group was able to record growth in sales versus the same time last year. Whilst no physical events were held during the period, the Group was able to sustain strong activity in this area through virtual events albeit at lower revenue levels.