Showing posts with label Education Investor. Show all posts
Showing posts with label Education Investor. Show all posts

Friday, 6 March 2015

More on the A4e sell-off

Not a great deal more, to be honest.  But this piece on Education Investor suggests that the company could be sold off "in chunks", which would make sense.  There will be companies like Interserve keen to buy up the welfare-to-work business, while outfits already in the OLASS field might want what's left of the prison education side of things.  Both this piece and the FT article have the suggestion that a group of northern colleges (Newcastle College?) is interested.
Why now?  The articles talk about A4e being "mired in scandal"; but there have been scandals for years, none of them anywhere near the scale of Serco's or G4S's.  Both point out that the company's finances are recovering from the pre-tax loss of £11.5m in the 2013 year.  But this sale has been on the cards for a while.  A4e hit a peak around 2011, with a presence in 11 countries and Emma Harrison riding high as its chairman as well as owner.  That went spectacularly wrong when she took nearly £10m out of the company in one year prior to stepping down as chairman and bowing out of her government role.  Since then she has not received a dividend and the company has got back into the black by getting out of all overseas business except in Australia and not going after contracts on which it knows it would lose money.  If Harrison is to make anything further from A4e she has to sell it off now.