Dr Vincent Chian, COO of Fairview International plc, explains why the London-listed international schools’ specialist is not going to be distracted by recent increasing activist investor interest in the sector and remains intent on continuing to be a leading independent provider of international education.
A recent article in The Times highlighted the growing appeal of the recession-resistant education sector, suggesting Cognita, an operator of c.100 schools globally, including 39 in the UK, may plan to sell or float its education business at a suggested valuation of £5.0bn. This follows Nord Anglia Education's recent valuation at $14.5bn, showcasing the sector's significant value.
The prestigious schools operated by these two companies have proven resilient to recent turmoil in the global economy, with wealthy parents continuing to prioritise investment in elite education for their families. The allure of such steady cashflows has not been ignored by private equity groups, activist investors or corporates looking to speculatively and opportunistically cash in on a once unloved sector.
Dr Vincent Chian, Chief Operating Officer of Fairview International PLC (FIL) and his team are intent on taking a different path, however. One based on accessible excellence, long-term operational resilience and sustainable growth with the highest ethical and educational standards for students.
In this interview, investors will hear:
Why the sector is now receiving the attentions of private equity groups, activist investors and corporations looking to sell or float their education businesses at the highest possible valuations
Why Fairview is taking a different path, avoiding the pitfall of corporatisation and focussing on the sustainable growth of its international education businesses
How Fairview intends to deliver sustainable shareholder returns over the long term
The significance of its proprietary tech platform, teacher training pipeline and upcoming AI enhancements to increase revenue and expand operating margins
Why macro trends and national policy changes could unlock major growth opportunities
How Fairview is perfectly positioned for growth in markets like the UK, post the imposition of VAT on private schools, where parents are now seeking viable alternatives to the expensive elite private schools
Reasons to add Fairview International PLC to your watchlist:
A unique asset on London’s stock market, and a top ranked International Baccalaureate provider offering its customers affordable access to high quality education.
Offers exposure to fast growing Asian markets, and a consolidation opportunity in the UK.
Strong financial performance to date and an efficient operating model that underpins further profitable expansion, in particular its proprietary in-house teacher training model delivers sustainable talent and margin benefits.
Process driven delivery of the prestigious International Baccalaureate qualification that can be leveraged into offering new, technology-enabled revenue streams.
Dr Vincent Chian, Chief Operating Officer at Fairview International plc, was interviewed by John Hughman for focusIR.
