Thursday, 2 June 2011

BPP writedown

Regents is next on my list of private providers, but this story confuses me enough to make me post.

The relevant SEC filing is (I think) this one which is more than two months old, so how come the Higher is reporting it only now? I've no answer to that one.

I'm not an accountant, still less an American accountant. I can cope with profit and loss, but balance sheets are a bit beyond me, so caveat lector. Nonetheless the goodwill written off by Apollo seems to me to fit alongside the share buyback and loan repayment that are also evident in the same report. That is I think they relate more to the increasingly risk-averse stance being taken by the parent company than any real change in BPP's short or mid-term prospects. There are good reasons for Apollo to be acting in this way just now, as is well-enough known.

In contrast, its hard to see what might have happened in the first quarter of 2011 to weaken BPP's prospects. It's true the White :Paper was delayed, but Apollo bought BPP before the White Paper was dreamed of. And whilst the Government didn't introduce £6,000 loans for the private sector until April, BPP and Apollo must have known which way the wind was blowing.

So I don't think this story is going to make much difference to the post about BPP I am planning for some time next week.I think their prospects in the UK market are very positive.

No comments:

Post a Comment