Vocation

About Vocation

Vocation Limited was an Australian company that provided vocational education and training services. Incorporated in November 2013, the company listed on the Australian Securities Exchange (ASX) in December of the same year, following the merger of three established education providers: Customer Service Institute of Australia, Bor, and a third smaller entity focused on retail, tourism, and hospitality. The company was led by CEO Mark Hutchinson and Chairman John Dawkins.

The firm's business model was heavily reliant on government funding, which constituted approximately 80% of its revenue in the 2014 financial year. Vocation operated in the Vocational Education and Training (VET) sector, providing accredited training and assessment across various industries such as customer service, disability, aged care, community services, and construction. Revenue was generated primarily through government-supported programs, including direct funding and VET FEE-HELP loans, where the government paid course fees upon student registration.

The company's history was marked by a rapid rise and a dramatic collapse. In September 2014, Vocation raised approximately $74 million through a placement to institutional investors. However, shortly after, in October 2014, the company's funding and operations were severely impacted by a review from the Victorian Department of Education and Early Childhood Development (DEECD). This review led to the loss of nearly $20 million in government funding and the relinquishment of key funding contracts. The company subsequently faced legal challenges, including civil penalty proceedings from the Australian Securities and Investments Commission (ASIC) and class action lawsuits from shareholders. The Federal Court found that Vocation had made misleading statements and breached its continuous disclosure obligations. These events culminated in the company entering voluntary administration in November 2015 and being delisted from the ASX in August 2016. The company was officially deregistered in December 2022.