BPP Law School’s US parent Apollo Group has written off nearly $200m in impairment charges after reassessing the prospects of its UK education arm according to the group’s end of year results filed last month.
During a presentation to analysts Apollo’s chief financial officer Brian Swartz said: “During the fourth quarter, we conducted our annual impairment test of Apollo Global’s BPP subsidiary. As a result of that test included in the fourth quarter results are goodwill and intangible impairment charges for BPP totalling $176 million.”
“BPP’s business, which is heavily dependent upon the strength of the law and finance sectors in the UK, has been significantly and adversely impacted by the deep recession in the UK and throughout Europe,” added Swartz.
BPP, which was awarded university college status earlier this year by the UK Government, was bought by Apollo Global, a subsidiary of Apollo Group, in July 2009 for just over $600 million.
A spokesman for Apollo said in a further statement: “BPP has been and will continue to be a critical centerpiece of Apollo Global’s expansion strategy to provide greater access to global student demand. We continue to believe that it has significant potential both now and into the future.”