Penalty fee possible due to faulty reporting of contractual obligation regarding certified teachers
AcadeMedia has in a review of its subsidiary Hermods, which conducts Swedish language training (sfi) for the City of Malmö, identified that Hermods Malmö has had a deficiency with regard to the contractual proportion of certified teachers. This breach could result in a material penalty fee.
On March 19, 2018, AcadeMedia communicated that an internal review had found that the reported information to the City of Malmö on the teacher certification levels was faulty.
There is a penalty clause in the contract with the City of Malmö which regulates a deficiency in the proportion of certified teachers. Hermods responsibility with regard to the penalty clause is now being reviewed from a legal perspective. The potential penalty fee could be material but has not yet been determined. In line with prior communication the size of the potential penalty fee is currently being reviewed by experts at PwC.
Hermods sfi-contract with the City of Malmö has during the period from initiation in August 2014 until February 2018 had a total turnover of slightly more than SEK 100 million.
For more information, please contact:
Marcus Strömberg, CEO
Telephone: +46 8 794 4200
Eola Änggård Runsten, CFO
Telephone: +46 8 794 4240
AcadeMedia creates opportunities for people to develop. The 15,600 employees at our 640 preschools, compulsory schools, upper secondary schools and adult education centres share a common focus on quality and development. Our 173,000 children and students are provided with a high quality education, giving them the best conditions to attain both learning objectives and their full potential as individuals. AcadeMedia is Northern Europe Ìs largest education company, with locations/facilities/presence in Sweden, Norway and Germany. Our size gives us the capacity to be a robust, long term partner to the communities we serve. More information about AcadeMedia is available on www.academedia.se.
This information is information that AcadeMedia AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 20:00 CET March 21, 2018.