Education company Curro Holdings (COH) has reported a narrowing in its diluted headline loss per share to 1.9 cents for the six months ended June 2012 from a loss of 9.6 cents a year ago.
The group’s revenue increased 103% to R161.3 million due to a significant increase in learner numbers and acquisitions and its earnings before interest and tax rose to R12.4 million from R2.25 million a year ago.
It reported a loss for the period of R2.98 million after a loss of R7.70 million previously.
EBITDA amounted to R18.4 million - an increase of 226% as a result of capacity being filled at existing schools without a proportionate increase in costs‚ as well as the inclusion of profit making schools from acquisitions for a part of the period.
No dividend has been declared for the period and Curro will for the foreseeable future use all cash generated to expand existing campuses and establish new campuses. In time‚ a point will be reached when the operational cash generated will exceed capital requirements. It will then commence with the payment of dividends‚ it said.
The company also on Monday renewed its cautionary notice‚ saying further to the announcement of July 24‚ negotiations are still in progress relating to certain corporate actions‚ which if successfully concluded may have a material effect on the price of the company’s shares.
Looking ahead‚ the group said the provision of quality education and the safety of its learners remain a top priority.
The growing positive sentiment about the private school market is encouraging‚ it noted.
“Curro’s management will continue to expand the business by means of organic and acquisitive growth in years to come. The R476 million that was raised through the rights issue and specific issue in July 2012 will be utilised for this purpose‚” it said. - I-Net Bridge