Johannesburg - Advtech said on Monday it had lifted operating profit by 73 percent, from R117 million to R203 million, in the six months to June on revenue of R1.3 billion, a 33-percent improvement on the R959 million recorded last time.
The private education group said improvements had been “tempered” at earnings level by interest charges arising from the funding of large acquisitions in recent months. Profit after taxation, interest and finance charges came in at R105 million, a 29-percent improvement on R81 million recorded in the corresponding period last time. Acquisitions during the year under review included Centurus Colleges, the Gaborone International School, the Maravest Group and the assets of Boleng Pre-Primary and Primary School and Kathstan Academy.
Advtech, whose brands include Crawford College, Trinityhouse and Varsity College, noted that it was itself the subject of “an unsolicited approach” during the reporting period. The approach came from rival education group Curro, which released its own very good set of results earlier this month. The offer, described as “conditional and unclear on several key issues”, had been unanimously rejected by the board as “not in the best interests of the group”, after being discussed with advisers and a wide range of stakeholders.
The group said that headline earnings per share were up by 26 percent at 25.3 cents and an interim dividend of 12.5 cents was declared, up from 11 cents.
Advtech said in a statement: “The directors are pleased to release record interim results which highlight the acceleration and momentum behind the group’s financial performance. This is the outcome of years of focus on sustained growth, made possible by strong and deep strategic management and significant financial capacity as reflected in the group’s strong balance sheet and cash flow.”
ANA