Crawford International School to open in Nairobi
The group is expanding its market beyond South Africa as part of its Vision 2020.
Chief executive Roy Douglas said yesterday that the opening of Crawford school in Nairobi was expected to take place in October.
“We have recently diversified into markets such as Botswana, Zambia and Kenya. The acquisition of the Makini Schools group in Kenya and securing of a management contract in Uganda added nine schools, five campuses, boarding facilities and 4100 students to the division’s enrolments.
Douglas added that this, together with the imminent opening of the Crawford school in Nairobi, had resulted in significant progress being made in their strategy of expanding their operations on the rest of the continent.
ADvTECH operates three divisions: schools, tertiary and resourcing divisions.
ADvTECH yesterday released its results for the six months to end June, with revenue up by 14percent to R2.3billion. Earnings before interest, tax, depreciation and amortisation was also up by 14percent to R447.1million. Profit was down 8percent to R196m, while headline earnings per share declined by 9percent to 35cents a share.
The group declared an interim dividend of 15c a share, the same dividend as last year.
Trading revenue increased 14percent, while trading operating profit rose by 15percent to R387m.
“Once again, our tertiary division showed excellent growth, while strong demand for our mid-fee schools has offset the impact of the difficult economic climate on our enrolment numbers. Our resourcing division remains highly cash generative and maintained its market leading position in a static environment,” Douglas said.
In the schools division, revenue increased by 18percent to R1.07bn, up from R903m, while trading operating profit increased by 5percent to R172m. The division contributes 47percent of group revenue.
The group said the growth in revenue was achieved mainly as a result of acquisitions and good growth in the mid-fee sector.
“The challenging economic climate and unsettled socio-political environment continues to impact on organic growth with increased levels of withdrawals owing to emigration and financial pressures,” Douglas said.
The tertiary division increased its revenue by 12percent to R883m and contributed 39percent of group revenue. Operating profit increasing by 24percent to R195m.
The resourcing division saw its revenue and operating profit increasing by 4percent to R321m and R19m, respectively.
ADvTECH shares closed 1.3percent lower on the JSE at R15.15 yesterday.
- BUSINESS REPORT