While announcing its financial results for the year ended 31 December 2013, the group boasted a revenue increase of 80 percent to 659 million rand.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) also increased by an impressive 114 percent to R114 million for the same period.
[DATA COH:Curro Holdings LTD.] accredited the increases to organic growth in existing schools as well as the acquisition of profitable businesses. “The increasing occupation rates at our schools meant that the EBITDA margin has increased from 15 percent to 17 percent for this financial year,” the company said.
During last year the group invested more than 1 billion rand for the development, expansion and acquisition of schools. The company obtained additional funding from various sources including 150 million rand in 15-year funding from the Development Bank of South Africa. This was apart from R106 million in cash generated from operating activities.
While the company still strives to maintain its good academic results and capital from its shareholders and funders to develop and acquire schools, it has become the largest independent school group in South Africa.
In addition to expansion at existing campuses, in 2013 Curro developed two new Curro schools in Ballito, KwaZulu-Natal and Port Elizabeth, Eastern Cape. Amoung other developments Curro has also acquired Grantleigh — a school with approximately 700 learners with effect from January 2014.
Curro says it remains well on track to achieve its stated target of 80 schools by 2020.
According to the company for the 2014 year it will raise up to 1 billion rand in bond and/or long term bank funding and, “Raise 589 million rand through a one-for-10 shares rights issue at 20 rand per share, which will be underwritten and completed by June 2014”.
The proceeds of the rights offer will be used to repay debt in the short term.
Curro also aims to develop 10 new schools and there will also be expansion projects at approximately seven existing campuses across the group. “To ensure a constant supply of developable sites for schools after 2014, [we are] looking to land-bank approximately 15 sites during 2014.”
BY: LESEGO MOTSHEGWA