“The directors are pleased to report further acceleration in the trend of profit growth. The turnaround in the tertiary division has been successful and a sound pattern of enrolment growth is evident throughout the education businesses,” [DATA ADH:ADvTECH] said.
“The tertiary division comprises The Independent Institute of Education. The division contributed 43 per cent of group revenue and grew by 10 per cent to 412 million rand. Operating profit improved after the successful completion of restructuring and strong enrolment of first year and continuing students.”
(READ MORE: ADvTECH appoints chairman as CEO)
ADvTECH also reported nine per cent growth in group revenue to 959.2 million rand for the six months to 30 June 2014 from 881.7 million rand for the same period in 2013.
“Group revenue increased by nine per cent, with double digit growth in the education divisions, leading to an increase in EBITDA of 17 per cent,” it said.
Earnings before Interest, Taxation, Depreciation and Amortisation (EBITDA) increased to 158.7 million rand in the 2014 interim period from 135.8 million rand in 2013.
“The balance sheet remains strong and provides the financial resources to drive the group's investment programme,” said ADvTECH.
Profit before taxation grew 13 per cent from 104.2 million rand in 2013 to 117.7 million rand in 2014 and basic headline earnings per share increased by 14 per cent from 17.7 cents to 20.1 cents.
“In the next year the group will invest further in its strong and well-established brands while also exploring new projects and partnerships to extend market reach and geographic footprint across Africa,” ADvTECH said.
(READ MORE: ADvTECH posts solid growth in school division)
“A particular focus is the development of innovative, technology-enabled, low fee schools. All in all, the directors are satisfied that the group's results and the trends evident in them are positive forward indicators. The group will continue to identify and implement growth and investment opportunities.”