Curro sees decline in headline earnings on COVID-19 impact

Curro Holdings, an independent education provider, experienced a 39 per cent decline in headline earnings per share for the year ended December. Despite this decline, the company reported a 6 per cent increase in average learner numbers. The CEO, Andries Greyling, explained the decision to not pay a dividend, citing the need to retain capital to create capacity in schools. The increase in student numbers from 60,000 to 66,000 learners in 2021 marked the best organic growth within the group in several years. Greyling mentioned that about 50% of their campuses are yet to reach full capacity, requiring additional investment to accommodate growth. He emphasized the group's commitment to supporting parents, especially during the challenging times of the pandemic. Regarding outstanding debt and the financial outlook for 2021, Greyling acknowledged the economic challenges faced by parents, which led to a decision to provide relief to 3,000 learners in 2020. Despite uncertainties in the upcoming year, Curro Holdings saw a notable increase in debt collection in the first quarter of 2021 compared to the same period last year. Greyling highlighted the importance of long-term relationships with parents and the company's strategy to navigate financial pressures and uncertainties. The issue of tuition fees and their increase was also addressed during the interview. Greyling explained that the revenue growth was not solely due to fee increases but also the rise in learner numbers. The company plans to increase fees in line with inflation for 2021 while facing challenges with auxiliary services such as boarding facilities and transport. Greyling pointed out the quality of Curro's academic offerings, citing exceptional results from the 2020 academic year. With a focus on academic excellence and providing value to parents, Curro aims to maintain its margins within acceptable levels. As an education provider, Curro Holdings focuses on preparing children for the future while remaining competitive on a global scale. Greyling highlighted the company's investment in IT infrastructure, curriculum development, and the implementation of innovative programs like robotics and coding. An integrated platform allows for centralized management and targeted support to ensure academic success across all schools within the group. Curro also places emphasis on the development of soft skills and communication abilities in students, recognizing the importance of holistic education. In conclusion, Greyling underscored the significance of adapting to the changing landscape of education, particularly in response to the COVID-19 pandemic. By offering online subject choices, personalized learning experiences, and fostering a culture of communication and resilience, Curro Holdings aims to position its students for success in the future.