“Group revenue increased by 5 per cent to 1.8 billion rand while operating profit increased 11 per cent to 222 million rand at a margin of 12.6 per cent,” said [DATA ADH:ADvTECH Limited.] one of South Africa’s largest diversified education, training and placement groups, in a statement.
Revenue in their schools division rose 11 per cent, above inflation, due to growth in student numbers, particularly in their Trinityhouse brand.
“The Schools division continues to experience increased demand at both established and newer sites, with waiting lists remaining a feature at sought after entry points,” continued the statement.
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This resulted in headline earnings and basic earnings per share both increasing by 12 per cent to 38.6 cents and 38.5 cents respectively.
Their tertiary division however reported a mere 2 per cent revenue increase, due to the poor first year intake of students in 2012 as well as the restructuring projects over the last two years, effecting part time and short course registered students.
Varsity College and Vega, on the other hand, posted solid performances during the period, revealing an operating profit increase of 49 per cent.
Their resourcing division encountered tough market conditions with volume and turnaround time of new placements being affected, resulting in a decline in revenue and operating profit.
ADvTECH’s capital commitments increased to 1.2 billion rand, with a expenditure of 335 million rand in the year.
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“These commitments form part of the capital investment plan of R3 billion, which will increase capacity by around 53 per cent,” explained the company.
The group opened four new schools in January 2014, namely, CrawfordSchools Italia, Trinityhouse Heritage Hill, and Abbotts Colleges in Northcliff and Centurion. They also acquired Snuggles, a pre-primary school during the period.
“Enrolments at all five sites have been satisfactory and in aggregate exceed the targets of our investment feasibility studies. Trinityhouse Palm Lakes continued its anticipated slower growth whereas Trinityhouse Little Falls, now in its third year of operation, has entered a rapid growth phase and continues to exceed expectations,” said the group.
They added that progress is also being made in technology-led education and recruitment, where capital and operating expenditure of some 500 million rand has been deployed in the last five years.
The group also acquired a 15 per cent interest in the Star Schools group and has entered technology partnerships with several key global vendors.
They also awarded 5 900 bursaries to the value of 72 million rand in 2013, a 21 per cent increase over 2012, which includes 54 new teacher education bursaries bringing the total number of such bursaries awarded to 236.
“[This year] will be the first full year of operation after completion of the Tertiary division restructuring and early signs in regard to student enrolments and improved campus operations are encouraging,” said the company.