Advtech, one of South Africa's leading education providers, has reported robust financial results for the six-months to June 30.
CEO Geoff Whyte said the results revealed a healthy enrolment growth, moderate fee increases, and enhanced debtor management practices, which collectively fuelled strong interim earnings growth of 16%.
The results come as Advtech continues to consolidate its extensive brand portfolio, ensuring a sharper operational focus and enhanced efficiency, thereby driving margin growth.
Group’s revenue surged by 8% to R5.06 billion, with the education division alone experiencing 13% growth. Operating profit also saw an encouraging climb of 14% to R1.12bn, up from R982 million in 2025. This increase resulted in an upswing in the operating margin to 22%, compared to 21% last year.
Normalised earnings increased sharply to R717m, representing a 16% rise from R620m, which translates to normalised earnings per share of 130.8 cents, up from 113.0 cents the previous year.
The education division's operating profit improved by 15%, fuelled by strong enrolment growth which has markedly boosted revenue. Notably, efforts to bolster brand structures through simplification strategies have further enhanced operational efficiencies.
Advtech's focus on high-quality education was evident through investments in global benchmarking measures, artificial intelligence tools for personalised learning, and upgraded student information systems.
The group also showcased a continued emphasis on improving its debtor management processes. Gross trade receivables increased by only 5%, significantly lower than the revenue growth of 8%, underscoring effective collection strategies. Although loss allowances increased to R505m, credit losses decreased from R119m to R115m, reflecting enhanced performance of the debtor's book.
Cash generated from operational activities rose by 17% to R2.69bn, while capital expenditure of R403m was funnelled into expanding operational capacity across existing sites. Among the key projects is the completion of new mega campuses in Sandton and Nelson Mandela Bay, along with the refurbishment of the Rosebank International campus.
The group also announced the relocation of its support office to the old Emeris campus, aligning resources to better serve its educational mission.
The board declared an 18% increase in the gross dividend, now sitting at 53 cents per ordinary share, up from 45 cents last year, reflecting confidence in Advtech’s ongoing financial health and commitment to shareholder returns.
The Schools segment in South Africa reporting a revenue uptick of 8% to R1.86bn. Significant operational advancements such as enhanced operating margins and a strategic alignment of previously acquired schools signal a commitment to maintain a competitive advantage.
Schools across the Rest of Africa saw strong enrolment growth. The acquisition of Regis Runda in Nairobi was successful, bolstering growth prospects as Advtech invests heavily in infrastructure and ICT enhancements for improved student experiences.
Additionally, plans for further development in Ghana and other African markets align with Advtech's goal to expand its footprint and impact across the continent.
edward.west@nationalmg.co.za
The National