Profit boost for Crawford and TrinityHouse owner

AdvTech, the owner of Crawford, Pinnacle College, TrinityHouse, Varsity College and more, has seen its earnings increase.

“Driven by robust fundamentals in the business, AdvTech delivered another strong set of results for the six months ended 30 June 2024 (H1 2024),” said AdvTech CEO, Geoff Whyte.

“This was achieved through healthy growth in enrolments, moderate fee increases and continued margin improvement, despite a challenging economic environment.” 

Overall, revenue increased by 9% from R3,932 million in H1 2023 to R4,274 million in H1 2024.

Operating profit before interest and non-trading items increased by 15% to R865 million (H1 2023:R754 million).

Normalised earnings jumped by 17% to R535 million (H1 2023: R459 million) , while normalised earnings per share increased by 16% to 97.7 cents per share (H1 2023: 84.3 cents).

Headline earnings per share increased by 16% to 97.7 cents per share (H1 2023: 84.3 cents), while earnings per share jumped by 16% to 97.6 cents per share (H1 2023: 84.4 cents).

An interim dividend of 38.0 cents per share was declared (H1 2023: 30 cents).

In group’s South African schools division saw enrolments go up 5% to 32,786, revenue went up 11% to R1.5 billion and operating profit go up 12% to R316 million.

“In response to sustained demand for quality education in the mid-fee sector, a Pinnacle College campus, scheduled to open in January 2025, is currently under construction in Ridgeview, Roodepoort,” said the group.

“Furthermore, strong enrollment growth at Pinnacle College Raslouw in Centurion necessitated the build-out of the balance of the school, which was several years ahead of plan.”

The group’s tertiary business saw its enrolments up by 7% to 52,718, revenue increase by 13% to R1.7 billion and operating profit up 16% to R436 million.

“Expansion projects are currently underway at Rosebank College’s mega-campuses in Cape Town, Pretoria and Braamfontein,” said the group.

“A new purpose-built Vega campus is under construction in Pretoria, adjacent to Varsity College, which will be more suitable than the existing premises.”

“In addition, AdvTech completed expansion projects at the Varsity College Pretoria and Cape Town campuses to increase capacity in response to continued strong demand.”

Earlier in the day, AdvTech’s competitor, Stadio Holdings, announced that it would start construction on a new comprehensive campus in Durbanville, Cape Town, in 2024, subject to regulatory approval.

AdvTech is also hoping to have its tertiary education centres named Universities. Currently, all universities in South Africa are government-owned.

“Recognition as a University will ultimately benefit our students, who will then rightfully be afforded the same status as their Public University peers. We continue to engage with the Department of Higher Education and Training to move forward on this issue,” said Whyte.  

The group is also in the process of acquiring a suitable building to be adapted into a university campus.

If the purchase is approved by the Competition Commission, it will result in a R419 million capital investment over the next two years.

The group’s Rest of Africa division saw its enrollment increase +4% to 8,224, revenue increase by 11% to R214 million and operating profit increase by 29% to R62 million.

Due to strong demand, construction of the new phase of Crawford International in Kenya is set to commence in Q4 2024.

The group added that the Cambridge International curriculum offering, introduced in 2021, is also experiencing strong demand, with parents increasingly choosing this curriculum for their children. The higher fees have boosted the group’s financial results.

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