ADvTECH delivers another strong set of results at the half year

Cementing its position as the leading provider of private education on the African continent

26 August 2024: Commenting on the results, ADvTECH CEO, Geoff Whyte, said: “Driven by robust fundamentals in the business, ADvTECH delivered another strong set of results for the six months ended 30 June 2024. This was achieved through healthy growth in enrolments, moderate fee increases and continued margin improvement, despite a challenging economic environment.” 

“We continue to invest in the delivery of superior, technology-enhanced teaching and learning, strengthening our competitive advantage and further cementing ADvTECH as the leading provider of private education on the African continent.”  

Group: Operational and Financial Performance 

Enrolments up 6%
Operating profit up 15% to R865m (2023: R754m)
Operating margin up from 19.2% to 20.2% 
Normalised earnings per share up 16% to 97.7 cents

The Education divisions recorded revenue growth of 12% year-on-year, due to healthy enrolment growth across both Schools and Tertiary (up 4% and 7% respectively).  

Operating margin in the Education business improved to 23.5% (2023: 22.8%) through the benefit of operating leverage and via the Group’s continued drive for efficiency gains. This more than offset the additional costs incurred to enhance ADvTECH’s offering through the introduction of additional global benchmarking measures, artificial intelligence tools to support personalised learning and student information systems. 

Normalised earnings for the period increased by 17% to R535 million (2023: R459 million) while normalised earnings per share increased by 16% to 97.7 cents (2023 84.3 cents) per share. 

Cash generated from operating activities increased by 12% to R1 959 million (2023: R1 749 million) underscoring the strong cash generating capacity of the Group. 

Informed by the Group generating cash in excess of that required to fund its investment programme, the Board decided to increase the dividend payout. Management of the group’s capital structure and optimising return on equity was also considered in this decision. The Board declared an interim dividend of 38.0 cents (2023: 30.0 cents) per ordinary share in respect of the six months ended 30 June 2024. This represents an increase of 27%.

Divisions: Operational and Financial Performance 

Schools South Africa 

Enrolments up +5% 
Revenue up 11% 
Operating profit up 12%

The Schools division in South Africa continued to enhance its value propositions and to win market share. All the division’s brands recorded volume and operating profit growth. 

Revenue increased by 11% to R1 556 million (2023: R1 402 million) and operating profit increased by 12% to R316 million (2023: R282 million) with the operating margin improving to 20.3% (2023: 20.1%). 

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. Furthermore, strong enrolment growth at Pinnacle College Raslouw in Centurion, necessitated the build-out of the balance of the school, several years ahead of plan.

Schools Rest of Africa 

Enrolments up +4% 
Revenue up 11% 
Operating profit up 29%

ADvTECH’s schools brands in the rest of Africa continued to experience strong enrolment growth. Revenue increased by 11% to R214 million (2023: R193 million), while operating profit increased by 29% to R62 million (2023: R48 million). Operating margin improved from 24.7% to 28.7% driven by operating leverage.

Construction of the next phase of Crawford International in Kenya will commence in the fourth quarter of 2024 in response to continued strong demand, driven by the school’s market leading academic offering. 

The Group’s Cambridge International curriculum offering, that was introduced in 2021, is also experiencing strong demand, with parents increasingly choosing this curriculum for their children. As this offering is at a higher fee, it is having a positive impact on the financial performance of these schools. 

Gaborone International School continues to perform exceptionally well, with strong enrolment growth and excellent academic results. The second phase of development to increase capacity to accommodate 3 250 students and to refurbish the pre-primary school has now been completed. 

Tertiary/University 

Enrolments up 7% 
Revenue up 13% 
Operating profit up 16%

The Tertiary division performed well and continued to grow off the back of a well-established, high quality brand portfolio that offers a comprehensive range of programmes and qualifications. ADvTECH’s ability to provide multi-channel modes of delivery (contact, blended, online, full-time, part-time and distance) is fundamental to enhancing its student value proposition. 

Revenue increased by 13% to R1 693 million (2023: R1 500 million) and operating profit grew by 16% to R436 million (2023: R375 million). Benefitting from effective cost containment measures, operating margin increased to 25.8% (2023: 25.0%).  

Expansion projects are currently under way at Rosebank College’s mega-campuses in Cape Town, Pretoria and Braamfontein. 

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.  

Following the publishing of draft regulations in September 2022 by the previous Minister of Higher Education and Training, which set out the criteria to qualify as a university, amended criteria were published in April this year. ADvTECH submitted its comments in May and await the publishing of the Gazette, which is anticipated before the end of 2024.  

“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 in the process of acquiring a suitable building to be adapted into a university campus. Should the purchase be approved by the Competition Commission, it will result in a R419 million capital investment over the next two years.  

Resourcing 

Operations outside South Africa continue to fuel growth

Revenue decreased by 3% to R810 million (2023: R837 million), with the decline of 16% in South Africa driven by muted recruitment activity in a challenging trading environment. Revenue in the rest of Africa declined by 1% due to a few low margin contracts coming to an end. 

Operating profit increased by 3% to R51 million (2023: R50 million) however. This was achieved due to an increase of 24% in operating profit from the rest of Africa to R55 million (2023: R45 million) driven by low margin contracts being replaced by higher margin contracts, more than offsetting the impact of the loss experienced in South Africa. 

Alternative Energy Solutions 

ADvTECH is committed to minimising environmental impact across our operations. Notwithstanding the recent suspension of loadshedding, the Group continues to roll out solar solutions to reduce our electricity cost and carbon footprint. In addition to five sites that already have solar solutions, installations are currently under way at three sites with the highest electricity usage. Thereafter, ADvTECH will continue the rollout to all remaining sites where a solar solution is feasible.   

Prospects 

ADvTECH is uniquely positioned to enrich people’s lives by being the leader in teaching and learning across the African continent. Strong demand for quality education continues across all our chosen markets.

“The Group’s solid balance sheet, strong cash generation, growing scale and expertise in Africa and unrelenting focus on extending competitive advantage in both the Schools and Tertiary Divisions, places us in a good position to maintain our growth trajectory and invest with confidence in areas of opportunity,” concluded Whyte. 

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ADvTECH Updates

SENS Announcement | 7 July 2025

By Tamara Thomas • July 7, 2025

ADvTECH Limited (Incorporated in the Republic of South Africa) (Registration number 1990/001119/06) Share code: ADH ISIN: ZAE000031035 (“ADvTECH” or “the Company”) DISPOSAL OF SECURITIES BY CLIENTS OF PUBLIC INVESTMENT CORPORATION SOC LIMITED (“PIC”) AND DIRECTORS RESPONSIBILITY STATEMENT – VOLUNTARY ANNOUNCEMENT In accordance with section 122(3)(b) of the Companies Act, No. 71 of 2008 as amended and section 3.83(b) of the JSE Limited Listings Requirements, shareholders are hereby advised that ADvTECH has received formal notification in the prescribed form that PIC’s clients have, in aggregate, disposed of an interest in the ordinary shares of the Company, such that the total interest in the ordinary shares of the Company held by PIC’s clients has decreased from 20.550% to 19.641% of the total issued ordinary shares of the Company. In terms of section 122(3)(a) of the Act, the Company has also filed notice with the Takeover Regulation Panel. The board of directors of ADvTECH accepts responsibility for the information contained in this announcement as it relates to the Company and confirms that, to the best of its knowledge and belief, such information relating to ADvTECH is true and that this announcement does not omit anything likely to affect the importance of such information. Johannesburg 7 July 2025 Sponsor: Bridge Capital Advisors Proprietary Limited

ADvTECH appoints John Sikiotis as Group Chief Operating Officer

By Tamara Thomas • July 1, 2025

JSE-listed ADvTECH, Africa’s leading private education provider, is pleased to announce the appointment of John Sikiotis to the role of Group Chief Operating Officer (GCOO), effective 1 August 2025. Sikiotis brings a wealth of experience in strategy, IT, business development and commercial leadership across a wide range of industries in multiple geographies including Africa, the Middle East and Asia. He is a qualified CA(SA) and holds the professional designation of Chartered Financial Analyst. He is also a member of SAICA. The new role of GCOO has been established to support ADvTECH’s dynamic growth and expanding operations locally and internationally. “John’s strategic expertise and global perspective make him a valuable addition to our leadership team,” commented ADvTECH Group CEO, Geoff Whyte.

SENS Announcement | 30 June 2025

By Tamara Thomas • June 30, 2025

ADvTECH Limited (Incorporated in the Republic of South Africa) (Registration number 1990/001119/06) Share code: ADH ISIN: ZAE000031035 (“ADvTECH” or “the Company”) DEALINGS IN SECURITIES BY DIRECTORS, A DIRECTOR OF A MAJOR SUBSIDIARY, PRESCRIBED OFFICERS AND THE GROUP COMPANY SECRETARY In terms of paragraphs 3.63 to 3.74 of the JSE Limited Listings Requirements (“JSE Listings Requirements”), the following transactions, in respect of which prior written approval pursuant to paragraph 3.66 of the JSE Listings Requirements have been obtained, is hereby disclosed.

SENS Announcement | 27 June 2025

By Tamara Thomas • June 27, 2025

ADvTECH Limited (Incorporated in the Republic of South Africa) (Registration number 1990/001119/06) Share code: ADH ISIN: ZAE000031035 (“ADvTECH” or “the Company”) DEALINGS IN SECURITIES BY AN ASSOCIATE OF A DIRECTOR OF A MAJOR SUBSIDIARY OF THE COMPANY In compliance with the JSE Limited Listings Requirements the following information is disclosed in respect of dealings in ADvTECH securities by an associate of a Director of a major subsidiary (The Independent Institute of Education (Pty) Ltd) of the Company.

AI in education: supporting teachers, not replacing them

By Tamara Thomas • June 27, 2025

It is undeniable that AI in education, even though still in relative infancy, has a multiplier effect on student outcomes. An overview of the substantial impact of individualised learning on student performance over the past few years, combined with an insight into daily advances in real life, has the potential to raise concern about the role of human educators in classrooms. Are teachers becoming obsolete? Not quite. While it is true that AI’s role is growing by the day, it is in fact not replacing teachers, but rather changing the role of teachers, an education expert says. “We have, over the past 3 years, seen a 20% improvement in student performance, with AI and individualised learning having become the order of the day,” says Desiree Hugo, Academic Head at ADvTECH Schools. AI in education isn’t a case of students having access to ChatGPT – it is a vastly more considered strategy leveraging proprietary tools and platforms. ADvTECH’s ADvLEARN Intelligent Tutoring System is a prime example, utilising AI to craft individualised learning paths that allow students to advance at their own speed. This system empowers data-guided instruction while fostering independent learning across various subjects. “Adaptive learning technologies leverage data-driven analysis to personalise educational content, pacing, and assessments based on each student's unique needs. These solutions, which include intelligent tutoring systems and learning management platforms, enable educators to tailor instruction efficiently without increasing their workload, when integrated effectively,” says Hugo. “For students, this creates a customised, engaging, and encouraging experience, whether they’re building core skills or exploring complex topics. For educators, it delivers real-time insights to refine teaching approaches, ensuring all students achieve progress.” AI systems are fast moving in the direction of students being able to learn completely independently, which then raises the question – what about the teachers? Will in-person schools still be a thing? Or will future learning consist of young people working alone, in front of their screens? “Adopting best international practices in AI implementation is critical to staying at the forefront of educational excellence. However, the narrative around AI in education must be clear: AI is a powerful tool to support, not replace, teachers,” says Hugo. “The human element in teaching, in particular empathy, creativity, and mentorship, remains irreplaceable, and AI’s role is to enhance these supportive opportunities, ensuring teachers remain central to the learning experience, while time-consuming repetitive tasks become the domain of AI.” The integration of AI into education really is a best-case scenario, allowing overworked teachers to get back to their unique strengths, Hugo says. WHY TEACHERS WILL REMAIN AN IMPORTANT PART OF THE EDUCATIONAL LANDSCAPE While AI excels at processing data and delivering personalised content, it lacks the human qualities that ensures an exceptional, holistic education. In the age of AI, the role of teachers will remain important in the following areas: Emotional connection and empathy - Learning is deeply human, driven by relationships. Teachers understand students’ emotional needs, motivate them through challenges, and celebrate their successes. No algorithm can replicate the encouragement of a teacher who notices a student’s potential or the trust built through years of mentorship. Fostering creativity and critical thinking - AI can provide information, but teachers guide students to question, innovate, and think critically. In a world increasingly shaped by AI, skills like ethical reasoning, collaboration, and creative problem-solving, nurtured by teachers, are essential. Curricula, like the IEB, IB and Cambridge systems, emphasize these skills, and ADvTECH’s commitment to global standards positions its teachers as key drivers of this development. Cultural and contextual nuance - South Africa’s diverse educational landscape requires teachers who understand local contexts, languages, and cultural dynamics. Teachers bridge the gap between AI and real-life context, ensuring learning is relevant and inclusive. “The fear that AI will replace teachers stems from a misunderstanding of its purpose, combined with the stunning realisation of its ability to improve student outcomes. But AI is not a substitute for human connection. Rather, it is a catalyst for unlocking teacher potential. It empowers teachers to do what they do best: inspire, guide, and transform lives. “Imagine a classroom where AI handles repetitive tasks, provides real-time student insights, and suggests tailored resources, while the teacher focuses on sparking debates, nurturing talents, and building confidence. This is the future that educational institutions must champion - a future where technology supports human excellence, not replaces it.”

SENS Announcement | 25 June 2025

By Tamara Thomas • June 25, 2025

ADvTECH Limited (Incorporated in the Republic of South Africa) (Registration number 1990/001119/06) Share code: ADH ISIN: ZAE000031035 (“ADvTECH” or “the Company”) DEALINGS IN SECURITIES BY A PRESCRIBED OFFICER AND THE COMPANY SECRETARY OF THE COMPANY In compliance with the JSE Limited Listings Requirements the following information is disclosed in respect of dealings in ADvTECH securities by a Prescribed Officer and the Company Secretary of the Company.

SENS Announcement | 23 June 2025

By Tamara Thomas • June 23, 2025

ADvTECH Limited (Incorporated in the Republic of South Africa) (Registration number 1990/001119/06) Share code: ADH ISIN: ZAE000031035 (“ADvTECH” or “the Company”) DEALINGS IN SECURITIES BY PRESCRIBED OFFICERS AND ASSOCIATE OF A PRESCRIBED OFFICER OF THE COMPANY In compliance with the JSE Limited Listings Requirements the following information is disclosed in respect of dealings in ADvTECH securities by ADvTECH Prescribed Officers and an associate of a Prescribed Officer.

SENS Announcement | 20 June 2025

By Tamara Thomas • June 20, 2025

ADvTECH Limited (Incorporated in the Republic of South Africa) (Registration number 1990/001119/06) Share code: ADH ISIN: ZAE000031035 (“ADvTECH”) DEALINGS IN SECURITIES BY PRESCRIBED OFFICERS, A DIRECTOR OF A MAJOR SUBSIDIARY, AND COMPANY SECRETARY: SHARE VESTING In compliance with the JSE Limited Listings Requirements, the following transactions relating to prescribed officers, director of a major subsidiary and company secretary dealings are hereby disclosed, in terms of the provisions of the ADvTECH Management Share Incentive Scheme (MSI), regarding performance and retention shares that have vested after 3 years.

New mega law clinic to improve access to justice, raise bar for legal education in SA

By Tamara Thomas • June 19, 2025

Community law clinics play a vital role in ensuring access to justice in South Africa, annually serving thousands of people who are unable to afford legal services and representation. In response to the overwhelming demand for these lifeline services, SA’s leading private higher education provider has been steadfastly expanding its footprint of law clinics across the country, culminating in the recent launch of a mega-clinic in Randburg. The IIE Varsity College’s Randburg Community Law Clinic is a game-changer for the community, says Soretha Venter, senior attorney and Director of the clinics in the region. “It’s our most ambitious effort yet to bridge the gap in access to justice, ensuring marginalised individuals can exercise their legal rights while equipping our students with real-world skills,” Venter says. “Law clinics like ours promote fairness, equality, the rule of law, and transform lives by providing essential legal services while empowering our students to become empathetic, skilled legal professionals dedicated to social justice.” Venter says community law clinics play a pivotal role in addressing the systemic barriers to justice faced by underserved populations, particularly in South Africa, where economic disparities often limit access to legal services for many vulnerable citizens. “These clinics provide free legal advice, mediation services, and representation in matters such as family disputes, housing issues, employment conflicts, and consumer rights, empowering individuals who cannot afford private attorneys. By bridging this gap, law clinics ensure fair and equitable treatment for all, uphold human rights, and promote social cohesion by providing avenues for resolving disputes and addressing grievances.” Beyond resolving individual cases, they foster social justice through community outreach, offering workshops and campaigns on critical issues like domestic violence and discrimination, which educate the public and enhance awareness of legal protections. “The benefits to communities extend beyond immediate legal solutions, creating a ripple effect of empowerment and social change. Law clinics not only resolve disputes but also build trust in the legal system by providing accessible, compassionate support. They advocate for systemic improvements, collaborating with nonprofits and government agencies to address broader societal challenges,” Venter says. For instance, initiatives like family law mediation and post-litigation support for clients, as planned by the IIE Varsity College Randburg mega-clinic, offer sustainable solutions for low-income families. By equipping communities with knowledge and resources, these clinics strengthen social cohesion and promote a culture of justice, ensuring lasting impact for individuals and society as a whole. In addition to providing communities with free legal representation and support, law clinics ensure that SA’s future legal practitioners receive a real-world, holistic education. This year, more than 120 final-year students from three campuses will gain hands-on experience at the Randburg clinic, under the supervision of experienced attorneys. Groups of around eight students at a time work Monday through Thursday, immersing themselves in consultations, legal drafting, research, and court visits. “Students are exposed to every facet of a real law firm. This practical training not only hones their skills in client interaction and case management but also instils a deep sense of social responsibility,” says Venter, adding that the clinic prepares students for South Africa’s unique legal landscape while fostering a commitment to pro bono work. The Randburg mega clinic boasts 3 attorneys’ offices, 4 candidate legal practitioner spaces, a boardroom with state of the art digital and online facilities and 4 consultation rooms. It currently has 2 full time attorneys, 2 candidate legal practitioners and a legal intern, and the team will be growing in months to come. Since its launch, it has received 105 applications, of which 43 are still active matters that are attended to on a daily basis. It is expected that these numbers will have doubled by the end of 2025. The Randburg mega-clinic builds on the success of IIE Varsity College’s earlier clinics established in Durban North (2022), Pretoria (April 2024), and Cape Town (July 2024). Another clinic is set to open in Nelson Mandela Bay in August 2025.

Education Investment Podcast: Leading a Schools and Higher Education Group with Geoff Whyte

By Tamara Thomas • June 10, 2025

Monde Nkosi presents his latest episode of the Education Investment Podcast in video on YouTube and audio on Spotify, Apple and all major podcast platforms https://linktr.ee/educationinvestment?utm_source=linktree_admin_share In this episode, Leading a Schools and Higher Education Group with Geoff Whyte (CEO of ADvTECH Group), we explore leadership in a combined schools and higher education group serving more than 100,000 students across multiple countries including South Africa, Kenya, Botswana and Ethiopia. Geoff presents his investment and social impact case for ADvTECH and independent education. Geoff also shares some personal stories about his journey from growing up in Scotland; to living and working in multiple countries including England, Russia and the Netherlands; and moving to South Africa in the late 1990s.