Private education group ADvTECH, which has brands such as Crawford and Trinityhouse, has hiked its interim dividend 30% as strong enrolment growth and fee increases across its schools and tertiary portfolio helped deliver double-digit revenue and profit growth.
The private education company's group revenue rose 16% to R3.9 billion in the half year to end June, thanks to "consistent enrolment growth in both the schools and tertiary divisions". It was also boosted by increased business activity in its resourcing division.
Adjusted operating profit grew 23% to R754 million with its margin improving to 19.2% from 18.1%, while normalised earnings per share rose by a quarter to 84.3c. The company's interim dividend came in at 30c, compared with 23c in the same period last year.
CEO Roy Douglas said in a statement that ADvTECH's strong results were due to a "solid contribution from all the group's operating divisions with improved margins across the board".
"Our schools and tertiary divisions benefitted from good enrolment growth, moderate fee increases and enhanced operating leverage, while we continued to reap the rewards from our rest of Africa investment in our resourcing division."
The company said it had also "successfully implemented" measures to ensure it could continue to deliver education services even when load shedding occurred. It added that most of its sites had back-up generators, with diesel costs amounting to R9 million for the period.
"In addition, our business has a relatively low electricity usage and our costs in this regard remain contained. We also keep a close eye on our electricity usage and track it while constantly seeking out new opportunities to reduce consumption," it said.
ADvTECH said demand for "quality education" persisted across its markets. Referring specifically to SA, it said that while economic conditions placed consumers under pressure, it believed it was "uniquely positioned to benefit from continued growth in demand for education in South Africa". It also stood to benefit from increasing demand in "the rest of Africa where this pressure is less pronounced."