Curro media statement
Curro Holdings, the listed independent education provider, has today released its results for the first six months ending 30 June 2018, showing an 18% boost in revenue from R1,051 million to R1,242 million. Curro’s EBITDA (earnings before interest, taxes, depreciation and amortisation) rose 31% from R255 million to R335 million, while headline earnings increased by 25% from R110 million to R138 million. The major improvement in the EBITDA margin from 23% to 27% is due to increased efficiencies and capacity utilisation.
“As we celebrate our 20th anniversary we are still seeing double-digit revenue growth thanks, in part, to a 10% increase in learner numbers from 45,890 to 50,691 as well as increased efficiencies. At Curro, we are dedicated to making quality, independent education accessible to more learners throughout Southern Africa. We’re continuing to expand both locally and in the rest of Africa and have made a number of notable acquisitions,” says Andries Greyling, chief executive officer of Curro Holdings.
Funding, expansion and acquisitions
Curro will invest just over R1.1 billion in the building of new campuses and on existing campuses. It will dedicate R400 million of this amount to build six new campuses: Curro Vanderbijlpark and Edenvale, Curro Academies at Parkdene (Boksburg, Gauteng), Protea Glen (Soweto, Gauteng) and Savanna City (Johannesburg) as well as a Curro Castle at Burgundy Estate (Cape Town).
In addition to this, around R700 million will be allocated for expansion plans to Curro Brackenfell, Building Blocks, Curro Heritage House and Windhoek Gymnasium.
More recently, Curro acquired Baobab Primary School (Gaborone, Botswana), Cooper College (Douglasdale, Gauteng) and Dot’s Learning Centre (Durbanville, Western Cape). Further acquisitions are being explored.
“Curro has a strong balance sheet that comes on the back of prior capital raises and improved profitability. The increasing cash generation improves the Group’s ability to service debt, which will be the preferred method of funding going forward,” says Greyling.
Zandile Nangamso (Nan) Mankai was appointed to the Curro Board as an independent non-executive director, effective from the 10 August, 2018. “Nan joins us from Bigen Africa Services where she was the investment officer. She also served on the audit committee and chaired the social and ethics committee. The Board would like to welcome Nan to Curro and we look forward to her contribution to ensure that the Board achieves its longterm objectives,” says Greyling.
“With new talent to our Board and our expansion and acquisition plans on track I believe Curro is well positioned for growth while it will continue to benefit from improving capacity, efficiencies and contributing positively to the Southern African education system,” adds Greyling.