Media statement
Curro Holdings, South Africa’s largest JSE-listed independent school education provider, has today released its results for the year ended 31 December 2018. Headline earnings from continuing operations saw an increase of 23% (from R201m to R248m). Revenue increased by 19% from R2.099bn in 2017 to R2.496bn in 2018.
Group EBITDA (earnings before interest, taxation, depreciation and amortisation) increased by 33% from R473m to R627m, while the schools’ EBITDA increased by 30% from R594m in 2017 to R772m for the period under review.
“We are very pleased with a set of solid results, as well as with the progress made in widening access to quality independent school education in South Africa and beyond. The major improvement in the EBITDA margin from 23% to 25% is due to increased efficiencies, capacity utilisation and lower bad debt expenses,” says Andries Greyling, chief executive officer of Curro Holdings.
Growth and expansion
According to Greyling, organic as well as acquisitive growth contributed to more than 57 000 learners across 68 campuses (164 schools) attending a Curro school at the start of 2019. This represents an increase of 12, compared to 2018.
During this period, Curro extended its offering by:
- Opening Curro Foreshore (Cape Town), a new tech-focused schooling model. This model provides a progressive curriculum focused on Mathematics, Science, Robotics and Coding – essential subjects for learners to operate in the Fourth Industrial Revolution era.
- Opening Curro Private College – Rivonia (Gauteng). This educational facility is the first in Curro’s stable to offer the National Certificate Vocational (NCV) as an alternative to the National Senior Certificate. The school’s focus in 2019 is on a NCV programme for Information Technology and Computer Sciences.
- Constructing six new campuses to the value of R416m. These campuses include Curro Vanderbijlpark and Edenvale (both in Gauteng), Curro Academies in Parkdene (Boksburg), Protea Glen (Soweto) and Savanna City (Johannesburg), as well as a Curro Castle in Burgundy Estate (Cape Town).
- Acquiring Cooper College, Northriding and Sagewood in Gauteng, Creston College in KwaZulu-Natal and Baobab Primary in Botswana.
- Investing in significant expansions across existing campuses to the value of R588m. These include: Curro Roodeplaat, Curro Academy Wilgeheuwel, Windhoek Gymnasium (Namibia), Curro Midrand (previously Building Blocks) and Curro Heritage House (previously Embury College).
Prospects to be concluded early in 2019 include two schools in the Free State with a total of 2,100 learners and two Select schools in Gauteng. In addition, we are at this stage planning four Greenfield operations primarily focussed on the expansion of our new models.
Matric results
Curro Holdings’ IEB schools experienced a pass rate of 99.7% for its grade 12 learners. “2018 was an exceptional year for Curro’s IEB schools, with results showing an increase in the number of students with university exemption, growing from 85% to 88%. The number of A candidates, also improved from 9.8% to 11.5%; and candidates with an average higher than a C, rising from 70.3% to 73.2%,” says Santie Botha, chairperson of Curro Holdings.
The pass rate for all Curro Holdings’ NSC schools in 2018 stood at 94.3%. Complimenting this was a growth in the number of learners with university exemption, increasing from 42% to 52%. A total of 94% of the learners obtained access to tertiary education – including a degree, diploma or certificate qualification.
“We commend our learners for their hard work and dedication, alongside praising the impact of our excellent teachers and supportive parents,” adds Botha.
Dividend
“We are pleased to announce that we have declared a maiden gross dividend of 12 cents per share from income reserves for the year ended 31 December 2018. The dividend amount, net of South African dividend tax of 20%, is 9.6 cents per share,” says Botha.
Greyling adds, “During 2018, R1.7bn was invested in the business, while the group plans to invest up to R1.8bn in 2019. Our learners deserve the best and with that comes the responsibility to continue expanding our reach, improving our facilities, as well as offering a variety of relevant and innovative educational curriculum options.”
