ADvTECH targets Kenya for African expansion

LISTED private education group ADvTECH has identified Kenya as the next in its quest to grow its educational footprint in Africa with the expected opening of Crawford International School later in the year.

The group said yesterday that it generated 11 percent of its revenue from ventures outside of South Africa and wanted to lift the target to 30 percent by 2020, having grown it from 6 percent of revenue in 2016.

Chief executive Roy Douglas said ADvTECH was on track to meet its 2020 targets.

The group has a presence in Zambia and Botswana. It acquired a 51 percent stake in a private tertiary institution, the University of Africa, for R5 million in January last year. In Botswana, the group operates Gaborone International School.

The group reported results for the year to December and said it had grown its portfolio to 117 education sites, up from 98 compared with last year. Its revenue increased 22 percent to R4.1 billion for the year-end to December – up from R3.4bn last year – benefiting from strong growth at its tertiary division.

The division upped its revenue by 26 percent to R1.58bn, and it contributed 39 percent to the total group revenue. The division’s offerings include 165 accredited tertiary courses, from vocational training and higher certificates to degrees and PhD programmes.

Earnings before interest, taxation, depreciation and amortisation increased by 7 percent to R795.4m, up from R740.6m.

Operating profit was up by 22 percent to R761m, while normalised earnings a share increased by 20 percent to 75.8 cents a share.

A dividend of 19c a share was declared.

ADvTECH shares closed 0.13 percent lower on the JSE yesterday at R15.70.