GOOD NEWS AND MORE
Curro results show modest diluted headline earnings per share (HEPS) of 5.2c, but more importantly a strong balance sheet that can now fund the company’s expansion, so no more rights issues (hopefully). Schools require a massive up-front capital expenditure, some R50m per school in the case of Curro. So when Curro is ramping up the number of schools it has massive capex, but when it slows down the building of schools and the capital expenses are largely behind it then the profits start to rush in as run- email@example.com
@SimonPB *The writer owns shares in Shoprite.