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Finweek English Edition - - INVESTMENT -

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- si­monb@fin­week.co.za

@Si­monPB *The writer owns shares in Shoprite.

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