ADvTECH plans 30% revenue increase

To be generated by 2020

PRIVATE education group ADvTECH has set itself a challenge of increasing its revenue generated out of South Africa to 30 percent by the year 2020.

The company said it wanted to improve the revenue from the current 6 percent it generates from outside South Africa.

Chief executive Roy Douglas yesterday said the goal was realistic and within reach.

“We are going to work hard to achieve the revenue we have set ourselves to achieve,” Douglas said. “There are risks in moving to a new territory, but we believe the rest of Africa presents us with new opportunities to grow the business.”

The company operates mostly in South Africa, but last year it branched out, acquiring a stake in a private tertiary institution, the University of Africa, in Zambia.

Strategic

The company also acquired a 51 percent stake of Oxbridge Academy, adding 21 000 registered distance learning students in the process.

In the schools division, ADvTECH acquired the Summit College.

A possible strategic acquisition of Glenwood House in George and Elkanah House in Cape Town is still on the cards, subject to due diligence and Competition Commission approval.

“We have concluded a number of strategic acquisitions, both in South Africa and other African countries. We increased our schools presence in the Western Cape and grew tertiary distance education, all of which positions us well for further growth,” Douglas said.

The group reported revenue growth of 24 percent to R3.35 billion for the year to end-December, up from R2.718bn recorded during the corresponding period last year, while earnings before interest, taxation, depreciation and amortisation jumped 33 percent to R740.6 million, up from R557.9m reported in 2015.

Headline earnings per