Curro Holdings sees strong growth in new learners
CURRO Holdings, the owner of the largest network of independent schools in the country, had more than 66 000 learners at February 28, following the highest organic growth in the numbers since 2015, chief executive Andries Greyling said yesterday.
Its schools reopened on January 13, but had to close soon after because of tighter pandemic-related restrictions, but they opened again on February 1. School activities, such as the suspended winter sport, were still being disrupted by the pandemic, he said in a business update presentation that was delivered at the annual general meeting. There had been record enrolments in February and March.
The numbers at Curro’s Castle nursery schools had peaked at about 8 000 learners in December 2019 and there were currently about 6 000 learners, after exiting the youngest end of the market – babies to three years old.
The enrolment of 3 200 learners was terminated because of outstanding amounts in January.
Last year, a reduction in learners had weighed on income growth, and ancillary income was reduced because of reduced activity during the pandemic, such as hostels and aftercare.
Capital expenditure was cut, while a rights issue was dilutive to earnings per share.
The group’s average learnership numbers grew 6 percent to 60 777 in
the year to December last year.
Revenue was up 5 percent to R3.1 billion, while recurring headline earnings per share was down 24 percent to 38 cents.
But this year there has been stronger learner growth, although ancillary income retained under pressure. Consumers were still under pressure and ratios of discounts and provisions for bad debts were above pre-Covid levels.
In addition, costs were higher because schools were open again.
Capital expenditure of R1.1 billion was planned.
Greyling said construction of the new Durbanville High School was expected to be completed this year, ready for the new intake in January next year. St George’s Preparatory School in Gqeberha had been acquired, and the acquisition of Heronbridge College in Fourways, Joburg, was awaiting approval by the Competition
Tribunal. Greyling said their strategic focus was to realign the business where necessary, exit non-profitable schools, focus on operating level, allocate capital to grow schools and limit capital allocations to under-performing schools, invest in digital offerings, fill capacity at existing schools, and pursue attractive opportunities as they arose.
Curro slipped 4.09 percent to R11.49 at the close of the JSE yesterday.