ADVTECH reports strong growth in enrolments and profits for the first half of 2025

ADVTECH, South Africa's largest private education and human capital group, reported healthy enrolment, moderate fee increases, improved debtors control, and better margins in the six months to June 30.

- EDWARD WEST

Normalised earnings per share increased by 16% to 113 cents, revenue increased 10% to R4.68bn, and operating profit increased by a healthy 14% to R982 million. An interim dividend of 45 cents (2024: 38 cents) per ordinary share was declared.

Enrolment increased 13% to 105 701 students. Schools Rest of Africa enrolments were up 40% year-on-year to February 2025, while tertiary full qualifications enrolment increased 14%. Half-year headline earnings per share increased by 15% to 112.7 cents.

"We continued to build competitive advantage by investing in technology to enhance teaching and learning... ADVTECH delivered another strong set of results," said the CEO Geoff Whyte.

Operating margin in the education divisions improved to 23.8% from 23.5% through the benefit of operating leverage and a focus on efficiencies.

"This more than offset the additional costs to strengthen brands through the introduction of additional global benchmarking measures, artificial intelligence tools to support personalised learning, and enhanced student information systems," said Whyte.

A focus on collection processes had seen trade receivables increase by only 3% compared to a revenue increase of 10%. Loss allowances decreased to R488m from R494m, due to improved collections and favourable ageing of the debtors’ book.