ADvTECH (ADH) investor relations material

Executive summary

• Revenue increased 10% year-on-year to ZAR 9.3 billion, with operating profit up 14% to over ZAR 2 billion for the first time.

• Operating margin improved to 21.8% from 21% year-on-year, and headline/normalized EPS grew 17%.

• Dividend increased 17% to ZAR 1.18, maintaining a 50% payout of normalized EPS.

• Major restructuring simplified tertiary brands from six to two, resolving a 20-year legal dispute.

• Continued expansion in both Schools and Tertiary divisions, with significant investments in new campuses and acquisitions across Africa.

Financial highlights

• Group revenue up 10% year-on-year to ZAR 9,330.4 million; operating profit up 14% to ZAR 2,038.2 million.

• Operating margin rose to 21.8%, driven by efficiencies and a shift to higher-margin education businesses.

• Normalized EPS up 17% year-on-year to 236.1 cents; NEPS in USD up 33%.

• Dividend up 17% year-on-year to 118 cents per share, with a five-year CAGR of 24%.

• Cash flow from operations up 13% to ZAR 2,570 million; operating activities cash flow up 20% year-on-year.

• Group borrowings reduced by 50% since 2021; debt-to-equity at 39%.

Outlook and guidance

• Continued focus on expanding capacity in high-demand schools and tertiary campuses.

• Ongoing investment in new builds, acquisitions, and university status applications, especially in Africa and tertiary segments.

• ROIC expected to improve as operating leverage increases and new investments mature.

• Confident in maintaining growth trajectory, supported by demographic tailwinds and a sound balance sheet.

• Strategic focus remains on education, with resourcing under review.