ADvTECH (ADH) H1 2024 earnings summary

Executive summary

• Achieved strong interim results for H1 2024, with robust enrolment growth, margin improvement, and consistent performance across divisions.

• Maintained a sound balance sheet and strong cash generation, supporting ongoing investment and dividend growth.

• Continued expansion in both schools and tertiary divisions, with new campuses and capacity increases, including technology-enhanced teaching and learning.

• Strategic focus on brand positioning, operational efficiency, and expansion in Africa and tertiary education.

• Ongoing investment in teaching quality, AI-driven personalized learning, and infrastructure to support growth.

Financial highlights

• Group revenue up 9% year-over-year to R4,274 million; operating profit up 15% to R865 million; group operating margin at 20.2%.

• Headline and normalized EPS both up 16% to 97.7 cents; interim dividend per share increased 27% to 38.0 cents.

• Schools SA revenue up 11% to R1,556 million, operating profit up 12% to R316 million; Rest of Africa schools revenue up 11% to R214 million, operating profit up 29% to R62 million.

• Tertiary revenue up 13% to R1,693 million, operating profit up 16% to R436 million; resourcing revenue down 3% to R810 million, but operating profit up 3% to R51 million.

• Cash generated from operations reached R1,959 million, up 12% year-over-year; EBITDA up 15% to R1,077 million.

Outlook and guidance

• Strong demand for quality education expected to persist across all markets, supported by demographic and supply-demand tailwinds.

• Continued investment in growth opportunities, including new campuses, university status, and innovation.

• Strategic focus on growth synergies, cost efficiencies, and brand optimization.

• Confident in maintaining growth trajectory, leveraging positive market trends and a sound balance sheet.

• Dividend policy targets a two times cover, with further increases possible if capital deployment opportunities are limited.