ADvTECH (ADH) H2 2025 earnings summary

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 policy.

• Major restructuring simplified tertiary brands from six to two, resolving a 20-year legal dispute and launching a new visual identity.

• Education now contributes 84% of revenue and 95% of operating profit, with a strategic pivot toward tertiary education and international expansion.

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; compounded at 18% over five years.

• 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 2.57 billion.

Outlook and guidance

• Continued focus on expanding capacity in high-demand schools and tertiary campuses, with significant CapEx planned for 2027–2028.

• Ongoing investment in new builds, new qualifications, and university status applications.

• Positive outlook for ROIC, expected to improve as operating leverage increases.

• Strategic focus remains on education, with further acquisitions targeted in Africa and South Africa.

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