Siphamandla Goge
CURRO Holdings posted a 52 percent revenue increase to R1 billion for the financial year to December, the company said yesterday.
Curro Holdings is the parent company of all Curro private schools.
The group caters for learners from three months old to grade 12, and runs a training institute focused on educator training at a tertiary level.
According to the company’s financial statements, as a result of operational gearing, earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 68 percent to R192m. The Ebitda margin increased from 17 percent to 19 percent.
“The cash generating ability of the business was proven by the increase in net cash generated from operating activities, which increased by 133 percent from R106m to R247m,” Curro said.
Net interest expense has increased by 150 percent from R22m to R55m.
The interest consolidated from Meridian business represents R37m (2013: R14m) thereof, according to the company. Curro said headline earnings increased by 51 percent from R37m to R56m while headline earnings per share increased by 38 percent from 12.8c to 17.7c.
Last month the company acquired the business operations and properties of St Dominics Academy in Newcastle for a consideration of R10m.
On investment and expansion projects, the group invested approximately R1.3 billion on different projects, including four new Curro schools built at Brackenfell in Western Cape; Secunda, Gauteng; Monaghan Farm in Lanseria and Kathu in the Northern Cape.
This year, the group plans to invest approximately R600m on the expansion of existing campuses; develop three new Curro schools at Waterfall estate in Johannesburg; Sitari, Somerset West and Hillcrest in Durban.
It expected to invest R250m in land banking on various key sites and investigate potential acquisitions.
“As part of the group funding and growth plan, Curro plans to raise R740m through a fully underwritten rights offer,” the developer, manager and owner of private schools said.
Earlier this month Curro denied charges of racially segregating classrooms, saying it sometimes separated pupils based on culture, after a group of about 30 parents signed a petition against what they called racial segregation at its Roodeplaat school
.
The group said it remained on track to achieve its target of 80 schools by 2020 up from 42 at present.
The shares closed down 2.02 percent at R32.47 yesterday.