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.

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.

Cash from operating activities increased by 18% to R2.3bn. Capital expenditure of R327m was focused mainly on increasing capacity at existing sites to meet incremental demand.

At the Schools South Africa division, revenue increased by 11% to R1.72bn, with all brands showing enrolment growth. Operating profit increased 12% to R354m.

Strong enrolment growth at Pinnacle College Raslouw, in Centurion, Gauteng. necessitated the accelerated build-out of the school. Pinnacle College Ridgeview opened in Roodepoort in January and was performing in line with expectations.

In the Schools in the Rest of Africa division, the group brands experienced strong enrolment growth. This, along with the November acquisition of Flipper International School, resulted in revenue rising 31% to R281m and operating profit increasing by 34% to R83m.

Driven by continued strong demand, construction of the next phase of Crawford International School in Kenya would be completed by the end of August.

ADvTECH’s international brands now serve just under 12 000 students in three countries.

Whyte said their international schools operation would be further enhanced by the recently announced acquisition of the Regis Runda school in Nairobi, Kenya, for approximately R172m. The school can take 2 000 learners.

The unexpected closure of USAID had a negative impact on the Rest of Africa business. “Around 10% of our client base (NGOs and the charity organisations they service) was impacted by the sudden withdrawal of their funding. Despite this setback, the business delivered a creditable performance and continues to secure new contracts,” said Whyte.

In the Tertiary/University division, revenue increased by 13% to R1.91bn and operating profit increased by 14% to R496m.

Rosebank International University College (RIUC) in Accra, Ghana, was inaugurated in August 2025. Student registrations had commenced in preparation for the new academic year, which begins in January 2026.

The RIUC campus will deliver a diverse portfolio of high-demand qualifications. These range from diplomas to bachelors, masters, and doctoral degrees, catering to both local and regional market needs. To date, fifteen qualifications had been accredited across disciplines including Business Administration, Digital Marketing, Information Technology, Service Management, and Hospitality.

The relocation of the Rosebank College Cape Town mega campus had been completed, whilst expansion projects for the Braamfontein and Polokwane campuses were currently underway.

The 47 000m² property off Grayston Drive in Sandton acquired in 2024 was being developed into a new campus with initial capacity for 9 000 students. Varsity College Sandton and Vega Bordeaux would relocate to the site in time for the start of the 2026 academic year.

A draft Policy for the Recognition of South African Higher Education Institutional Types was released in September 2022, setting out the criteria to be recognised as a university.

“Recognition as a university will ultimately benefit our students who will rightfully be afforded the same status as their peers who obtain identically accredited qualifications through a public university. We continue to engage with the Department of Higher Education and Training (DHET) to bring this to fruition,” the group said.

BUSINESS REPORT