ADvTech expands African footprint as earnings surge 16%

ADvTech reported strong interim results for the six months ended 30 June 2025, with growth across its schools and tertiary divisions driving higher revenue and profit.

Group revenue increased 10% to R4 683 million, up from R4 274 million in the prior period, while operating profit rose 14% to R982 million. Operating margin improved to 21% from 20.2%.

Normalised earnings advanced 16% to R620 million, boosting normalised earnings per share to 113 cents, compared with 97.7 cents in 2024. Headline earnings per (Heps) share increased 15% to 112.7 cents.

The board declared an interim dividend of 45 cents per share, up from 38 cents the previous year, amounting to R249.5 million.

ADvTech share price

Schools growth in South Africa and abroad

Revenue in the South African schools division increased 11% to R1 722 million, supported by strong enrolments across all brands. Operating profit rose 12% to R354 million, with the margin improving to 20.6%.

In the rest of Africa, revenue surged 31% to R281 million, boosted by the November 2024 acquisition of Flipper International School and continued demand at existing schools. Operating profit rose 34% to R83 million, with the margin up to 29.4%.

Construction of the next phase of Crawford International School in Kenya is due for completion by end-August. ADvTech also announced the acquisition of Regis Runda School in Nairobi for approximately R172 million, which has capacity for 2 000 learners.

Read: ADvTech acquires Nairobi private school for R172m

Tertiary division delivers double-digit growth

The tertiary division also delivered double-digit growth, with revenue rising 13% to R1 911 million and operating profit up 14% to R496 million. Operating margin edged up to 25.9%.

Rosebank International University College in Accra, Ghana, was inaugurated in August, with student registrations already underway for the 2026 academic year. The new campus will offer diplomas, bachelor’s, master’s and doctoral programmes, with 15 qualifications already accredited.

Read: ADvTech acquires Ethiopian international school for R135m

In South Africa, ADvTech completed the relocation of its Rosebank College Cape Town mega campus, while expanding facilities in Braamfontein and Polokwane. A new Sandton campus, acquired in 2024, is being developed with initial capacity for 9 000 students, housing Varsity College Sandton and Vega Bordeaux from 2026.

Commenting on ADvTech’s progress towards university recognition, CEO Geoff Whyte said: “The university status is very much a technicality. Our students already are awarded degrees and are accredited to exactly the same standards as those from public universities. We are universities in everything but name right now. All we need is for the final criteria for university status to be published by government. They are more than two years overdue. We are ready today to apply and are increasingly frustrated that government has missed every deadline to share the criteria.”

Strong cash generation

Gross trade receivables grew only 3% compared with revenue growth of 10%, reflecting improved collections. Loss allowances declined slightly to R488 million.

Cash generated from operating activities rose 18% to R2 303 million. Capital expenditure of R327 million was mainly directed at expanding capacity to meet demand.

Vat changes could weigh on private schools

ADvTech’s results come as proposed changes to the Vat Act could significantly affect private schools. The draft Taxation Laws Amendment Bill (TLAB), if passed, will force Vat-registered schools to deregister from 1 January 2026.

Tax experts have warned that deregistration will trigger repayment of input Vat claimed on capital assets, potentially depleting cash reserves and creating cash flow stress for schools. WTS Renmere’s Vat specialist Duane Shipp said: “There is a big wake-up call coming for some schools.”

Whyte said ADvTech’s focus remains on keeping education accessible despite these challenges: “Our priority is to keep education as affordable as possible, and we have taken fee increases at inflation, or in some cases below inflation, over the last two years for that reason.”

“We haven’t yet looked at the detailed implications of this proposed Vat change, but I guess it would lead to higher costs and, consequently, higher costs across the market for parents. In a market where the public school system is under tremendous pressure, we don’t think that this would be a positive step, but if it does affect the whole market, we will try to absorb those costs in the most efficient way that we can.”

Read: Vat-registered schools set for rude ‘wake-up call’

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