Education business Curro Holdings, which pitches a high-growth, low-fee private school model, failed to impress the market with its report card for the year to end-December 2017. The PSG Group-controlled company, however, is still firmly on the front foot in its expansion endeavours, with a hefty R2.3bn, about 15% of the market capitalisation, earmarked for capital expenditure in the financial year ahead. In results released on Monday, Curro posted slower-than-expected growth at bottom line, with headline earnings increasing 17% to 49c per share. Curro traded on a demanding earnings multiple of more than 80 times ahead of the release of the financial results, suggesting that the market was banking on a much higher rate of growth at bottom line. Private education has been one of the few sweet spots on the JSE, where the two mainstay counters, Advtech and Curro, have produced strong top-and bottom line growth over the past seven years, capitalising on a floundering public school secto...
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