Advtech gains from smart focus on higher education
Interim results showed the company was able to capitalise on consistent demand for its specialised tertiary offering
Private education group Advtech’s smart investments in capacity at its diversified tertiary division are paying off with further organic growth on the cards for the full year to end-December. Interim results to end-June released on Monday showed Advtech was able to capitalise on consistent demand for its specialised tertiary offering, once again outshining the larger private schools division. Private tertiary offerings have proved increasingly popular in recent years as students battle to qualify for limited places at traditional universities, look for more affordable options or pursue non-university training courses. Advtech’s tertiary segment increased its margin to 22% from 20%, transforming a 12% gain in revenue to R882m into a 24% hike in operating profit to R195m. Advtech CEO Roy Douglas said 99% of the growth notched up by tertiary was organic. "The operating leverage is fantastic, and we will be looking at further campus expansions".
The tertiary business – which compr...