AdvTech cuts debt and grows enrolments amid Covid-19
The group said its strategy of retaining staff and not cutting salaries paid off in its six months to end-June
Private education group AdvTech says its strategy of retaining staff and not cutting salaries paid off in its half year to end-June, when it managed to cut debt and grow enrolments.
The group said that staff remained motivated and quality education was maintained. The group report a 13% rise in group revenue to R2.8bn for its six months to end-June. AdvTech estimated it lost R88m due to Covid-19 as students withdrew.
Enrolments grew 2% to 78,557 from the end of February to the end of June, but there was an 8% decline in numbers of pre-primary students over the period, the group said.
The group managed to reduce net debt to R1.7bn, from R2.6bn at the end of December, and while collections for the period were 8% higher than the year-earlier period, it was 5% below its target.
The group’s provision for doubtful debtors increased by R123m, or 39%, to R437m.
“We have maintained a strong balance sheet with significant capacity to navigate the uncertainty by maintaining our cash flow and staying within our existing facilities with sustainable cost and capital expenditure containment measures,” the group said.
“The board and management, therefore, are satisfied that the group has significant resilience aligned to its strategy to navigate through the current economic crisis,” the statement reads.
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