CHRIS GILMOUR: Curro earnings growth does not justify inflated share price
There is a direct and obvious relationship between the calamitous decline in the quality of state education and the growth in demand for private education. With an almost entirely dysfunctional state school system, the alternative is for parents to send their children to private schools. Established in 1998, Curro is the leading independent school provider in Southern Africa. It develops, acquires and manages independent schools for pupils from the age of three months to grade 12. Curro’s prices are regarded as being "affordable" insofar as they fall into the middle band and appeal to middle-income parents who want to give their children a good start in life. And for as long as the state fails to provide a decent primary and secondary school education for South Africans, the outlook for the private school industry should be positive. However, parents are financially squeezed, unemployment is rising and emigration increasing, which all should surely limit growth in demand for private...
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