Advtech's tertiary education growth pays off
Protests at public universities push private growth
Advtech's aggressive expansion of its tertiary institutions is paying off as the unit has outperformed its schools division. And analysts are optimistic that the good times are not over yet, despite the tough economic environment. This week Advtech's tertiary division reported a 56% increase in operating profit to R157-million for the six months ended June 2017, compared to the school division, which showed a 5% increase in operating profit to R172-million. The private education group started bulking up its assets after Curro came knocking on its door. Advtech turned down the offer but Vestact portfolio manager Bright Khumalo said management got a wake-up call when Curro wanted a piece of the action, nudging Advtech to do more with what it had. Premium purchases Since then the group has raised capital through rights offers and taken on more debt to purchase businesses in the same premium environment that Curro plays in, including a 51% stake in the University of Africa. And it stepp...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.