Education investment report card
Amid reports of trouble in government schools, the private-education sector is on a steep (l)earning curve. But which counter has the most merit?
BUY: STADIOShare price: 590cJSE code: SDO This tertiary education venture has made a fine start by acquiring several niche brands — Milpark, Southern Business School, Afda and Lisof — to complement its Embury brand. While delivering low-cost, high-quality private tertiary education will arguably be more challenging than rolling out a schools network, CEO Chris van der Merwe (who founded and built up private-school business Curro) is relishing the challenge. He reckons Stadio is on course for R41m in after-tax profits for the 2018 financial year, and that the goal of 56,000 students by 2026 will be achieved. With this many students on hand, Stadio will have an after-tax profit potential of R500m. The X-factor is what Stadio can bring to the table in the form of acquisitions. IM understands that sizeable opportunities are under consideration. Smart expansion of faculties — including "sweet spots" like engineering and medicine — should also ensure a compelling offering at what Stadio e...
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