Too early for report card on tertiary education firms
AdvTech’s schools division clouds the picture and Stadio, unbundled last year, still has to show its track record
The investment potential of the private tertiary education sector is difficult to gauge authoritatively. AdvTech has a formidable tertiary arm, but the company’s shares are still marked mostly on the performance of the larger private schools business. Stadio, which was unbundled from private schools specialist Curro last year, does not yet have an operational track record to provide punters with fundamental pointers to longer-term potential. It is largely premised on the formation of what CEO Chris van der Merwe terms a "multiversity". Stadio attracted a prominent investor (aside from anchor shareholder PSG) in the form of enduring empowerment counter Brimstone.Several acquisitions have been made in the past 18 months, and no doubt there are many more to come, but it’s way too early to make an educated call on the profit potential of Stadio. The achievement of the prelistings forecast in the year to end-December can provide some encouragement, however, and Van der Merwe seems confid...
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