It’s still not easy to look past the more than 100 times earnings multiple that gets tagged to the share price of fast-growing private education venture Curro Holdings. But the report card for Curro’s year to end-December results makes for encouraging reading for those prepared to buy the share on a five-year view.
What is most encouraging is how Curro’s rapidly growing footprint of private schools is moving up the profit J-curve. An analysis of the older and newer schools makes for fascinating reading — especially the breakdown of the R243m generated in earnings before interest, tax, depreciation and amortisation (Ebitda). Curro’s eight oldest schools — those set up before 2009 — increased Ebitda in 2016 by 20% to R44m and operated on a margin of 29%. The six schools opened in 2010 managed a 33% margin, and increased Ebitda by 29% to R31m. The 16 schools opened in 2011 increased Ebitda by 30% to R52m on a margin of 26%, while the six schools opened in 2012 managed a margin of...
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.