Education group ADvTECH reported a 13% increase in first-half profit to R726-million, supported by strong enrolment growth and improved margins in its education division as the group continues to benefit from higher demand across its schools and tertiary businesses.
The company operates universities, colleges and schools across Africa, and is one of South Africa’s largest private education groups.
Their portfolio ranges from Crawford International, Trinityhouse, and Pinnacle Colleges among the schools division. In the tertiary division, they are behind Rosebank International, Emeris and Oxbridge Academy.
Operating profit has increased 14% to R1.12-billion in the period, overall group revenue increased 8% to R5-billion from R4.68-billion a year earlier.
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The improvement was supported by strong enrolment growth, particularly in the rest of Africa, showing a 14% increase, while schools in South Africa only showed 1% growth.
“Operating margin in the Education Division improved to 24.3% (2025: 23.8%) through the benefit of scale leverage and a continued focus on efficiencies. This more than offset the costs incurred to strengthen our brands through the introduction of additional global benchmarking measures, artificial intelligence tools to support personalised learning and enhanced student information systems.
“Net finance costs remained relatively flat at R97-million (2025: R96 million) due to slightly lower net interest paid to banks as a result of lower average net borrowings. In addition, finance costs on lease liabilities increased due to several new leases being entered into or renewed,” the group said.
The schools in the rest of Africa’s business was impacted by the stronger rand against other currencies, which reduced the value of revenue generated in local currencies when translated back into rand.
In the tertiary division, Advtech said a greater proportion of student growth came from Rosebank International, which generates lower revenue per student than its other tertiary brands.
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The results were accompanied by a dividend declaration of 53 cents after increasing headline earnings by 16% from 112.7 cents per share to 130.8 cents per share.
“In its deliberations, the board considered the strong cash generation of the group and the appropriate capital structure to optimise return on equity. The board has resolved to maintain the annual dividend cover of 2.0 times.
“The board is pleased to announce the declaration of an interim dividend of 53.0 cents (2025: 45.0 cents) per ordinary share in respect of the six months ended 30 June 2026,” said
- ADvTECH reported a 13% increase in first-half profit to R726 million, driven by strong enrolment growth and improved margins in its education division.
- The group's operating profit increased 14% to R1.12 billion and overall revenue increased 8% to R5 billion in the period.
- Enrolment growth was particularly strong in the rest of Africa, with a 14% increase, while South African schools showed only 1% growth.
- The Education Division's operating margin improved to 24.3% due to scale leverage and efficiency measures, despite increased costs for brand strengthening and new technologies.
- ADvTECH declared an interim dividend of 53 cents per share, maintaining an annual dividend cover of 2.0 times, following a 16% increase in headline earnings.
