SENS Announcement | 27 May 2020
ADvTECH Limited
(Incorporated in the Republic of South Africa)
(Registration number 1990/001119/06)
Share code: ADH ISIN: ZAE000031035
(“the Company” or “ADvTECH” or “the Group”)
VOLUNTARY BUSINESS UPDATE AND FEEDBACK FROM THE BOARD MEETING RESULTING IN AMENDMENT TO SPECIAL RESOLUTION 1 TO BE TABLED AT THE AGM ON 28 MAY 2020
Overview
ADvTECH achieved a 10% increase in enrolments for 2020 compared to the prior year with both Schools and Tertiary divisions experiencing good growth. This, together with the efficiency improvements achieved in the Schools division, and with a solid performance by the Resourcing division, resulted in the Group delivering a strong financial performance for the first quarter to 31 March 2020. This level of performance, however, will not be sustainable for the remainder of the year as a result of impact of the national lockdown on the economy.
ADvTECH continues to monitor the ongoing regulatory environment and we are preparing for various scenarios for re-opening our schools and tertiary institutions. Our readiness plans are advanced. We have drawn on local and global best practise on how to open our schools in a responsible manner.
Our duty remains the provision of the highest quality education, across all educational divisions, in such a way that students are all able to participate and benefit, while remedial and ameliorative actions have been instituted for those not able to participate optimally. A key component of our online offering lies in pastoral care, where the pastoral care teams set up at each school ensure that our parents and students receive ongoing guidance, support and nurturing on an individual basis.
We transitioned to a full online offering at the beginning of the lockdown. Our focus has been to ensure that staff and students have the best remote working and learning experience. Because we have leveraged off our existing licences, we were able to scale to meet demand for more users, without having to incur significant capital expenditure.
Collections were circa 20% lower in April compared to the same month last year - with a shortfall of collections of approximately 30% in the Tertiary division and 10% in the Schools division. While collections continue to be challenging, month-to-date collections for May are 10% below the same month last year, with both the Tertiary and Schools division’s showing a reduced shortfall compared to April 2020. We have instituted individualised interventions to support those who have been negatively impacted as a result of the lockdown. To date, at a cost of R24 million, ADvTECH has assisted 5 386 families, whose ability to pay full school fees was impacted by COVID-19.
In the rest of Africa, the Group has adopted a similar policy as in South Africa. We have implemented on-line programmes to support continuous education. However, the adoption rates are lower than in our schools in South Africa - although there are signs that this is improving.
Currently, to a large extent, we have been able to cushion most of our employees and stakeholders from any major impact as a result of the lockdown. We have, however, had to implement stronger action in our Resourcing division where business activity has been reduced dramatically owing to the downturn in economic activity.
Schools
We are finalising preparations for a phased return as of 01 June 2020 while also continuing to offer online teaching to those students that are not ready to return to the classroom. The relevant protocols and necessary equipment are in place and our schools are ready to receive our students. The safety of our employees, learners, and students and staff is our primary concern.
We’ve had average attendance of 95% on our online classes. Our staff have received positive feedback on the quality of the programme and their engagement levels, to the extent that we have witnessed some new intakes during lockdown. Unfortunately, we have also experienced some leavers particularly in the lower grades where more parent supervision is needed, and in some instances where it is no longer affordable for parents.
Tertiary
For a number of years, we have been applying the use of some online learning in campuses to supplement face-to-face learning. This has prepared our faculty to deliver in a digital environment and allowed for a seamless transition to our online offering.
Our more than 40 000 campus-based students have transitioned to an integrated learning management system, with quality assurance and accreditation for all our qualifications. Low data requirements are standard for our solutions. Students were also provided with data and reverse billing to enable access to learning material and engagement.
We have found lower levels of engagement in the tertiary institution than at the schools, as more discretion can be applied at a tertiary level. As we begin to transition back to contact classes from the beginning of June, these students will be our priority. We want to avoid as many as possible from foregoing the academic year. Additional, mid-year enrolments are unlikely to materialise and the dropout rate at the tertiary level is also likely to increase.
Resourcing
Recruitment activity reduced dramatically. The South African recruitment business has been severely affected by the pandemic, and the significant reduction in business activity has forced us to take stronger action in order to preserve cash.
We have had to introduce short-time and skeleton staffing arrangements to make payroll savings. We have also negotiated rental reductions and other cost savings with suppliers as we attempt to ensure that we can sustain the organisation through this very difficult period. These changes have been well planned and executed by the Resourcing management team. The cuts have been implemented across the board on a graduated basis to lessen the impact on the lower earning level employees.
The strategy of market and geographic diversity has proven to be valuable for the Resourcing division. Our rest of Africa operations have been relatively unaffected. We have continued normal operations and, to date, the results are very pleasing. Consequently, the combined Resourcing division remains viable despite the extreme difficulty faced in the South African market.
Financial update
Management has given due consideration to the effect that the COVID-19 pandemic could potentially have on the financial position of our business and its solvency and liquidity position. We have considered the business environment, the expected outcomes of the economic environment on our stakeholders, on fees and collections, as well as the capital expenditure needs of the Company in the short to medium term.
In addition to the revenue losses in the Resourcing division, we are experiencing losses on boarding fees, extramural and aftercare fees, as well as some de-registrations. While our business is mainly fixed cost based, we have worked tirelessly to curtail any discretionary costs and any variable costs which we can forego without harming the business and livelihood of all our stakeholders while also making use of the allowances available from Government. These include conferences, travel, cleaning, water and lights, printing and other consumables. These costs savings, however, will amount to far less than the lost revenue. While the immediate challenges need to be navigated, the aim and focus is relentlessly on ensuring ongoing organisational sustainability. We will incur some costs to make the schools safe and have all the necessary protective equipment in place.
We presented our sensitivity model to our Board to test different scenarios to inform our capital management plans, and have implemented a series of cash preservation measures, including curbing non-essential capex until visibility improves. The Group does not foresee spending more than R300 million in the current financial year on capex.
The cashflow impact is at this stage difficult to quantify, and while there is no doubt that this crisis will have a material impact on the Group’s earnings, our sensitivity analysis demonstrates that the Group has significant capacity to navigate this crisis within its existing facilities.
While the situation remains challenging, we believe that we have done the best with what is within our control, and the rollout of well thought out business continuity measures will allow us to continue to minimise the impacts. We have maintained a strong balance sheet, and our capital expenditure containment measures are sustainable.
The Board and management therefore remain satisfied that the Group has significant resilience to navigate this crisis within its existing facilities.
Board meeting outcomes
Dividend decision
Shareholders are advised that the Board has met to consider paying a dividend or a share buyback in lieu of dividends as advised in the annual results announcement published on SENS on 23 March 2020.
In the current environment and with the heightened level of uncertainty, the Board decided not to declare a final dividend for the financial year ended 31 December 2019 or to undertake a share buyback. The Board also do not consider that declaring an interim dividend for 2020 would be appropriate due to the lack of clarity on the economic outlook and the effect of COVID-19 on our business and operations over the medium term.
Amendment to Special Resolution 1: Non-executive directors’ fees
Considering the current financial environment and uncertainty, the Board has resolved that the fees payable to non-executive directors will not be adjusted for the period July 2020 to June 2021. Accordingly, the Company will no longer be asking Shareholders to adjust non-executive directors’ fees.
The Board has resolved to amend Special Resolution number 1 to read:
Section 66(8) (read with section 66(9)) of the Companies Act provides that, to the extent permitted in the Company’s MoI, the Company may pay remuneration to its directors for their services as such provided that such remuneration may only be paid in accordance with a special resolution approved by Shareholders within the previous two years.
These requirements are echoed in King IV and the JSE Listings Requirements. The Company’s MoI provides that the directors shall be paid such remuneration as determined from time to time by a general meeting.
After consultation between the Board and management, and notwithstanding feedback on the benchmarking of fees payable to non-executive directors, it is proposed that no increase in non-executive directors’ fees for 2020 be tabled at the AGM as the Company conserves cash owing to COVID-19; and that fees be payable quarterly in arrears for the period July to June of the following year.
Special resolution number one
“Resolved that the payment of the following fees to the non-executive directors for their services to the Company for the period 1 July 2020 to 30 June 2021, as well as any Value Added Tax (“VAT”) payable on such fees by directors be and is hereby approved, with a 20% premium being payable to non-resident non-executive directors:
The amendment of Special Resolution number 1 from the AGM does not affect the proxy form already submitted/or to be submitted in respect of other resolutions to be presented at the AGM.
If a Shareholder has already submitted voting instructions or forms of proxy, prior to the publication of this announcement, such voting instructions or forms of proxy will remain valid, unless the Shareholder submits new voting instructions or forms of proxy.
Closing
It is too early to offer any new financial guidance, as we will need greater certainty of the economic impact of COVID-19 on all our operations. What we can assess is that there is a general slowing in collections, and we expect debtors due to increase, which is likely to lead to increased bad debts and a greater level of provisioning for doubtful debtors, as well as some withdrawals due to financial hardship. The Group believes, however, that its business and brands are well positioned to continue to grow in the future, because more operating efficiencies can still be achieved.
For the past three months we have been working on our plans for our ADvTECH Online School concept, which we aim to launch in January 2021, and we have recently appointed our first online school principal.
We have learnt a great deal as a Group, developed new material and skill sets that will prove to be invaluable in the future. But what is most notable, is that the COVID-19 pandemic has provided the organisation with a valuable test and opportunity to develop our business in a post COVID-19 world.
Any forward-looking statements contained in this announcement have not been reviewed nor reported on by the Company’s auditors.
27 May 2020
Johannesburg
Sponsor: Bridge Capital Advisors Proprietary Limited
ADvTECH Updates
Monde Nkosi presents his latest episode of the Education Investment Podcast in video on YouTube and audio on Spotify, Apple and all major podcast platforms https://linktr.ee/educationinvestment?utm_source=linktree_admin_share In this episode, Leading a Schools and Higher Education Group with Geoff Whyte (CEO of ADvTECH Group), we explore leadership in a combined schools and higher education group serving more than 100,000 students across multiple countries including South Africa, Kenya, Botswana and Ethiopia. Geoff presents his investment and social impact case for ADvTECH and independent education. Geoff also shares some personal stories about his journey from growing up in Scotland; to living and working in multiple countries including England, Russia and the Netherlands; and moving to South Africa in the late 1990s.
02 June 2025: ADvTECH Group, Africa’s leading private education provider, is pleased to announce the launch of Rosebank International University College (RIUC) in Accra, Ghana. Registrations will open on 15 June 2025, ahead of the first academic semester which begins on 1 September 2025. This will be followed by a second enrolment cycle in February 2026. Situated in Accra’s prestigious Airport Residential Area, the RIUC campus will offer a wide range of high-demand qualifications, from doctoral programmes to diplomas. Fifteen qualifications have been accredited to date in fields including Business Administration, Digital Marketing, Information Technology, Service Management and Hospitality. The new RIUC campus builds on ADvTECH’s existing international presence in Kenya, Botswana, and Ethiopia, reinforcing its commitment to providing quality education across the African continent. “We are delighted to launch our highly successful Rosebank International brand in Ghana, expanding our tertiary education footprint outside South Africa for the first time. We look forward to delivering the superior academic outcomes and excellent student experiences we are known for in South Africa in Accra,” says ADvTECH Group CEO, Geoff Whyte. Students will benefit from a wide array of extracurricular activities and access to foundational academic, financial, digital literacy and psycho-social support programmes. The campus will also employ facial recognition access for enhanced security.
ADvTECH Limited (Incorporated in the Republic of South Africa) (Registration number 1990/001119/06) Share code: ADH ISIN: ZAE000031035 (“ADvTECH” or “the Company”) RESULTS OF THE ANNUAL GENERAL MEETING In terms of section 3.95 of the JSE Listings Requirements, shareholders are hereby advised that at the Annual General Meeting (“AGM”) of shareholders of the Company held today, Wednesday 28 May 2025 all the proposed ordinary and special resolutions, as set out in the Notice of Annual General Meeting, were approved by the requisite majority of shareholders present or represented by proxy. Details of the results of voting at the annual general meeting are as follows:
ADvTECH, in collaboration with the IIE MSA Centre for Water and the Environment (CWE), has launched the Water Quality Monitoring Initiative, a national, student-led citizen science project aimed at protecting South Africa’s freshwater ecosystems. As a cornerstone of ADvTECH’s ESG Legacy Campaign, this innovative initiative arms university students with professional water testing tools to track and improve local water quality. A number of water courses will be tested for select chemical contamination and the presence of excessive bacterial and viral agents, while also testing for the presence of micro-organisms to discern the health of the ecosystem. Following a student awareness drive in April and May 2025, the campaign culminated in a successful Water Monitoring Day on May 20, which also saw the launch of a 3-months long competition. Running from July to September, student teams will now be vying for a R10 000 award based on their data and analysis.
Trailblazing South African educator Nadine Smith has been awarded the prestigious 2025 EDGE in Tech Athena Award for Early Career Leadership, recognising her groundbreaking work in transforming STEM education and making it more inclusive and accessible. Nadine Smith, a Coding and Robotics educator at ADvTECH, South Africa’s leading private education provider, was honoured by the Center for Information Technology Research in the Interest of Society and the Banatao Institute (CITRIS) at the University of California. The international award was presented during a special ceremony at UC Berkeley, where Smith stood out as the only recipient from Africa, and her recognition marks a proud moment for the country. She was one of just four global recipients of the award, which celebrates individuals leading the charge in creating more diverse, equitable, and impactful technology ecosystems. This year’s EDGE in Tech Athena Award recipients include: Executive Leadership: Susan Lyne, Co-Founder and Managing Partner, BBG Ventures Academic Leadership: Isabel Montañez, Distinguished Professor and Chancellor’s Leadership Professor of Earth and Planetary Sciences, University of California, Davis; Director, UC Davis Institute of the Environment Early Career Leadership: Nadine Smith, Coding and Robotics Educator, ADvTECH, South Africa Graduate Student Leadership: Zhe Fu, Doctoral Student in Transportation Engineering, UC Berkeley “It is incredibly important to recognise the people doing the difficult work of expanding access to essential tech fields,” said Jill Finlayson, Managing Director of the CITRIS Innovation Hub, which oversees the awards. “Those who champion on-ramps into STEM, fair workplaces and welcoming cultures are critical to the development of innovative technologies and help ensure that new solutions will work well for everyone.” Desiree Hugo, Academic Head at ADvTECH Schools, says the group was very proud of Smith. “We extend our heartfelt congratulations to Nadine Smith for her well-deserved 2025 EDGE in Tech Athena Award. Her passion for empowering students through coding and robotics education is transforming lives and inspiring a new generation of innovators. We are incredibly proud of Nadine’s global recognition and her unwavering commitment to making STEM accessible and inclusive for all,” Hugo said. Reflecting on the award, Nadine Smith said: “I believe every child deserves to see themselves in STEAM. Through coding and robotics, I strive to ignite confidence, curiosity, and creativity in learners, especially those who don’t yet realise they belong in tech. This award is not just a personal milestone, but a reminder of the importance of creating inclusive learning spaces where all young minds can dream, build, and lead.” Smith, who also leads EdTech initiatives and trains fellow teachers in integrating emerging technologies, has been widely recognised for her leadership, innovation, and commitment to education transformation in South Africa and beyond.
As technological development transforms global education, the education sector in South Africa faces a critical challenge: how to deliver personalised, inclusive, and differentiated learning experiences that meet the diverse needs of every student. “As classrooms grow more diverse, both in learning styles and abilities, schools must adopt innovative approaches to ensure no student is left behind. Adaptive learning technologies offer a powerful solution, enabling educators to tailor instruction while fostering an inclusive environment,” says Andrea Kruger, EdTech specialist at ADvTECH Schools. Kruger recently delivered a keynote address at the 15th Cutting Edge Technologies in Education Practice Conference in Greece, on Empowering Inclusive Education. Adaptive learning technologies use data-driven insights to customise educational content, pacing, and assessments to suit individual student needs. These tools, ranging from intelligent tutoring systems to learning management platforms, allow educators to differentiate instruction without overwhelming their workloads. ADvTECH’s own adaptive Intelligent Tutoring System, ADvLEARN, exemplifies this approach by using AI to personalise learning pathways, ensuring each student progresses at their own pace. This system supports data-informed teaching while promoting learner autonomy across subjects. For students, this means a learning experience that feels tailored, engaging, and supportive, whether they’re mastering foundational skills or tackling advanced concepts. For teachers, it provides real-time feedback to adjust strategies, ensuring every student progresses. ACCESSIBILITY OF ADAPTIVE LEARNING TECHNOLOGIES IN SOUTH AFRICA ADvTECH leverages cutting-edge tools like Microsoft Learning Accelerators to enable adaptive learning and differentiation across its schools, says Kruger. But while these may not be accessible to all South African schools, cost-effective and free alternatives can enhance student outcomes and drive tech-enabled learning nationwide. “Resource-restricted schools can absolutely integrate adaptive learning technologies by starting small, leveraging free or low-cost tools, and prioritising teacher training and inclusivity. While they may not match the scale of a global best practice ecosystem, the core principles—pedagogy-driven tech, inclusivity, and adaptability—apply universally,” says Kruger. Additionally, by tapping into partnerships, open resources, and community support, these schools can deliver personalised learning that transforms student outcomes, proving that innovation is possible even with limited means. HOW TO INTEGRATE ADAPTIVE LEARNING TECH INTO THE CURRICULUM “The success of adaptive learning hinges on intentional implementation,” says Kruger. “Technology must not dictate educational strategy but rather enhance it. Schools should prioritise tools that align with their pedagogical goals, fostering critical thinking, collaboration, and creativity. Moreover, inclusivity must remain at the heart of these efforts, ensuring that technology bridges gaps for students with diverse needs, including those with learning difficulties or language barriers.” Kruger says a successful implementation of adaptive learning technology needs to consider the following: Put pedagogy first : Choose technologies that support your teaching goals, fostering skills like critical thinking and creativity. Avoid tools that prioritise rote learning or dictate classroom strategies. For example, platforms with real-time analytics can help teachers tailor lessons dynamically while maintaining educational quality. Champion inclusivity : Select adaptive tools that cater to diverse learners, including students with disabilities, language barriers, or varying academic needs. Technologies should bridge gaps, ensuring every student—from those needing extra support to those ready for advanced challenges—feels included and empowered. Empower educators : Invest in teacher training to build confidence in using adaptive technologies. Tools like data dashboards can streamline administrative tasks, freeing teachers to focus on instruction. Free or low-cost training resources, such as UNESCO’s ICT Competency Framework, can support this in resource-constrained settings. Adopt cost-effective solutions : Resource-restricted schools can leverage free or low-cost platforms like Khan Academy, Moodle, or Kolibri, which offer personalised learning and offline capabilities. Mobile-first apps, such as Quizlet, can also deliver adaptive content using widely available smartphones, maximizing access in underserved areas. Stay adaptive and innovative : Regularly evaluate and update your tech practices to align with global trends and local needs. Encourage a culture of agility by piloting small-scale projects, assessing outcomes, and scaling successful initiatives. This ensures long-term relevance in a fast-evolving EdTech landscape. Engage communities : Involve parents, students, and local stakeholders to build trust in adaptive learning. Transparent communication about its benefits—such as improved engagement and equity—can foster buy-in.
Grade 9 students are currently nearing a critical milestone in their educational journey: selecting the subjects they’ll study from Grade 10 through to their final Matric exams. This choice is a foundational step in shaping their academic journey and future career opportunities, an education expert says. “Even if you’re unsure about what you want to pursue after school, thoughtful planning can help you make informed decisions that keep your options open,” says Wonga Ntshinga, Senior Head of Programme: Faculty of ICT at The Independent Institute of Education , SA’s largest and most accredited private higher education provider. Ntshinga says while making decisions about subject selection can be daunting, it is an important process that will impact both performance and options down the line, and as such, careful consideration must be given to ensure that students choose as well as possible based on their unique strengths and interests. “The subjects you select for Grade 10 to 12 will influence your performance in the National Senior Certificate (NSC) exams. These choices will also affect your eligibility for further studies and certain career paths. The transition from Grade 9 to Grade 10 is significant because your subject combination lays the groundwork for your future academic and professional opportunities. By choosing wisely, you can position yourself for success in Matric while maintaining flexibility for your post-school plans,” Ntshinga says. KEY FACTORS TO CONSIDER WHEN CHOOSING SUBJECTS Align with your interests and strengths Select subjects you enjoy and where you perform well. Choosing subjects that spark your curiosity will keep you motivated, even when the work gets tough. Reflect on your academic strengths—do you excel in logical subjects like Mathematics or creative ones like Dramatic Arts? For instance, if you’re skilled at problem-solving, subjects like Accounting or Information Technology might be a good fit. Keep your options open If you’re uncertain about your future career, prioritise subjects that provide versatility. Broadly applicable subjects like Mathematics, Physical Sciences, or Geography equip you with skills like critical thinking and numeracy, which are valued across many university programmes and industries. Avoid choosing subjects solely because they seem easier, as this could limit your opportunities later. For example, many science and engineering degrees require Mathematics and Physical Sciences, not Mathematical Literacy. Explore career and study requirements Even without a clear career goal, research the subject requirements for fields you might consider. For instance, medicine demands Mathematics, Physical Sciences, and Life Sciences, while careers in law benefit from subjects like History or English for their focus on analysis and communication. Check university admission criteria for programmes that interest you. Consulting with a career advisor or attending university open days can also clarify which subjects align with in-demand fields. Consider emerging trends The job market is evolving at an unprecedented pace, with growing opportunities in technology, healthcare, and sustainability. Subjects like Mathematics, Physical Sciences, or Information Technology can prepare you for these high-demand areas. Thinking about future industries can guide you toward subjects that position you for long-term success.It is particularly important to consider career paths outside of the historically popular 3-4 year staple degrees. These days there is a vast array of options geared towards high-in-demand specialities that are industry-aligned. Investigate your higher education options more widely, as you may find the perfect fit for you, that didn’t even exist a few years ago. Aim for balance Choose a subject combination that challenges you while allowing you to achieve strong results. Including one or two subjects where you can excel can boost your overall Matric performance, which is critical for university admissions. For example, pairing a rigorous subject like Physical Sciences with a more manageable one like Life Sciences creates a balanced load in terms of leaving doors open while also allowing for a great Matric finals performance. Decide between Mathematics and Mathematical Literacy Choosing between Mathematics and Mathematical Literacy is a pivotal decision. Mathematics is required for fields like engineering, science, or commerce, while Mathematical Literacy suits humanities or vocational paths. If you’re unsure, Mathematics is the safer choice, as it qualifies you for a wider range of university programmes. If Mathematics feels challenging, discuss with your teacher whether extra effort or support could help you succeed over the next three years. “When making subject choices in Grade 9, it is helpful to start from where you want to be in 4 years’ time, and then reverse engineer how you might get there,” Ntshinga says. “Consult teachers, career counsellors, or student advisors at universities both public and private for tailored guidance. Teachers can assess your academic strengths, while counsellors and student advisors can explain how subjects connect to career paths. “Also consider going to university Open Days. Although you don’t yet have to decide what to study, you are almost certain to gain highly valuable insights into your options after school, as well as gaining helpful advice and insights from professionals on campus.”
ADvTECH Limited (Incorporated in the Republic of South Africa) (Registration number 1990/001119/06) Share code: ADH ISIN: ZAE000031035 (“ADvTECH” or “the Company”) DEALINGS IN SECURITIES BY A FORMER DIRECTOR (RETIRED 30 APRIL 2025) OF THE COMPANY The following information is disclosed in respect of dealings in ADvTECH securities by a former ADvTECH director.
ADvTECH Limited (Incorporated in the Republic of South Africa) (Registration number 1990/001119/06) Share code: ADH ISIN: ZAE000031035 (“ADvTECH” or “the Company”) DEALINGS IN SECURITIES BY A FORMER DIRECTOR (RETIRED 30 APRIL 2025) OF THE COMPANY The following information is disclosed in respect of dealings in ADvTECH securities by a former ADvTECH director.
ADvTECH Limited (Incorporated in the Republic of South Africa) (Registration number 1990/001119/06) Share code: ADH ISIN: ZAE000031035 (‘ADvTECH’) VOLUNTARY ANNOUNCEMENT: VESTING OF SECURITIES OF FORMER DIRECTOR WHO RETIRED ON 30 APRIL 2025 The following transaction, in terms of the provisions of the ADvTECH Management Share Incentive Scheme (MSI), is hereby disclosed regarding performance and retention shares that have vested due to the retirement of a former director (accelerated pro-rated vesting in terms of the MSI rules):
