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
Students from ADvTECH’s Maragon Mooikloof showcased impressive scientific talent at the 2025 Northern Gauteng Senior Science Expo, earning multiple medals and reaffirming The ADvTECH Advantage of consistent, superior academic outcomes. Held on 19–20 September 2025, the Expo brought together some of the region’s most promising young scientists, engineers, and innovators. Competing against top-performing schools from across Northern Gauteng, Maragon Mooikloof learners impressed judges with their creativity, analytical thinking, and practical application of scientific principles standing out as some of the event’s top achievers. Outstanding Achievements for Maragon Mooikloof Students The school’s students demonstrated exceptional ability across several categories, earning both silver and bronze medals for their innovative project s.
Children between ages 10 and 12 are at a fascinating stage of life. They’re no longer little kids, but they’re not yet teenagers. They’re starting to ask bigger questions, push boundaries, and search for who they are becoming. Amid all these changes, reading plays a powerful role, and schools and parents should strongly encourage students to build their reading muscle during this time, an education expert says. “In contrast to content on devices, books give children a safe space to explore new ideas, test out possibilities, and imagine life through someone else’s eyes. They also strengthen critical thinking, boost vocabulary, and build empathy - all skills that help pre-teens navigate school and friendships with more confidence,” says Nalani Singarum, Academic Advisor at ADvTECH Schools. “Most importantly, reading at this age lays the foundation for a lifelong habit. A child who enjoys books at ages 10 to 12 is far more likely to carry that love into their teenage years, when the pull of social media and other distractions becomes stronger,” she says. A 2024 study of children aged 10 to 12, by neuroscientists at Columbia University’s Teachers College, found that reading on paper promoted "deeper reading" with better comprehension and processing of complex texts. It was noted that this age group is pivotal for transitioning from "learning to read" to "reading to learn”, making physical books ideal for exploring ideas and imagining others' perspectives without digital distractions. “Even where children at this age did not previously enjoy reading books, it is not too late to develop a regular and enjoyable reading habit,” says Singarum. “Regular reading during this key developmental period will support stronger understanding across subjects, better information absorption, and clearer expression of ideas throughout the child’s life.” CREATING A READING-RICH HOME Pre-teens crave independence, yet they still look to their parents for cues. The best way to nurture reading at this age is to show that it’s valued at home - not as a school task, but as part of family life. Practical ways to create a reading-rich environment include: Bedtime shifts: Before bedtime, spend some time reading side by side. You each choose your own book, then share a favourite line or moment. It shows that reading is for everyone, not just a chore for children. (And no, reading on devices do not count). Reading in everyday life: Invite your child to read maps while travelling, menus at restaurants, or DIY instructions at home. These moments prove that reading has value beyond the classroom. Word of the day challenge: Let your child pick an unusual word from a book and challenge the family to use it naturally in conversation. Older children enjoy the playful competition and sense of mastery. Treasure hunts with riddles: Write riddles or codes your child must solve to find the next clue. Link some clues to favourite books for an extra spark. Peer power: Encourage your child to swap books with a friend or start a mini book club, to make reading become a social, not a solitary activity. THE ROLE OF SCHOOLS Beyond the curriculum, schools play a key role in creating an environment where reading is valued and enjoyable, which helps students build positive associations with books and learning. “Schools offer social and collaborative opportunities that enhance reading motivation and enjoyment. By fostering a love of reading within a communal and supportive learning environment, schools complement and extend the encouragement children receive at home, making the development of reading habits more comprehensive and durable,” says Singarum. She adds that it is valuable to have structured programmes, rather than just ad hoc reading opportunities. “At ADvTECH, we have a reading programme called Booktacular, which is specifically designed to make reading meaningful and magical again. Through activities like Book Clubs that spark lively conversations, creative ‘Book review in a bag’ projects, Literature Circles where every child takes on a role, and Visual literacy tasks that bring pictures to life, children discover that stories are adventures to be explored, not assignments to be completed.” Parents can extend this spirit into their homes with small, joyful habits like these. When reading feels playful and purposeful, children are far more likely to carry that joy into their teenage years and beyond, Singarum says. “Between ages 10 and 12, children are shaping their identities. They’re learning who they are, who they want to be, and how they see the world. Books offer them mirrors to see themselves and windows to step into lives very different from their own. “As parents and teachers, when we nurture a love of stories, we’re not only supporting school success, we’re giving our young people tools for life.”
The traditional dichotomy between commerce and the humanities has long been a fixture in academic and professional landscapes. However this historic status quo is no longer tenable, and universities must adapt to ensure curricula contain a suitable blend of disciplines to empower students for life after studies, an education expert says. “Combining commerce and humanities creates a powerful synergy that enhances decision-making, innovation, and adaptability in business,” says Peter Kriel, General Manager at The Independent Institute of Education, SA’s leading private higher education provider. “This interdisciplinary approach also produces well-rounded professionals who can address the complex challenges of our current world, and the ones they will face in future,” he says. Kriel explains that while universities traditionally had commerce and humanities students stay in their lanes, there is a growing recognition of the synergies that exist at the intersection of these seemingly disparate disciplines. “It is therefore becoming important to delve into the benefits and possibilities of bridging and intersecting the so-called traditional commerce and humanities disciplines, highlighting how this convergence can lead to innovative thinking, enhanced problem-solving, and a more holistic approach to navigating the challenges of the modern world,” he says. The intersection between commerce and humanities represents the blending of analytical and creative thinking. Commerce brings a structured, business-oriented approach, while humanities bring a focus on critical thinking, cultural understanding, and ethical considerations. “Together, these disciplines offer a unique perspective that goes beyond the quantitative aspects of business” says Kriel. Better decision-making The integration of humanities into commerce fosters a more comprehensive decision-making process. By considering ethical, social, and cultural implications, businesses can make informed choices that align with broader societal values. This not only contributes to corporate social responsibility but also enhances the reputation and sustainability of organisations. Innovation through diversity Bridging disciplines encourages a diverse range of perspectives and ideas. The humanities bring creativity, empathy, and an appreciation for diverse cultures, which can lead to innovative solutions to business challenges. A multidisciplinary approach fosters a culture of innovation that goes beyond conventional problem-solving methods. Improved communication Humanities disciplines, such as literature, philosophy, and communication, emphasise effective expression and understanding of human experiences. Integrating these skills into the business realm promotes clearer communication within organisations and with external stakeholders. The ability to articulate ideas, negotiate effectively, and understand different points of view becomes a valuable asset. Ethical leadership Humanities education often emphasises ethical reasoning and moral philosophy. Integrating these principles into commerce promotes ethical leadership, guiding decision-makers to consider the broader impact of their choices on society, the environment, and future generations. Resilience The business landscape is dynamic, and the ability to adapt is crucial for success. Humanities education encourages adaptability by fostering critical thinking, intellectual curiosity, and a willingness to engage with new ideas. This mindset is invaluable in navigating the uncertainties and disruptions that businesses frequently encounter. “As the nature of work evolves, employers increasingly seek individuals with a diverse skill set that goes beyond technical proficiency. The intersection of commerce and humanities prepares individuals for the future of work by combining analytical and creative skills, making them well-rounded professionals capable of addressing complex challenges,” says Kriel. “This combination represents a powerful synergy that can redefine how we approach business, education, and societal challenges. By breaking down the barriers between these disciplines, higher education institutions can ensure that they not only cultivate more versatile and innovative graduates, but also foster a society that values both economic success and human flourishing.”
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 PRESCRIBED OFFICER OF THE COMPANY In compliance with the JSE Limited Listings Requirements the following information is disclosed in respect of dealings in ADvTECH securities by an ADvTECH Prescribed Officer.
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 PRESCRIBED OFFICER OF THE COMPANY In compliance with the JSE Limited Listings Requirements the following information is disclosed in respect of dealings in ADvTECH securities by a Prescribed Officer.
The Annual Resolute Roboticon took place on Saturday, 13 September, at the Heartfelt Arena in Pretoria North, attracting over 3,000 entries from schools across South Africa. Only 360 students were selected to compete, making participation an achievement. The Community Schools Group proudly fielded 12 teams across five competitive categories, representing the Pinnacle Colleges brand: Pinnacle College Waterfall (3 teams) Pinnacle College Rynfield (4 teams) Pinnacle College Linden (1 team) Pinnacle College Kyalami (1 team) Tyger Valley College (3 teams) Our students achieved outstanding results: · Pinnacle College Linden – 1st place in the Advanced Category · Tyger Valley College – 2nd place in both Advanced and Apprentice 3 categories · Tyger Valley College – 3rd place in the Entrepreneurship Category “These achievements underscore the growing impact of Robotics and Coding within the Pinnacle Colleges brand. By immersing students in real-world problem-solving, opportunities such as Roboticon empower learners to thrive in an exceptional and future-focused technology space,” said Altie van Schalkwyk, Academic Head of Brand – Community Schools Group. Initiatives like Roboticon reflect how Pinnacle Colleges are promoting a culture of innovation, preparing students to lead confidently in a technology-driven world.
Children are naturally curious. Whether it’s watching a bug crawl across the floor, splashing in a puddle, or asking “why” countless times in an hour, their world is filled with questions. This curiosity is more than just a phase. It is the foundation of learning and confidence, and should form the starting point for learning at home and at school. Zaakirah Mahomed, Academic Advisor: Foundation Phase at ADvTECH, Africa’s largest private education provider, says Inquiry-Based Learning (IBL) is an approach that harnesses children’s innate sense of wonder. “It transforms everyday questions into meaningful discoveries, sparking a lifelong love for learning. For this reason, it is important that when choosing your child’s first school, you ensure the school’s approach is based on harnessing inquiry-based learning, not just handing down of facts. The latter carries a risk that learning is viewed as work from a young age, which can negatively influence attitudes to learning throughout the child’s life.” In a classroom rooted in inquiry, children are not simply passive recipients of facts. Instead, they are encouraged to wonder, explore, and investigate. “Rather than memorising information, learners might explore why leaves change colour, how magnets work, or what creates a rainbow. Guided by their teachers, they investigate these ideas through hands-on activities, experiments, and creative projects. The learning feels like play, but the impact is powerful,” Mahomed says. Research underscores the effectiveness of Inquiry-Based Learning in fostering deeper understanding and retention. A meta-analysis of 54 studies published in American Psychological Association’s Journal of Educational Psychology found that students engaged in IBL demonstrated significantly higher levels of conceptual understanding in science compared to those taught through traditional methods. By actively exploring questions and constructing knowledge through guided investigations, children develop a stronger grasp of complex concepts, as they connect new information to their own experiences and curiosity. This approach not only enhances academic performance but also cultivates a mindset of inquiry that prepares students for lifelong learning, the analysis found. The importance of IBL is further highlighted by its alignment with 21st-century skills. According to a 2020 report by the World Economic Forum, critical thinking, problem-solving, and creativity are among the top skills needed in the modern workforce. IBL directly supports the development of these competencies by encouraging children to ask questions, analyse evidence, and collaborate on solutions. “By engaging in inquiry-driven tasks, such as designing experiments or debating hypotheses, students build the intellectual flexibility and resilience needed to navigate an increasingly complex world,” Mahomed notes. IMMEDIATE BENEFITS FOR YOUR CHILD Inquiry-Based Learning isn’t just about preparing children for the future, however. “IBL fosters engagement, curiosity, and confidence from the very start. Children are encouraged to experiment, make mistakes, and try again. Helping them to see that errors are simply stepping-stones to discovery,” says Mahomed. “When learners test how water flows through a funnel or why a toy rolls differently on tile compared to carpet, they are building critical thinking skills. These problem-solving abilities help them not only with schoolwork, but also in everyday life.” IBL also nurtures collaboration and communication. As children work in small groups or pairs, they learn to share ideas, listen to others, and work as a team. “Even the quietest child can find their voice when their question leads to an exciting experiment or project,” she notes. CHOOSING THE RIGHT SCHOOL When selecting a school, parents should look for one that prioritises inquiry as part of its teaching and learning approach. Such schools encourage curiosity-driven lessons, creativity, and real-world problem-solving. “Outstanding foundation phase schools place a strong emphasis on Inquiry-Based Learning and student agency. They proceed from the belief that children should have a voice and choice in their learning, because by taking ownership of their questions and discoveries, children build independence and confidence,” Mahomed says. “Parents can be assured that this approach does more than prepare children academically. It equips them with the resilience, adaptability, and problem-solving skills they need to thrive in a fast-changing world.”
Crawford International Pretoria was buzzing with excitement on Tuesday, 9 September, when one of South Africa’s premier radio breakfast shows, 947’s Anele and the Club, broadcast live from our sports field. The day kicked off bright and early at 06:00 with games, quizzes, and prizes that had everyone involved. From Grade 0000 to Grade 12, our students embraced the challenge—taking part in games of chance, mental agility, and physical skill. The atmosphere was vibrant, colourful, and filled with energy, bringing the entire Crawford International Pretoria community together. A special highlight of the morning was a surprise performance by renowned South African singer, songwriter, and record producer Jeremy Loops, joined on stage by Sibongiseni of the legendary Ladysmith Black Mambazo. Their live performance was nothing short of unforgettable. And to top it all off—we won R50 000 for our school! It was a day to remember, showcasing our unique spirit, talent, and stories to the whole of Gauteng. We truly showed what it means to be #ProudlyCrawfordian.
JSE-listed ADvTECH has announced the launch of Emeris, a groundbreaking new private higher education brand that will bring the Varsity College, Vega School, and MSA brands together under a single name. One aspect of the change is the building of a state-of-the-art R420m mega campus in Sandton, Johannesburg. This development will bring the existing Varsity College Sandton and Vega Bordeaux operations together on the same site. It will open its doors in 2026 with an initial capacity of 9,000 students. Facilities will include a double-storey library and information centre, a student experience hub with career and counselling services, a custom-designed indoor sports centre capable of hosting international events and innovation spaces including IT labs, podcast studios and interactive mock classrooms.
Varsity College, Vega, and MSA unite under a bold new brand The Independent Institute of Education (IIE) has announced the launch of Emeris, a groundbreaking new private higher education brand that will bring the Varsity College, Vega School, and MSA brands together under a single name. The new entity will officially launch in 2026. The consolidation under the new name comes as South Africa prepares for legislative reforms that will, for the first time, allow private institutions that meet defined criteria to be recognised as universities.
