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
With a focus on student-centred learning and industry engagement, the new campus will provide cutting-edge resources and a dedicated space for The IIE's Varsity College and IIE-Vega School’s unique curriculum, including an indoor sports centre for enhanced student life. A momentous occasion unfolded at 114 Grayston Drive as The Independent Institute of Education (The IIE) officially broke ground on its upcoming state-of-the-art campus, set to house both The IIE’s Varsity College Sandton and IIE-Vega School Johannesburg. This significant development signals a bold step toward expanding access to top-tier private higher education in South Africa’s economic hub. Strategically positioned in the heart of the Sandton CBD, the new campus will be designed to provide an exceptional student experience to 9 000 students, while maintaining the highest standards of academic excellence and learning by design. Within close proximity to public transport, including the Sandton Gautrain station, students will have easy access to a vibrant, dynamic learning environment. The IIE’s Varsity College, IIE-Vega, and IIE-MSA managing director Louise Wiseman said: “The new campus, with the ongoing initiatives to further advance the range of academics and student experiences, forms part of the institution’s drive for university status, when the Department of Higher Education and Training (DHET) releases the criteria, expected in 2025. “Up to this point, legislation has precluded private institutions from being called universities, despite the fact that all public and private institutional qualifications are deemed equivalent by the Council on Higher Education (CHE).” As South Africa’s largest private higher education institution, and a wholly owned subsidiary of investment holding company ADvTECH Limited, the new campus for The IIE’s Varsity College Sandton and IIE-Vega School Johannesburg will provide cutting-edge educational resources and world-class facilities. “It is increasingly evident that The IIE has become the institution of choice for quality higher education, and we are thrilled to be able to ensure that thousands more students will be able to benefit from the opportunities that will arise from the development of our new mega-campus,” Wiseman added. A standout feature of the new combined campus is the inclusion of IIE-Vega School, which will be housed in a dedicated standalone facility specifically designed to support its unique, industry-focused curriculum. This custom-built space will cultivate a vibrant learning environment that reflects the creative and strategic essence of IIE-Vega School. One of its most anticipated features is a state-of-the-art indoor sports centre, which will facilitate a well-rounded academic and extracurricular student experience. Our private university positioning continues to focus on the individual student, with an emphasis on creating a dynamic, engaged, and supportive academic environment consisting of comparatively small lecture groups, interactive facilitation techniques, the use of modern technology in the educational space, lecturers who are actively engaged in their respective professional fields, and bringing industry experience into the learning environment,” Wiseman concluded. As the countdown begins to the grand opening in January 2026, this ground-breaking ceremony marks the beginning of an exciting journey for The IIE’s Varsity College Sandton and IIE-Vega School.
eSports, once seen as a niche pastime, is rapidly gaining ground in South Africa. This rise is not just about gaming and entertainment, but about cultivating essential 21st-century skills in students. Projected to be a $3 billion industry by 2027, with careers ranging from professional players to game developers, data analysts, and event organisers, it is imperative for schools to start introducing eSports as early as possible, to prepare students for a world where digital fluency and adaptability are non-negotiable, an education expert says. Desiree Hugo, Academic Head of Schools at JSE-listed ADvTECH, SA’s leading private education provider, says the institution has embraced eSports to foster critical thinking, teamwork, problem-solving, and digital literacy among its students. “Far from casual play, ADvTECH’s approach encourages students to strategise, collaborate, and compete at the highest levels, transforming virtual arenas into dynamic classrooms. By embedding these skills into an engaging and competitive framework, we are able to ensure that students are not just participants but active learners, honing abilities that are critical for success in an increasingly digital world.” Central to this strategy is ADvTECH’s partnerships with industry leaders, which elevate the eSports experience beyond the school campus and into structured, competitive environments. These collaborations provide students with access to professional-grade platforms where they can test their mettle, refine their communication, and sharpen their leadership and decision-making skills. The broader vision that should be driving eSports initiatives, is to prepare students for a future where technology and innovation dominate, says Hugo. “By immersing them in a safe and managed gaming ecosystem, we are opening doors to careers in STEM, game design, coding, and beyond. Students who have a keen interest and learn to strategise in Minecraft today might code their own games tomorrow or analyse data to optimise performance in professional eSports leagues. “This isn’t just about keeping pace with trends, it’s about anticipating the interests and needs of tomorrow’s workforce and giving students a headstart. Through this blend of competition and creativity, schools are able to support a generation equipped to thrive in fields that are redefining the global economy.” Hugo says it’s not just about winning tournaments—it’s about experiencing life in a tech-driven world. “For a generation experiencing a digital economy, the skills honed in virtual design and collaboration may likely be their greatest asset in future.”
ADvTECH Limited (Incorporated in the Republic of South Africa) (Registration number 1990/001119/06) Share code: ADH ISIN: ZAE000031035 (“the Company” or “ADvTECH”) NOTICE OF VIRTUAL ANNUAL GENERAL MEETING AND AVAILABILITY OF B-BBEE COMPLIANCE CERTIFICATE Shareholders are advised that the ADvTECH 2024 Annual Integrated Report (“Integrated Report”) has been published today. Electronic versions of the Annual Financial Statements and Ernst & Young Incorporated’s unqualified report are available on the Company’s website at: https://www.advtech.co.za/financial-results The Integrated Report is available on the ADvTECH website: www.advtech.co.za Notice is hereby given that the virtual annual general meeting (“AGM”) of shareholders of the Company will be accessible on an interactive electronic platform, in order to facilitate participation and voting by shareholders, as permitted by the JSE Limited and the provisions of the Companies Act and the Company's Memorandum of Incorporation, on Wednesday, 28 May 2025 at 10h00, to consider and, if deemed fit, to pass with or without modification all of the ordinary and special resolutions set out in the notice of AGM to be distributed to shareholders on or before 22 April 2025. To this end, the Company has retained the services of The Meeting Specialist Proprietary Limited (“TMS”) to host the AGM on an interactive electronic platform, in order to facilitate participation and voting by shareholders. Our transfer secretaries, JSE Investor Services Proprietary Limited, will act as scrutineer. Shareholders who wish to participate in and/or vote at the AGM are required to contact TMS on proxy@tmsmeetings.co.za or alternatively contact them on 0817114255/0844334836/0614401654 as soon as possible, but in any event no later than 10:00am on Monday, 26 May 2025. Shareholders are strongly encouraged to submit votes by proxy before the meeting. If shareholders wish to participate in the AGM, they should instruct their Central Securities Depository Participant (CSDP) or Broker to issue them with the necessary letter of representation to participate in the AGM, in the manner stipulated in their custody agreement. These instructions must be provided to the CSDP or broker by the cut-off time and date advised by the CSDP or broker, to accommodate such requests. SALIENT DATES The record date for the purposes of determining the shareholders of the Company entitled to receive the AGM notice is Friday, 11 April 2025. The record date for purposes of determining which shareholders of the Company are entitled to attend, participate in, and to vote at the AGM is Friday, 23 May 2025. Accordingly, the last date to trade in the Company’s shares on JSE Limited in order to be eligible to attend, participate in and vote at the AGM is Tuesday, 20 May 2025. AVAILABILITY OF B-BBEE COMPLIANCE CERTIFICATE In compliance with paragraph 16.21 (g) and Appendix 1 to Section 11 of the JSE Listings Requirements, shareholders are advised that the Company’s annual compliance certificate in terms of section 13G(2) of the Broad-based Black Economic Empowerment Amendment Act, No 46 of 2013, is available on the Company’s website at https://www.advtech.co.za . 22 April 2025 Johannesburg Sponsor: Bridge Capital Advisors Proprietary Limited
ADvTECH Limited (Incorporated in the Republic of South Africa) (Registration number 1990/001119/06) Share code: ADH ISIN: ZAE000031035 ("ADvTECH” or “the Company”) CHANGES TO THE BOARD AND BOARD COMMITTEES In accordance with the JSE Listings Requirements, the board of directors of the Company (“the Board”) wishes to advise of the following changes to the Board and Board Committees composition: RESIGNATION OF DIRECTORS Keith Warburton (“Keith”), who has served as a director on the Board since 2015, will be stepping down from his position as director of the Board, chair and member of the Audit and Risk Committee, chair and member of the Remuneration Committee, and member of the Investment Committee, effective 1 January 2026 due to his retirement, and Clive Thomson (“Clive”), who has served as a director on the Board since 2021, will be stepping down from his position as director of the Board, chair and member of the Investment Committee, and member of the Remuneration and Audit and Risk Committees, effective 30 April 2025, due to expanded commitments on the boards of other public listed entities on which he serves. The Board wishes to thank Keith and Clive for their invaluable contribution to the Company during their tenure and wishes them well with their future endeavours. APPOINTMENT OF DIRECTORS The Board is pleased to announce, as part of the succession planning process, the following appointments to the Board: Jesmane Boggenpoel (“Jesmane”), effective 17 May 2025; and Harvey Christophers (“Harvey”), effective 14 April 2025. Jesmane is a qualified Chartered Accountant (SA) and holds a Bachelor of Commerce and a Bachelor of Accountancy from the University of the Witwatersrand. She also holds a Master’s degree in Public Administration from Harvard University’s, John F. Kennedy School of Government. She is a co-founder and the Chief Investment Officer of private equity firm AIH Capital. She currently serves on the boards of Spur Corporation, Boxer and MTN SA. She has more than 16 years’ experience of serving on corporate boards, including roles on audit and finance committees and brings a wealth of experience in finance, corporate risk and governance. She was recognised as a Young Global Leader of the World Economic Forum in 2013 and selected as a BMW Foundation Responsible Leader in 2022. Harvey holds a Bachelor of Arts (Geography) (Honours) from the University of Nottingham, England, and a Chartered Accountant (UK) from the Institute of Chartered Accountants in England and Wales qualification. He brings extensive global business and transformation leadership experience after a 32-year career with Deloitte across the UK, SA, Australia and the Netherlands firms having held senior executive and board roles for the last 20 years. This included 12 years in South Africa where he was the Managing Partner of the Western Cape. He retired from the Managing Board of Deloitte NL in July 2024 also having led the Risk Advisory business and served as the Lead Partner Sustainability. His exposure to diverse cultures and business environments has given him a strong understanding of global business dynamics, including its risks and opportunities. He has also served the Higher Education industry working with a number of Universities as well as led Deloitte services to large listed organisations like Sanlam Limited, Ahold Delhaize and others. He has led the acquisition of four companies for Deloitte across two countries, led diversity transformation initiatives and driven leadership development programs. His previous Board experiences include Chair of African Talent (registered in South Africa), Board Director of Accelerate Cape Town and Managing Board member of Deloitte Netherlands. The Board welcomes Jesmane and Harvey and looks forward to their contribution to the Company. CHANGES TO BOARD COMMITTEES Following the resignations and appointments, the following changes will be made to the composition of the Board Committees: Audit and Risk Committee will comprise: Keith Warburton (Chairperson) (current member, to step down 1 January 2026) Clive Thomson (current member, to step down 30 April 2025) Dr Jackie Chimhanzi (current member) Harvey Christophers, (effective 14 April 2025 and designated Chairperson) Jesmane Boggenpoel (effective 1 January 2026) Investment Committee will comprise: Clive Thomson (Chairperson) (current member, to step down 30 April 2025) Keith Warburton (current member, to step down 1 January 2026) Sybile Lazar (current member and designated Chairperson) Daniel Smith (current member) Jesmane Boggenpoel (effective 17 May 2025) Harvey Christophers (effective 14 April 2025) Geoff Whyte (current member) Johannes Boonzaaier (effective 14 April 2025) Didier Oesch (current member, to step down 30 April 2025) Remuneration Committee will comprise: Keith Warburton (Chairperson) (current member, to step down 1 January 2026) Clive Thomson (current member, to step down 30 April 2025) Prof Alexandra Watson (current member) Daniel Smith (current member and designated Chairperson) Jesmane Boggenpoel (effective 17 May 2025) Harvey Christophers (effective 14 April 2025) The rest of the Committees remain unchanged and duly constituted. 8 April 2025 Johannesburg Sponsor: Bridge Capital Advisors Proprietary Limited
Double digit 2025 growth in both schools and tertiary divisions takes total enrolments above 100 000 students for the first time 24 March 2025: Commenting on the year ended 31 December 2024, ADvTECH CEO, Geoff Whyte said: “Healthy enrolment growth, moderate fee increases and a further improvement in margins contributed to ADvTECH delivering another strong set of results. In the year under review, we expanded operations in our home market and across the African continent whilst continuing to invest in superior technology to enhance teaching and learning.” “In the current year, we are also pleased to report double digit enrolment growth in both our schools and tertiary divisions and that our education business has broken through 100 000 students for the first time.” Group: Operational and financial performance · Revenue up 8% to R8 521 million (2023: R7 860 million) · Operating profit up 14% to R1 791 million (2023: R1 577 million) · Operating margin improved to 21.0% (2023: 20.1%) · Normalised earnings per share increased by 16% to 202.5 cents Group revenue grew by 8% to R8 521 million (2023: R7 860 million), driven by a 13% increase in the education division and an 8% contraction in the resourcing division. Group operating profit increased by 14% to R1 791 million (2023: R1 577 million) with the education division’s operating profit increasing by 15%. Whilst the resourcing division’s performance regressed, this had minimal impact on group profitability. Group operating margin improved to 21.0% (2023: 20.1%). Operating margin in the education division improved to 24.2% (2023: 23.8%) through the benefit of operating leverage and our continued drive for efficiency gains. This more than offset the additional costs incurred to strengthen our offering through the introduction of additional global benchmarking measures, artificial intelligence tools to support personalised learning and enhanced student information systems. Normalised earnings for the year increased by 17% to R1 109 million (2023: R950 million) while normalised earnings per share increased by 16% to 202.5 cents (2023: 174.2 cents) per share. The strong cash generating capacity of the group is demonstrated by cash generated from operating activities increasing by 16% to R2 250 million (2023: R1 941 million). Capital expenditure of R982 million focused mainly on increasing capacity on existing sites to meet incremental demand (R328 million), the development of a new school (R64 million), acquiring new sites for future expansion (R238 million), procuring equipment to enrich the group’s teaching and learning through technology and enhancing business systems (R78 million) to facilitate efficiency improvements. The Board is pleased to declare a final gross dividend of 63.0 cents (2023: 57.0 cents) per ordinary share in respect of the year ended 31 December 2024. This brings the full year dividend to 101.0 (2023: 87.0) per share. Divisions: Operational and financial performance Schools South Africa · Good enrolment growth and strong financial performance Revenue increased by 11% to R3 120 million (2023: R2 810 million) with all brands having shown enrolment growth. This reflects the increasing appeal of ADvTECH’s strong portfolio of education brands as we continue to gain market share. Operating profit increased by 12% to R640 million (2023: R570 million) with operating margin improving to 20.5% (2023: 20.3%), benefitting from scale leverage. Academic performance improved across key metrics year-on-year. Our 2024 matric students achieved a 99.4% pass rate, 94.5% bachelor’s degree pass rate and 3 317 distinctions at an average of 2.1 distinctions per student. Strong enrolment growth at Pinnacle College Raslouw has necessitated the accelerated build out of the school, which is currently under way. A new Pinnacle College campus also opened in Ridgeview, Roodepoort, in January 2025. Schools in the rest of Africa · Growing the group’s footprint The group has expanded its footprint in Africa with the acquisition of Flipper International Schools (FIS) group in Addis Ababa, Ethiopia, adding five schools and over 3 000 students. The division now serves over 11 500 students across three countries. Our existing brands in the rest of Africa continued to experience strong enrolment growth which, together with the inclusion of the FIS group from November 2024, led to revenue increasing by 18% to R449 million (2023: R381 million). Operating profit increased by 28% to R146 million (2023: R114 million) and operating margin improved to 32.4% (2023: 30.0%). Construction of the next phase of the Crawford International School in Nairobi, Kenya, will commence in the second quarter of 2025. This is in response to continued strong demand driven by their market leading offering. Our higher priced Makini Cambridge International Curriculum continues to experience strong demand, with parents increasingly choosing it over the Kenyan national syllabus. This is having a positive impact on the overall financial performance of the schools. Gaborone International School in Gaborone, Botswana, continues to perform well and deliver good academic results. The development to increase their capacity to 3 300 students and to refurbish the pre-primary school has been completed. Tertiary/University division · Growing demand for the group’s well-established brand portfolio Revenue increased by 14% to R3 401 million (2023: R2 988 million) and operating profit increased by 15% to R903 million (2023: R787 million). Operating margin increased to 26.6% (2023: 26.3%) benefitting from operating leverage and efficiency gains, partially offset by investments to strengthen our brand propositions. Our tertiary division continues to perform well and to grow on the back of a well-established brand portfolio that offers a comprehensive and expanding range of programmes and qualifications. In line with our strategy, the division is also achieving strong enrolment growth in its distance offering. Our throughput rates improved to 80% (2023: 78%) and on-time graduation completion rates were more than double that of public universities. The expansion of our Rosebank College sites in Braamfontein and Polokwane is currently under way. A new purpose-built campus has also been completed for Vega Pretoria adjacent to Varsity College. During the year, we acquired a 47 000m 2 property off Grayston Drive in Sandton. This is being developed into a brand-new campus with initial capacity for 9 000 students. This acquisition is in line with our intention to become a fully-fledged university. Varsity College Sandton and Vega Bordeaux will relocate to the site in time for the 2026 academic year. Rosebank College will launch its first international tertiary institution in Accra, Ghana, in September 2025. Resourcing division · Improved profit and operating margin in rest of Africa A lower number of placements, due to the challenging economic environment, led to revenue and operating profit declining in South Africa. In the rest of Africa, the replacement of low margin contracts with higher margin contracts led to a decline in revenue but an improvement in operating profit and margin. Prospects ADvTECH’s intent is to lead in every market segment in which we choose to operate and to become the employer of choice in the resourcing and education sectors. The group is uniquely positioned to enrich people’s lives through being the leader in teaching and learning across the African continent. “ADvTECH’s sound balance sheet, strong cash generation, growing scale and expertise in Africa and our unrelenting focus on extending competitive advantage, position us well to maintain our growth trajectory and invest with confidence in areas of opportunity,” concluded Whyte.
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ADvTECH Limited (Incorporated in the Republic of South Africa) (Registration number 1990/001119/06) JSE code: ADH ISIN: ZAE000031035 (“ADvTECH” or “the group”) TRADING STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2024 The board hereby advises on its expectations of the financial results for the year ended 31 December 2024. The group reports normalised earnings per share ("NEPS") as a way of excluding the effect of one-off transactions and corporate action costs from its results. Basic NEPS, Basic headline earnings per share (“HEPS”) and Basic earnings per share ("EPS") for the year ended 31 December 2024 are expected to be between 13% and 18% higher than the comparative reporting period for the year ended 31 December 2023 ("the comparative period") or between 196.8 and 205.8 cents per share as compared to NEPS and HEPS of 174.2 cents per share and EPS of 174.4 cents per share comparative period. We are pleased with enrolments for 2025 for both the schools and tertiary divisions that are tracking in line with targets and continuing their trend of good growth. The financial information on which this trading update is based has not been reviewed or audited by the group’s external auditors. ADvTECH expects to release results for the year ended 31 December 2024 on the JSE’s Stock Exchange News Service on or about Monday, 24 March 2025. 13 March 2025 Johannesburg Sponsor: Bridge Capital Advisors Proprietary Limited
Key fields that are non-negotiables to prepare students in an unpredictable landscape The landscape of Information and Communications Technology (ICT) in higher education is rapidly evolving. With the advent of new technologies, changing job market demands, and the increasing importance of digital literacy across all sectors, public universities and private institutions in South Africa must rethink their approaches to ensure they adequately prepare graduates for the future, an education expert says. “It is important to explore the essential future-focused areas that should be prioritised in ICT higher education while acknowledging the traditional aspects that remain crucial for a well-rounded education,” says Natasha Madhav, Senior Head of Programme: ICT at The Independent Institute of Education , SA’s leading private higher education provider. Madhav says one of the most significant trends shaping the future of ICT is the rise of Artificial Intelligence (AI) and Machine Learning (ML) . “Educational programmes must incorporate these technologies into their curricula, providing students with the knowledge and skills necessary to leverage AI and ML in real-world applications. This includes not only theoretical understanding, but also hands-on experience with tools and platforms used in the industry.” Cybersecurity and data privacy is another key focus area that should not be overlooked, says Madhav. “With the increasing reliance on digital technologies comes the heightened risk of cyber threats and data breaches. As a result, cybersecurity education is critical. ICT programmes should emphasise the principles of secure coding, ethical hacking, and data protection measures. Furthermore, understanding legal and regulatory frameworks related to data privacy is essential for preparing students for careers in this vital field.” Madhav says cloud computing has also revolutionised the way businesses operate, and knowledge of cloud infrastructure and services is now a prerequisite for many ICT roles. “Higher education institutions must include cloud computing in their curricula, teaching students about cloud architecture, deployment, and management. Additionally, integrating DevOps practices into ICT education fosters collaboration between development and operations teams, enabling graduates to excel in dynamic work environments. Also, the ability to analyse and interpret large volumes of data is increasingly important in decision-making across industries. ICT education should incorporate data analytics into its programmes, teaching students how to use data visualisation tools, statistical analysis, and predictive modelling techniques. This will equip graduates with the skills needed to turn data into actionable insights, a valuable asset in today’s data-driven world. The proliferation of Internet of Things (IoT) devices is also creating new opportunities and challenges for ICT professionals, Madhav says. “Education programmes must address the complexities of IoT, including sensor technology, network design, and data management. Students should gain hands-on experience with IoT applications, preparing them for roles in smart cities, healthcare, and other sectors where IoT is transforming operations.” Madhav says however that while a focus on the future is very important in staying relevant, maintaining traditional educational values is equally important. While embracing these future-focused areas, ICT higher education must also retain traditional aspects that are foundational to effective learning. These include: A strong grounding in computer science fundamentals. Topics such as algorithms, data structures, and programming languages form the bedrock of ICT education. Students should have a deep understanding of these principles to adapt to new technologies and methodologies as they emerge.” Critical thinking and problem-solving skills also remain a core competency for ICT professionals. Higher education should cultivate these skills through project-based learning, case studies, and collaborative assignments. By engaging in real-world challenges, students develop the capacity to analyse problems, devise solutions, and implement them effectively. Ethics and social responsibility are more important than ever as technology continues to impact society, and it is vital for ICT programmes to address these. Educating students about the ethical implications of technology, data usage, and the digital divide encourages them to be conscientious professionals who prioritise the well-being of society in their work. And in an increasingly interconnected world, effective communication and collaboration skills are essential. ICT graduates must be able to convey complex technical concepts to diverse audiences and work collaboratively across disciplines. Higher education should incorporate group projects, presentations, and interdisciplinary courses to enhance these skills. “A holistic approach to ICT education is important because it equips graduates with not only technical skills but also the critical thinking, ethical awareness, and communication abilities necessary to navigate and impact the complex and rapidly evolving digital landscape effectively,” says Madhav. “The future of ICT in higher education lies in striking a balance between embracing innovation and retaining traditional educational values. By focusing on emerging technologies while also emphasising foundational principles, educational institutions can prepare graduates to thrive in a rapidly changing and highly unpredictable landscape.”
Africa’s leading private education group, JSE-listed ADvTECH, has launched South Africa’s first dedicated Centre of Teaching and Learning Excellence, focused on driving excellence across all educational phases in the country. The centre will be the first of its kind, centralising continuous professional development training across both schools and tertiary phases. Named SIRIUS (after the brightest star in the sky), the centre will be a dynamic learning space, dedicated to facilitating relevant micro-courses and workshops to enhance teaching practices and promote the continuous professional development of the group’s teachers, lecturers, research and supervisors across its 119 schools and 33 tertiary campuses. “SIRIUS will serve as the central hub for educational excellence. ADvTECH teaching and academic staff will be provided with the innovative resources, support, and professional development opportunities, both online and in-person, that they need to consistently excel and drive student growth and performance,” says Desiree Hugo, SIRIUS Schools Head. “SIRIUS will be a dynamic learning space which will focus on specific areas of practice to support and improve student learning and results, as great teaching can be learned,” she says. SIRIUS will therefore play a key role in supporting educators in schools and tertiary to deliver on the academic excellence promise of ADvTECH. Hugo says the center will support ADvTECH’s academic leadership positioning by: Implementing tools for teaching and learning innovation aligned to global benchmarks; Driving continuous development of teaching and academic practices that will attract and retain top teachers and academics (lecturers, researchers and supervisors); Leveraging research projects to inform and operationalise internal best practices, and Capacitating teaching and learning skills for improved student academic outcomes. SIRIUS modes of delivery will include in-person training at the SIRIUS Hub, online real-time facilitation, and curated online resources for independent self-study. “We are very excited about the development of our dedicated teaching studio in Sandton, which is specifically designed to facilitate the teaching of 21st century pedagogies,” says Hugo. The studio will facilitate in-person learning of up to 60 delegates at a time, in a relaxed atmosphere with modern and inspiring spaces equipped with flexible furnishing and cutting-edge technology. It will include inclusive and functional features, such as a coffee bar, collaboration spaces, and resource centre, as well as a dynamic teaching space that can be adapted to accommodate the various educational phases. SIRIUS Tertiary Head, Dr Gill Mooney, says the center will ensure that ADvTECH has a strong and sustainable pipeline of excellent teaching and learning professionals to support the group's growth imperative, to further solidify its sector leadership position now and into the future. “By centralising and leveraging skilled and scarce teaching and learning resources, we will be able to further drive excellent academic performance, as well as attract and retain top talent for both our schools and tertiary division, given the extent and accessibility of developmental opportunities. We like to call this empathic empowerment, where all our academics and teachers have the opportunity to shine,” she says.
