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
The ADvTECH Group (ADvTECH), Africa’s leading private education provider, today officially opened Rosebank International University College (RIUC) in Accra, Ghana, marking the group’s first university opening outside South Africa. Student registrations opened on 15 August, with the inaugural academic semester set to begin in January 2026. Strategically located in Accra’s prestigious Airport Residential Area, the RIUC campus offers accredited qualifications from diplomas to doctoral degrees in high-demand fields including Business Administration, Digital Marketing, IT, Service Management, and Hospitality. “We are delighted to bring our highly successful Rosebank College brand to Ghana and expand our university footprint outside of South Africa for the first time,” said ADvTECH Group CEO Geoff Whyte.
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Commenting on the six months ended 30 th June 2025, ADvTECH CEO, Geoff Whyte said: “Healthy enrolment growth, moderate fee increases, improved debtors control and continued margin improvement contributed to ADvTECH delivering another strong set of results.” “In the six months under review, we continued to build competitive advantage by investing in superior technology to enhance teaching and learning, further cementing our position as the leading provider of private education on the African continent.” Group: Operational and Financial Performance Revenue up 10% to R4 683 million (2024: R4 274 million) Operating profit up 14% to R982 million (2024: R865 million) Operating margin improved to 21.0% (2024: 20.2%) Normalised earnings per share increased by 16% to 113.0 cents (2024: 97.7 cents) Group revenue grew by 10% to R4 683 million for the six months ended 30 th June 2025 (2024: R4 274 million), driven by a 13% increase in the education division. Group operating profit increased by 14% to R982 million (2024: R865 million), with the education division’s operating profit increasing by 15%, supported by strong enrolment growth. Group operating margin improved to 21.0% (2024: 20.2%). Operating margin in the education divisions improved to 23.8% (2024: 23.5%) through the benefit of operating leverage and a continued focus on efficiencies. This more than offset the additional costs incurred to strengthen our brands through the introduction of additional global benchmarking measures, artificial intelligence tools to support personalised learning and enhanced student information systems. Normalised earnings for the period increased by 16% to R620 million (2024: R535 million) while normalised earnings per share increased by 16% to 113.0 cents (2024: 97.7 cents) per share. A continued focus on collection processes has seen gross trade receivables increasing by only 3% compared to a revenue increase of 10%. Loss allowances decreased to R488 million (2024: R494 million) , due to improved collections and favourable aging of the debtors’ book. Cash generated by operating activities increased by 18% to R2 303 million (2024: R1 959 million). Capital expenditure of R327 million was focused mainly on increasing capacity at existing sites to meet incremental demand. Dividend Announcement The board is pleased to declare an interim dividend of 45.0 cents (2024: 38.0 cents) per ordinary share in respect of the six months ended 30 th June 2025. Divisions: Operational and Financial Performance Schools South Africa Robust enrolment growth driving strong financial performance Revenue increased by 11% to R1 722 million (2024: R1 556 million) with all brands showing enrolment growth. Operating profit increased by 12% to R354 million (2024: R316 million) with operating margin improving to 20.6% (2024: 20.3%), benefiting from scale leverage. Strong enrolment growth at Pinnacle College Raslouw has necessitated the accelerated build out of the school. Pinnacle College Ridgeview opened in Roodeport in January and is performing in line with expectations.
Integrating coding into the early education years of South African students must be flagged as urgent rather than optional – a fact that was made abundantly clear at a recent global EdTech conference, education experts say. “Coding is not just about training the next generation of programmers or preparing students for tech careers, it’s about equipping students with the tools to think critically, create boldly, and collaborate effectively in a world shaped by technology,” says Dr Mario Landman, Head of Education Technology and Innovation at ADvTECH , Africa’s leading private education provider. Landman’s comments come in the wake of ADvTECH’s attendance at the BETT EdTech conference in London, a leading global education technology event which provides best practice insights into the evolving landscape of education and the strategic importance of technology integration. Darren Purdon, Academic Project Manager at ADvTECH, says visits to leading UK schools during the conference demonstrated innovative approaches to technology integration, including coding programmes for young learners and the development of bespoke educational software. “What is clear is that South Africa lags too far behind the rest of the world in integrating coding from an early age. While some leading SA private schools are on par or even ahead of their global peers, the vast majority of students in the public and even private education sector are not being exposed to the fundamentals that will set them up for success.” Landman explains that while it is understandable that within the context of resource and other constraints, students may not have access to the necessary technology, it is also true that the principles of coding can be taught and developed notwithstanding. WHY CODING IS ESSENTIAL As AI continues to rise, becoming ever more capable of routine coding tasks, the question might arise - why bother? “Integrating coding into curricula remains crucial because it fosters computational thinking, a universal skill set that transcends programming,” Landman says. “Coding teaches children how to break down complex problems, think logically, and design solutions systematically - skills that are vital in an AI-driven world where understanding and shaping technology is key. Beyond technical proficiency, coding cultivates creativity and collaboration as kids experiment, iterate, and work together on projects. These abilities prepare them not just to use AI tools but to innovate, adapt, and critically engage with technology.” This is essentially the answer to the question – will AI take my job in the future? “Developing a coder’s mindset ensures that students thrive in a future where human ingenuity complements AI advancements,” Landman points out. “By introducing coding basics from a young age, schools can harness children’s potential and build a foundation for lifelong learning.” GET CODING – REGARDLESS OF RESOURCES Landman says ADvTECH Schools have EdTech frameworks and supporting resources across all schools, with global best practice at their foundation, which ensures consistent, superior student outcomes, in particular with the recent integration of AI-driven and personalised learning tools. However, even in resource-constrained environments, innovative approaches and partnerships can make coding education accessible, he says. “As governments, educators, and communities prioritise digital literacy, the question is not whether coding should be part of education, but rather how quickly we can make it a reality for every child.” Many schools, particularly in underserved areas, face challenges in implementing coding education due to limited access to computers, software, or trained educators. However, innovative approaches can bridge this gap: Unplugged activities, such as using paper-based puzzles to teach algorithms or role-playing as “robots” to understand programming logic, require no technology and can be just as effective for introducing computational thinking. For instance, the CS Unplugged initiative has been adopted in over 50 countries, reaching schools with minimal resources. Low-cost tools like Scratch , a free block-based coding platform, can run on older computers or even tablets, making it accessible for schools with limited budgets. Partnerships with nonprofits such as code.org provide free curricula and training for teachers, reducing the need for specialised staff. For schools with intermittent internet access, offline coding tools like CodeMonkey ’s downloadable lessons or Raspberry Pi kits offer affordable solutions. “Teachers can also integrate coding into existing subjects, such as using data analysis in math or storytelling in language arts, to make it a natural part of the curriculum. Short, focused training sessions can empower teachers to guide students, even if they lack a computer science background,” Landman says. He says introducing coding in the early years is not about funneling every child into a tech career, but about equipping everyone with the basic tools to thrive in a digital future. “By learning to code, students become exposed to the language their future peers will speak, even if they don’t yet become fluent due to limited resources. By seamlessly integrating coding into early education, whether through high-tech platforms or resource-light unplugged activities, schools can empower every student passing through their doors.”
ADvTECH Limited (Incorporated in the Republic of South Africa) (Registration number 1990/001119/06) JSE code: ADH ISIN: ZAE000031035 (“ADvTECH” or “the group”) VOLUNTARY TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2025 The board hereby advises on its expectations of the financial results for the six months ended 30 June 2025. 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 six months ended 30 June 2025 are expected to be between 13% and 18% higher than the comparative reporting period for the six months ended 30 June 2024 ("the comparative period") or between 110.3 and 115.3 cents per share as compared to NEPS and HEPS of 97.7 cents per share and EPS of 97.6 cents per share for the comparative period. 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 six months ended 30 June 2025 on the JSE’s Stock Exchange News Service on or about Monday, 25 August 2025. 12 August 2025 Johannesburg Sponsor: Bridge Capital Advisors Proprietary Limited
The school group shaping tomorrow’s classrooms across Africa From leafy Johannesburg suburbs to Nairobi’s bustling education corridors, South Africa’s ADvTECH is slowly but surely planting its flag across the continent. This week, the private education powerhouse confirmed it had acquired Regis Runda Academy in Kenya for R172 million, in a bold move that solidifies its ambition to become Africa’s most prominent education group. The new acquisition will operate under the Makini Schools brand and be renamed Makini Schools Runda . With space for up to 2,000 students, the Runda-based school is positioned in one of Nairobi’s most rapidly developing areas. It joins a growing network of six Makini schools in Kenya, all under the ADvTECH umbrella. “We are delighted to increase our Makini Schools footprint in Kenya and to bring the brand’s compelling proposition to parents and students,” said ADvTECH CEO Geoff Whyte. Why Kenya? Why now? Kenya’s private education sector has seen a notable boom over the last decade. With a growing middle class, an appetite for globalised curricula, and increased competition among international and regional schools, Nairobi has become a hotspot for premium education investments. Regis Runda’s acquisition gives ADvTECH strategic access to one of East Africa’s most promising education corridors. Runda, just northeast of Nairobi, is a magnet for upwardly mobile families, making it a prime location for the group’s next flagship school. This isn’t ADvTECH’s first rodeo in Kenya. Its Crawford International brand is already present in the region, alongside its existing Makini campuses. The group is clearly betting big on Kenya, and based on the numbers, it’s a calculated bet. Africa-wide ambitions take shape This latest move follows ADvTECH’s R135 million acquisition of five Flipper International Schools in Addis Ababa, Ethiopia, back in November 2024. Add to that its three schools in Gaborone, Botswana, and its soon-to-launch Rosebank International University College in Accra, Ghana — and you start to see a clear pattern emerge. While other South African education brands have focused inward, ADvTECH is going continental. In fact, the new Ghanaian university, expected to open in September 2025, is part of a long-term plan to expand the group’s tertiary education footprint across key African cities. It’s a smart play — following the student journey from nursery to university under one trusted banner. Social media sentiment and local buzz Reactions to the acquisition have been largely positive, with Kenyan parents and education commentators noting the move as “a welcome boost to quality learning options in Nairobi’s northeast.” South African LinkedIn users, meanwhile, applauded ADvTECH’s forward-thinking strategy, with one comment reading: “Love to see a South African brand going global the right way — focusing on quality education and building African futures.” The big picture: South Africa’s export isn’t just wine or gold — it’s education At a time when local universities are grappling with funding challenges and public schooling faces deep systemic issues, the growth of ADvTECH shows that private education remains one of South Africa’s most valuable exports . Its move into other African countries signals something bigger: that local companies don’t need to look to Europe or the US for global growth. The next frontier is right here, on the continent — and the classroom is where the future is being built. Source: Business Tech
ADvTECH acquires Regis Runda Academy in Nairobi 2 000 student capacity school will be integrated into the fast-growing Makini brand
ADvTECH Limited (Incorporated in the Republic of South Africa) (Registration number 1990/001119/06) Share code: ADH ISIN: ZAE000031035 (“ADvTECH”) VOLUNTARY ANNOUNCEMENT – ADvTECH acquires established Kenyan based Regis Runda Academy and further expands its footprint in East Africa ADvTECH, Africa’s leading private education provider, has expanded its Makini Schools offering in Nairobi, Kenya, by acquiring Regis Runda Academy for KSh1,23 billion (approximately R172 million). Situated in the fast-developing Runda area, northeast of Nairobi, the school, with a current capacity of 2 000 students and a full K – 12 offering, will be rebranded as Makini Schools Runda. ADvTECH has committed to investing in AI-powered digital learning tools and significant enhancements to sporting facilities at the Regis site to elevate student experience and maximise academic outcomes. In November 2024 ADvTECH acquired Flipper International School in Addis Ababa, Ethiopia. These developments reinforce the group’s commitment to providing superior private education across the African continent. Commenting on the acquisition of Regis Runda Academy, ADvTECH CEO, Geoff Whyte said: “We are delighted to increase our Makini Schools footprint in Kenya and to bring the brand’s compelling proposition to parents and students in one of the fastest developing regions of Nairobi.” 7 August 2025 Johannesburg Sponsor: Bridge Capital Advisors Proprietary Limited
The Independent Institute of Education (The IIE), South Africa’s leading private higher education provider, has set a new benchmark for technology-enabled learning in the country by designing a comprehensive education technology ecosystem with Brightspace, the flagship platform of global EdTech leader D2L, as its foundation. This initiative marks the beginning of a transformative, technology-driven learning experience for over 65,000 students across The IIE’s tertiary education brands and Evolve Online School, representing the largest implementation of the Brightspace platform in South Africa to date. Brightspace is a cutting-edge learning management system (LMS) that moves beyond the limitations of traditional, static content delivery of traditional LMS platforms. It seamlessly integrates advanced digital tools, artificial intelligence, and interactive features to create engaging, data-informed educational experiences. “This strategic investment underscores The IIE’s commitment to redefining higher education in South Africa through innovation, scalability, and student-centric design,” says Louise Wiseman, Managing Director of The IIE ’s Varsity College, Vega & IIE MSA. Brightspace serves over 20 million students globally across schools, higher education institutions, enterprises, and membership organisations. Its adoption by The IIE marks a groundbreaking shift in South Africa’s higher education landscape, as it is among the first platforms of its kind to seamlessly integrate sophisticated content authoring tools, world-class accessibility features, a student-centric design, and advanced learning analytics. “Unlike traditional learning management systems used in South Africa, Brightspace offers a seamless, intuitive user experience with unparalleled customisation and interactivity. Its implementation across The IIE’s portfolio of over 130 programmes, from Higher Certificate to Doctorate level, positions it as a pioneering solution tailored to meet the unique demands of South African students and educators,” says Wiseman. Dr Mario Landman, Head of Education Technology and Innovation at The IIE, says the institution selected Brightspace after an extensive evaluation of the world’s leading LMS platforms. The selection process prioritised feature richness, user experience, scalability and alignment with the organisation’s commitment to delivering an enhanced and future-focused academic product. “Brightspace emerged as the optimal choice as its advanced tools, customisation capabilities and collaborative features perfectly align with our vision of fostering an enriched learning experience for our students and faculty,” he says. Brightspace stands out from other platforms in the South African market due to its innovative features and alignment with modern educational needs. One of its key strengths is its interactive, AI-enhanced content creation tools, which allow educators to develop dynamic course materials - such as videos and gamified elements - without the need for advanced technical expertise. This capability promotes greater student engagement and personalisation of learning by moving beyond the static content delivery model typical of traditional LMS platforms. Additionally, the platform provides Advanced Learning Analytics that enable educators to monitor student progress, identify challenges, and optimise outcomes. This data-driven approach empowers institutions to make informed decisions to enhance teaching and learning. It also supports modern pedagogies, and is scalable and flexible. “Brightspace is a game-changer for the higher education sector in South Africa, where diverse student populations require tailored educational solutions to ensure each student has the opportunity and ability to perform to the best of their ability, and to ensure consistently superior academic outcomes,” Wiseman says.
