Blog Layout

SENS Announcement | 3 November 2015

RIGHTS OFFER DECLARATION ANNOUNCEMENT AND REVISED DATES AND TIMES

ADvTECH Limited
(Incorporated in the Republic of South Africa)
(Registration number 1990/001119/06)
Share Code: ADH
ISIN: ZAE000031035
 ("ADvTECH" or the "Company")

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY OTHER JURISDICTION IN RESPECT OF WHICH THE PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, OF THIS ANNOUNCEMENT WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION OR IN RESPECT OF WHICH THE OFFERING CONTEMPLATED BY THIS ANNOUNCEMENT IS UNLAWFUL. THIS ANNOUNCEMENT DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER OR INVITATION TO PURCHASE, OTHERWISE ACQUIRE, SUBSCRIBE FOR, SELL, OTHERWISE DISPOSE OF OR PURCHASE ANY SECURITY IN ANY JURISDICTION.

RIGHTS OFFER DECLARATION ANNOUNCEMENT AND REVISED DATES AND TIMES

INTRODUCTION 
ADvTECH shareholders are referred to the announcement released on the Stock Exchange News Service ("SENS") on Monday, 7 September 2015 in which the Company declared its intention to undertake a renounceable rights offer to its shareholders ("rights offer") to raise up to R850 million. A condition precedent to the rights offer requires that the special resolutions which approved the increase of authorised share capital and amendments to Memorandum of Incorporation be registered with the Companies and Intellectual Property Commission ("CIPC"). Confirmation of registration has not yet been received from CIPC and as such the timetable below has been amended to facilitate the confirmation of registration. 
 
BACKGROUND TO AND RATIONALE FOR THE RIGHTS OFFER 
ADvTECH shareholders were advised in the ADvTECH Group's interim results for the six months ended 30 June 2015 that the board was considering the optimal capital structure for the ADvTECH Group and formulating a financing strategy that would allow the Group to support an accelerated growth strategy in the most efficient manner.
To implement the rights offer, the Company was required to obtain shareholder approval to increase its authorised but unissued share capital and to place sufficient unissued shares under the control of the Board to undertake the rights offer. This shareholder approval was obtained on Tuesday, 13 October 2015.

Central to the Board's strategy are the sustained and consistent growth of operations both locally and in sub-Saharan Africa and development of the present project pipeline. The acquisition of the Gaborone International School in Botswana concluded earlier this year signalled the Company's intent to pursue growth opportunities outside South Africa, while implementation of the acquisition of the Centurus and Maravest Schools groups alongside organic growth initiatives have materially increased ADvTECH's schools footprint within the country. The Tertiary division has resumed a growth strategy and is developing new organic and acquisitive investment opportunities in this sector.

As a result of ADvTECH's standard working capital cycle and seasonal cash variations, ADvTECH's borrowings are expected to increase from ZAR1.7 billion to ca. ZAR1.9 billion by calendar year end, assuming the addition of no new projects beyond the previously announced ZAR3.0 billion rolling capital expansion programme ("the announced programme").

Current ADvTECH Group debt facilities total ca. ZAR1.8 billion consisting of a Bridge Facility, a Revolving Credit Facility ("RCF") and an Overdraft Facility.

The ZAR350 million RCF has been fully drawn to fund capital work in progress;
The RCF is complemented by an overdraft facility with a current limit of ZAR122 million; and
The Bridge Facility of ZAR1 350 million has been fully utilised for capital expenditure and recent acquisitions.
Covenants in place allow for indebtedness of ZAR1.9 billion, leaving limited headroom to pursue incremental growth opportunities above and beyond the announced programme. At present management has identified near-term organic and acquisitive-led investment opportunities totalling almost ZAR1.0 billion that are over and above the board-approved projects already recorded.

Aside from creating a flexible capital structure that will enable the Company to pursue accelerated growth opportunities most efficiently, the Board believes it necessary to refinance existing facilities so as to reflect more accurately the seasonality of its funding requirements, improve the match between the nature of investment and the sources of capital, and lower its overall cost of capital.

With this in mind, and having reviewed in detail its financing options, the Board has decided to pursue a capital increase by way of a rights offer of up to ZAR850 million. Funds raised will be used to reduce and restructure current indebtedness, fund capital projects and planned acquisitions and ensure that ADvTECH is adequately positioned to execute on further growth opportunities identified from evaluation of the growing deal flow available at present.

 THE RIGHTS OFFER
 3.1 SALIENT TERMS
 In terms of the rights offer, 75,555,556 new ADvTECH ordinary shares ("rights offer shares") will be offered to ADvTECH shareholders recorded in ADvTECH's share register at the close of business on Friday, 20 November 2015 ("record date"), at a subscription price of R11.25 cents per rights offer share, in the ratio of 16.59818 rights offer shares for every 100 ADvTECH ordinary shares held.

 The subscription price per rights offer share represents a 10% discount to the 30 day volume weighted average price of ADvTECH ordinary shares listed on the JSE Limited ("JSE") as at the close of business on Wednesday, 21 October 2015, being the date on which the rights offer was priced.

 Shareholders holding shares that are cum rights the last day to trade, being Friday, 13 November 2015, will be entitled to trade their rights in the form of letters of allocation. The letters of allocation will be listed and commence trading on the JSE on Monday, 16 November 2015. The relevant dates are set out in the table below.

 The rights offer shares issued will rank pari passu with the existing issued ordinary shares of ADvTECH.
 
  1. REVISED SALIENT DATES AND TIMES
2015
Special resolution to approve the increase in authorised share capital registered with CIPC by Monday, 9 November
Finalisation announcement to be published on SENS by 11:00 Tuesday, 10 November
Last day to trade in ADvTECH ordinary shares in order to participate in the rights offer (cum entitlement) Friday, 13 November
ADvTECH ordinary shares commence trading ex-entitlement at 09:00 Monday, 16 November
Listing of and trading in the letters of allocation on the JSE commences at 09:00 Monday, 16 November
Rights offer circular and form of instruction posted to certificated ADvTECH shareholders Tuesday, 17 November
Record date for the rights offer Friday, 20 November
Rights offer opens at 09:00 Monday, 23 November
Letters of allocation credited to an electronic account created by the transfer secretaries in respect of holders of certificated shares Monday, 23 November
CSDP or broker accounts credited with entitlements in respect of holders of dematerialised shares Monday, 23 November
Rights offer circular posted to dematerialised shareholders who have elected to receive such documents Tuesday, 24 November
Last day for trading letters of allocation on the JSE Friday, 27 November
Listing of rights offer shares and trading therein on the JSE commences at 09:00 Monday, 30 November
Rights offer closes at 12:00 Friday, 4 December
Record date for the letters of allocation Friday, 4 December
Rights offer shares issued on or about Monday, 7 December
CSDP or broker accounts in respect of holders of dematerialised shares debited and updated with rights offer shares and share certificates posted to certificated shareholders by registered post on or about Monday, 7 December
Results of the rights offer released on SENS Monday, 7 December
Results of the rights offer published in the press Tuesday, 8 December
CSDP or broker accounts in respect of holders of dematerialised shares debited and updated with any excess shares allocated and share certificates posted to certificated shareholders by registered post on or about Wednesday, 9 December
Refund cheques posted to holders of certificated shares in respect of unsuccessful applications Wednesday, 9 December
Notes:

All times shown in this circular are South African local times.
These dates and times are subject to change. Any material changes will be released on SENS.
Share certificates may not be dematerialised or rematerialised between Monday, 16 November 2015 and Friday, 20 November 2015, both days inclusive.

3.3 IRREVOCABLE UNDERTAKINGS AND UNDERWRITING COMMITMENTS

The following ADvTECH shareholders have irrevocably undertaken to follow their rights in terms of the rights offer as set out below:
Name of shareholder Number of ordinary shares held in ADvTECH before the rights offer Number of rights offer shares % of rights offer shares
Coronation 116,997,675 19,419,489 25.7%
Visio Capital 41,970,000 6,966,258 9.2%
Kyocraft 33,678,494 5,333,333 7.1%
Total 192,646,169 31,719,080 42.0%
In addition, the rights offer has been partially underwritten by Coronation and Visio Capital. In terms of the underwriting agreements, Coronation and Visio Capital have provided ADvTECH with irrevocable undertakings to underwrite 16,136,067 and 16,063,742 rights offer shares respectively, (being R362.2 million in aggregate).

In aggregate, the irrevocable undertakings and underwriting commitments cover 63,918,889 of the 75,555,556 rights offer shares, representing 88% of the shares being offered.

3.4 EXCESS APPLICATIONS

ADvTECH shareholders will have the right to apply for any excess rights offer shares not taken up by other shareholders subject to such rights being transferable upon renunciation of the letters of allocation, and any such excess shares will be attributed equitably, taking cognisance of the number of shares and rights held by the shareholder just prior to such allocation, including those taken up as a result of the rights offer, and the number of excess rights offer shares applied for by such shareholder.

3.5 FOREIGN SHAREHOLDERS

Introduction

Foreign shareholders may be affected by the rights offer, having regard to prevailing laws in their relevant jurisdictions. Such foreign shareholders should inform themselves about and observe any applicable legal requirements of such jurisdiction in relation to all aspects of the rights offer circular that may affect them, including the rights offer. It is the responsibility of each foreign shareholder to satisfy himself as to the full observation of the laws and regulatory requirements of the relevant foreign jurisdiction in connection with the rights offer, including the obtaining of any governmental, exchange or other consents or the making of any filing which may be required, the compliance with other necessary formalities and the payment of any issue, transfer or other taxes or other requisite payments due in such jurisdiction. The rights offer is governed by the laws of South Africa and is subject to applicable laws and regulations, including the Exchange Control Regulations.

Affected foreign shareholders

Any ADvTECH shareholder who is in doubt as to his position with respect to the rights offer in any jurisdiction, including, without limitation, his tax status, should consult an appropriate independent professional advisor in the relevant jurisdiction without delay. Foreign shareholders are reminded that they may dispose of their ADvTECH ordinary shares on or prior to the last day to trade, in which case they will not participate in the rights offer.

Foreign shareholders accordingly must take their own advice on whether they are entitled, after the rights offer, to continue beneficially to hold any ADvTECH ordinary shares distributed to them and take the appropriate action in accordance with that advice.

Note to U.S. shareholders

The rights offer shares will not be registered with the U.S. Securities and Exchange Commission ("SEC") under the U.S. Securities Act of 1933, as amended, or any U.S. state securities laws. Neither the SEC nor any U.S. federal or state securities commission has registered, approved or disapproved the rights offer shares or passed comment or opinion upon the accuracy or adequacy of the circular to be issued by ADvTECH in respect of the rights offer. Any representation to the contrary is a criminal offence in the U.S.

ADvTECH shareholders who are citizens or residents of the U.S. are advised that the rights offer shares have not been and will not be registered under the U.S. Securities Exchange Act of 1934, as amended.

Sale of letters of allocation

It is the responsibility of any person outside the common monetary area (including, without limitation, nominees, agents and trustees for such persons) wishing to take up rights offer shares under the rights offer, to satisfy themselves as to full observance of the applicable laws of any relevant territory, including obtaining any requisite governmental or other consents, observing any other requisite formalities and paying any issue, transfer or other taxes due in such territories.

If a premium can be obtained over the expenses of the sale, the rights of ADvTECH shareholders in the jurisdictions in which it is illegal to make an offer will be sold by the transfer secretaries on the JSE for the benefit of such ADvTECH shareholders, in accordance with this section. Any premium over the expenses of the sale of the rights of ADvTECH shareholders in these jurisdictions (including applicable taxes, brokerage fees and commissions) shall be remitted to such ADvTECH shareholders.

None of ADvTECH, the transfer secretaries or any broker appointed by them or ADvTECH, will have any obligation or be responsible for any loss or damage whatsoever in relation to, or arising out of, the timing of such sales or the remittance of the net proceeds of such sales.

3.6 DISTRIBUTION OF CIRCULAR

ADvTECH shareholders are advised that a circular containing full details of the rights offer will be posted on the dates set out in paragraph 3.2 above.

Johannesburg
3 November 2015
Sole bookrunner, financial advisor and transaction sponsor
Absa Bank Limited (acting through its Corporate and Investment Banking Division)
Legal adviser
Cliffe Dekker Hofmeyr
Sponsor
Bridge Capital Advisors Proprietary Limited

ADvTECH Updates

By Tamara Thomas 07 May, 2024
ADvTECH Limited (Incorporated in the Republic of South Africa) (Registration number 1990/001119/06) Share code: ADH ISIN: ZAE000031035 (“ADvTECH” or “the Company”) ACQUISITION OF SECURITIES BY CLIENTS OF PUBLIC INVESTMENT CORPORATION SOC LIMITED (“PIC”) AND DIRECTORS RESPONSIBILITY STATEMENT In accordance with section 122(3)(b) of the Companies Act, No. 71 of 2008 as amended and section 3.83(b) of the JSE Limited Listings Requirements, shareholders are hereby advised that ADvTECH has received formal notification in the prescribed form that PIC’s clients have, in aggregate, acquired an interest in the ordinary shares of the Company, such that the total interest in the ordinary shares of the Company held by PIC’s clients has increased from 15.245% to 20.550% of the total issued ordinary shares of the Company. As required in terms of section 122(3)(a) of the Act, the Company has filed the required notice with the Takeover Regulation Panel. The board of directors of ADvTECH accepts responsibility for the information contained in this announcement as it relates to the Company and confirms that, to the best of its knowledge and belief, such information relating to ADvTECH is true and that this announcement does not omit anything likely to affect the importance of such information. Johannesburg 6 May 2024 Sponsor: Bridge Capital Advisors Proprietary Limited
By Tamara Thomas 30 Apr, 2024
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 HYBRID ANNUAL GENERAL MEETING AND AVAILABILITY OF B-BBEE COMPLIANCE CERTIFICATE Shareholders are advised that the ADvTECH 2023 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 and on the JSE Cloudlink at: https://senspdf.jse.co.za/documents/2024/JSE/ISSE/ADH/AFSYE2023.PDF The Integrated Report is available on the ADvTECH website: www.advtech.co.za Notice is hereby given to all shareholders of the Company that the hybrid annual general meeting (“AGM”) for the year ended 31 December 2023 will be held by electronic participation and in-person participation at ADvTECH House, Building 7 Inanda Greens Business Park, 54 Wierda Road West, Wierda Valley, Sandton, 2196 on Wednesday, 5 June 2024 at 10h00. The AGM of the Company will be accessible on an interactive electronic platform, in order to facilitate remote 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 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 distributed to shareholders on 30 April 2024, which AGM notice is also available on the ADvTECH website: www.advtech.co.za To this end, the Company has retained the services of The Meeting Specialist Proprietary Limited (“TMS”) to remotely host the AGM on an interactive electronic platform, in order to facilitate remote 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, remotely or in person, are required to contact TMS on proxy@tmsmeetings.co.za or alternatively contact them on +27 81 711 4255 / +27 84 433 4836 / +27 61 440 1654 as soon as possible, but in any event no later than 10:00am on Monday, 3 June 2024. It is important to note that all voting will take place via the electronic platform, irrespective of a shareholder electing to attend remotely or in person. 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 your 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, 26 April 2024. 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, 31 May 2024. 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 Monday, 27 May 2024. 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. 30 April 2024 Johannesburg Sponsor: Bridge Capital Advisors Proprietary Limited
By Tamara Thomas 23 Apr, 2024
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.
By Tamara Thomas 15 Apr, 2024
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 DIRECTOR In terms of paragraphs 3.63 to 3.74 of the JSE Limited Listings Requirements (“JSE Listings Requirements”), the following transaction, in respect of which prior written approval pursuant to paragraph 3.66 of the JSE Listings Requirements have been obtained, is hereby disclosed. 
By Tamara Thomas 27 Mar, 2024
ADvTECH, Africa’s leading private education provider, has pledged its support to Educor students left in the lurch after the college group was deregistered this week. “We stand by the Educor students and are committed to supporting them in successfully completing their qualification,” says Shevon Lurie, Director of The Independent Institute of Education, the higher education division of ADvTECH. Brands of The IIE include IIE Varsity College, IIE MSA, IIE Vega and IIE Rosebank College. “We understand the uncertainty and concern facing affected students. This is a regrettable and unfortunate development which will impact thousands, and as The IIE, we endeavour to help students registered for both the contact and distance modes of study to the best of our ability to ensure their academic journey is successful in future,” Lurie says. “As part of the ADvTECH group, our commitment is not only to our own students, but also to the sustainability, growth and development of higher education in South Africa as a whole.” Lurie says The IIE has set up a centralised process and will be channelling queries through the Registrar’s office to ensure students are quickly and correctly advised. Students will be accommodated as of Semester 2. Affected students who would like to enquire about their options of transferring to The IIE can mail registrar@iie.ac.za . The office will assist students with queries regarding similar qualifications, the nearest campus to consider, and the process for applying for academic credits. Each student’s financial circumstances and academic transcript will be holistically reviewed. Support for students will be assessed at an individual level given the variables at play. In general, the process ahead will be as follows: Transfer of courses The IIE will look for a similar qualification and NQF level in the chosen field of study, ensuring that the student also meets the admission criteria. Process The IIE will guide students through the necessary channels and steps to ensure they are fully informed. Given that we are already halfway through the first semester transfers will be facilitated for Semester 2. Transfer of credits The IIE will conduct an academic credit mapping exercise for each student. This will entail assessing the overlap between modules that the student has passed with similar modules on the transfer qualification. If there is sufficient alignment, an academic credit/s is granted and the student is exempt from the relevant module. Fee considerations Fee credits will be granted for module credits, i.e. the total programme fee will be reduced by the cost of the module/s that the students are granted academic credit for. “Our focus is to support former Educor students to successfully obtain their qualification, without extending their study period wherever possible,” says Lurie.
By Tamara Thomas 25 Mar, 2024
25 March 2024: Commenting on the results, retiring ADvTECH CEO, Roy Douglas, said: “ADvTECH’s robust financial performance for the year ended December 2023 is indicative of the group’s sound business model and quality assets. Our schools and tertiary divisions benefitted from good enrolment growth, moderate fee increases and enhanced operating leverage, while, in our resourcing division, we continued to benefit from our investment into the rest of Africa. This sustained performance is driven by the group’s established market position in South Africa and its growing presence across the continent.” “Furthermore, the significant investments made by the group over a number of years are contributing meaningfully to earnings and cash generation. ADvTECH is now in a position where we are generating cash in excess of our investment funding requirements and consequently, the board has increased the dividend payout to shareholders by 45%.” Group operational and financial performance Revenue up 13% Operating profit up 18% Normalised earnings up 20% ADvTECH’s strong financial performance, solid cash generation and healthy balance sheet reflect the group’s sound business model, clear market positioning and emphasis on effectiveness and efficiencies. Group revenue grew by 13% to R7 860 million for the year (2022: R6 961 million) as a result of good enrolment growth in both the schools and tertiary divisions, as well as from increased business activity in the resourcing division. Operating profit increased by 18% to R1 577 million (2022: R1 333 million) while the group operating margin improved to 20.1% (2022: 19.1%). Normalised earnings for the year increased by 20% to R950 million (2022: R790 million) while normalised earnings per share increased by 20% to 174.2 cents (2022 145.7 cents) per share. Cash generated from operating activities increased by 10% to R1 940 million (2022: R1 766 million) illustrating the strong cash generating capacity of the group. Capital expenditure was focused on meeting incremental demand via increasing capacity at existing sites as well as the development of a new school and a new tertiary site. Capital expenditure was also allocated to acquiring equipment and technology to enhance the group’s teaching and learning capability and was used to enhance business systems focused on the standardisation of group-wide processes to allow for further efficiency improvements. The significant investments made by the group over a number of years have begun contributing meaningfully to both earnings and cash generation and, as a result, this reduced borrowings. ADvTECH is now in the position where it is generating cash in excess of what is required to fund the group’s investment programme. Consequently, to better manage the group’s capital structure and optimise return on equity, the board elected to reduce the dividend cover and increase the dividend payout. A final gross dividend of 57.0 cents (2022: 37.0 cents) per ordinary share in respect of the year ended 31 December 2023 was declared, bringing the full year dividend to 87.0 cents (2022: 60.0 cents) per share for the 2023 financial year. Schools South Africa Revenue up 13% Operating profit up 18% Operating margin improved to 20.3% The schools division continued to enhance its value proposition and win market share, despite the tough operating environment. All the division’s brands recorded volume and operating profit growth. Revenue increased by 13% to R2 810 million (2022: R2 492 million) and operating profit increased by 18% to R570 million (2022: R484 million) with the operating margin improving to 20.3% (2022: 19.4%). Students at ADvTECH recorded exceptional results in the 2023 Independent Examinations Board examinations achieving an impressive 99.7% pass rate, while 87.7% obtained a bachelor degree pass. Schools in the rest of Africa Revenue up 14% Operating profit up 43% Operating margin improved to 30.0% ADvTECH’s school brands in the rest of Africa recorded strong enrolment growth. Revenue increased by 14% to R381 million (2022: R334 million) while operating profit improved by 43% to R114 million (2022: R80 million) despite the impact of the weakening Kenyan Shilling. The operating margin advanced from 23.9% to 30.0%. Capacity was increased at Crawford International School in Kenya as it continued to experience strong demand. All of the final year students that completed their A-Level qualification were accepted into international universities. Gaborone International School (GIS) in Botswana continued to perform exceptionally well with strong enrolment growth and market leading academic results. The students achieved a 99.7% pass rate in the International General Certificate of Secondary Education (IGCSE) exams. Tertiary/University Revenue up 10% Operating profit up 16% Operating margin improved to 26.4% ADvTECH’s tertiary division continues to perform well, growing off the back of a well-established portfolio of quality brands that offer a comprehensive range of programmes and qualifications. The group’s ability to provide multi-channel modes of delivery (contact, blended, online, full-time, part-time and distance) is central to it proposition and allows the division to meet the requirements of every student at any time, at any location. Revenue increased by 10% to R2 988 million (2022: R2 728million) and operating profit grew by 16% to R787 million (2022: R680 million). Operating margin increased to 26.4% (2022: 24.9%) benefitting from effective cost containment measures. The Varsity College campuses in Pretoria and Midrand were expanded in response to growing demand. Equally so, Rosebank College acquired additional capacity at its mega-campuses in Braamfontein and Pretoria, and opened a new digitally enabled campus in Mbombela in January 2024. Resourcing Revenue up 26% in rest of Africa Operating profit up 28% in rest of Africa The strategy to expand into the rest of Africa continues to bear fruit. Volumes grew substantially over the year resulting in revenue increasing by 26% to R1 452 million (2022: R1 155 million) and operating profit by 28% to R105 million (2022: R82 million). The South Africa resourcing business’ revenue contracted by 9% to R229 million (2022: R252 million) due to the disposal of the group’s 51% share of the Contract Accountants group in the second half of the prior financial year, along with the tough trading environment. Retirement of Roy Douglas and appointment of Geoff Whyte As indicated in previous announcements, on 29 February 2024, Roy Douglas officially retired and stepped down as the CEO of ADvTECH. One of his last formal responsibilities, however, will be to present the financial results to the market. Roy will be joined at the results presentation by the new group CEO, Geoff Whyte. Commenting on the developments, board chairperson, Chris Boulle commented: “Roy has successfully led the group in its expansion strategy during his tenure, resulting in ADvTECH becoming the leading private education and recruitment group across the continent. He leaves ADvTECH in a strong position to continue its growth trajectory. The board wishes to thank Roy for his invaluable contribution during his tenure as CEO and wishes him well in his retirement.” “The board is similarly pleased with the appointment of Geoff Whyte as CEO and are confident that Geoff’s track record and experience will enable him to build on the group’s successes.” Prospects The continued growth in demand for quality education in South Africa, particularly in the rest of Africa, persists. Consequently, the group remains confident that it will be able to sustain its growth trajectory due to its ability to convert demand into continued enrolment growth, at both the schools and tertiary divisions. Commenting on the group’s outlook, Douglas said: “ADvTECH remains very well positioned to benefit from the increase in demand for education in South Africa and particularly in the rest of Africa. Our focus on productivity, efficiency and leveraging scale to deliver value in quality education remains key to our continued growth.”
By Tamara Thomas 25 Mar, 2024
By Tamara Thomas 20 Mar, 2024
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 IMPORTANT FUNCTIONS OF DIRECTORS In accordance with paragraph 3.59 (c) of the JSE Limited Listings Requirements, and with reference to the announcement published on 4 September 2023 wherein shareholders were informed that Mr Chris Boulle (“Chris”), Chairman of the ADvTECH Board, will retire and step down from the Board following the conclusion of the Annual General Meeting (“AGM”) to be held on 5 June 2024. Chris will also step down as Chairman of the Nominations Committee and member of the Transformation, Social and Ethics Committee from such date. Professor Alexandra Watson (“Alex”) will take over from Chris as Chair of the Board and Nominations Committee and be appointed as member of the Transformation, Social and Ethics Committee.  Johannesburg 20 March 2024 Sponsor: Bridge Capital Advisors Proprietary Limited
By Tamara Thomas 07 Mar, 2024
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 IMPORTANT FUNCTIONS OF A DIRECTOR Shareholders are advised, in accordance with paragraph 3.59(c) of the JSE Limited Listings Requirements, that Mr GD Whyte has been appointed to the Transformation, Social & Ethics Committee and the Investment Committee, effective 1 March 2024.  Mr GD Whyte was appointed as Group Chief Executive Officer and Executive Director of the Company with the effect from 1 March 2024 as per the SENS announcement published on 4 December 2023. Johannesburg 7 March 2024 Sponsor: Bridge Capital Advisors Proprietary Limited
By Tamara Thomas 06 Mar, 2024
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 2023 In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited, an issuer is required to publish a trading statement as soon as it becomes reasonably certain that the financial results for the next reporting period will show a 20% or more difference from that of the previous corresponding period. 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 for the year ended 31 December 2023 is expected to be between 17% and 22% higher than the comparative reporting period for the year ended 31 December 2022 ("the comparative period") or between 170.5 and 177.8 cents per share as compared to 145.7 cents per share in the comparative period. Basic headline earnings per share (“HEPS”) for the year ended 31 December 2023 is expected to be between 16% and 21% higher than the comparative period or between 169.9 and 177.3 cents per share as compared to 146.5 cents per share in the comparative period. Basic earnings per share ("EPS") for the year ended 31 December 2023 is expected to be between 14% and 19% higher than the comparative period or between 169.4 and 176.8 cents per share as compared to 148.6 cents per share for the comparative period. All divisions contributed to this strong performance by the group. We are pleased with enrolments for 2024 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 2023 on the JSE’s Stock Exchange News Service on or about Monday, 25 March 2024. 6 March 2024 Johannesburg Sponsor: Bridge Capital Advisors Proprietary Limited
More Posts
Share by: