JOHANNESBURG, Aug 14 (Reuters) - South African private education firm Curro Holdings COHJ.J will invest 223 million rand ($14.66 million) in opening four new campuses, it said on Wednesday, after reporting a 44% rise in half-year headline earnings.
Founded in 1998, Curro, which runs schools and tertiary institutions in South Africa, Botswana and Namibia, has been growing at a lightning rate as parents frustrated with under-resourced, over-crowded state-run schools splash out on private education.
For the six-months ended June 30, Curro's pupil numbers increased by 13% to 57,173, increasing revenue by 19% to 1.48 billion rand.
Besides opening the new campuses, Curro also has major expansion and replacement projects underway, with an estimated investment of 1 billion rand in 2019, it added.
"The board believes Curro is positioned for growth and will focus on increasing utilisation of the existing school infrastructure capacity in the short to medium term," it said.
"Curro will also reduce capital outlay on Greenfield schools over the medium term."
Headline earnings, the main profit gauge used in South Africa that strips out some one-off items, increased by 44% to 50 cents from 34.8, whilst recurring HEPS rose by 7%.
Group earnings before interest, taxation, depreciation, amortisation and head office expenditure (EBITDA) rose by 21% to 415 million rand.
At 1125 GMT, shares in Curro were 7.98% firmer to 17.99 rand.
($1 = 15.2119 rand)
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.