Curro Holdings Ltd, the recently JSE listed private schooling company focusing on quality private school education, increased turnover by a hefty 117% from R36,5 million to R79,3 million in the six months to June, it was announced today.

Organic growth represented 31% of turnover.

Earnings before interest depreciation and amortisation (EBITDA), however, were lower due to the significant increase in campuses country-wide from five to twelve. To support the aggressive expansion programme, the Curro Centre for Education Excellence (CCEE) was established at head office level, which together with other head office functions increased costs.    

The CCEE was established to ensure consistency at all Curro campuses and to provide head-masters with curriculum skills, content and the necessary technology to compete with first world educational systems.

This, together with a significant capital expansion programme over the last two years, resulted in an after tax loss of R7,7 million and a loss per share of 9,6 cents. No interim dividend was declared.

Curro Holdings CEO, Dr Chris van der Merwe, said head office costs have now reached a plateau and will not increase proportionally with the addition of new campuses.

Higher enrolment and an increase in fees are usually experienced during the second half of the year. This will have a positive effect on EBITDA. Capital investment are expected to amount to R280 million this year. 

He said that Curro’s objective at the listing stage of providing education to 5 540 learners at 12 schools by year-end, has already been reached. The objective for next year is to have 14 schools with 7 500 learners. There will then be capacity for 11 000 leaders without additional capital investment.

“Broadly speaking, Curro has now entered a period of investing in new schools and acquisitions in order to provide for income potential in future. The group is at present experiencing significantly more registrations at Curro campuses that in the past. We are also looking at further acquisitions.

“This is part of an overall strategy to have 40 campuses with 45 000 learners in operations by 2020.

“Curro plans to establish two to four additional campuses per year. This will be accomplished by the development of own campuses, the incorporation of smaller private schools as well as the acquisition of existing schools,” Van der Merwe said.