ADvTECH shows resilience in tough market conditions

Private education provider ADvTECH has shown resilience in tough market conditions, reporting a 6 per cent rise in headline earnings per share for the year ended December. Revenue increased by 8 per cent, leading the company to resume the payment of dividends. ADvTECH CEO Roy Douglas credits the robust and resilient nature of the business model for these positive results. The company navigated the challenging pandemic period by taking strategic actions to safeguard the business, protect employees, parents, and students, and ensure the sustainability of operations. These measures included reducing unnecessary expenses, focusing on essential items to support online educational activities, and improving the balance sheet. The decision to resume dividends was driven by strong cash generation, a sound balance sheet, and satisfactory enrollments for 2021. Douglas expressed cautious optimism about the future, highlighting the continued demand for private education in both South Africa and the rest of Africa. The company's portfolio of brands, from K-12 schools to tertiary education, has shown resilience and adaptability in meeting consumer needs. ADvTECH's focus on value offerings, efficiency, and effective improvements has been integral to its strategy. The CEO emphasized the importance of technology as an enabler for teaching and learning, while also recognizing the value of face-to-face interactions in education. As the company looks ahead, it remains committed to providing high-quality education through a variety of delivery methods, including traditional classrooms and hybrid online learning. Despite the economic challenges and elevated joblessness in South Africa, ADvTECH continues to see positive growth and demand for its educational services. The company's investments in Africa, particularly in Kenya and East Africa, have shown promising results despite temporary revenue and profit setbacks due to the pandemic. Enrollment numbers have risen, reflecting the success of ADvTECH's academic offerings and response to the crisis. While recent civil unrest in the country has not directly impacted ADvTECH's operations, delays in the academic year and matric results have affected the tertiary business's enrollment cycle. The company remains optimistic about future prospects and is closely monitoring the situation to adjust its strategies accordingly.