Curro resumes dividend payments

Private education group Curro has resumed its final dividends following a freeze last year. The company reported a 14.5% jump in annual revenue as more learners enrolled at its schools. As of February 22, Curro said it had 70,408 students enrolled for the 2022 financial year. Andres Greyling, CEO at Curro, discussed the company's performance and future plans in an interview with CNBC Africa. Greyling highlighted the challenges faced by Curro in the previous financial year and how the growth in learner numbers in 2021 helped drive profits. He emphasized the high fixed costs of the group, particularly related to staff salaries and facilities, which impacted the financial performance when learner numbers decreased. However, the increase in student enrollment in 2021 allowed Curro to optimize its resources and enhance profit growth. Greyling expressed optimism about the gradual return to normalcy of income streams like after-school programs and facility rentals. He mentioned that while these revenues are not expected to reach pre-pandemic levels in 2022, the company is focusing on expanding its market reach across Africa to boost activities and revenue. The interview delved into Curro's tuition fee increase of 11.8%, which is double the level of consumer price inflation, but Greyling clarified that it was not solely due to fee hikes. He explained that the growth in learner numbers, especially in high school grades, also contributed to the revenue increase. Greyling noted a growing trend of parents enrolling their children in high school levels, indicating a willingness to invest in education for future university prospects. He mentioned that the fee adjustments made in 2021 had a positive impact on enrollment numbers, reflecting the affordability of Curro's services for many parents. Greyling addressed the issue of outstanding debt from parents who had to discontinue their children's education at Curro during the pandemic. He acknowledged the financial strain faced by families in industries like tourism and entertainment, which led to contract terminations. However, he expressed hope that as these sectors recover, some parents may re-enroll their children in Curro schools. The CEO highlighted Curro's strong cash generation in 2021 and the company's plan to invest 1.1 billion rand in expanding campuses and facilities. He emphasized the need for additional classrooms to accommodate the growth in student numbers, particularly as more campuses reach grade 12 level. Greyling underscored the importance of balancing investments with financial stability, enabling Curro to resume dividend payments without jeopardizing its business operations. Regarding the future of education and the digital landscape, Greyling discussed Curro's online school platform for grades 4 to 11. He mentioned that while there was a plateau in online school enrollment during the pandemic, the return to physical classrooms has seen parents favoring in-person education for their children. He emphasized the importance of social interaction and community engagement in traditional school settings, which online platforms cannot fully replicate. Greyling introduced Curro's 'Kuro Joyshall' initiative, which offers a wide range of subjects electronically to students, providing flexibility and choice in their learning experience. The CEO envisions the online platform complementing physical schools and expects the ice pool segment to integrate more digital offerings in the future. In conclusion, Curro's decision to resume dividend payments reflects confidence in its financial stability and growth prospects. The company's focus on expanding infrastructure, balancing costs, and adapting to changing educational trends positions it well for future success in a dynamic market.