Advtech posts 18% jump in annual revenue
Private education group Advtech reported a 18 per cent jump in annual revenue and a 20 per cent jump in operating profit boosted by increased learners on boarding its schools and tertiary divisions as well as a good showing of its resourcing division. Advtech also reported strong growth in the rest of Africa, where operating profit soared by 69 per cent to R80 million. CNBC Africa is joined by Roy Douglas, CEO of ADvTECH.
Mon, 27 Mar 2023 11:00:04 GMT
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AI Generated Summary
- Advtech reports an 18% increase in annual revenue and a 20% rise in operating profit, driven by higher learner numbers and strong performance in the rest of Africa.
- The company faced challenges with migrating the tertiary business to a new information system but still achieved growth and profitability in the division.
- Advtech is confident in the demand for quality education and is exploring expansion opportunities in Africa, targeting countries with strong economic performance and education demand.
Private education group Advtech has reported an 18 per cent jump in annual revenue and a 20 per cent increase in operating profit, driven by higher learner numbers in its schools and tertiary divisions, as well as a strong showing in its resourcing division. The company's operations in the rest of Africa saw operating profit surge by 69 per cent to R80 million. Roy Douglas, CEO of Advtech, joined CNBC Africa to discuss the company's performance. Douglas highlighted that all divisions delivered good profit growth despite economic challenges and pressure on consumer spending. However, he noted that migrating the tertiary business onto a new information system resulted in billing problems and increased credit loss allowances. Despite these challenges, the tertiary division still achieved a 12% revenue growth and operating profit. Looking ahead, Douglas expressed confidence in the demand for quality education and the company's ability to seize opportunities in both South Africa and the rest of Africa. He emphasized a focus on efficiency and affordability to meet consumer needs. Additionally, Advtech is exploring growth opportunities in other African countries to capitalize on the continent's economic performance. The company is targeting countries with strong education demand and aims to leverage its expertise to add value in new markets.
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