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Johannesburg - Education company Curro Holdings has reported a narrowing in its diluted headline loss per share to 1.9 cents
for the six months ended June 2012 from a loss of 9.6 cents a year ago.
The group’s revenue increased 103% to R161.3m due to a significant increase in learner
numbers and acquisitions and its earnings before interest and tax rose to
R12.4m from R2.25m a year ago.
It reported a loss for the period of R2.98m after a loss of
R7.70m previously.
EBITDA amounted to R18.4m - an increase of 226% as a result
of capacity being filled at existing schools without a proportionate increase
in costs‚ as well as the inclusion of profit making schools from acquisitions
for a part of the period.
No dividend has been declared for the period and Curro will
for the foreseeable future use all cash generated to expand existing campuses
and establish new campuses. In time‚ a point will be reached when the
operational cash generated will exceed capital requirements. It will then
commence with the payment of dividends‚ it said.
The company also on Monday renewed its cautionary notice‚
saying further to the announcement of July 24‚ negotiations are still in
progress relating to certain corporate actions‚ which if successfully concluded
may have a material effect on the price of the company’s shares.
Looking ahead‚ the group said the provision of quality
education and the safety of its learners remain a top priority.
The growing positive sentiment about the private school
market is encouraging‚ it noted.
“Curro’s management will continue to expand the business by means of organic and acquisitive growth in years to come. The R476m that was raised through the rights issue and specific issue in July 2012 will be utilised for this purpose‚” it said.
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