Stadio maiden results outperform prelisting target | Fin24
 
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Stadio maiden results outperform prelisting target

Mar 12 2018 19:19

Cape Town - Stadio Holdings, the JSE listed investment holding company that focusses on investments in higher education institutions, successfully outperformed a forecast headline loss of R10.8m in its published prelisting statement with a headline loss of R7m for the financial year ending December 2017.

The headline loss amounted to 1.2 cents per share compared to a forecast headline loss of 2.3cper share per the prelisting statement.

Stadio successfully unbundled from Curro Holdings and listed on the main board of the JSE on 3 October 2017.

Announcing its maiden results, Stadio CEO Dr Chris van der Merwe said he is very pleased with the group’s first financial results.

“In only one year we have managed to establish a higher education platform that presents dynamic and exciting organic growth prospects for the future. This follows a successful listing of Stadio Holdings, a total of R840m in capital that was raised, and the establishment of an organisational structure with top academic staff.

“There are always possible and interesting acquisitions in the offing, which will provide for a further expansion of our range of products and qualifications.

“This provides for confidence over the longer-term that Stadio will contribute to a decrease in the current unemployment figure of 27.5% with its focus on relevant qualifications that will prepare graduates for employment as well as entrepreneurship and job creation,” Van Der Merwe said.

At year-end Stadio had 12 976 enrolled students, representing a 16% increase during the period under review.

The students were accommodated in three registered education institutions - Embury Institute for Higher Education (Embury), South African School of Motion Picture Medium and Live Performance (AFDA) and Southern Business School (SBS) - providing 28 accredited programmes on 9 campuses and 1 support office. A further 20 formal programmes are currently in the process of development and accreditation.

In October 2017, Stadio entered into purchase agreements to acquire a 70% interest in MBS Education (MBS) which owns 100% of Milpark Investments Education (Milpark). The conclusion of the Milpark acquisition is subject to exchange control approval by the South African Reserve Bank. It is expected that this transaction will be concluded in the first quarter of 2018.

Stadio also concluded a purchase agreement to acquire 100% of LISOF. The acquisition became effective on 1 January 2018.

Post the year-end an agreement is in the process of being concluded whereby Milpark will acquire the CA Connect Professional Training Institution (CA Connect). This is subject to certain conditions precedent, including the conclusion of the Milpark transaction.

“Based on these acquisitions and prospects, the profit after tax target of R41 million by 2018 year-end is achievable.

“With top brands like Embury, LISOF, Milpark, SBS and AFDA, we have assembled a range of qualifications that will fulfil the needs of many students.

“The intention is to extend this range of qualifications annually to eventually include all the typical faculties found at public universities to present a true Multiversity to South Africa,” Van der Merwe concluded.  

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