In a trading statement for the first half of the year, Curro said that the weighted average number of learners was 71,749, representing a decrease of 1.4% compared to the previous comparable period.
More positively, the group reported a 10% increase in net cash generated from operating activities.
It also noted that it continued to deliver returns to shareholders, having repurchased and cancelled 10.8 million shares during the period for a consideration of R116 million.
“This share buyback underscores the company’s confidence in the group’s prospects and its commitment to enhancing shareholder returns,” it said.
“The group remains focused on generating cash flows ahead of capital expenditure requirements, ensuring a robust financial position to support its long-term strategy.
However, as part of the required impairment assessment of land-banked properties acquired and held by Curro for future development, it needed to recognise an impairment charge of R74 million.
The adjustment reflects updated valuations and development assumptions for specific land parcels, it said.
The impairment charge will materialise Curro’s earnings per share (EPS) for the six months.
Although the impairment is included in the calculation of EPS, it is added back for Headline EPS and Recurring Headline EPS.
The impairment accounts for the expected decrease of over 20% in EPS for the period, while HEPS and RHEPS are expected to be substantially similar.
| Metric | Reported results (30 June 2024) | Expected results (30 June 2025) | % Change |
|---|---|---|---|
| RHEPS | 40.2 cents | 39.0 to 41.3 cents | Between a decrease of 3.0% and an increase of 2.7% |
| HEPS | 40.2 cents | 39.0 to 41.3 cents | Between a decrease of 3.0% and an increase of 2.7% |
| EPS | 40.2 cents | 24.4 to 26.7 cents | Decrease of between 39.3% and 33.6% |
Issued on BusinessTech | https://businesstech.co.za/news/business/835714/private-school-giant-losing-students/
