AdvTech posts $316 million revenue as enrolments near 120,000

AdvTech, South Africa’s leading private education and resourcing group, delivered a strong first-half performance, with normalised earnings increasing 16% to R716.5 million ($44.75 million) in the six months ended June 2026, supported by enrolment growth, higher revenue and improved operating margins.

According to the group’s recently published interim results, group revenue increased 8% from R4.68 billion ($292.28 million) in the prior-year period to R5.06 billion ($316 million), while operating profit rose 14% to R1.11 billion ($69.32 million). The group’s operating margin improved to 22%, compared with 21% a year earlier.

AdvTech’s performance was underpinned by strong demand across its Education Division, with total group enrolments rising 13% to 119,197 students. Tertiary enrolments increased 19% to 71,467, while Schools Division enrolments rose 5% to 47,730.

AdvTech’s education division drives earnings growth

The Education Division remained the group’s primary growth engine, with revenue increasing 13% to R4.4 billion ($274.79 million) and operating profit rising 15% to R1.07 billion ($66.82 million). The Schools Division generated revenue of R2.16 billion ($134.9 million, up 8% year-on-year, while operating profit increased 10% to R478.8 million ($29.9 million). The division’s operating margin improved to 22.2% from 21.8%. South African schools contributed R1.86 billion ($116.16 million) in revenue, up 8%, while operating profit increased 9% to R387.5 million ($24.2 million).

The Rest of Africa schools business also delivered stronger results, with revenue rising 8% to R303.1 million ($18.93 million) and operating profit increasing 11% to R91.3 million ($5.7 million). The group said growth across its African schools was stronger in local-currency terms but was partly offset by the appreciation of the South African rand against local currencies.

AdvTech is also investing in its African education footprint. Its Makini brand is upgrading the Regis Runda school in Nairobi, while the Makini Statehouse school is being redeveloped to improve facilities and double student capacity. Flipper International School in Addis Ababa is also relocating one of its schools to larger premises, adding capacity for 450 students.

Tertiary division delivers 19% operating profit growth

AdvTech’s Tertiary Division recorded particularly strong growth during the period, with revenue climbing 17% to R2.24 billion ($139.89 million) and operating profit increasing 19% to R591.7 million ($36.95 million).

The division’s operating margin improved to 26.4% from 25.9%, despite continued investment in its brands and initial operating losses associated with Rosebank International University College in Ghana. The performance was supported by the consolidation of AdvTech’s higher education portfolio, the relaunch of Rosebank College as Rosebank International and continued growth in its distance-learning offering. Emeris, the group’s higher education brand comprising Varsity College, Vega, MSA and HSM, opened a R420 million ($26.23 million) mega-campus in Sandton, Johannesburg, in February 2026. AdvTech is also developing a new Emeris campus in Durban, with construction expected to begin in 2027. 

The first phase is planned to accommodate 8,000 students, while a second phase is expected to increase capacity to 10,500 students by 2035. The group said Rosebank International and Emeris intend to apply for university status once the South African government finalises regulations governing the recognition process for private higher education institutions.

AdvTech strengthens cash generation and shareholder returns

AdvTech’s strong earnings performance was accompanied by improved cash generation. Cash generated from operating activities increased 17% to R2.69 billion ($168 million), compared with R2.3 billion ($143.64 million) in the first half of 2025.

The group used the cash to repay R940 million (458.7 million) in loan facilities, fund R403 million ($25.17 million) in capital expenditure and return R406 million ($25.36 million) to shareholders through dividends. It also spent R250 million ($15.61 million) on a share buyback programme.

Net borrowings, excluding lease liabilities, stood at R130 million ($8.12 million) as of June 30, 2026, compared with R32 million ($2 million) a year earlier.

The board declared an interim dividend of R0.53 per ordinary share, up from R0.45 in the prior-year period. The total dividend amounts to R290.8 million ($18.16 million), with payment scheduled for Sept. 14, 2026.

Headline earnings rose 16% to R716.5 million ($44.45 million), while headline earnings per share increased by the same percentage to R1.31 from R1.13.

AdvTech maintains growth outlook despite resourcing pressure

While the Education Division continued to expand, AdvTech’s Resourcing Division faced a more challenging operating environment. Revenue declined 15% to R655.8 million ($40.96 million), while operating profit fell 12% to R44.3 million ($2.77 million). Despite the decline, the division improved its operating margin to 6.8% from 6.5%.

The Rest of Africa resourcing business remained under pressure following the unexpected closure of the United States Agency for International Development (USAID) in February 2025, which continues to weigh on revenue. Despite these pressures, AdvTech said its strong balance sheet, cash generation, growing scale and established African footprint position the group to maintain its growth trajectory.

The group also plans to simplify its South African schools portfolio from January 2027. Southdowns College will move under Crawford International, while Tygervalley College and Glenwood House School will align with Trinityhouse. Pecanwood College and Greenwood Bay College will become part of Pinnacle.

With a current market capitalization of R25.3 billion ($1.58 billion), AdvTech said it remains focused on strengthening its competitive position through investments in technology, artificial intelligence-powered learning tools and enhanced student information systems as it seeks to expand its leadership in private education across Africa.