Advtech Posts Interim Headline Earnings Growth of 16%
Group operating margin increases to 22% driven by operating leverage and improved debtor management
Commenting on the six months ended 30 June 2026, Advtech CEO, Geoff Whyte said:
“Healthy enrolment growth, moderate fee increases and a further improvement in debtor management contributed to Advtech delivering interim earnings growth of 16%. The ongoing consolidation of our brand portfolio is driving focus, operational efficiency and margin improvement across the business.”
Group: Operational and Financial Performance
- Revenue up 8% to R5 060 million (2025: R4 683 million)
- Operating profit up 14% to R1 115 million (2025: R982 million)
- Operating margin up 1% to 22.0% (2025: 21.0%)
- Normalised earnings per share up by 16% to 130.8 cents (2025: 113.0 cents)
Group revenue grew by 8% to R5 060 million for the six months ended 30 June 2026 (2025: R4 683 million), driven by a 13% increase in the education division.
Operating profit increased by 14% to R1 115 million (2025: R982 million), with the education division’s operating profit increasing by 15%, supported by strong enrolment growth.
Group operating margin improved to 22.0% (2025: 21.0%). Operating margin in the education division improved to 24.3% (2025: 23.8%) through the simplification of brand structures, the benefit of scale leverage and a continued focus on efficiencies. This more than offset the costs incurred to strengthen our brands through the introduction of additional global benchmarking measures, artificial intelligence tools to support personalised learning and enhanced student information systems.
Normalised earnings for the period increased by 16% to R717 million (2025: R620 million) whilst normalised earnings per share increased by 16% to 130.8 cents (2025: 113.0 cents).
A continued focus on collection processes has seen gross trade receivables increasing by only 5% compared to a revenue increase of 8%. Loss allowances increased to R505 million (2025: R488 million), representing 47% (2025: 48%) coverage of gross trade receivables. Credit losses decreased from R119 million in 2025 to R115 million in the period under review due to the improved debtors’ book performance.
Cash generated by operating activities increased by 17% to R2 687 million (2025: R2 303 million). Capital expenditure of R403 million focused mainly on increasing capacity on existing sites to meet incremental demand, the completion of the new Emeris/Vega mega campuses in Sandton and Nelson Mandela Bay, the refurbishment of Rosebank International in Braamfontein and the relocation of the group support office to the old Emeris campus in Benmore.
Dividend Announcement
The board declared an 18% increase in the gross dividend to 53 cents (2025: 45 cents) per ordinary share in respect of the six months ended 30 June 2026.
Divisions: Operational and Financial Performance
Schools
Schools South Africa
- Improved operating leverage driving strong financial performance
Revenue increased by 8% to R1 858 million (2025: R1 722 million). Operating profit increased by 9% to R388 million (2025: R354 million) with operating margin improving to 20.9% (2025: 20.6%).
As part of our ongoing programme to simplify and build scale in our brand structures, a number of previously acquired schools will, from January 2027, be aligned as follows: Southdowns College to Crawford International, Tygervalley College and Glenwood House School to Trinityhouse and Pecanwood College and Greenwood Bay College to Pinnacle.
The old Vega Bordeaux site is also being redeveloped into an Abbotts High School, due to open in January 2027.
Schools in the Rest of Africa
- Growing the group’s footprint through increased investment
Revenue grew by 8% to R303 million (2025: R281 million) driven by strong enrolment growth and the inclusion of the Regis Runda acquisition in Nairobi. Operating profit increased by 11% to R91 million (2025: R83 million). Operating margin improved to 30.1% (2025: 29.4%). All the division’s schools are delivering exceptional local currency growth which has been offset to a degree by the strengthening Rand.
The Regis Runda school was acquired in September 2025 and incorporated into the Makini brand. Investments to upgrade facilities and academic support systems are under way. We are investing to enhance our competitive position, focusing on improvements to ICT infrastructure and standardising access to AI-powered digital learning tools, such as Advlearn, to enhance the student experience and academic outcomes. Approval to launch the Cambridge International curriculum at this site has been received and implementation will begin in September 2026.
Enabled by the successful negotiation of a new lease, the Makini Statehouse school in a prime Nairobi location is being redeveloped. Work to improve facilities and double student capacity will be completed by December 2026.
Flipper International School in Addis Ababa has entered into a new lease agreement to relocate one of its schools to improved premises which will increase capacity by 450 students.
Tertiary/University
- Accelerating demand for our well-established brands
Revenue increased by 17% to R2 243 million (2025: R1 911 million) whilst operating profit increased by 19% to R592 million (2025: R496 million). Operating margin increased to 26.4% (2025: 25.9%) despite the significant investments made to strengthen student experience, elevate academic outcomes and to establish Rosebank International University College (RIUC) in Ghana.
The division continues to perform well, driven by the consolidation of our brand portfolio, the relaunch of Rosebank College as Rosebank International (RI) and an ever-expanding range of programmes and qualifications. In line with the group’s strategy, the division is also achieving exceptional enrolment growth in its distance offering.
Emeris, our groundbreaking new higher education brand that brought Varsity College, Vega, MSA and HSM together under a single entity, marked a significant milestone in February 2026 with the opening of a R420 million state-of-the-art mega-campus in Sandton, Johannesburg.
The group is currently at the development stage of its new Emeris/Vega Durban campus. Construction is expected to commence in 2027, with phase one scheduled to open in 2029. The initial build will accommodate 8 000 students and include two rugby fields, an astroturf pitch and a purpose-built 500-bed student residence. A second phase, planned for completion in 2035, will expand capacity to 10 500 students, add a swimming pool for water polo and increase accommodation capacity by a further 500 beds.
Student registrations at RIUC in Ghana commenced in January 2026 and enrolments are running ahead of expectation.
Various projects are in progress to increase capacity at RI sites to accommodate strong student demand. These include the major redevelopment and expansion of the Braamfontein, Durban and Polokwane campuses. Rosebank International will also be opening a new campus in 2027 in KuGompo City (previously East London).
Recognition of our Tertiary Brands as Universities
Advtech welcomed the promulgation of the policy for the recognition of institutional types (university, university college, and higher education college) during 2025, which created a formal pathway for private higher education institutions to apply for university status.
However, the regulations outlining the application process, timelines, and criteria are still being drafted by government and are awaited by Advtech. Once published, Rosebank International and Emeris will both apply for university status.
Resolution of these issues will ultimately benefit our students who will finally be afforded the same status as their peers who earn equivalently accredited qualifications from public universities.
Resourcing division
- Improved margin in difficult environments
The Resourcing South Africa business continues to focus on efficiencies and diligent cost management, achieving profitability despite a reduction in revenue in a difficult operating environment.
The unexpected closure of the United States Agency for International Development (USAID) in February 2025 continues to have a negative impact on revenue in our Rest of Africa (ROA) business. Despite the decline in revenue, ROA delivered a commendable performance with an increased operating margin.
Prospects
Advtech’s intent is to lead in every market segment in which we choose to operate and to become the employer of choice in the Resourcing and Education sectors.
“Advtech is uniquely positioned to enrich people’s lives through being the leader in teaching and learning across the African continent. Our sound balance sheet, strong cash generation, growing scale and expertise in Africa and unrelenting focus on extending competitive advantage position us well to maintain our growth trajectory and invest with confidence in areas of opportunity,” concluded Whyte.
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