Advtech Posts Two Billion Operating Profit
Double digit revenue growth and margin improvement deliver a 17% increase in earnings
Commenting on the year ended 31 December 2025, Advtech CEO, Geoff Whyte said: “Healthy enrolment growth, moderate fee increases, improved debtor control and increased margins contributed to Advtech delivering over R2 billion in operating profit for the first time.”
“Simplification of our brand structures alongside significant investment in people, systems and infrastructure continue to strengthen our position as the leading provider of private education on the African continent.”
Group: Operational and Financial Performance
- Revenue up 10% to R9 330 million (2024: R8 521 million)
- Operating profit up 14% to R2 038 million (2024: R1 791 million)
- Operating margin improvement to 21.8% (2024: 21.0%)
- Normalised earnings per share increased by 17% to 236.1 cents (2024: 202.5 cents)
Group revenue grew by 10% to R9 330 million for the period (2024: R8 521 million), driven by a 13% increase in the education division.
Group operating profit increased by 14% to R2 038 million (2024: R1 791 million),
with the education division’s operating profit increasing by 15%.
Group operating margin improved to 21.8% (2024: 21.0%). Operating margin in the education division improved to 24.7% (2024: 24.2%) through scale leverage and a continued focus on efficiencies. This more than offset the additional costs incurred to strengthen the group’s 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 year increased by 17% to R1 297 million (2024: R1 109 million) while normalised earnings per share increased by 17% to 236.1 cents (2024: 202.5 cents) per share.
A continued focus on collection processes saw gross trade receivables increase by only 5% compared to a revenue increase of 10%. Loss allowances increased to R415 million (2024: R395 million), representing 49% (2024: 49%) coverage of gross trade receivables. Credit losses decreased from R195 million in 2024 to R159 million in the period under review, due to the improved debtors book performance.
Cash generated by operating activities increased by 20% to R2 691 million (2024: R2 250 million). Capital expenditure of R1 139 million was focused mainly on increasing capacity at existing sites to meet incremental demand, as well as the completion of new Emeris / Vega mega-campuses in Sandton and Nelson Mandela Bay, both of which began operating in January 2026.
Dividend Announcement
The board declared a final gross dividend of 73 cents (2024: 63 cents) per ordinary share in respect of the year ended 31 December 2025. This brings the full year dividend to 118 cents (2024: 101 cents) per share.
Divisions: Operational and Financial Performance
Schools South Africa
- Robust enrolment growth driving financial performance
Revenue increased by 10% to R3 443 million (2024: R3 120 million) with all brands showing enrolment growth. Operating profit increased by 13% to R721 million (2024: R640 million) with operating margin improving to 20.9% (2024: 20.5%).
The group’s 2025 matric students achieved a 99.7% pass rate, a 94.0% bachelor’s degree pass rate and 3 371 distinctions at an average of 2.1 distinctions per student.
Enrolments at Pinnacle College Raslouw continued to grow with the build out of the school completed in June 2025. Pinnacle College Ridge View, in Roodepoort, which opened in January 2025, continues to perform in line with expectations.
Schools in the Rest of Africa
- Growing the group’s footprint
Revenue increased by 28% to R574 million (2024: R449 million) driven by strong enrolment growth, the full year inclusion of Flipper International Schools and a part year contribution from the Regis Runda acquisition. Operating profit increased by 33% to R194 million (2024: R146 million). Operating margin improved to 33.7% (2024: 32.4%). Cambridge International Curriculum students achieved 716 distinctions at an average of 1.3 distinctions per student.
The Regis Runda school in Nairobi was acquired for R171 million in August 2025. Investments to upgrade facilities and academic support systems are under way. Enrolments have increased by 17% since acquisition to just under 1 400 against a built capacity of 2000. Ultimate capacity on the Runda site is 3000 students.
The group also concluded a new long-term lease on the Makini Statehouse campus, in Nairobi, Kenya to begin a R39 million expansion project that will double capacity to 575 students. Building work will be completed in time for the beginning of the 2027 academic year.
Our premium priced Makini Cambridge International curriculum continues to experience high demand, with parents increasingly choosing it over the Kenyan national syllabus. This is having a positive impact on the overall financial performance of the Makini brand.
Tertiary / University Division
- Accelerating demand for the group’s well-established brands
Revenue increased by 13% to R3 849 million (2024: R3 401 million) whilst operating profit increased by 14% to R1 031 million (2024: R903 million). Operating margin increased to 26.8% (2024: 26.6%) despite sizeable investments to strengthen the group’s brand propositions and the up-front costs incurred in the establishment of Rosebank International University College (RIUC) in Ghana.
The division continues to perform well, driven by a strong portfolio of advantaged brands 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.
Average module success rates across all qualifications improved to 84% (2024: 80%).
Emeris, a groundbreaking new private higher education brand that brings 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.
Facilities include a double-storey library and information centre, a student experience hub with career and counselling services, a custom-designed indoor sports centre capable of hosting international events and innovation spaces including IT labs, podcast studios and interactive classrooms.
The group is currently at the development stage of its new Emeris Durban campus. Construction is expected to commence in 2027, with phase one scheduled to open in 2029. The initial build will accommodate approximately 8 000 students and include a purpose-built 500-bed student residence.
A second phase, planned for completion in 2035, will expand capacity to 10 500 students, with accommodation increasing by a further 500 beds.
RIUC in Ghana was inaugurated in August 2025. Student registrations commenced in January 2026, with lectures currently under way.
The relocation of the Rosebank College (RC) Cape Town mega-campus and the RC Polokwane expansion project were both completed last year. A major redevelopment of the RC Braamfontein campus is currently under way.
Recognition of our Tertiary Brands as Universities
Advtech last year welcomed policy developments that create a formal pathway for private higher education institutions to apply for university status.
The regulations outlining the application process, timelines, and criteria are still being drafted by government.
Once published, Rosebank College and Emeris will both apply for university status.
“University recognition will ultimately benefit our students who will finally be afforded the same status as their peers who obtain identically accredited qualifications through public institutions.” said Whyte.
Resourcing division
- Resourcing South Africa returns to profitability
Driven by a focus on efficiencies and diligent cost management, the group’s South African Resourcing business has returned to profitability.
The unexpected closure of the United States Agency for International Development in February 2025 had a negative impact on our Rest of Africa business. Around 10% of our client base (non-governmental and charity organisations) was impacted by the sudden withdrawal of their funding. Despite this setback, the business delivered a creditable full-year performance and continues to secure new contracts.
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.
Advtech Updates












