Private school giant in South Africa worth R21 billion sees huge profit growth – BusinessTech

AdvTech has seen a significant rise in profit, with the private education provider reporting strong performance across its three main divisions.

JSE-listed AdvTech is the owner of Crawford International, Pinnacle College, Vega, Trinityhouse, the recently launched Emeris and many more. The company currently has a market cap of over R21 billion.

AdvTech’s Schools South Africa business saw revenue increase by 10% to R3,443 million (2024: R3,120 million) with all brands showing enrolment growth.

Schools South Africa saw operating profit increase by 13% to R721 million (2024: R640 million) with operating margin improving to 20.9% (2024: 20.5%).  

The group said enrolments at Pinnacle College Raslouw continued to grow, with the school’s build-out phase completed in June 2025.

Pinnacle College Ridge View, in Roodepoort, which opened in January 2025, also continued to perform in line with the group’s expectations.  

Schools in the Rest of Africa Division showed a massive 28% increase in revenue to R574 million (2024: R449 million), driven by strong enrolment growth.

The group also benefited from the full-year inclusion of Flipper International Schools in Ethiopia and a part-year contribution from the Regis Runda acquisition in Kenya for R171 million.

Operating profit in Africa increased by 33% to R194 million (2024: R146 million). Operating margin also improved to 33.7% (2024: 32.4%).

The Tertiary/University Division saw revenue increase by 13% to R3,849 million (2024: R3,401 million) amid accelerated demand for the group’s well-established brands.

Operating profit increased by 14% to R1,031 million (2024: R903 million). The group said that operating margin increased to 26.8% (2024: 26.6%).

The operating margin growth came despite investments to strengthen the group’s brand propositions and the up-front costs incurred in establishing Rosebank International University College 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,” the group said.

“In line with the group’s strategy, the division is also achieving exceptional enrolment growth in its distance offering.”

The group also opened its new brand, Emeris, which brings Varsity College, Vega, MSA and HSM under one brand, in February 2026, with the opening of a new R420 million mega-campus in Sandton.

The group is currently working on a new Emeris Durban campus, with construction expected to commence in 2027, with phase one scheduled to open in 2029.

The initial build will accommodate approximately 8,000 students in Durban and include a purpose-built 500-bed student residence. 

A second phase, that should be completed by 2035, will expand capacity to 10,500 students, with accommodation increasing by a further 500 beds. 

The group added that the relocation of the Rosebank College (RC) Cape Town mega-campus and the RC Polokwane expansion project were both completed last year, while a major redevelopment of the RC Braamfontein campus is underway.

AdvTech also welcomed policy developments that will allow private higher education institutions to apply for university status. Emeris and Rosebank College are both expected to 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 AdvTech CEO, Geoff Whyte.  

Group’s results

Overall, the group’s revenue increased by 10% to R9.3 billion, while operating profit before interest and non-trading items increased by 14% to R2 billion.

Normalised earnings increased by 17% to R1.3 billion, while normalised earnings per share grew 17% to 236.1 cents per share.

Headline earnings per share rose by 17% to 235.8 cents, while earnings per share increased by 16% to 234.4 cents. The group’s full-year dividend of 118 cents per share increased by 17%.

While the group’s overall results were strong, the group’s Resourcing Division faced challenges over the period.

The Resourcing Division returned to profitability due to efficiencies and diligent cost management.

However, the closure of the US Agency for International Development in February 2025 negatively impacted the group’s Rest of Africa business.

Roughly 10% of the business’s client base, which comprises non-governmental and charitable organisations, was hit by the sudden withdrawal of their funding.

The group said that the Resourcing Division still delivered a creditable full-year performance and continues to secure new contracts.