ADvTECH lost R88 million as students withdrew due to Covid-19
Private schooling group ADvTECH on Monday said it lost R88 million due to Covid-19 as students withdrew.
Revenues rose 13% to R2.8 billion in the half-year to 30 June 2020 while enrolments are up by 2% to 78 557 (29 February to 30 June).
Enrolments at its pre-primary schools are down 8% over the same period.
The group's debt fell to R1.7 billion (from R2.6 billion).
ADvTECH recently announced the closure of Trinityhouse Northriding, in the north of Johannesburg.
The school will shut its doors forever at the end of December.
Affected staff members have received their retrenchment letters.
Trinityhouse Northriding was planned to have 400 students but reached a peak of only 129 students in 2018.
It had only 92 students in 2020.
Up to 70% of parents with children in private schools in South Africa are battling to pay school fees, according to the National Alliance of Independent Schools Association (Naisa).
The Money Show’s Bruce Whitfield interviewed Roy Douglas, CEO at ADvTECH.
We’ve actually had better attendance online than physical attendance… We didn’t lose a single academic day…Roy Douglas, CEO - ADvTECH
Student numbers - we’ve had minimal losses as a result of the pandemic… Our switch to online seems to have paid dividends – it has minimised losses, which we expected to be larger.Roy Douglas, CEO - ADvTECH
We engage with families [that struggle to pay] …Roy Douglas, CEO - ADvTECH
We moved swiftly to preserve cash… our balance sheet is strong… We’ve pulled back on capex… We’ve reduced debt…Roy Douglas, CEO - ADvTECH
There is a thirst for education and the government is battling to provide quality… The future [for ADvTECH] will be more positive than this period…Roy Douglas, CEO - ADvTECH
Listen to the interview in the audio below.
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