South Africa – AdvTech H1 revenue grows 18% with improvement across the board

August 30, 2022

South Africa-based staffing firm AdvTech (ADH:SJ) yesterday announced revenue of R3.38 billion ($201.4 million) for the six months ended June 30, 2022, an increase 18% over the previous year.

(million ZAR) S1 2022 S1 2021 To change H1 2022 (USD million)
Revenue 3,380.4 2,859.8 18% 201.4
EBITDA 781.7 665.3 17% 46.5
Operating profit before interest and non-trading items 612.3 513.9 19% 36.5
Profit for the period 384.5 318.2 21% 22.9

Group revenue increased 18% to R3.38 billion ($201.4 million) for the period due to enrollment growth in school and tertiary divisions, as well as the improvement of commercial activity in the resourcing division. Operating profit increased by 19%, with the group operating margin improving to 18.1% (2021: 18.0%).

Revenue by segment

(million ZAR) S1 2022 S1 2021 To change H1 2022 (USD million)
Schools 1,391.9 1,206.7 15% 82.9
Tertiary 1,324.1 1,218.4 9% 78.9
Resourcing 664.4 437.5 52% 39.6
Intra-group turnover 0 -2.8 0

In the Schools division in South Africa, turnover increased by 14%.

The group said its tertiary division has performed well and continues to grow thanks to its brand portfolio which offers a full range of programs and qualifications.

Within Resourcing, AdvTech said its strategy of expanding into the “Rest of Africa” continues to pay off, with its growing presence in the region leading to a 65% increase in revenue. The performance of the South African resourcing business was “encouraging” as it continued to grow market share in a challenging environment, growing revenue by 13%, the company said.

“The demand for quality education is relentless,” AdvTech said. “We continue to strengthen our competitive advantage by further enhancing our offering to add value in the delivery of quality education. This, combined with the clear market positions of our brands in the school and tertiary divisions, has allowed us to experience good growth over the past few years.
“We are determined to continue this approach to optimize our performance in South Africa and the rest of Africa,” added AdvTech. “Our revised structures and improved systems have not only achieved efficiencies, but have also enabled us to be nimble and responsive in dealing with both unforeseen challenges and a difficult socio-economic environment.”
Looking ahead, the group said: “We believe the AdvTech Group is uniquely positioned to leverage all of these advantages and benefit from the continued growth in demand for education in South Africa and the rest of the world. ‘Africa. This gives us confidence for the future and allows us to hope that we will continue our growth trajectory. »

AdvTech stock closed at ZAR 1,605 (USD 95.66) yesterday, unchanged during the day. The company has a market capitalization of ZAR 9.12 billion (USD 543.57 million).