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29 March 2023
South Africa-based recruitment and education firm AdvTech (ADH: SJ) reported revenue Monday for the year ended 31 December 2022 of ZAR 6.96 billion (USD 384.0 million), an increase of 18% compared to the previous year.
The group cited good enrolment growth in both the schools and tertiary divisions complemented with increased business activity in the resourcing division.
Operating profit increased by 20% with the group operating margin improving to 19.1% (2021: 18.7%).
AdvTech CEO, Roy Douglas, said, “AdvTech has delivered a strong set of results for the financial year ended 31 December 2022. This continued trend of delivering a consistent performance is reflective of the quality of our assets, the group’s scale and resilience. Furthermore, the decision to invest in selected African markets is now contributing significantly to operating profit.”
| (ZAR millions) | FY 2022 | FY 2021 | Change | FY 2022 (USD millions) |
| Revenue | 6,960.6 | 5,917.2 | 18% | 384.0 |
| EBITDA | 1,678.2 | 1,422.8 | 18% | 92.5 |
| Operating Profit Before Interest and non-trading items | 1,332.5 | 1,108.3 | 20% | 73.4 |
| Profit before taxation | 1,174.2 | 959.1 | 22% | 64.7 |
| Profit for the Year | 841.9 | 679.4 | 24% | 46.4 |
Revenue by segment
| (ZAR millions) | FY 2022 | FY 2021 | Change | FY 2022 (USD millions) |
| Schools | 2,825.8 | 2,457.6 | 15% | 155.8 |
| Tertiary | 2,727.6 | 2,441.6 | 12% | 150.4 |
| Resourcing | 1,407.2 | 1,018.0 | 38% | 77.6 |
| Total Revenue | 6,960.6 | 5,917.2 | 18% | 384.0 |
Within the Resourcing division, the group said its strategy to expand into the rest of Africa continues to pay dividends. The resourcing division continues to increase its presence and number of placements across 19 countries on the continent with the bulk of its revenue and operating profit being generated outside of South Africa. Revenue increased by 38% over the year.
In the Tertiary division, the group said it performed well and continues to grow off the back of a ‘well-established, quality brand portfolio’ that offers a comprehensive range of programmes and qualifications.
In its Schools division, AdvTech reported growth in ‘Schools South Africa’ as well as ‘Schools in the rest of Africa’.
Revenue in Schools South Africa increased by 14%. All of its brands, including the premium brands, have shown growth. All the school brands in the ‘Rest of Africa’ continue to experience strong enrolment growth and are ‘operationally sound’ with revenue increasing by 25%.
Looking ahead, Douglas said, “AdvTech remains uniquely positioned to benefit from the continued growth in demand for education in both South Africa and particularly in the rest of Africa. This, together with the good enrolment growth achieved at the start of 2023 in both our schools and tertiary divisions, gives us confidence and an expectation that we will continue on our growth trajectory.”
AdvTech shares closed on Monday at ZAR 1,688 (USD 93.06), up 0.59% on the day. The company has a market cap of ZAR 9.43 billion (USD 519.89 million).
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