Basking in the success of one of its learners winning a silver medal at the Paris Olympics, private school group Curro Holdings says it increased spending on extramural activities — including sports — in the first half of 2024.
Bayanda Walaza, an 18-year-old matric learner at Curro Hazeldean in Tshwane, was part of the successful South African 4x100m relay team that included Akani Simbine.
Curro CEO Cobus Loubser said Walaza’s success was closely tied to the school’s mission to expand opportunities to every learner, even outside the classroom.
“His story is incredibly inspiring and one of our highlights as Curro. It’s an indication that sometimes what we do matters, especially supporting the dreams of our learners,” he said.
Loubser said there has been growing interest in extramural activities, which prompted the increased spending in that area.
“Participation of learners in extramurals such as sports, leagues and cultural activities is increasing impressively, and we are pleased with the enthusiasm from the learners.”
His story is incredibly inspiring and is one of our highlights as Curro. It’s an indication that sometimes what we do matters, especially supporting the dreams of our learners
While Curro could not provide an exact figure on how much is spent on extramural activities, Loubser said the school has a variety of models, with spending dependent on each school’s needs and aspirations.
Releasing its interim results on Wednesday, the group reported that its key financial metrics had improved in the first six months. Revenue increased by 8% to R2.5bn and recurring headline earnings were up 12% to R288m in that period.
The group’s headline and recurring headline earnings per share also increased by 16.2% to 40.2c per share.
Loubser said the improvement in revenue was due to a 6% hike in tuition fees and a 0.5% increase in the average number of learners to 72,758.
The company said its board resolved not to declare a dividend for the six months ended June 30, in line with its policy to distribute 20% of recurring headline earnings as an annual dividend.
“We are pleased with the improvement in key financial metrics. These results reflect our ability to manage costs efficiently while continuing to expand our offerings.”
In this period, Curro invested R306m in the business and plans to invest up to R700m in capital projects by the end of the year to maintain, replace and expand its facilities.
The group’s operating expenses also increased in this period, with Loubser attributing this to an increased number of learners, recruitment of more teachers, and higher spending on extramural activities.
Two new facilities were also opened in Walvis Bay and Oshana in Namibia, adding to the one the group already has in Botswana. It also opened a new campus in Barlow Park, Sandton, bringing to 189 the number of Curro schools in and outside South Africa by June 2024.
Loubser said while the company was actively looking at opportunities in other countries, its focus was on improving where it already operates.
“We take an interest in other countries but right now in our business story, it’s not about pursuing opportunities in exotic locations but to make the best of what we have. Much of the group’s focus in the short to medium term is to support and increase the capacity utilisation of its existing facilities,” he said.
Curro’s debtors’ book consists of R240m in actively enrolled accounts and R121m in inactive accounts.
Loubser said some families remain under financial strain because of high interest rates, with younger parents who have children enrolled in lower grades being affected most. He said the schools were working closely with parents to provide assistance where possible, to ensure that children in lower grades whose parents have overdue accounts can be kept in the system.
“As an institution that wants to provide learners with opportunities, one of the hardest things is having to terminate an account because fees were not paid, so we offer discounts where we can and make parents aware of any scholarship opportunities.”
After a strong half-year performance, Curro said it would reduce its annual fee increase from 6% to 5.5%, in line with inflation.
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