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View All NewsSouth Africa – AdvTech revenue rises 14%, Schools and Tertiary segments boost growth
South African recruitment firm AdvTech (ADH: SJ) reported revenue today for the six months ended 30 June 2018 of ZAR 2.26 billion (USD 159.7 million), an increase of 14% compared to last year.
Trading results for the six months to 30 June 2018 were as follows.
| (ZAR millions) | H1 2018 | H1 2017 | Change | H1 2018 (USD millions) |
| Revenue | 2,264.8 | 1,995.0 | 14% | 159.7 |
| EBITDA | 477.1 | 417.7 | 14% | 33.7 |
| Operating Profit Before Interest | 387.1 | 336.0 | 15% | 24.8 |
| Profit for the Period | 231.1 | 207.3 | 11% | 13.8 |
The company earns most of its revenue through two separate education divisions, Schools and Tertiary. AdvTech Group’s Resourcing division’s activities include permanent and temporary staffing solutions; as well as recruitment advertising, e-recruitment, and advertisement response handling. The Resourcing division predominately operates in the IT, Finance, and Engineering sectors.
According to AdvTech, during the first half of the year, the group’s Tertiary division once again performed exceptionally well, while the Schools division increased its scale significantly, mainly through acquisitions.
Revenue in the group’s Tertiary division saw revenue increase by 12% to ZAR 883 million (USD 62.4 million).
The Schools divisional revenue increased by 18% to ZAR 1.06 billion (USD 74.9 million) in H1 2018. Growth was driven mainly by acquisitions. In April, AdvTech announced that it had acquired the Makini Group, a chain of schools based in Kenya.
Meanwhile, the group’s Resourcing division reported an increase of 4% in revenue to ZAR 321 million (USD 22.7 million).
“We continue to see opportunities for growth, both in South Africa and on the rest of the continent, and the group remains in a strong position to pursue its growth strategy,” the Board stated. “Our Tertiary and Resourcing divisions continue to perform well while significant change is being implemented in the Schools division to drive operational efficiencies and sharpen market focus, in order to deliver high levels of performance across the board.”
As of last trade Advtech traded at ZAR 1,515.00 (USD 107.11), no change on the day 4.48% above its 52-week low of ZAR 1,450.00 (USD 102.50), set on 15 December 2017. Based on its current share price the company has a market value of ZAR 8.25 billion (USD 583.1 million).