ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2018 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Tou ough gh Eco Econo nomic mic Times Times - 2018 2018 GDP growth: SA GDP 2018 Last five years 1.2% grew 0.8% IMF World Economic Outlook: SA expected to remain below Last three years 0.9% 1.3% GDP growth Average South African poorer – income per capita declines 5 th year Unemployment in a row Stats SA Q4 2018 27,1% Source: STATSSA, IMF, City-Press ANNUAL FINANCE RESULTS for the year ended 31 December 2018 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Str Strate tegic imper gic imperativ tives es SOCIO-ECONOMIC ENVIRONMENT Growth > Organic and Acquisitive > Channel Africa > Product > Segment Excellencethrough > Geographic specialisation > Market focus > Benchmarking Academicexcellence > Data driven TION REPUT > Teaching & learning decisions > Benchmarking our REGULA performance A TION > Learning analytics > International & Employer recognition Innovation Human& Customerfocus > Business process capital > Easy to do business with > Product/market productivity > Understanding needs development TRANSFORMATION ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Oper Operating En ting Envir vironmen onment Higher Education Enrolment Growth 3% 1 200 000 966 000 938 000 1 000 000 Number of students 800 000 600 000 45% 400 000 149 000 200 000 103 000 0 Private Higher Education Public Higher Education 2011 2016 Source: Centre for Risk Analysis, Socio-Economic Survey of South Africa ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Oper Operating En ting Envir vironmen onment Schools Enrolment Growth 4% 14 000 000 12 300 000 11 800 000 12 000 000 Number of students 10 000 000 8 000 000 6 000 000 23% 4 000 000 2 000 000 590 000 480 000 0 Independent Schools Public Schools 2011 2016 Source: Centre for Risk Analysis, Socio-Economic Survey of South Africa ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Oper Operating En ting Envir vironmen onment -11% Nr. of Schools: Independent vs Public 30 000 26789 23796 25 000 Number of students 20 000 15 000 10 000 102% 5 000 1966 971 0 Independent Schools Public Schools 2000 2017 Source: Centre for Risk Analysis, Socio-Economic Survey of South Africa ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Positiv ositive e momen momentum continu tum continues es • Strong Group performance despite the challenging economic environment • Positive growth in operating profit and revenue • Schools division – good enrolments at entry levels, off-set by leavers due to emigration and financial difficulties • Despite strong headwinds the schools division has continued to grow scale • Tertiary division – continued excellent performance • Resourcing division – outstanding performance in a tough market • Africa expansion strategy demonstrating good potential ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Good Good res esults ults Trading ading perf perfor ormance mance summar summary Operational Operating Revenue profit margin 11% 14% 17.4% ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Se Segmenta gmental l tr trading ading perf perfor ormance mance Schools Tertiary Resourcing Schools The Rest of Africa 15% 131% 10% 4% Revenue 5% (89)% 23% 22% Operating profit ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Enrolment nu En olment number mbers s 80000 70 456 70000 63 544 60 176 60000 53 337 Number of students 50000 39629 36136 33463 40000 29138 30000 20000 30827 27408 26713 24199 10000 0 2016 2017 2018 2019 Schools Tertiary: Full Qualifications ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Gr Group oup enr enrolments olments histor history % % Group enrolments end February Feb-16 Feb-17 Feb-18 Feb-19 Increase Increase Schools 24 199 26 713 27 408 3% 30 827 12% Tertiary: Full Qualification 29 138 33 463 36 136 8% 39 629 10% Total 53 337 60 176 63 544 6% 70 456 11% ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Financ Financial ial Ov Over erview view ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Group Gr oup R Revenu enue 5 000 4 389 4 500 3 938 4 000 3 500 3 224 R'm 3 000 2 594 2 500 1 851 2 000 1 500 1 000 500 0 14 15 16 17 18 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Operating pr Oper ting profit ofit 900 800 763 700 668 600 560 R'm 500 454 400 300 256 200 100 0 14 15 16 17 18 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Gr Group oup oper operating mar ting margin gin 18% 17.51% 17.37% 17.38% 16.96% 16% 13.85% 14% 12% 10% 14 15 16 17 18 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Normalised Nor malised ear earnings pe nings per shar r share 90 81.1 80 75.3 70 63.3 60 53.9 Cents 50 42.3 40 30 20 10 0 14 15 16 17 18 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Cash Cash flo flow gener w generation tion 1 000 946 900 806 800 738 700 600 558 R'm 500 394 400 348 291 286 300 223 200 93 100 0 14 15 16 17 18 Cash generated by operations Cash from operations (after working capital) ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Free op ee oper erating cas ting cash h flo flow w bef befor ore e ca cape pex • Reduced in 2018 due to 650 lower fees received in 586 600 563 advance 550 • Different payment terms 500 468 selected 450 • Good post year-end inflows R'm 400 • Strong cash conversion at 338 350 139% of earnings 300 250 196 200 150 100 50 14 15 16 17 18 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Net Net cas cash h pos position ition 0 - 500 - 436 • Net Borrowings: EBITDA 2.0 times • Covenant 3.5 times R'm -1 000 • Borrowing capacity R3.3 bn • -1 110 Potential head room R1.4 bn -1 157 -1 500 -1 617 -2 000 -1 915 -2 500 14 15 16 17 18 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Per ercen centa tage ge revenu enue e con contribution tribution – se segmental o gmental over erview view 15 46 2018 39 Schools Tertiary Resourcing ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Per ercen centa tage ge revenu enue e con contribution tribution – se segmental o gmental over erview view 15 16 46 45 2017 2018 39 39 Schools Tertiary Resourcing ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Per ercen centa tage ge ope operating pr ting profit contribution ofit contribution – se segmental o gmental over erview view 5 43 2018 52 Schools Tertiary Resourcing ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Per ercen centa tage ge ope operating pr ting profit contribution ofit contribution – se segmental o gmental over erview view 5 5 43 46 2017 2018 49 52 Schools Tertiary Resourcing ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Bad debt Bad de bt As As a per a percenta centage of ge of r revenue enue Schools Tertiary 1% 3% • Tough economic environment • Pressure on consumers • Well managed and under control ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
SCHOOLS SCHOOLS SCHOOLS SCHOOLS ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Schoo Sc hools ls Revenu enue 2 009 2 000 1 742 1 545 1 500 1 350 R'm 1 000 865 500 0 14 15 16 17 18 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Sc Schoo hools ls ope operating pr ting profit ofit 400 350 331 327 321 299 300 R'm 250 200 162 150 100 14 15 16 17 18 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Sc Schoo hools ls ope operating mar ting margin gin 25% 22.4% 22.2% 20% 18.8% 18.7% 16.5% 15% 10% 5% 0% 14 15 16 17 18 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
AD ADvT vTECH ECH Sc Schoo hools ls enr enrolment w olment waterf terfall all 30 538 3 155 2 524 26 751 26 751 7 009 -2 032 -1 636 23 920 -979 -1 880 4 803 -829 -1 230 -1 486 -801 2017 - 2018 2016 - 2017 Other Joiners End 2017 Matric Emigration Acquisitions End 2018 Financial Leavers Leavers Grey comparison to previous year ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018
Recommend
More recommend
