Curro announces solid full-year performance

Curro, a 25-year-old JSE-listed education company, has recently announced a solid full-year performance, with revenue growth of 17% and headline earnings increasing by nearly 35% for the year ended December 2022. Cobus Loubser, CEO of Curro, attributes this success to various factors, including a 6.4% growth in learner numbers, improved operating margins, and the resumption of extracurricular activities. These elements collectively contributed to a 35% increase in recurring headline earnings, allowing the board to declare a dividend of 0.08 cents. Despite economic challenges such as rising interest rates and inflationary pressures on energy and food costs, Curro continues to experience strong enrolment interest from parents and learners seeking quality education. Loubser emphasizes the importance of the 'flight to quality' trend, which has sustained learner growth. While some learners were lost due to financial constraints, Curro remains committed to its vision of expanding access to quality education. Looking ahead, Curro aims to maximize growth opportunities within its existing business, focusing on filling the 30% capacity in its current schools. Acquisitions are also being considered if they align with the company's strategic objectives. In terms of debt management, Curro has successfully reduced bad debt-related costs, with 2022 seeing a decrease to 4.1% of revenue from previous years. The company aims to further decrease this figure despite economic uncertainties. As for the energy crisis and load shedding in South Africa, Curro has taken proactive measures such as installing backup diesel generators to ensure uninterrupted operations. However, the company is exploring long-term solutions to potentially generate, store, or sell its own energy, mitigating the impact of unreliable power supply. Overall, Curro's resilience and strategic initiatives position it well to navigate challenges and capitalize on growth opportunities in the education sector.