Curro Holdings’ share price was caned 6.9% on the JSE, one of the biggest declines on the bourse Wednesday, after it reported that the number of learners has declined so far this year.

The share price for the independent schools group fell to R10.60 on Wednesday afternoon, a price that was also below the R11.15 traded at a year ago. This was even though the board lifted the final dividend a solid 13.4% to 16.60 cents a share.

In a presentation, CEO Cobus Loubser said that the average number of learners had increased by only 1% in the year being reviewed, rising to 72 638 from 72 031.

By February 10 this year, 72 109 learners had been enrolled, which was lower by 1 018 learners than at the same time last year. The group attributed this to the constrained consumer climate.

“Curro is resilient, and we are on track to increase shareholder returns. Our models are efficient and scalable to optimise service and profitability,” Loubser said in the presentation.

Revenue increased by 8% to R5.14 billion. Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 8.9% to R1.26bn.

Operating expenses increased by 8%, compared to the increase in total revenue of 8%. Costs increased due to more learners, additional extra-mural activities, and higher ancillary revenue and associated costs. Staff costs increased 6%. Facility costs (water, electricity, and municipal rates) increased by 8%, the results showed.

Recurring headline earnings increased 10.1% to R469 million. Recurring headline earnings per share increased by 13.4% to 83 cents, up from 73.2 cents in the prior year.

Headline earnings per share increased by 13.4% to 83 cents, from 73.2 cents a year before.

Curro recognised R365m (2023: R378m) of impairments, net of tax, relating to lower-yielding school assets. This was based on the annual impairment assessment reviews of the business plans for each school.

Loubser said a focus going forward was to increase increase shareholder returns. Revenue would be increased through learner enrolment, while there would be a tuition fee increase for 2025 of 5.5% per learner.

Ancillary service profitability, which refers to revenue outside of learner fees such as boarding, aftercare, and cafeterias, had recovered. There would also be tight operational discipline to contain other costs.

Cash from operations was likely to exceed the capital expenditure requirement of the existing business, and acquisitions might be considered, with excess cash potentially also reverted to shareholders.

The group invested R669m in the business in the 2024 financial year, versus R715m a year before. About R60m went on business acquisitions and development, R286m to expand classrooms and facilities at existing schools, R341m on refurbishment, maintenance, and asset replacement, R49m on water and energy projects, while R70m was received from land and building sales.

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Curro Holdings faces 6. 9% share price drop amid declining learner numbers