Curro Holdings prospects for more growth 'remain strong'
CAPE TOWN – Curro Holdings chief executive Andries Greyling said in a business update yesterday that the fundamentals of the business remained sound and prospects for continued growth over the medium- to long-term remained strong.
He said Curro, the independent school network, had provided R70 million in Covid-19 specific financial relief in the form of temporary reductions in fees and financial support initiative.
No further Covid-19 financial relief was anticipated at this time.
Curro schools re-opened on June 1 through a phased approach, attendance was higher than expected and 75 percent of learners were present in the classroom.
Health and safety protocols were holding up well and although some positive Covid-19 cases had been identified, the schools had remained open as no contamination had occurred, he said. During the lockdown, learning had continued through online or remote learnings channels.
Curro’s primary and high schools had experienced a benign decline of 468 learners (0.1 percent of the Grade 1 to Grade 12 total learners) since March.
Pre-schools – learners from three months old to Grade R – where remote operations were more complex, had seen a decline of 2 087 learners (18 percent of pre-school learners).
New enrolments for June 2020 amounted to 513 learners for all grades. Further growth new enrolments was expected, as other industry players were subject to greater operational and funding challenges.
From January to March 2020, collections were 23 percent higher compared to the prior year.
However, between March and April 2020, collections fell by 20 percent. During May and June 2020, a slight improvement was seen again.
Curro directors said the full extent of the bad debt provisioning and financial assistance was still uncertain.
A re-evaluation of certain capital investments; completion of 2019 projects and 2020 investment would amount to about R800 million, while a number of favourable acquisition opportunities were being investigated.
Limited green field developments would be undertaken over the next year.
Curro shares closed unchanged at R9 on the JSE on Wednesday.