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Trading Statement In Respect Of The Financial Results For The Six Months Ended 30 June 2021
CURRO HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration No. 1998/025801/06)
JSE Share Code: COH
ISIN: ZAE000156253
Company Code: BICAP
(“Curro” or “the Company”)
TRADING STATEMENT IN RESPECT OF THE FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2021
The COVID-19 pandemic continued to disrupt our lives and the economy in 2021. Despite this,
our staff, learners and the communities we serve maintained their tenacious focus on education,
and Curro is proud of the learner growth achieved and the strategic progress made by the
business over the last six months.
In terms of the JSE Limited Listings Requirements, a listed company is required to publish a
trading statement as soon as it becomes reasonably certain that the financial results for the next
period to be reported on will differ by 20% or more from the financial results for the previous
corresponding period.
Curro hereby advises that it expects the financial results for the six months ended 30 June 2021
(“the first half of 2021” or “the first half” or “the period”) to fall within the following ranges
(please read the full announcement to obtain context for the first half performance):
Restated Forecast range of results
for the six for the six months
months ended ended
30 June 2020 30 June 2021
Cents Cents % change
Recurring headline earnings
39.7 18.0 to 21.0 (54.7%) to (47.1%)
per share (RHEPS)
Headline earnings per share
37.9 18.0 to 21.0 (52.5%) to (44.6%)
(HEPS)
Earnings per share (EPS) 22.0 20.0 to 23.5 (9.1%) to 6.8%
In evaluating these results, shareholders should take the following into account:
• Average learners increased by 7% and revenue increased by 12% from the previous
comparable period.
• The R1.5 billion rights offer in September 2020 resulted in there being 42% more shares in
issue in the first half of 2021 compared to the first half of last year, which reduced the
respective earnings per share figures meaningfully.
• Curro’s earnings for the previous financial year ended 31 December 2020 (“2020”) were
significantly weighted toward the first half of 2020. Schools were closed for three months
pursuant to the COVID-19 induced lockdown with concomitant cost savings in the first half of
2020, but were fully operational in the second half of 2020 and in 2021. The quantum and
timing of impairment charges, fee discounts granted, provisions for excess credit losses and
significant increases in municipal charges also impacted more on the second half of 2020.
As a result, R167 million or 93.3% of the total recurring headline earnings for 2020 of R179
million, was recorded in the first half of the 2020-year. However, we expect a more balanced
distribution of earnings across the 2021 financial year.
Forecast range Restated Difference Audited
of results results between the results
for the first half for the first audited full year for the 2020
of 2021 half of 2020, results for 2020 financial year
ended 30 June ended and the restated ended
2021 (per this 30 June results for the 31 December
trading update) 2020 first half of 2020 2020
[Note 1]
First half First half Second half Full year
2021 2020 2020 2020
RHEPS (cents) 18.0 to 21.0 39.7 (1.7) 38.0
HEPS (cents) 18.0 to 21.0 37.9 (1.5) 36.4
EPS (cents) 20.0 to 23.5 22.0 (28.5) (6.5)
Weighted average 597 961 595 420 384 587 Note 1 470 998 749
number of shares
in issue
Note 1: Due to the rights offer during September 2020, the earnings per share for the second half of
2020 represents the absolute difference between the audited full year and restated first half earnings
for 2020, rather than a recalculation using weighted shares in issue.
• Curro’s ancillary revenue is lower than the comparable period in 2020 as well as the first half
of 2019, whilst the levels of bad debts and fee discounts remain higher than what the
Company experienced historically before COVID-19. The non-performing portion of the
debtors book mainly relates to learners that have left Curro and concerted efforts are being
made to recover same.
• Curro recognised impairments of lower-yielding schools of R83m (net of tax) in the previous
comparable period. These impairment charges are included in the calculation of EPS but are
added back for purposes of the calculation of HEPS, and accordingly accounts for the key
difference between HEPS and EPS in 2020.
• HEPS for the previous corresponding period included a non-recurring acquisition cost of R7m
(net of tax), which represent the difference between RHEPS and HEPS in that period.
Rights offer
Curro bolstered its balance sheet with a R1.5 billion rights offer in September 2020. The Company
used R1.1 billion thereof to reduce debt, which strengthened the balance sheet, thereby achieving
savings in finance costs and enabling Curro to pursue various attractive acquisition opportunities.
As a result of the rights offer, the Company had 597 961 595 shares in issue at the end of this
reporting period, compared to 412 087 989 shares at the end of the comparable period in the
previous year. Accordingly, the weighted average number of shares used to calculate earnings
per share for the period was 597 961 595 (2020: 420 384 587). Further details are included below.
Shareholders are advised that as required by International Financial Reporting Standards (IFRS),
the Company’s results for the six months ended 30 June 2020 have been adjusted to account for
the rights offer as follows:
Cents Reported results Restated results
for the six months for the six months
ended ended
30 June 2020 30 June 2020
RHEPS 40.5 39.7
HEPS 38.7 37.9
EPS 22.5 22.0
Weighted average number of shares in issue 412 087 989 420 384 587
Prospects
Curro’s business model has proven resilient to date, underpinned by its strong financial position
following the rights offer in 2020. The strong learner growth recorded this year endorses the
credibility of our robust offering, including an increased focus on digital education solutions. We
remain committed to continue providing excellent education to all our learners, making a positive
contribution to society at large.
The acquisition of Heronbridge College remains subject to approval by the Competition
Commission and we are on track with our overall capex program to invest approximately
R1.1 billion in the business this year.
Results announcement
The Company is currently finalising its financial results for the six months ended 30 June 2021.
These results will be published on or about Wednesday, 18 August 2021. A webcast of the results
presentation is scheduled for 10:30 on Wednesday, 18 August 2021.
The financial information on which this trading statement is based has not been reviewed or
reported on by the auditor of the Company.
Durbanville
3 August 2021
JSE Equity and Debt Sponsor
PSG Capital
Independent Joint JSE Equity Sponsor
UBS South Africa
Date: 03-08-2021 09:00:00
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