Interim results · 2019-05-13 · Investing in human potential ¾The world has and continues to face the global economic downturn. “The economy is slowing but this does not mean

Interim resultsFor the six months ended 30 June 2009

Investing in human potential

The world has and continues to face the global economic downturn.

“The economy is slowing but this does not mean people’s will to succeed is tapering off.”FM Article on ADVTECH, Larry Claasen, July 2009

In the past 100 days, South Africans have been led by the new ANC government …

“It is proper that we have a common understanding that the leaders that this country requires should first and foremost be educated.”President Jacob Zuma, Youth Leader Summit, July 2009

In the past year …


U.S. male unemployment rates


U.S. male unemployment rates


In South Africa the big picture is the same but there are special features:

Poverty

Chronic unemployment and under-employment

Dysfunctional systems

Growth opportunities




‘000

Source: Stats SA Community Survey (2007)


Attendance at an educational institution amongst persons aged 18 to 24 years: 1996, 2001, 2007

01020304050607080

18 19 20 21 22 23 24

199620012007

%

Source: Stats SA Community Survey (2007)


“A small group of passionate people is all it

takes to change the world. In fact, if you look through

the history of humanity, they are the only ones who have

ever changed anything.”Mark Shuttleworth


Group highlightsHealthy financial performance.

Revenue up 23% equally split between organic and acquisitive.

Growth in enrolments.

Creditable relative performance in recruitment.

FLB acquisition.

Consistent long term growth.

Underpinned by balance sheet and cash flow.

Growing reputation.


Financial highlights1H20091H2008 % change

R563m R693m +23%Revenue

R88m R103m +17%Operating profit

18.7c 19.6c +5%HEPS

18.3c 19.6c +7%Diluted HEPS

57.5c 56.2c -2%Free operating cash flow per share

7.0c 7.5c +7%Distribution

R72m R79m +10%Profit for period


Financial overview


Financial overview


Financial overview


Financial overview


Financial overview


Financial overviewNet cash position R’mNet cash June 2008 240

Organic cash generated 280Tax paid -63Distributions -76Acquisition payments -67Capex -179ADH shares bought -20Net other flows 2

Net cash June 2009 117


Balance sheet insight

1H20091H2008 % changeR447m R555m +24%NAV

R240m R117m -51%Net cash on hand

R70m R187m +167%Intangibles

R456m R590m +29%Fixed assets

R210m R229m +9%Fees in advance

R94m R132m +40%Debtors


DebtorsDebtors movements 2008 vs 2009 R’mOpening balance June 2008 94

Pro-rata growth of 23% 22

Increase in provision -4FLB adjustment account 7Pre payments 12Other movements 1

Closing balance June 2009 132


Segmental analysis


Segmental analysis


ADvTECH Education

SCHOOLS TERTIARY SKILLS


Education


Education


FLB acquisition

Campus in Randburg.

Leading accounting school.

Unisa tuitionQE preparation

Approximately 2000 students.

Top B Compt Honours student in the last 4 years.


FLB acquisitionRationale and strategy

Good academic record.

Complimentary to Varsity College.

Roll out possibilities.

GeographicallyComplimentary courses

9 years old, proven model.

Retained current management.


ADvTECH ResourcingRECRUITMENT


Resourcing division


Resourcing division


Group strategyADH positioned in areas of national and strategic importance with strong underlying demand.

Key competencies (and differentiators) in career preparation.

Market leadership in key recruitment niches.

Sustained verifiable record of success.

Ongoing prudent investment justified and affordable.

ADH perfectly positioned for resilience in tougher times coupled with growth.


Group sustainability

Resilient model spurred on by the enduring benefits that education provides.

Quality.

New capacity:CapexAcquisitionInfrastructure

IIE and new product innovation ongoing.


Group sustainability

Shortage of skilled resources driving growth in key niches.

Niche focus.

Infrastructure.

Proven methodology.


Our econonyChallenges

Job market – reduced overall demand and longer decision cycle.

Affordability - cyclical pressure experienced.

Education remains an aspirational investment - demand remains strong.

Demand – spending under pressure.

Skills shortage - remains a challenge.


Our econonyResponses

Continued niche focus.

Affordability - improved access to student financing.

Education remains a long term focus requiring increased capacity, investment in new programmes in the broadest sense and quality improvements.

Skills shortage - maintain focus on proven methodology and service delivery.


5 Year – Market Cap Index


Questions

Interim results · 2019-05-13 · Investing in human potential ¾The world has and continues to face the global economic downturn. “The economy is slowing but this does not mean

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