The business

Curro develops and manages affordable, quality private schools throughout South Africa. Paladin initially acquired 50% of the company in 2009 and has during the current year Paladin increased its investment in Curro to 76%.

Performance

Curro had another exciting year with its number of learners enrolled increasing by 79.2% from 3 088 in the 2010 academic year to 5 535 in 2011 with total number of schools increasing from three in 2009 to the current twelve which included campuses at Roodeplaat, Hazeldean High (Pretoria East), Serengeti Estate (Kempton Park) and Emahlahleni (Witbank) to its portfolio. Profit before tax is consistent with fast growing companies in relative capital intensive industries which has disproportionate finance costs during a strong

Prospects

The great demand for education in South Africa, currently place almost insurmountable pressure on the state sector to provide and upkeep schools. Understandably government’s finite resources are prioritised on areas which have been neglected in the past and where the community can’t afford alternatives. There is therefore a healthy demand for schools in more affluent areas serving the growing middle class which is willing to pay for a quality alternative. We believe this trend should exist and increase well into the future. Curro aims to serve this market. Curro’s shareholders have decided to list on the JSE which will be followed by a rights issue in order to provide the capacity to develop around three to four additional schools per year for the foreseeable future.

Financial Highlights