Johannesburg/Nairobi — ADvTECH, the South African education group that owns Makini Schools in Kenya, has reported a 13.3 per cent increase in profit after tax to R726.2 million (approximately Sh5.81 billion) for the six months ended June 2026.
The education group attributed the growth to higher student enrolment, moderate fee increases and improved collections, as revenue increased by 8 per cent to R5.06 billion (about Sh40.48 billion) during the period.
Operating profit rose 13.5 per cent to R1.11 billion (Sh8.92 billion), pushing the group’s operating margin to 22 per cent from 21 per cent a year earlier.
Headline earnings increased 15.9 per cent to R716.5 million (Sh5.73 billion), while headline earnings per share climbed 16.1 per cent to 130.8 South African cents.
Student enrolment drives growth
ADvTECH’s total enrolment stood at 119,197 students in February, representing a 12.8 per cent increase.
Tertiary enrolment rose 19 per cent to 71,467 students, while enrolment across the group’s schools in the rest of Africa increased 13.9 per cent to 13,161.
The company’s Rest of Africa schools division, which comprises operations in Kenya, Botswana and Ethiopia, recorded an 8 per cent increase in revenue to R303.1 million (Sh2.42 billion).
Operating profit from the division rose 10.7 per cent to R91.3 million (Sh730.4 million), while its operating margin improved to 30.1 per cent from 29.4 per cent.
ADvTECH said all schools in the division recorded strong growth in local-currency terms, although the appreciation of the South African rand moderated the reported increase.
The division also benefited from higher enrolment and the inclusion of Regis Runda, which ADvTECH acquired in September 2025 and subsequently incorporated into the Makini brand.
Makini Runda gets major upgrade
ADvTECH is investing in the Makini Runda campus, upgrading its facilities, information and communications technology infrastructure and academic-support systems.
The campus is also being integrated with ADvTECH’s AI-powered Advlearn platform.
Makini Runda is expected to introduce the Cambridge International curriculum in September 2026 after receiving the necessary approval.
The group is also redeveloping Makini State House after securing a new lease for its Nairobi campus.
The upgrade is scheduled for completion by December 2026 and is expected to improve facilities while doubling student capacity.
Tertiary education remains key growth driver
ADvTECH’s tertiary division continued to deliver strong growth during the period.
Revenue increased 17.3 per cent to R2.24 billion (Sh17.94 billion), while operating profit rose 19.4 per cent to R591.7 million (Sh4.73 billion).
The company’s resourcing division, however, recorded a 14.7 per cent decline in revenue to R655.8 million (Sh5.25 billion), partly due to the continued effects of the closure of USAID programmes on its African recruitment operations.
ADvTECH said its improved collection processes also strengthened the quality of its debtor book.
Gross trade receivables increased 5 per cent, slower than revenue growth, while credit losses declined 3.3 per cent to R115.4 million (Sh923.2 million).
Investment in expansion increases
The education group generated free operating cash flow before capital expenditure of R2.26 billion (Sh18.05 billion), an increase of 17.8 per cent.
Capital expenditure, however, increased to R404 million (Sh3.23 billion), while capital commitments more than doubled to R3.27 billion (Sh26.17 billion).
The increase reflects planned investments in additional capacity and campus development, including projects in the group’s schools business.
ADvTECH also repurchased shares worth R326.3 million (Sh2.61 billion).
The company declared an interim dividend of 53 South African cents per share, equivalent to approximately Sh4.24, representing a 17.8 per cent increase.
ADvTECH expands into education technology
After the reporting period, ADvTECH acquired a 25 per cent stake in education technology company MathU Teaching Emporium for R15.8 million (approximately Sh126.4 million).
The transaction was completed after the June reporting period and therefore was not included in the unaudited first-half financial statements.
