Curro Holdings, the JSE-listed private schools group, saw a credible operating performance with strong cash flows during the 2024 financial year, but student number growth is weak, a trading statement showed Tuesday.

Curro’s share price traded 2.38% lower to R12.30 on Tuesday midday at a time when the JSE All Share Index was 0.43% higher, but the price is still 16.5% above the price a year ago.

Directors said consumer spend remains constrained, and the group's enrolment has not benefited from moderating inflation and the gradual easing of interest rates over the last few months.

Nevertheless, Curro is in a healthy financial position, and recurring headline earnings per share are expected to increase between 9.3% and 17.5% for the year to between 80 cents and 86 cents a share, from 73.2 cents the year before.

Earnings a share (EPS) are expected to be between 117.1% and 217.1% higher at between 15.2 cents to 22.2 cents a share.

The expected EPS includes expected impairments of between R340 million and R380m net of tax (2023: R378m net of tax).

The impairments followed the annual impairment assessment review of the business plans for each Curro school, as required by International Financial Reporting Standards (IFRS).

These impairments include eight campuses that had previously been impaired, the book value of which has been further reduced due to slower than anticipated learner growth. This contributes about two-thirds of the total expected impairment (net of tax) for 2024.

Two campuses are anticipated to be impacted by the closure of steel manufacturing operations in their catchment areas.

“Curro expects that this could restrict their value in use in the future, and accordingly, the company is impairing the book value of these campuses,” the directors said.

The impairment charge is a non-cash item, and the group anticipates generating cash from operations that will cover its capital expenditure requirements.

Some 10.7 million Curro shares were repurchased and cancelled for R120m.

Curro had 72 109 registered learners on February 10, 2025, slightly below the 72 553 registered learners on November 29, 2024. The results are expected to be released on March 5, 2025.

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