Curro’s Bullish Forecast: 45.5% Earnings Growth Expected

  • Curro Holdings Limited projects significant growth in its financial results for H1 2023.
  • The company expects an increase of 26.5% to 45.5% in recurring headline earnings per share (RHEPS) compared to the same period in 2022.
  • Curro's financial results for the six months ended 30 June 2023 will be officially announced on 21 August 2023, with a webcast presentation scheduled for stakeholders.

Curro Holdings Limited, a prominent education company listed on the Johannesburg Stock Exchange (JSE) under the Equity Alpha Code COH and Debt Alpha Code COHI, has released its trading statement for the six months ending 30 June 2023. The company anticipates substantial growth in its financial results for the first half of the year, as compared to the same period in 2022.

According to the JSE Limited Listings Requirements, a listed company is obligated to publish a trading statement as soon as it becomes reasonably certain that the financial results for the next reporting period will differ by 20% or more from the previous corresponding period. In compliance with this regulation, Curro has provided a breakdown of its projected financial figures for the six months ended 30 June 2023.

Expected Financial Results:

Curro expects a surge in key financial metrics, as illustrated in the table below:

Reported results for the six months ended 30 June 2022Forecast for the six months ended 30 June 2023Change
Recurring headline earnings per share (RHEPS)25.5 cents to 32.3 cents26.5% to 45.5%
Headline earnings per share (HEPS)27.5 cents to 32.0 cents16.5% to 35.5%
Earnings per share (EPS)27.6 cents to 30.8 cents11.6% to 30.6%

The above figures indicate a positive outlook for the company’s financial performance, with RHEPS potentially increasing by 26.5% to 45.5% compared to the same period in 2022. Similarly, HEPS are projected to grow by 16.5% to 35.5%, and EPS could see an increase of 11.6% to 30.6%.

Non-recurring Subsidy Income Impact:

During the previous comparable period, Curro’s Meridian subsidiary received a long-overdue education subsidy income amounting to R25 million. This income was considered non-recurring and was included in the calculation of EPS and HEPS. However, for the calculation of RHEPS in the prior period figures, this subsidy income was excluded. As a result, this difference significantly impacted the divergence between RHEPS, HEPS, and EPS for that period.

Results Announcement Date:

Curro Holdings Limited is presently finalizing its financial results for the first half of 2023. The official announcement of these results is scheduled for Monday, 21 August 2023. The company has planned a presentation of the results, which will take place in Cape Town at 10:30 on the same day. Additionally, a webcast of the presentation will be made available for stakeholders and interested parties.

It is important to note that the financial information provided in this trading statement has not been subjected to review or reporting by the auditor of Curro Holdings Limited. Investors and stakeholders are advised to await the official results announcement for a comprehensive and audited view of the company’s financial performance.

Market Impact and Analyst Reaction:

The market has been closely monitoring Curro’s financial performance, given its significant presence in the education sector. The projected increase in RHEPS, HEPS, and EPS indicates a positive trend for the company, likely driven by strategic business decisions, operational efficiency, and potential growth in student enrollments.

Market analysts expect that the positive financial performance could attract investor interest and may contribute to an uptick in Curro’s stock price on the JSE. However, they also emphasize the importance of considering all factors, including economic conditions and market trends, that could influence the company’s performance in the second half of the year.

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