Stadio rallies on trading statement

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Stadio rallies on trading statement

Published Date: 2020-02-21 | Source: Stephen Gunnion | Author: Stephen Gunnion

Stadio rallies on trading statement

The private tertiary education group says core headline earnings will be up to 29.9 percent higher than the previous year.

Stadio's shares surged yesterday after it prepared the market for a strong rise in full-year earnings.

In a trading statement, the tertiary education group said earnings and headline earnings per share (HEPS) for the year to end-December would be between 3.5% and 14.5% higher than the 7.8c it reported in 2018. However, it said Core HEPS woild rise by as much as 29.9% from 8.6c previously. The group uses core HEPS to measure and benchmark the underlying performance of its business. The number is adjusted for certain non-recurring and non-cash items that it believes distort its financial results from year to year.

It provided no reason for the increase but its interim results for the six months to last June benefited from a strong rise in student numbers - and earnings - following a number of acquisitions as it bulked up its portfolio of colleges and universities. At the time, it said it had also made good progress in consolidating its higher education institutions (HEIs) under Stadio Multiversity. It expects all its institutions to form part of the single brand during the course of this year, which will have marketing, operational and regulatory benefits.

Its interim results included all the HEIs in its portfolio, while the previous year's numbers only included Milpark Education and CA Connect Professional Training Institute for part of the year. It also acquired Prestige Academy in November 2018, which will be added to its full-year results for the first time.

Its results are scheduled for release on 5 March. Its shares closed 20% higher at R1.75, paring losses for the year to 12.5%.





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