Trematon grows education business


Trematon grows education business


Published Date: 2021-05-03 | Source: Stephen Gunnion | Author: Stephen Gunnion

Trematon grows education business

The investment holding company says its General Education business is growing faster than expected, resulting in extra costs.

Trenton Capital Investments has reported a stronger first half and an increase in its intrinsic net asset value per share, thanks to growth at its Generation Education (GenEd) business.

The investment holding company was well positioned for last year's lockdown following its foray into online education, which helped Generation Schools adapt to the changing environment.

Apart from its majority stake in GenEd, which operates eight campuses offering programmes from early childhood to tertiary education, the investment holding company has interests in SA and UK property, including the Club Mykonos resort in the Western Cape.

Revenue rose 1% to R201-million for the six months to end-February as a decrease in rental income from its properties was more than offset by an increase in income from school fees as student numbers rose and it opened a new school in Somerset West outside Cape Town. Operating profit declined by 6% to R59.5-million, mainly due to increased staff costs within GenEd following the opening of the new school. However, profit after tax increased by 63% to R6.78-million and earnings per share (EPS) jumped 50% to 0.6c due to a reduction in finance costs and increased profitability in its UK-based investment, ASK Partners, which is equity accounted. Headline EPS rose to 2.1c from 0.01c a year earlier while its intrinsic net asset value (INAV) improved by 4% to 530c per share.

The group uses INAV as its primary measure of shareholder value and investment performance. It attributed the increase to the sale of assets at values higher than their carrying value, fair value adjustments on derivatives and treasury shares purchased at a discount. GenEd now makes up 36% of INAV.

Trematon's shares rose 0.7% to R2.75 on Friday.


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