Curro Holdings Ltd. (COH), which owns and operates private schools in South Africa, rose the most in six weeks after the company doubled first-half revenue as it bought more schools and grew enrollment.
The shares advanced 12 percent to 18.20 rand, the biggest intraday gain since July 9. It traded at 17.75 rand by 1:34 p.m. in Johannesburg, extending its surge this year to 73 percent.
Revenue increased to 161 million rand ($19.4 million) in the six months through June 30, the company said in a statement today. Its loss per share dropped to 1.8 cents from 9.5 cents a year earlier. Pupils attending Curro’s schools and colleges catapulted 125 percent as it spent 408 million rand expanding the number of campuses it operates around the country to 22.
“You have to look at the growth in revenue and learners for an indication of what’s going to happen in the future,” Byron Lotter, a portfolio manager at Vestact Asset Management in Johannesburg, said by phone. “You would expect from this number that in the next reporting period they will make a profit if they carry on this way, but they are trading under cautionary so they could be making another purchase at some stage.”
Curro said the 476 million rand raised in a rights offer last month will be used to make more acquisitions in the private school market.
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