Curro Holdings Limited

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Curro Holdings Limited (2021-09)
  • Curro Holdings Limited
  • Year : Sep 2021
3 Tokens
USD 300.00
Summary

The group has historically operated with a high degree of leverage, increasing gross debt to R4.1bn at FY19 to fund investments into its growing stable of schools. However, after a successful R1.5bn rights issue in September 2020, Curro reduced its outstanding debt to R3.2bn, and coupled with the stronger cash position at FY20, effectively reduced net debt by R1.1bn year-on-year. Liquidity coverage moderated to historical levels of approximately 1.0x for the coming 12-month period.

Additional Information

The Stable Outlook reflects GCR’s expectation that Curro will continue to grow its revenue base and maintain a strong earnings profile despite the deterioration of the debtors book. This will be supported by ongoing demand for private education, growing capacity utilisation at schools and prudent provisioning.

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