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2014 Integrated Annual Report

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2014 Integrated Annual Report 2014 INTEGRATED ANNUAL REPORT the future TODAY OUR PURPOSE We aim to build and grow a high quality organisation in education, training and placement that is widely recognised for passionate commitment and success in enriching people’s lives and future. build We aim to grow a reputation for our ability to make a real difference to the people we serve, for our connectedness and grow partnerships with African and global markets and players, for the relevance, quality and usefulness of our offerings, and for the achieve enterprising and agile way in which we tackle our task. We will achieve this by focusing on our customers and taking a lead from our markets, by our innovative approach, especially in harnessing the power of technology, and by striving for excellence and sustainability in all we do. Ethics We seek to set an example to our learners, students, candidates and clients through our own ethical conduct. High quality We aim to create and add quality in everything we do. Caring and responsible leadership We take special responsibility for the young people OUR VALUES who are learners, and clients, by our example and by caring for their safety and needs. People centredness Sound education and placement depends on empowered and successful human interaction on a personal level. Sustainability By using resources wisely, and within the means created by our income, we aim to ensure that our establishments continue to serve future generations. CONTENTS GROUP OVERVIEW 2 Our brands 4 Business model REVENUE OPERATING PROFIT 9% 16% 5 Strategic objectives 8 Scope of operations 9 Performance at a glance 10 Five year financial review 11 Ratios and statistics 12 Acting chairman’s letter 14 Operational report 20 Value added statement The outstanding feature of the year was the accelerated level of investment in laying a strong foundation for future growth. BUSINESS REVIEW 24 SCHOOLS 32 TERTIARY 38 RESOURCING Total number of distinctions 100% MATRIC PASS RATE 2 740 CORPORATE GOVERNANCE 40 Board of directors 43 Group executive committee 44 Corporate governance 52 FINANCIAL STATEMENTS 103 SHAREHOLDERS’ ANALYSIS GROUP OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDERS’ ANALYSIS OUR BRANDS SCHOOLS TERTIARY RESOURCING 2 the future TODAY BOTSWANA LIMPOPO Gaborone GAUTENG Hartebeespoort Pretoria Johannesburg MPUMALANGA NORTH WEST FREE STATE KWAZULU-NATAL NORTHERN CAPE Pietermaritzburg Durban EASTERN CAPE WESTERN CAPE Cape Town Port Elizabeth JOHANNESBURG PRETORIA CAPE TOWN ADvTECH Head Office Abbotts College (2) Abbotts College (2) The Independent Institute of Education Centurus College (2) Communicate Personnel Abbotts College (2) Centurus Preparatory (2) Varsity College Crawford College (2) Centurus Pre-Primary (2) Vega Crawford Preparatory (4) Crawford College Crawford Pre-Primary (5) Crawford Preparatory Forbes Lever Baker Crawford Pre-Primary Junior Colleges (7) Communicate Personnel PORT ELIZABETH ADvTECH Academies (Kathstan) College Maravest College (2) Varsity College ADvTECH Academies (Kathstan) Preparatory Maravest Preparatory (2) ADvTECH Academies (Kathstan) Pre-Primary Maravest Pre-Primary (3) Rosebank College (2) Network Recruitment Maravest College Rosebank College (2) DURBAN Maravest Preparatory (2) The Design School Southern Africa Communicate Personnel Maravest Pre-Primary (3) Trinityhouse Preparatory Crawford College (2) The Design School Southern Africa Trinityhouse Pre-Primary Crawford Preparatory (2) Trinityhouse College (2) Vega Crawford Pre-Primary (2) Trinityhouse Preparatory (3) Varsity College Junior Colleges Trinityhouse Pre-Primary (3) Rosebank College Varsity College (2) The Design School Southern Africa Vega Trinityhouse College Brent Personnel Varsity College (2) Cassel&Co Vega Communicate Personnel (2) Inkokheli HR Appointments Insource. ICT HARTEBEESPOORT PIETERMARITZBURG It Edge Varsity College Kapele Appointments Centurus College Network Recruitment (2) Centurus Preparatory Tech-Pro Personnel Centurus Pre-Primary The Working Earth GABORONE ADvTECH Academies (GIS) College ADvTECH Academies (GIS) Preparatory ADvTECH Academies (GIS) Pre-Primary 2014 INTEGRATED ANNUAL REPORT 3 GROUP OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDERS’ ANALYSIS OUR BUSINESS MODEL The ADvTECH business model, which applies to our businesses in private education and resourcing, is depicted below. The components of our business model are self-reinforcing. Our ability to deliver meaningful outcomes in education and resourcing, which are of profound long-term benefit to society, is contingent on our ability to sustain profitability, which in turn allows us to invest continually in high quality, high value offerings. We need to achieve this in the highly regulated and increasingly competitive private education sector, which continues to show strong demand, and in the resourcing sector, which is highly dependent on the buoyancy of staffing markets. SUSTA NS IN L > INVESTMENT IO ON IN BUSINESS SIT G- GROWTH O T > COMPETITIVE P ER O M RETURNS TO R SHAREHOLDERS P A PURPOSE-DRIVEN P E R U ORGANISATION THAT O L F I A DELIVERS PROFOUND T V A SOCIETAL BENEFITS B D I E Develop relevant skills and knowledge for career success L T I T A I Y T Anticipate market demand and supply specialist skills N E R E Corporate social investment broadens access F to high quality offerings I F N I V D E E Broader socioeconomic S T T A and environmental contribution I E N R as proactive corporate citizens S C T R A T E G S I C R E E L N B A > PEOPLE AND CULTURE > PARTNERING WITH STAKEHOLDERS > DISTINCTIVE BRANDS > TECHNOLOGY ENABLED OFFERINGS > GREAT SERVICE > MANAGEMENT AND > RELEVANT TO MARKET CONTROL SYSTEMS > CONTINUAL IMPROVEMENT > GOVERNANCE AND > SUSTAINABLE PRICING COMPLIANCE 4 the future TODAY OUR STRATEGIC OBJECTIVES 1 ACCELERATING OUR INVESTMENT IN GROWTH The Group has intensified investments in growth opportunities in South Africa and the rest of the African continent. With the growth in private education which is expanding rapidly, we have made significant investment in new projects, staff and infrastructure, as well as strategic acquisitions. Our first acquisition in Botswana signals the start of our Africa expansion strategy. Our focus is on researching growth opportunities in other parts of Africa, increasing our geographic footprint, and bringing quality education to the rest of the African continent. Acquisitions made during 2014 and finalised during 2015 Schools opened during 2014 SOUTH AFRICA BOTSWANA Centurus Colleges Gaborone Crawford Italia Kathstan College International Abbotts Centurion School Boleng Primary Trinityhouse Snuggles Heritage Hill Tiny Town Maravest Group 2 A STEADFAST FOCUS ON QUALITY A key differentiator for the ADvTECH brand is its unwavering dedication to academic excellence. None of the brands in the Group receive a subsidy, therefore it is of utmost importance that our offerings constitute the ‘best in quality’ and also ‘value for money’. Conducting local and international benchmarking remains a priority, because it ensures our students receive the best possible preparation for their eventual entry into the job market. The following staff development programmes ensure our staff are able to provide quality service in their respective divisions: ADvTECH’S MANAGEMENT ADvTALENT – THE LEADERSHIP DEVELOPMENT AND A PROGRAMME TO DEVELOPMENT MANAGEMENT PROGRESSION FAST-TRACK HIGH POTENTIAL PROGRAMME PROGRAMMES INDIVIDUALS Group employees hold the following qualifications: 37 297 285 1 100 DOCTORATES MASTERS DEGREES HONOURS DEGREES BACHELOR’S DEGREES 2014 INTEGRATED ANNUAL REPORT 5 GROUP OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDERS’ ANALYSIS OUR STRATEGIC OBJECTIVES CONTINUED 3 USING TECHNOLOGY TO OUR ADVANTAGE ADvTECH’s IT vision is to propel the Group towards a digital future with a customer focus. This means leveraging the cloud, social media and mobile technologies to drive market differentiation, growth, innovation and profitability. The digital evolution in the education and resourcing sectors is significant, and presents exciting opportunities to enhance our service offerings. Successful technology solutions to date: PROPRIETARY ADvTECH PEOPLE SYSTEM FOR E-LEARNING LEARNING SOLUTION SYSTEM, ACADEMIC PLATFORMS – MANAGEMENT an advanced MANAGEMENT provided by Star SYSTEM technology-driven (SAM) Schools for students for students HR and Payroll which provides the who are rewriting system foundation for future matric technological development The following projects are at varying stages of implementation: DIGITAL SOFTWARE Implementing Offering students IMPROVED CURRICULUM SOLUTIONS to VOICE OVER INCREASED DATA content provided secure remote INTERNET BANDWIDTH SECURITY by Star Schools access to our PROTOCOL at reduced rates networks (VOIP) systems 6 the future TODAY 4 MAKING A MEANINGFUL CONTRIBUTION TO SOCIETY Businesses can no longer operate on the basis of profit alone. More especially so for a Group like ours, whose ultimate goal is to help elevate the standards of education in society. We therefore remain focused on empowering the communities within which we operate. The Group has made a positive impact on society in the following ways: ADvTECH alumni and job candidates 7 100 R84.2 employed make a BURSARIES positive contribution AWARDED DURING million to South Africa’s CSI ACTIVITIES 2014 economy Although the Group’s impact on the environment is relatively low, we monitor and minimise negative environmental impacts wherever possible.
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