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STADIO HOLDINGS LIMITED - Results For The Year Ended 31 December 2021

Release Date: 14/03/2022 07:05
Code(s): SDO     PDF:  
Wrap Text
Results For The Year Ended 31 December 2021

(Incorporated in the Republic of South Africa)
(Registration number: 2016/371398/06)
Share code: SDO
ISIN: ZAE000248662
LEI: 3789007C8FB26515D966
(“STADIO Holdings” or “the Company” or “STADIO Group”)



     -   Revenue increased from R933 million to R1 098 million (18%)
     -   Student numbers increased from 35 031 to 38 262 (9%)
     -   Core headline earnings increased from R117 million to R149 million (27%)
     -   Core headline earnings per share (“CHEPS”) increased from 14.2 cps to 17.6 cps
     -   Earnings before interest, taxation, depreciation and amortisation (“EBITDA”)
         increased from R46 million to R309 million (>100%)
     -   Adjusted EBITDA increased from R253 million to R310 million (23%) *
     -   Earnings per share (“EPS") increased from a loss per share (“LPS”) of (14.5) cps to
         14.9 cps (>100%)
     -   Headline earnings per share (“HEPS”) increased from a headline loss per share
         (“HLPS”) of (8.5) cps to 17.0 cps (>100%)
     -   Net asset value per share increased from 178 cps to 195 cps (10%)
     -   Maiden final dividend declared of 4.70 cps.

     *   Adjusted EBITDA excludes the fair value adjustment in respect of the CA Connect
         acquisition as further explained below.


     The board of directors for the STADIO Group (“Board”) is pleased to report its results for
     the period ended 31 December 2021.

     For the year ended 31 December 2021, the STADIO Group reported a profit after taxation
     of R 137 million (2020: loss after taxation of R138 million) and EPS of 14.9 cps (2020: LPS
     of 14.5 cps).

     EPS was impacted by the dilution of the STADIO Group’s effective interest, from 87.2%
     to 68.5%, in Milpark following conclusion of the early settlement agreement with the CA
     Connect shareholders, and impairments of various assets amounting to R30 million.
     These impairments largely result from the execution of the STADIO Group’s strategic plan
     to consolidate contact learning campuses to create operational efficiencies within the
     STADIO Group and include, inter alia:

     -   An impairment of the right of use asset of R17 million in respect of the leased Milpark
         campus based in Gauteng. This impairment followed the decision of the Board to
         transition the Milpark business to cater only for the distance learning mode of delivery;
     -   An impairment of the value of the STADIO Montana property of R10 million. The
         STADIO Group entered into an agreement to dispose of the STADIO Montana
         property for R52 million, which is below its book value of R62 million.

     The large increase in profit after taxation, EPS and HEPS for the year was primarily due
     to organic growth and the significant once-off adjustments in the prior year. These prior-
     year adjustments included:

     -   The fair value adjustment of R207 million relating to the CA Connect acquisition
         (impacting LPS and HLPS); and
     -   a R51 million impairment of intangible assets, R40 million of which related to the
         once-off, non-cash accounting impairment of trademarks following the business
         transfer of various brands to STADIO Higher Education and R11 million in respect of
         other intangible assets, including computer software (impacting prior period LPS).

     The STADIO Group utilises core headline earnings to measure and benchmark the
     underlying performance of the business. Core headline earnings represents headline
     earnings adjusted for certain non-recurring or non-cash items that, in the Board’s view,
     may distort the financial results from year to year.

     For the year ended 31 December 2021, CHEPS grew by 24% to 17.6 cps
     (2020: 14.2 cps). The overall growth in CHEPS is due to good top-line growth, coupled
     with robust expense management within the business.


     The Board is pleased to declare the Group’s maiden dividend, a final gross dividend of
     4.70 cents (2020: nil) per ordinary share from income reserves for the period ended 31
     December 2021. This represents excess cash available, following a period of significant
     capital investment since listing in 2017. The STADIO Group will consider the payments of
     dividends to shareholders out of excess free cash flow, after taking into consideration
     capital required for organic and acquisitive growth opportunities in the future.

     The dividend is subject to a South African dividend withholding tax (“DWT”) rate of 20%,
     unless the shareholder is exempt from paying dividends tax or is entitled to a reduced
     rate in terms of the applicable double-tax agreement. The dividend amount, net of DWT
     tax of 20%, is 3.76 cents per share (2020: nil). The number of ordinary shares in issue at
     the declaration date is 848 192 709 and the income tax number of the Company is

     The salient dates for this dividend distribution are:

     Declaration date                                        Monday, 14 March 2022
     Last day to trade cum dividend                          Tuesday, 10 May 2022
     Trading ex-dividend commences                           Wednesday, 11 May 2022
     Record date                                             Friday, 13 May 2022
     Payment date                                            Monday, 16 May 2022

     Share certificates may not be dematerialised or rematerialised between Wednesday,
     11 May 2022 and Friday, 13 May 2022, both days inclusive.


     This short-form announcement is the responsibility of the directors of the Company. It
     contains only a summary of the information found in the detailed annual results
     announcement for the period ended 31 December 2021 (“Full Announcement”) and does
     not contain full or complete details.

     The Full Announcement can be found at:

     A copy of the Full Announcement is also available for viewing on the Company’s website
     at or may be requested in person, at the
     Company’s registered office or the offices of our sponsors, at no charge, during office

     Any investment decisions by investors and/or shareholders should be based on
     consideration of the Full Announcement, as a whole.

     The annual results for the year ended 31 December 2021 have been audited by the
     Company’s auditors, PricewaterhouseCoopers Inc. who expressed an unmodified audit
     opinion thereon. The audit opinion also includes communication of key audit matters. Key
     audit matters are those matters that, in the auditors’ professional judgement, were of most
     significance in the audit of the annual results for the year ended 31 December 2021. The
     audit opinion is available, along with the annual financial statements, on the Company’s
     website at


     STADIO Holdings will be hosting a virtual presentation on Monday, 14 March 2022, at
     10:00 to present the results to investors.

     Presentation details:
     Please register to attend the presentation ahead of time by clicking on the following link:

     Participants will be able to download the results as well as the slides from the portal during
     the presentation. Participants can send through questions using the portal, during and
     after the presentation, or may also email questions to

14 March 2022

PSG Capital

Independent joint sponsor
Tamela Holdings 

Date: 14-03-2022 07:05:00
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