Trematon: Private schools put it on a nice (l)earning curve

Business

Trematon: Private schools put it on a nice (l)earning curve

Investment company’s Generation Schools venture is way smaller than Curro and Advtech, but growing fast

Marc Hasenfuss


Trematon, an investment counter that mostly dabbles in property, is ushering its Generation Schools venture satisfactorily through the early growth grades. Trematon’s interim results show Generation’s revenue roughly doubling to R34m, as well as a smidgen of pretax profits.
Compared with the JSE’s private education stalwarts Curro and Advtech, Trematon’s investment in Generation private schools is still minuscule. But it seems Generation, at this early stage, should at least be able to double revenues by the end of its financial year to about R75m. While that probably won’t yield huge profits (yet), it should give some inkling as to the potential when Generation’s niche offering is properly scaled up.
Generation has six operating schools and two sites under development. Pupil numbers increased to 1,243 (from 937 in August 2018) with Sunningdale (on Cape Town’s West Coast) and Hermanus ranking as the biggest schools.
However, the recently opened Imhoff site in Kommetjie (near Fish Hoek in Cape Town) could be a game changer, and will become the largest Generation school on completion. The contribution from this property – which is tapping a sweet spot for alternative schooling – should be interesting to monitor in the second half of the financial year.
The Imhoff school has a current capacity of 400 pupils, and the initial intake for the first year was 240 pupils. Trematon disclosed that deposits and confirmations for the 2020 school year point to another 140 pupils. After phase two developments (to be completed in 2020), the Imhoff campus will accommodate 800 students from pre-primary to high school.
With Generation also developing certain ancillary businesses in high-growth areas of the education market, Trematon’s (l)earning curve will be interesting to monitor over the next few years.

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