Education and resources group Advtech has called in Peregrine Investments consultants to review the rapidly growing group`s focus.
Group MD Renney Plit says the organisation has grown exponentially over the last five years and the review by Peregrine will assist management to determine its positioning to sustain future growth.
The consultants, who expect to complete their task by December, will examine issues such as structure, focus, finance and competitive positioning.
The group has grown in the past five years to a staff complement of 3 000 from 65. Turnover has grown from R20 million to R500 million and operating profit from about R400 000 to R50 million.
Advtech`s education division, which incorporates technology training, Crawford College and Bond University, is steaming ahead, and Plit says the year ahead is looking good with an expected 40% growth in operating profit.
Plit says that although the resources division has had a slow year, profitability for the current year will still be acceptable.
Part of the review will look at the group`s Australian interests and how the IT recruitment business fits into the group`s overall plans.
Commenting on Advtech`s shaky share price, Plit says he has told his staff to concentrate on business operations rather than a share price, which he says is merely indicative of market conditions.
"It is really frustrating for us because the volumes have been very low, so basically a R5 000 deal can drop the price by 5c. We are not alone in this and the whole sector is experiencing the same pressure."
The share was trading down by 11.30am today at 25c, equal to Advtech`s 12-month low.
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