The Investor - Moneyweb's monthly investment magazine Issue 6 | Page 17

Generation will continue with the Montessori philosophy in its primary schools, with children working together in 6-9 and 9-12 year groups. But at the same time it will introduce the Cambridge curriculum, which is developed by the university of Cambridge and provides learners with an internationally recognised education. The focus here is to use Montessori as a philosophy of transferring knowledge through experience while using an international curriculum as its measuring mechanism. “Montessori is incredibly popular in South Africa, but many parents are concerned that it does not prepare children for ‘traditional’ schooling,” says Epstein. “This approach blends the two together.” Epstein is an accountant by training and founded Reporting Solutions, which provides accounting services to schools. This will be incorporated into the schools group. In 2017 the company will introduce Generation Elementary (12-15 Years) and in 2018 Generation High (15–18 Years). “We cannot introduce these classes without preparing the base first, so our schools must grow with our children,” says Epstein. While the schools will be equipped with swimming pools and playing fields, this is not a primary focus and Generation plans to partner with local sports clubs and facilities instead. In this way schools can be built on smaller footprints of land than traditional schools. " The growth strategy, at this point, will be slow and steady rather than fast and aggressive. “The school venture will not be material in the early part of operation, but we wouldn’t be doing this unless we had ambitions to grow much bigger,” Shapiro says. “Our history has taught us to use our balance sheet carefully. We like to test our assumptions and models carefully and would rather focus on buying and operating well. If you don’t buy at the right price, it doesn’t matter how well you operate – you will never achieve your internal rate of return.” Following its capital raise late last year (at R3.00), Trematon had about R150 million on its balance sheet, which it said would fund the pipeline of opportunities for the financial year. While management are the largest shareholders, 70% of issued shares are held by institutions and retail investors. ■ Montessori is incredibly popular in South Africa, but many parents are concerned that it does not prepare children for ‘traditional’ schooling, Jevron Epstein The first Generation school is being built in Sunningdale, north of Cape Town. ISSUE 6 – SEPTEMBER 2015 17