Demand for independent basic education remained strong despite the impact of the pandemic on consumers. Despite mid-fee enrolments continuing their strong growth into FY21. We are concerned that Curro’s early FY21 enrolment growth may not be sustainable. While we find Curro’s focus on improving the capacity utilisation of existing facilities positive, we think achieving this objective could be challenging. In our view, Curro’s enrolment growth may need to be matched with better learner retention to improve its capacity utilisation. Using ADvTECH as a guide, we think that a mature school portfolio could achieve a utilisation rate of 86%.