This article is from the Australian Property Journal archive
Early learning group Mayfield Childcare delivered a strong first half year result despite facing occupancy challenges and divestments of underperforming centres.
The company delivered EBITDA (excluding the impact of AASB 16) of $5.8 million, an increase of 82.4% from $3.2 million in the previous corresponding period.
The underlying net profit after tax jumped 214% to $2.5 million, driven by margin expansion and cost-saving initiatives.
The company said it faced ongoing occupancy challenges in FY24, with group occupancy (excluding Precious Cargo centres) declining by 5.6% to 61.8%. This was primarily due to weather-related centre closures in Q1 and the underperformance of centres earmarked for divestment.
However, approximately 80% of the company’s core portfolio achieved occupancy rates of 70%. In line with its strategic focus, Mayfield announced the divestment of underperforming centres to Steps Learning, a new incubator partner. These centres, which recorded an average occupancy of 46.3% in 2024, contributed to a 5.5% drag on overall group occupancy. The divestment is subject to final commercial terms and an independent valuation, which is currently underway.
“FY24 was a transformative year for Mayfield, marked by significant improvements in profitability and operational efficiency. Despite the challenges posed by weather-related disruptions and occupancy pressures, our team’s unwavering commitment to quality and cost management has delivered strong results. We are excited about the opportunities ahead as we continue to focus on our core portfolio and explore strategic growth initiatives,” the company said.