This article is from the Australian Property Journal archive
EARLY learning centres operator Mayfield Childcare Limited (ASX: MFD) was back in the green for the half-year ended 30 June 2024, even with the weather-related closure of several centres throughout the period.
In 1H24, Mayfield’s underlying net profit after tax was $0.5 million, after a loss of $0.1 million in 1H23.
As a result, Mayfield reinstate its dividend program and to declare an initial fully franked dividend of 0.5 cents for 1H24.
Half-year underlying centre EBITDA was at $4.7 million, following a second quarter underlying EBITDA of $3.2 million, which was up 109% from the first quarter and 27% on the pcp. With Group underlying EBITDA was up 82% to $1.5 million.
Over the half, the group made seven strategic acquisitions of childcare centres in South Australia, which are expected to generate between circa $1.3 million to $1.5 million in EBITDA over 2025.
The acquisitions brought Mayfield’s capacity up to 4,195 licensed places across its centres. The group also closed on the divestment of one centre over the half.
Overall group occupancy in 1H23 was down 3% to 60.9%, attributed to the impact of weather-related centre closures.
As of August 2024, around 75% of the group’s centres had an occupancy of 75% and generated underlying centre EBITDA of $5.9M in the first half. With the top 20 centres averaging occupancy of 80%.
Mayfield’s net of cash at hand was at $6.3 million as at 30 June 2024, down from $7.2 million at the close of 2023.
The group focused on cost reduction over the half, leading to an improvement in controllable centre related expenditure including a 67% reduction in agency costs and a 31% reduction in facilities cost.
Mayfield has forecast its previously posted guidance as unachievable for the financial year after the impact of weather conditions and the rising cost of living, revising its guidance down to $6.0 million to $6.5 million over FY24.
Despite this forecast, demand for childcare facilities across the country are continuing to soar to new peaks, drawing investor interest with revenue expected to grow by 6.2% over 2023-24.
