Mayfield Childcare sees half year 2021 performance bounceback after challenging 2020

Mayfield Childcare, the Victorian focussed early childhood education and care provider, has released its half year 2021 results which showcased a significant bounce back in performance compared to 2020, both operationally and financially.

Revenues in the six months ended June 2021 were $16.9 million, up 86 per cent compared to the same period last year with both centre and group earnings before interest, tax, depreciation and amortisation (EBITDA) up 42.5 per cent and 96.2 per cent respectively to $3.8 million and $2.6 million. 

The Group, which has 90 per cent of its current services rated as meeting or exceeding the National Quality Standard, also confirmed the acquisition of a Victoria based centre which, including the acquisition announced in May, will take the overall tally of centres across the Mayfield network to 23.  

Mayfield Childcare Chief Executive Officer Dean Clarke said that while the last 18 months “have been a period of significant health and economic challenges, our business has responded admirably, and it’s great to be reuniting with our families as we work through these new ‘COVID Normal’ times.”

Occupancy now tracking above pre COVID levels for first half of year

Group occupancy was reported to be 66.0 per cent in the first half of the year, 4.0 per cent higher than the same period last year, and 2.5 per cent higher than the Group reported in 2019, the last half year reporting period before the COVID-19 pandemic commenced. 

Over the course of the period occupancy has ranged between 64.0 per cent in January to 71.2 per cent in June with the company noting that it had experienced an earlier than normal move of children to primary school in the late Jan / early Feb, as a result of the snap Victorian lockdown. 

The company also noted that during COVID-19 lockdowns, occupancy growth typically slows significantly, with a further lag of up to two weeks depending on how quickly restrictions are lifted. 

Mayfield increased fees by 5.1 per cent in early July 2021, noting that there was no fee increase passed in 2020. 

Board commits to inaugural HY dividend amidst positive outlook and updated guidance

Reflecting the underlying strength of the business the Board announced its inaugural interim fully franked dividend of 2.47 cents per share (cps) representing 50 per cent of underlying NPAT and payable in September 2021. 

Whilst noting the positive developments of 2021 thus far, and confirming an appetite to acquire more centres, the Board also confirmed that EBIT guidance for the full calendar year 2021 will be in the range of $6.5m to $6.9m. 

“The strength of the business is evident, and we’re delighted by the additions we are making to the portfolio. With a sound balance sheet and debt facilities available, we look forward to securing further acquisition opportunities for the business,” Mr Clarke added. 

To read Mayfield’s HY 2021 results please click here.