Early Education Holdings Reports Strong Half Year Results | 86% Revenue Growth – $16.9M YoY

Early Education Holdings (EEH) is a newly formed partnership with an ambitious vision to acquire and develop local, community-focused childcare centres on the east coast of Australia.With the COVID-19 outbreak contributing to the recent decline in attendance in this sector, EEH has identified the neglected and highly fragmented mid-sized market (40-75 places) as ripe for opportunity.

Mayfield Childcare, the Victorian focussed early childhood education and care provider, has released its half year 2021 results which showed 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. 

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.”

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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.  

The improvements in occupancy reflect a stronger operating environment as well as benefits accruing from the steady investment in systems, processes and culture across the organisation in recent years. 

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 ongoing confidence in the business the Board announced and interim fully franked dividend of 2.47 cents per share, its first such interim payout since the business was created. 

 “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. 

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