Think Childcare releases bullish market update

Think Childcare (TNK), the ASX listed early education provider, released a market update on Friday in which it confirms the acquisition of 5 new centres and provides details of a pick up in key performance metrics over the last 6 months.

• The five centres acquired were from incubator partners at 4.0x EBITDA pre payroll taxes and will settle in November

• This will bring the total acquired to 9 centres in 2018 with a strong pipeline for calendar year (CY)2019 in place

• Like for like days sold (occupancy), at 38 base centres are now tracking 0.5% behind the same period last year, maintaining the positive momentum noted in the half yearly results

• 96 per cent of TNK families have found themselves benefiting from the new CCS subsidy

• 2018 investment program approaching completion with 70 per cent of funding allocated to 14 under performing centres

• Average fee per day per child increased to $116.30 an increase of 11.2 per cent above the $104.60 average from half year (HY)1 2018. This increase drove improvement in key metrics

• Investment in marketing campaigns to increase by $350,000 targeted at boosting enrolments ahead of beginning of school year in 2019 Q1