Think Childcare releases bullish market update
The Sector > Provider > General News > Think Childcare releases bullish market update

Think Childcare releases bullish market update

by Jason Roberts

November 12, 2018

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.


Matthew Edwards, Managing Director and Chief Executive Officer, commented “TNK is pleased to announce that it has agreed to purchase 5 high quality childcare centres from its incubator partners” and also noted that TNK has “experienced a significant improvement in key performance metrics between Q3 and Q2.”



Think Childcare, listed in 2014, owns and operates a total of 55 childcare centres across Australia.


Other key highlights from the report include:


  • 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



The company also announced the completion of a significant strengthening of the executive team with the appointment of a new Chief Financial Officer, General Manager of Business, National Service Delivery Manager, Commercial Manager and Financial Controller.



The CY 2018 outlook highlighted at the half year results in August has been reiterated at net profit after tax (NPAT) of between $4.75 million and $5.25 million and earning per share between 10 cents and 11 cents.


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