Quality improvement program yields results for Mayfield in 2018.

Quality ratings at ASX listed early education provider Mayfield Childcare Limited have continued to improve as it’s quality investment program drives a shift in its national quality standard profile, the company has reported.

In its 2018 financial results presentation, released this morning, Mayfield has reported that 15 per cent of their centres are now rated working towards, 70 per cent rated meeting and 15 per cent rated exceeding.*

This compares to 56 per cent rated working towards, 38 per cent rated meeting and 6 per cent rated exceeding in 2016.

The company has a portfolio of 20 centres which is a net increase of 1 since last year.

Additional key points highlighted in the report include:

• Occupancy fell 1.0 per cent year on year to 69.0 per cent
• Average fees per day increased 3.9 per cent year on year to $111
• Average award increases in July across its 445 team members was 3.5 per cent
• 3 centres were acquired at an average of 5.0x 2019 EBITDA and 2 centres sold
• Centre management and support office team investment is ongoing
• Phase 1 of digital and social media platforms set up complete – centre upgrades ongoing

From a financial perspective the company reported net profit after tax from continuing operations of $3.38 million compared to $3.42 million in 2017. Performance was impacted by occupancy falls and continued investment in the business impacting revenues and costs respectively but was somewhat mitigated by the fee increase and the new acquisitions.

The company also reported an increase of it’s Westpac debt facility. The new facility is $19.1 million, an increase of $10.6 million. It will be used to fund future acquisitions.

In terms of outlook the company is expecting 2019 to bring a more stable market environment, continued positive flow through from the Child Care Subsidy and a slowing of new supply as banks lending criteria continues to tighten and council’s become more discriminate when assessing development applications.

*The ACECQA register as of today states that Mayfield have 20 per cent of their centres rated working towards, 70 per cent rated meeting and 10 per cent rated exceeding. Discrepancies between Mayfield reported ratings and ACECQA ratings could be a function of timing.