Evolve Education updates on trading and coronavirus, reaffirms 2020 guidance
Evolve Education Group has released an update for shareholders in which it confirms that current trading is in line with expectations, the coronavirus is not impacting performance and that earnings guidance for the financial year ended 31 March 2020 and calendar year 2020 remains intact.
The Group, which currently has 126 centres in New Zealand and 10 settled centres in Australia, provided the update against a backdrop of increased concerns about the impact of coronavirus on early childhood education and care providers amidst increases in confirmed cases of the illness across Australia and overseas.
With respect to the coronavirus the company noted that there has been no material impact, either operational or financial, on any Evolve centre in New Zealand or Australia nor in aggregate terms across the organisation and that, consequently, their full year 2020 earnings before interest and tax (EBITDA) guidance of $6.0 million to $6.5 million remains intact.
They then went on to confirm that the company continues to expect EBITDA of no less than $15 million for calendar year 2020
Commenting Chris Scott Managing Director said “The Group continues to trade in line with prior earnings guidance and continues to progress initiatives as outlined in the half year results announcement made on 28 November 2019.”
In a separate release the Group also confirmed that a Special Meeting will be held on Thursday 26 March 2020 in Auckland to ratify the placement of 145 million ordinary shares placed with institutional investors in December 2020 which, assuming shareholder approval is received, will reset their capacity to issue additional shares under NZX Listing Rule 4.5.1.
The statement highlights that the Board believes that the reset will be a positive step for the group, as it will provide Evolve with the flexibility to raise new money through the issue of further equity securities going forward.
To read the full ‘notice of meeting’ document please click here.