Evolve Education raises FY2020 guidance as benefits of restructuring flow through, but remains silent on FY2021
Evolve Education Group have increased their profit guidance for the financial year ended 31 March 2020 to between $7.8 million and $8.2 million, up from the $6.0 million to $6.5 million forecast on 28 November 2019, and subsequently withdrawn on 24 March 2020 as benefits from an extensive restructuring program flow through the business.
In a statement released to the NZX and ASX, the company highlighted that improvements in performance in the FY2020 year were driven by improvements to the New Zealand centre portfolio, cost savings at the New Zealand support office and the acquisition of 10 centres in Australia.
In addition, it was noted that $63 million was raised by way of a rights issue and the company’s board had been revitalised.
Commenting the Board of Directors noted “that, operationally, significant progress was made after 18 September 2019 in restructuring EVO and returning the company to financial good health. Head office and centre cost efficiencies have enabled the Company to exceed the original guidance for FY31 March 2020.”
At this stage the company has not elected to update their FY2021 guidance due to uncertainties created by the onset of the COVID-19 pandemic and implications for operations going forward.
Evolve also confirmed that the financial year ended 31 March 2020 results would now be released on 15 June 2020 and their Annual Report on 14 August 2020.
To read the Evolve update please click here.