Mayfield issues comprehensive guidance update, confirms no dividend for 2020
Victorian based early childhood education and care (ECEC) provider Mayfield Childcare has released its guidance for the calendar year 2020 in which it confirms expectations around operational and profit performance for the full year and highlights that no dividend will be paid this year.
With respect to operational performance the Group expects occupancy to come in around 67 per cent for the year, around 2.5 per cent lower than the 69.5 per cent recorded in 2019.
In relation to profit performance the Group is guiding earnings before interest and tax (EBIT) to be between $5.6 million and $5.9 million, which at the mid point is slightly higher than the $5.7 million recorded in 2019.
Net profit after tax is expected to be between $3.8 million and $3.9 million, also slightly above last years 3.8 million at the mid point.
Mayfield CEO Dean Clarke commented “While 2020 has proven to be an unprecedented operating environment, the Mayfield business and more importantly our centre management teams and educators have demonstrated extraordinary resilience”.
The Group highlighted that second half revenues generated from continuing operations across its network of 21 centres has continued to improve, though shortfalls as a result of reduced occupancy performance has, in part, been offset by the various Government support initiatives.
And that, cost mitigation strategies aimed at minimising non-essential expenditure implemented in the first half have continued, along with the suspension of non-critical capital projects and that wage costs have been tightly managed across the group, matching low attendance levels, while remaining compliant with the Employment Guarantee conditions prescribed by the Federal Government.
Mayfield also confirmed that it will not declare or pay a dividend for the 2020 calendar year.
“Given the volatile nature of the pandemic and the impact that it has had, and will continue to have, on the Victorian economy,” Mr Clarke said, “the Board has taken the precautionary decision not to declare or pay a dividend in respect of the CY2020.”
To read today’s announcement please click here.