Think Childcare releases trading update, boosts CY2020 guidance
Think Childcare Group has released a trading statement and a guidance update which confirms that its network, ex Victoria, is trading strongly, and that CY2020 Group profits will be up significantly compared to what was expected, and communicated, at the Group’s half year results in August 2020.
Specifically, Think has confirmed that expects Group underlying earnings before interest, tax, depreciation and amortisation (EBITDA) for CY2020 to be between $22.0 million and $23.0 million.
This compares to $15.0 million and $17.0 million provided at the Half Year results and notably, $21.0 million to $23.0 million provided pre-COVID.
The company noted in their statement that “NSW, SA, WA, ACT and QLD Services are now trading strongly with enrolments and attendances at or above pre COVID-19 levels and have contributed positively to the adjustment to our guidance.”
Enrolments and attendances in VIC, Think noted, have also begun to recover, and as businesses begin to open and restrictions continue to ease, the Group expects enrolments and attendance to continue to increase.
The company confirmed the guidance upgrade was a function of two dynamics, the first being a combination of improving trading performance across the network, Government support packages and active management of primarily the Group’s casual workforce and other non staff related expenses which when taken together have supported profitability.
Secondly, the rebasing of guidance away from a COVID-19 context, and the uncertainties it created (as communicated at the CY2020 Half Year results), to an environment where the outlook has become more certain with lockdowns passing and economic and societal conditions normalising.
Think will next report to the market at its Full Year 2020 results which are expected in February 2021.
For further context on the announcement, please see here.