Mayfield Childcare releases trading update, confirms new acquisition

Victoria focussed early childhood education and care (ECEC) provider Mayfield Childcare Ltd has released a Q1 2021 trading update and provided some detail on a new long day care (LDC) service acquisition. 

The Group generated underlying revenue of $8.0 million in the quarter, down 3.9 per cent on the previous year reflecting a combination of factors including one less trading day in the period as well as slow return to work patterns at the beginning of the quarter and the snap lockdown in February. 

Including support contributions from the Industry Recovery Package of $0.6 million over all revenue was $8.6 million generating $1.9 million of centre earnings before interest, tax, depreciation and amortisation (EBITDA) and $1.3 million of Group EBITDA. 

Operating margins saw an improvement of 0.4 per cent. 

Enquiries and bookings strengthened as the quarter progressed, Mayfield noted, with quarterly occupancy recorded at 63.1 per cent, up around 1 per cent from the equivalent periods in both 2019 and 2020. 

Mayfield also confirmed recently executed contracts to acquire an additional Victorian based, purpose-built, 70 place centre, a move that was flagged in its 2021 results where CEO Dean Clarke noted that the Group was “actively exploring acquisition opportunities across the Victorian, South Australian and New South Wales markets.”

The new centre is expected to generate EBITDA of $560,000 and will increase the Mayfield network to 21 services. 

The acquisition multiple was 4.1x EBITDA.

To access the trading update in full please see here.