Mayfield reports good performance in 2021 with Genius acquisition key highlight

Early childhood education and care (ECEC) provider Mayfield Childcare Ltd has released its Full Year 20201 results, in which the group reported a solid operational and financial performance despite COVID disruptions with prospects for 2022 solid post Genius acquisition. 

 

“The business has performed extremely well despite the challenges we continue to face with COVID-19 and restrictions placed on our communities and economy,” Chief Executive Officer Dean Clarke said. 

 

“The acquisitions secured in 2021 are a great step forward for Mayfield that substantially change the economics and financial standing of our business. This is an exciting time as we expand around Australia and with the strength of our balance sheet, and increased debt capacity, we are well placed to leverage growth opportunities.”

 

Centre revenues bounce back with Group EBITDA reaching a new record

 

Centre based revenues were $38.6 million in 2021, up from $24.7 million in 2020 and around 7 per cent higher than revenues recorded in 2019, the last full year reporting period prior to the COVID-19 pandemic. 

 

Earnings before interest, tax, depreciation and amortisation (EBITDA) was $9.6 million and $7.0 million at the centre and group level respectively with centre margins at 24.1 per cent, 1.1 per cent higher than in 2019. 

 

Occupancy also showed positive trends with the group recording 70.1 per cent across its network of 2022 centres, higher than both 2020 and 2019 with fees raised by 5.1 per cent providing additional support to top line growth. 

 

Mayfield continued to demonstrate its strong quality credentials with 90 per cent of all its services now rated meeting or exceeding the National Quality Standard. 

 

Genius Childcare acquisition of 14 centres to transform the group

 

The acquisition of 14 ECEC centres located across Victoria, Queensland and South Australia from Genius Childcare announced in September 2021 had been settled and is due to provide a significant boost to Mayfield’s network from not just operational and financial perspectives but geographic too. 

 

Up until now Mayfield has solely focused on Victoria so the addition of eight centres in Queensland and one in South Australia, plus the potential to deepen the footprints in these states via an incubator partnership with Genius, shifts the strategic focus of Mayfield significantly. 

 

The 14 Genius centres are expected to generate around $8.0 million in annualised EBITDA which, when combined with the existing Group EBITDA, will see at least a 100 per cent increase in 2022. 

 

“Future acquisition opportunities associated with the incubator arrangements between Mayfield and Genius are under assessment, with new additions to the portfolio expected early in the second half of 2022,” the group noted, signaling additional network growth is to be expected. 

 

2022 has started softly as Omicron affect lingers

 

Mayfield confirmed that 2022 had started softly with only marginal occupancy gains compared to 2021 as extended work from home arrangements for families and isolation requirements acted as a dampener on enrolment activity to start the year. 

 

The Group signaled that they expect the operating environment to remain tempered in the short term as the impact of Omicron moderates and then fades. 

 

To read a media release on Mayfield’s Full Year Results click here and for the presentation click here.