Embark Education releases strong HY2023 results as occupancy shines

Embark Education Group, the ASX listed early childhood education and care (ECEC) provider previously known as Evolve Education, has released its Half Year 2023 results in which a robust occupancy performance supported a solid financial result. 

 

Occupancy across the Group’s twenty four centres averaged 80 per cent in the seasonally weaker first half of 2023, a level that was around 5.4 per cent higher than the same period last year. 

 

The strong occupancy performance helped push Group revenues up 21 per cent year on year to $29.2 million and when combined with cost growth of just 4 per cent pushed earnings before interest and tax (EBIT) up 165 per cent to $6.4 million. 

 

At the centre level earnings before interest, tax, depreciation and amortisation (EBITDA) showed strong growth up 38.3 per cent, to $6.76 million, as margins jumped from 20.3 per cent to 23.2 per cent. 

 

“I am delighted at the performance of Embark in the first half of 2023,” Chris Scott, Managing Director said. 

 

“We have worked very hard to build an efficient and productive organisation that delivers good outcomes for all of our key stakeholders namely, our parents, our team members and our shareholders.”

 

Strong balance sheet creates foundations for future growth 

 

Consistent with recent reporting periods Embark has maintained a degree of discipline in its balance sheet management with cash levels at high levels against a backdrop of no long term borrowings. 

 

As at 30 June 2023 Embark had $24.3 million in cash on the balance sheet and zero debt compared to $16.2 million and zero debt as at 31 December 2022. 

 

From a strategic perspective the Group remains committed to acquisition growth citing further opportunities are planned for the second half of 2023 which has started well with a separate trading statement confirming occupancy as at 20 August of 85.8 per cent. 

 

Elsewhere Embark reconfirmed the appointment of two non-executive directors to the Board in the first half of 2023, Renita Gerard who commenced on 1 January and Michelle Thomsen who commenced on 6v June.