Embark Early Education reports robust CY2024 growth as acquisitions kick in

ASX listed Embark Education Group has released its Full Year 2024 results which saw its underlying profitability jump as a spate of new acquisitions began contributing to the businesses overall performance. 

Embark reported revenues of $81.6 million, up 29 per cent year on year, and underlying earnings before interest tax depreciation and amortisation (EBITDA) of $21.6 million, up 26 per cent, largely coming from an enlarged centre network of 38 centres. 

Over the course of the year Embark acquired fourteen new businesses, with five acquired in the first half of the year and a further nine acquired in the second for a total price of $40 million. 

Embark confirmed average occupancy of 80 per cent in 2024, slightly lower than the 82 per cent reported in 2023, and the same as that reported in 2022. Notably peak occupancy was also slightly lower and earlier this year with 85 per cent achieved in Week 40 and compared to 86.1 per cent reported in Week 41 last year. 

“We are very pleased with our performance in 2024. Not only did we deliver a solid trading performance we also grew the overall portfolio of Embark centres materially,” Managing Director Chris Scott said. 

Embark commits to Worker Retention Payment grant, appoints new COO

Embark confirmed that it has applied to participate in the worker retention payment grant which has been extended to approved providers who are prepared to increase educator salaries by 15 per cent over two years from 2 December 2024. 

Participation in the scheme will allow for a full reimbursement of the 10 per increase that will be applied to educators and in turn support retention and attraction of their workforce in what is still a moderately tight hiring environment. 

Progress on workforce satisfaction was evident in an increase of two percent in the organisation’s team satisfaction survey which rose to 82 per cent alongside an improved net promoter score which rose to 61, from 58 last year. 

In addition, the Group confirmed the appointment of a Chief Operating Officer, Mr Greg Scott, who is charged with overseeing the enlarged company’s operations. 

Mr Scott has extensive experience in the early childhood education and care (ECEC) sector working at G8 Education in a number of roles, both in Australia and Singapore prior to joining Embark Education 

Embark balance sheet in strong shape, new loan facility confirmed 

Embark closed out 2024 with $13.4 million of cash on the balance sheet having generated pre AASB16 operating cash flow of $9.3 million during the year.

The Group also secured a new $25 million borrowing facility with National Australia Bank which will be used to fund the acquisition of additional centres with $4.3m of this facility having been drawn as at the end of December 2024.

With respect to the start of 2025 Embark confirmed that revenues were materially higher than the same period last year although the company did not confirm any specific occupancy or like for like numbers. 

Embark paid fully franked dividends of AUD 0.04 cents in 2024 and earnings per share of $0.05 cents.

To review this year’s results please click here.