Mayfield releases upbeat trading statement with core portfolio driving revenue gains

Mayfield Childcare has released a Q1 trading update in which it confirms a good start to the year for its legacy portfolio of Victoria centres as well as a solid performance for the Genius Learning centres it acquired in late 2021. 

Underlying revenue from continuing operations at the 22 centres that make up the Group’s core portfolio was $9.0 million, an increase of 12.2 per cent compared to the same period last year reflecting targeted acquisitions and stronger occupancy growth driving performance this year. 

However, like many organisations in the early childhood education and care sector, Mayfield has been impacted by high instances of staff absences caused by the Omicron variant of the COVID-19 virus which has in turn pushed up agency sourced replacements and consequently impacted labour costs for the business negatively. 

Earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $1.3 million, from $1.4 million in Q1 2021, reflecting the higher costs to fill rosters experienced by the business. 

Mayfield’s recently acquired 14 Genius Childcare centres generated $6.4 million in revenue and $1.0 million in EBITDA in Q1 2022 which is in line with the forecast expectations for 2022 of $8.0 million of EBITDA contribution in total. 

The Genius centres are currently trading at an occupancy level of 66.1 per cent. 

Mayfield noted towards the end of its statement that overall the team is pleased with performance year to date and that “the estimated incremental earnings of $8.0 million EBITDA for CY22 from the Genius transaction will substantially increase the financial scale of the business.” 

“Continued strong cash flows have further improved the net debt position, coupled with low gearing levels and significant available loan facilities, characterising Mayfields strong balance sheet,” Mayfield representatives added. 

Future acquisition opportunities associated with the incubator arrangements between Mayfield and Genius are under assessment, with new additions to the portfolio expected in Q3 2022, the statement concluded.

To read the trading statement please click here.