Mayfield confirms guidance 2026 downgrade post restructure and YTD trading

Mayfield Childcare has confirmed that it expects to generate underlying earnings of between $2.4 million and $2.7 million in 2026, a level lower than that previously signalled in its March 2026 investor presentation. 

The update comes after nine months of actual trading and the completion of a company restructure with the company noting that although the guidance is lower than prior indications, overall earnings before interest tax amortisation and depreciation (EBITDA) is now expected to be higher than that generated in 2025. 

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Mayfield now expects FY26 underlying Group EBITDA of $2.4 million to $2.7 million, compared with $2.3 million reported in FY25, which represents an increase of 4 per cent to 17 per cent notwithstanding challenging operating conditions across the early childhood education and care sector,” the company said. 

“This FY26 guidance includes approximately $0.4 million of one off restructuring and takeover related costs. Excluding these cist FY26 underlying Group EBITDA would be $2.8 million to $3.1 million.”

Spot occupancy falls to 56 per cent as restructure completes

Mayfield reported spot occupancy across its network of forty five centres was 56 per cent, down from last year, and that occupancy trends in 2026 were lower than originally budget largely due to a decline in new enquiries across the year. 

The company also confirmed that the delay in implementing fee increases was an additional factor in explaining the decline in EBITDA relative to forecast. Network wide increases, however, have now been fully implemented. 

As part of the company-wide restructure twelve roles have been made redundant with responsibilities for execution of some tasks and processes returned to centres. In addition, the company reviewed its service contract register and proceeded to exit a selection of them. 

The restructure is expected to deliver approximately $1.5 million in annualised savings, including on-costs of around $0.5m in 2026. The full annualised savings will be recognised in 2027. 

Pressure remains on Mayfield as Embark request for meeting looms

Today's announcement comes against the backdrop of Embark Early Education’s recent notice that it intended to present resolutions at a shareholder meeting to remove three directors from the board. 

The move comes after a protracted period of uncertainty around Embark’s gradual accumulation in the shares of the company which for an extended period amounted to just shy of 50 per cent of the company but now, after a recent acquisition, sits at 50.04 per cent. 

Embark’s resolutions, should they be successful, will see Hamish Stevens (Chair of Embark) and Chris Scott (Managing Director of Embark) replace the outgoing directors on the Mayfield Board. 

Mayfield has yet to respond to Embark’s request for a shareholder meeting.