Evolve lifts first-half profit 11%, big plans for 2017
Evolve contracted five new early childhood education (ECE) centres in the first half and has contracted a further eight since that date, the company said.
Evolve Education Group, the childcare centre operator, lifted first-half profit by 11% as it looks to increase its centre numbers over the next two years.
Net profit rose to $12.5 million in the six months ended September 30, from $11.3 million a year earlier, as revenue increased 9% to $76.4 million, the Auckland-based company said in a statement.
Evolve contracted five new early childhood education (ECE) centres in the first half and has contracted a further eight since that date, the company said. While the first-half results include an element of these acquisitions, the majority of the increase in earnings will be reported over the coming 12 months, it said.
The company is on track to add between 15 and 20 centres in 2017. Its has 119 centres as of today, up from 84 at the time of its 2014 initial public offering. It has $14.5 million of acquisition funding it hasn't used yet, in place for growth in the 2018 financial year, and two developments contracted and expected to start trading in that year, while further new centre opportunities are "being evaluated."
Evolve's revenue from ECE centres rose 12% to $63.1 million in the first half, while earnings from home-based ECE dropped 3% to $12.7 million. Occupancy of the original 84 centres rose one percentage point to 85% in the first half.
The company will pay a final dividend of 2.5c a share, up from 2.38c per share for the previous equivalent first-half fully imputed.The record date is December 6 and the payment date December 21.
Evolve shares rose 5% to $1.05 and have dropped 2% this year. They sold in the IPO at $1 apiece.
(BusinessDesk)
Sophie Boot
Mon, 21 Nov 2016
Mon, 21 Nov 2016
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Evolve lifts first-half profit 11%, big plans for 2017
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