Evolve shares jump on first half profit of $8.4m
The company reported a net profit of $8.4 million in the six months ended September 30.
Evolve Education Group [NZX: EVO] shares jumped to a five-month high after the childcare operator said its first profit was in line with forecast annual earnings.
The Auckland-based company reported a net profit of $8.4 million in the six months ended September 30 on revenue of $70.1 million. The company listed in December last year, raising $132.3 million to fund a series of acquisitions, including Lollipops Educare, the in-home childcare Porse Group, Wellington-based I-Kids and Christchurch-based Artemis Learning, which meant there wasn't a meaningful prior-year period for earnings comparisons. Evolve said the result left it on track to meet prospectus guidance for an annual profit of $16.6 million on revenue of $136.2 million.
"We believe Evolve is well placed to meet its PFI (prospective financial information) target for the year ending March 31 2016," chair Norah Barlow said in a statement. "Evolve's unutilised bank debt facilities, in excess of $40 million at the end of September, enable continuing acquisitions of quality early childhood education centres."
The shares climbed 15% to $1.10, a five-month high, and up from the $1 price the shares were sold in last year's NZX listing.
Evolve acquired 14 ECE centres in the period, bringing its total portfolio to 100 centres. The value of the company's intangible assets increased by $13.9 million in the six months ended September 30 because of those purchases, with goodwill now valued at $175.9 million on a total asset base of $194.9 million as at September 30.
Chief executive Alan Wham said a solid operational performance underpinned the company's first-half performance.
"The commitment from our teaching staff to education outcomes has ensured continued parental support with occupancy of 87% for the half year," Wham said.
The board declared a fully imputed dividend of 2.38c per share, with a December 5 record date, payable on December 18. The directors also approved a dividend reinvestment plan effective from today.
(BusinessDesk)
Sophie Boot
Mon, 23 Nov 2015
Mon, 23 Nov 2015
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