Monday 23rd November 2015 |
Text too small? |
Evolve Education Group shares jumped to a five-month high after the childcare operator said its first-profit 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 Sept. 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 ECE (early childhood education) centres."
The shares climbed 15 percent 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 Sept. 30 because of those purchases, with goodwill now valued at $175.9 million on a total asset base of $194.9 million as at Sept. 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 percent for the half year," Wham said.
The board declared a fully imputed dividend of 2.38 cents per share, with a Dec. 5 record date, payable on Dec. 18. The directors also approved a dividend reinvestment plan effective from today.
BusinessDesk.co.nz
No comments yet
Second St John withdrawal of labour takes effect tomorrow with further strikes likely
Sanford Appoints Independent Director
CRP ADVISES CLOSURE OF SHARE OFFER TO EXISTING INVESTOR
Devon Funds Morning Note - 14 August 2024
OCR 5.25% - Monetary restraint tempered as inflation converges on target
Consumers still need due diligence as new deposit takers emerge.
Woolworths strike: staff asked to dress up in Disney costumes for a week on their own dollar
Turners Invests in Quashed Online Insurance Platform
PGW Reports on Challenging Year
Arvida Announces Executive Team Changes