Evolve Education turns to profit, misses prospectus target

By Jonathan Underhill

Evolve acquired 20 childcare centres in the latest year, bringing its total at March 31 to 106.
Evolve acquired 20 childcare centres in the latest year, bringing its total at March 31 to 106.

Evolve Education Group, the childcare operator, turned to a profit in its latest year, although earnings undershot the target in its 2014 prospectus.

Profit was $15.6 million in the 12 months ended March 31, from a loss of $8.1 million a year earlier, the Auckland-based company said in a statement. Total expenses were $116.7 million, compared with a prospectus forecast of $110.8 million. Revenue jumped to $139 million, ahead of its prospectus forecast, from $32.9 million. The childcare operator anticipated profit of $16.6 million.

Evolve acquired 20 childcare centres in the latest year, bringing its total at March 31 to 106.

The company said acquisition costs of $1.2 million and integration costs of $700,000 were incurred and expensed in the latest year and excluding that one-time cost, profit was $16.8 million, beating its prospectus target. The newly acquired centres would contribute earnings without those associated costs in 2017, it said.

The company will pay a final dividend of 2.38 cents a share, fully imputed, bringing the total payment for the year to 4.76 cents. The record date is June 8 and the payment date June 20.

Evolve shares last traded at $1.04 and have gained 5.1 per cent in the past 12 months. They sold in the initial public offering at $1 apiece.

- BusinessDesk

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