Mayfield Childcare Ltd. · ASX:MFD
Mayfield Childcare — Investor Presentation (August 2024)
19 slides from Mayfield Childcare's investor presentation, Aug 30, 2024
Slide 1: Mayfield Childcare Limited 2024 Half Year Results Investor Presentation
Mayfield Childcare Limited 2024 Half Year Results Investor Presentation 30 August 2024
Slide 2: Important notices and disclaimer
Important notices and disclaimer This Presentation contains summary information about the current activities of Mayfield Childcare Limited (Mayfield). It should be read in conjunction with Mayfield’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchang
Slide 3: Contents
Contents 01 Snapshot – 1H24 02 Strategy Update 03 Operational Review 04 Financial Performance 05 Outlook
Slide 4: Snapshot – 1H24
01 Snapshot – 1H24 Half year at a glance • 7 acquisitions were completed in South Australia, expanding the Group to 45 centres2 and 4,195 licensed places. • Restructure and investments in people and culture led to an improvement in staff retention rates and a 15% reduction in the number of vacant ro
Slide 5: Strategy Update
02 Strategy Update Key Achievements Strategic Progress 5
Slide 6: Key Achievements
02 Strategy Update Key Achievements 1 7 new centres delivering 882 licensed places Expanded the Group’s footprint in South Australia from a single centre with 60 places. 2 Improvements in staff engagement and retention Restructured to empower centre managers resulting in a strong NPS of 48.3. Improv
Slide 7: Strategic Progress – Operations and People
02 Strategy Update Strategic Progress – Operations and People Notable achievements were made in operational performance which were driven by investments in people and culture, and a diligent focus on cost reduction initiatives. Operational Excellence Cost management – focus on centre level budgets
Slide 8: Strategic Progress – Portfolio Growth
02 Strategy Update Strategic Progress – Portfolio Growth Significant progress was made with optimising our overall portfolio with the strategic acquisition of Precious Cargo. Despite establishing a platform for organic growth, weather related closures in Q1 at 9 centres resulted in efforts not yet b
Slide 9: Operational Review
03 Operational Review Enrolments & Occupancy Workforce Management Cost Management 9
Slide 10: Enrolments & Occupancy
03 Operational Review Enrolments & Occupancy New enrolments Centre occupancy growth New children enrolled per month Accumulated occupancy growth 450 10% 400 2024 closures 8% 2024 closures 2024 new enrolments 2024 accumulated growth 350 2023 new enrolments 6% 2023 accumulated growth 300 4% 2% 250 0%
Slide 11: Workforce management
03 Operational Review Workforce management Staff turnover Roster Efficiency Staff terminations as a pct by month Salaries as a pct of Long Day Care Income (WTR) 8.0% 58% 56% 7.0% 54% 6.0% 52% 5.0% 50% 4.0% 48% 3.0% 46% 2.0% 44% 1.0% 42% 0.0% 40% Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun 2023 2
Slide 12: Cost Management
03 Operational Review Cost Management Agency Costs Total Centre Expenses Agency expenditure per month Total centre expense by month as a pct of Long Day Care Income 16% 300 Thousands 14% 250 12% 10% 200 8% 150 6% 4% 100 2% 50 0% Jan Feb Mar Apr May Jun Jul - Jan Feb Mar Apr May Jun 2023 Centre Expen
Slide 13: Financial Performance
04 Financial Performance Earnings Centre EBITDA Drivers Cashflow Balance Sheet
Slide 14: Earnings
04 Financial Performance Earnings 1H24 1H23 $’000s Underlying Underlying Childcare Services Revenue increased by $2.0M to $37.7M driven by the contribution from new centre acquisitions as well as fee increases implemented after the prior period. After adjusting for planned divestments (core centre
Slide 15: Underlying Centre EBITDA Drivers
04 Financial Performance Underlying Centre EBITDA Drivers 6,500 • Childcare revenue and other income uplift of $2.2M after 2,194 excluding revenue from divestment centres, driven by 6,000 newly acquired centres and fee increases. • Increases in labour costs reflect the contribution by newly 5,500 84
Slide 16: Cashflow
04 Financial Performance Cashflow $’000s 1H24 Statutory 1H23 Statutory • Increases in operating cashflow are driven by an increase in fees received due to the newly acquired centres, while corresponding increases in Cash flows from operating activities labour costs have been minimised by rostering e
Slide 17: Balance Sheet
04 Financial Performance Balance Sheet $’000s Jun-24 Dec-23 • The decrease in Current tax receivable relates to prior year tax Cash and cash equivalents 161 363 refunds received during the period. Trade and other receivables 3,091 2,993 • Decreases in Right-of-use assets result from amortisation ove
Slide 18: Outlook
05 Outlook Outlook Organic growth – closing out the brand consolidation program and continuing to drive organic growth through digital customer acquisition strategies will be a focus for 2H24. Reinvigorated Precious Cargo – the integration of our recent acquisition and relaunch of Precious Cargo
Slide 19: Mayfield Childcare Limited
Mayfield Childcare Limited Suite 2, 207-213 Waverley Road Malvern East VIC 3145 www.mayfieldchildcare.com.au Ashok Naveinthiran Chief Executive Officer anavein@mayfield.com.au +61 3 9576 3156 Chris Hayes Chief Financial Officer chayes@mayfield.com.au +61 3 9576 3156 Andrew Angus Investor Relations a
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