- Evolve Education Group’s (EVO) latest trading update shows occupancy rates in New Zealand remain subdued post COVID-19 lockdowns
- The childcare operator says occupancy rates in the country hovered around 70 per cent at the end of May compared to 87.8 per cent in parts of Australia
- EVO expects to end FY21 with up to NZ$18.5 million (around A$17.84 million) in earnings, before increasing to up to NZ$25 million (about A$23.3 million) in FY22
- It also advised its shareholders that the company intends to commence quarterly dividend payments from September
- Company shares are trading down 1.17 per cent at 84.5 cents each
Evolve Education Group (EVO) has posted a trading update showing occupancy rates in New Zealand remain subdued post COVID-19 lockdowns.
EVO operates 115 childcare centres across New Zealand as well as an additional 20 centres across Australia.
It explained today that its occupancy rates in Auckland hovered around 70 per cent at the end of May, with teacher shortages partially to blame.
The issue didn’t extend to Australia though, EVO reported an 87.8 per cent occupancy rate in the country’s southern states and an 80 per cent occupancy rate in Queensland.
Based on the trading condition in Australia and New Zealand, the childcare operator expects to end FY21 with up to NZ$18.5 million (around A$17.84 million) in earnings before interest, taxes, depreciation, and amortisation (EBITDA).
EVO then expects its EBITDA to increase to a maximum of NZ$25 million (about A$23.3 million) in FY22.
The company entered June with approximately NZ$48 million (roughly A$41.93 million) worth of cash.
Looking ahead, EVO shareholders will soon receive a dividend, with the company stating it intends to commence quarterly dividend payments from September.
Evolve also flagged additional centre acquisitions in the future, after carrying out a recent capital raise.
Following today’s trading update, company shares were trading down 1.17 per cent at 84.5 cents each at 1:42 pm AEST.