The Think Childcare Ltd (ASX: TNK) share price is currently up 7% after the company announced its FY20 result and told investors that it had beaten its guidance.
Think Childcare is one of the largest childcare operators in the country.
FY20 result impresses
Think Childcare’s group underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $26.8 million was an increase of 89% compared to the prior corresponding period. It was actually 7% better than the guidance range it had previously given of $24 million to $25 million.
The company boasted that this result demonstrated significant momentum as it continues to execute on its strategy as Australia’s leading provider of premium childcare services to suburban families.
Management said that there has been a solid rebound in occupancy driven by recovery in existing enrolments and new enrolments. The enrolled occupancy peaked at 79%, with the attendance occupancy reaching 73%.
The business said that there has been a significant return from its marketing investment during the COVID-19 period with 43% of total enrolments being new at 31 December 2020.
Think Childcare said it recorded $30.1 million of underlying EBITDA in the 2020 calendar year, which was up 104% year on year, with an expected similar result in the 2021 year despite approximately $4 million of increased of corporate costs in the current year to support future growth…