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Mayfield Childcare (ASX:MFD) halts trading ahead of “material acquisition”

Education
ASX:MFD      MCAP $35.41M
29 October 2021 15:58 (AEDT)

Mayfield Childcare (MFD) has entered a trading halt today, pending further news regarding a material acquisition and capital raising.

MFD will remain in a trading halt until the commencement of trading on November 2 or when Mayfield releases its acquisition and capital raising announcement, whichever comes first.

Mayfield Childcare is an ASX-listed childcare company with 21 Victorian childcare centres representing 1777 registered childcare places.

For the first half of 2021, statutory revenue for the group — before stimulus package income — was $16.9 million, up 79 per cent.

Overall revenue grew to $17.5 million, up 6.1 per cent, partly due to a final government support and stimulus payment of $600,000. Net profit after tax (NPAT) came to $1.3 million, up 129.4 per cent.

The 2021 fiscal year has been largely steady, according to Mayfield, showing a more normalised economic climate, despite the effects of the gradual return to work levels for private office and public sector workers, as well as a number of state-wide lockdowns in Victoria.

As Victorians battled their way out of a 111-day lockdown, residual limitations hindered the start of the 2021 fiscal year.

The group finished the first half of the calendar year with $7.6 million in net debt, $32.1 million in net assets — up by $4.9 million — and an occupancy rate of 66 per cent.

Shares in Mayfield Childcare last traded at $1.20 on Thursday, October 28.

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