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Evolve Education : Interim Financial Report 2016

12/20/2016 | 08:19pm

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30 s..,_mber 2016


Chair and Chief Executive Officer's Update 3

Financial and Operational Highlights 6

Interim Financial Statements 9

Corporate Directory 27

Chair and Chief Executive Officer's Update Revenue


(Over 30 September 2015)

Steady Growth Learning Excellence

We are pleased to report Evolve Education Group Limited's (Evolve) strong result for the half year to 30 September 2016.

Our half year results showed solid revenue of

$76.4m up 9% on the corresponding period last year and EBITDA* (excluding acquisition and integration costs) grew 10% to $15.1m.

Net profit after tax (NPAT) was $8.8m.

Our early childhood education (ECE) centres represent the major segment of our business. These centres make up 83% of the group's revenue with EBITDA* growing 12% in the half year and achieving an EBITDA* margin of 26.5%.

We continue to grow EBITDA* of the base


Evolve remains focused on delivering high quality parent engagement, child-centred learning and care across all of our services.

We have just hosted our second ECE centre managers' conference bringing the teams together to network, focus on exceeding parents' expectations, defining learning journeys for our children and enhancing professional development.

We are heartened by the camaraderie and engagement across our centre leadership which builds our capability and networks.

portfolio of 84 centres which added $528k of (Education Review Office) reports reflecting a incremental EBITDA* in the half year. This has four-year review.

been achieved through higher occupancy and

well managed costs.

Centre acquisitions also contributed to the earnings growth. The FY 2015/16 acquisitions added $1.157m of EBITDA* in the period and the FY 2016/17 acquisitions contributed $289k of EBITDA* in the period.

Our home-based businesses Porse and Au Pair Link had slightly lower demand in the first half with revenue down 3% and EBITDA* down 4%.

Net assets per security of $0.93 at 30 September 2016 ($0.89 at 30 September 2015) includes tangible and intangible assets. A significant component of net asset value is represented by goodwill arising from acquisitions. Net tangible assets per security (excluding intangible assets) were ($0.18)

as at 30 September 2016 (($0.15) as at 30

September 2015).

Interim Report 2016 / 3

A number of our centres and home-based services have achieved the highest ERO

Net Profit after Tax


(Over 30 September 2015)



(Over 30 September 2015)

Earnings per share


(4.8c 30 September 2015)

Interim Dividend


(2.38cps 30 September 2015)

*EBITDA is earnings before interest, tax, depreciation and amortisation and it also excludes acquisition and integration costs (refer page 15).

2 / Evolve Education Group Limited

Interim Report 2016 / 5

Chair and Chief Executive Officer's Update

Our training organisation, Porse Education and Training has recently achieved a four-

year External Evaluative Review process led by NZQA. This process is mandatory for all tertiary training providers to assure compliance and quality.

Acquisitions and Developments

At the end of September our centre portfolio reached 110. Subsequently we settled

an additional eight centres, bringing our acquisitions this year to 13. A number of these centres were acquired at a lower occupancy, which will generate revenue upside through increasing enrolments in the ensuing periods.

To further extend our portfolio we have opened the first leasehold development centre, to

bring our total operating centre portfolio to

119. The centre opened in Pegasus, north of Christchurch, on 31 October 2016. Evolve has contracted a further two leasehold centres which will open in the next financial year.

With an experienced team on education and property management, we believe we can

Norah Barlow


Evolve Education Group Limited

4 / Evolve Education Group Limited

demonstrate a strong return over time through these acquired and developed centres.


We are pleased to report an interim dividend of 2.5 cents per share, fully imputed, to be paid on 21 December 2016. This is a 5% increase on the same period last year.

Shareholders are able to reinvest all or part of their dividend payments into additional fully paid Evolve shares under Evolve's Dividend

Reinvestment Plan ("DRP"). To participate in the DRP for this interim dividend, a DRP Notice must have been received no later than 5:00pm on 7 December 2016.

Our shareholders can be assured our focus is on exceeding family expectations through an engaged professional workforce. This in turn will ensure continuous growth of earnings for shareholders.

Thank you for your continued support.

Alan Wham

Chief Executive Officer Evolve Education Group Limited

Evolve Education Group Ltd. published this content on 21 December 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 21 December 2016 01:18:11 UTC.

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