Nido Education (NDO) investor relations material

Executive summary

• Delivered over 450,000 days of learning in a challenging market, with service EBITDA up 8% to $12.8M and $229K per service, despite a 3% occupancy decline.

• Interim fully franked dividend of 1.5¢ per share declared, reflecting balance sheet strength and ongoing capital management.

• Strong balance sheet and cash conversion support growth through acquisitions and share buybacks, with $400K in shares acquired in the first half.

• Launched new kindergarten curriculum, enhanced nutrition, and invested in leadership, safety, and compliance.

• Completed a $2.3M acquisition post-period, funded by existing borrowing facilities.

Financial highlights

• Group revenue rose 8% to $82.8M, with service EBITDA up 8% to $12.8M; group EBITDA was $6.6M and NPAT $4.6M, while net profit for the period was $2.5M.

• Cash conversion was strong at 97%, and net leverage ratio remained low at 0.5x, with $34M in debt capacity available.

• Wage to revenue ratio improved from 59% to 57% year-over-year.

• Average daily fee increased to $172 from $157 year-over-year, with fees held steady in January 2025 and a 4% increase planned for July 2025.

• Earnings per share (basic) at 1.10 cents for HY2025, down from 1.47 cents year-over-year.

Outlook and guidance

• Five new services opened in the first half, with five more expected by December 2025 and at least 19 openings planned for FY26 and beyond.

• Pipeline includes over 100 services/sites, supporting a goal of acquiring 100 services from the incubator over five years.

• Sector outlook expected to improve in FY26 with government reforms, including a 3-day guarantee from January 2026, and anticipated interest rate cuts.

• No explicit occupancy forecast for the second half, but inquiries remain stable and conversion is more challenging.

• Management forecasts positive cash flows and sufficient liquidity for at least the next 12 months.