Embark Early Education (EVO) H2 2024 earnings summary

Executive summary

• Achieved 29% revenue growth in 2024, reaching $81.6 million, driven by operational efficiency, acquisitions, and fee increases.

• Underlying centre EBITDA rose 26% to $21.6 million year-over-year.

• Net profit after tax increased to $9.0 million from $8.3 million in 2023.

• Expanded portfolio to 38 centres with 14 acquisitions during the year, totaling $40 million.

• Four fully franked quarterly dividends totaling 6c per share ($10m) were paid.

Financial highlights

• Revenue grew 29% to $81.6 million compared to 2023.

• Underlying centre EBITDA increased 26% to $21.6 million.

• Profit before net finance expense and income tax rose 21% to $19.8 million.

• Basic and diluted EPS remained at 0.05 cents.

• Cash balance at year-end was $13.3 million, with $4.2 million in borrowings.

Outlook and guidance

• Revenue for the first six weeks of 2025 is up 58% over the prior year, indicating a strong start.

• Integration of new acquisitions and implementation of government wage retention grant planned for 2025.

• Small fee increase in February 2025 to offset rising costs.

• Continued acquisition strategy with multiple opportunities in the pipeline.

• Regular quarterly dividends targeted, with a policy of paying 50–75% of pre-AASB 16 net profit after tax.