The Evolve Education Group Ltd (ASX: EVO) share price lifted to a 52-week high of 18.5 cents early today, after the company released its interim half year report. Evolve reported net profit after tax (NPAT) of NZ$6.23 million for the six months to 30 September, a significant turnaround from the loss of NZ$1.44 million for the same period last year. The Evolve share price has since retreated slightly to it current price of 18 cents.
What else did Evolve report
The company realised an increase in net profit despite booking 6% less revenue at NZ$65 million for the same period. It attributed the revenue drop to the impact of closure and disruption to its centres arising from COVID-19.
Evolve reported underlying earnings before interest, tax, depreciation, and ammortisation (EBITDA) for the six months of NZ$12.4 million. This compares well with the NZ$3.9 million it reported for the six months prior.
The company says it was able to record strong earnings despite lower revenue due to operational improvements and efficiencies achieved both at its centres, and at the support office. In addition, the 10 Australian centres acquired in calendar year 2019 have been performing well.
Evolve says it is on track to resume its acquisition activities in 2021.
What is Evolve Education
Evolve Education is a New Zealand company that provides care and early childhood education to children until they attend primary school. Evolve offers both centre-based and home-based services, and is operating under brands that include Lollipops, Active Explorers, Little Lights, Little Wonders and Pascals.
The company operates 127 childcare centres across New Zealand and Australia. Its centres had to close during various periods throughout the pandemic, which affected its revenue.
However the company was able to receive wage subsidies support from the New Zealand government for an amount of NZ$11.8 million. In Australia, the company was also eligible to receive the government’s Early Childhood Education and Care Relief package, as well as JobKeeper payments.
About the Evolve share price in 2020
The Evolve share price has doubled since news of successful vaccine came out in early November. For the year, the Evolve share price is higher by 22%. Today’s share price of 18.5 cents is a 52-week high. The company commands a market cap of $200 million.
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