Evolve on track to secure 85 kindergartens by end of March, eyes more centres
By Suze Metherell
Feb. 17 (BusinessDesk) - Evolve Education Group, the listed childcare business, said it's on track to settle its acquisitions as forecast in its prospectus and is eyeing further childcare centres for purchase.
In December the Auckland-based company raised $132.3 million to fund its acquisition of the Lollipops Educare Holdings, the PORSE Group, Au Pair Link and ECE Management to become a child care business.
Since its NZX debut, the company has settled 73 purchases, saying it was on track to have 85 centres settled by the end of next month, and is now looking beyond its initial portfolio to acquire further childcare centres, it said in a statement.
The Evolve model follows the successful float of Australia’s Affinity Education Group which listed on the ASX in December 2013, raising A$75 million to buy 57 childcare centres.
According to Evolve's prospectus, the company forecasts a loss of $9.5 million on $29 million of sales in the year ending March 31, 2015, which only covers three and a half months trading, before turning to a profit of $16.6 million on sales of $136 million in the subsequent year.
Shares of Evolve fell 0.9 percent to $1.11, above its $1 offer price.