ABC Learning Centres’ expansion in the United States with acquisition of La Petite and Busy Bees in the United Kingdom will lead to significant expansion of the company?s capacity.
Yesterday, the company reported a net profit after tax of $64.2 million for the half year ending December 31, 2006 – an increase 57% driven by strong revenue growth.
ABC’s EBITDA was up 86% to $138.1 million. This result means ABC is on track to achieve its guidance of EPS and EBITDA of 36 cents and $273 million respectively.
ABC’s Chairman Sallyanne Atkinson, AO, said the strong first half result affirmed ABC’s strategy of consolidating its position in Australia and New Zealand while expanding into North America.
ABC’s global chief executive Eddy Groves said ABC has successfully integrated both Hutchison’s Child Care Centres and Kids Campus in Australia, contributing to the strong half year result.
Groves said, internationally, the announcement of the acquisition in December of La Petite in the US and Busy Bees in the UK were significant milestones in the development of ABC.
“The addition of La Petite in ABC’s suite of brands will lead to a significant expansion of ABC’s capacity to care for more children in the US which has a childcare market 15 times the size of Australia. In the UK, Busy Bees represents an important strategic step with ABC’s entry into the European childcare market as well as providing access to Busy Bees’ innovative childcare voucher system,” he added.
ABC’s US subsidiary, the Learning Care Group’s chief executive Bill Davis said ABC was pleased with the continued improvement of the US operations, with the Learning Care Group more than doubling EBITDA compared to the corresponding period last year. During the same period, centre operating margins improved from 12.1% to 13.3%.
“The future integration of La Petite is expected to replicate the successful integration of the Peppercorn centres in Australia in 2004 where the company completed that process within 12 months of purchase. The integration will generate significant savings in head office costs,” Davis said.
ABC has declared an interim dividend of 8 cents per share, fully franked.
Yesterday, ABC shares closed 31 cents or 3.91% lower at $7.62.
Australian Property Journal
