Mayfield Childcare posts H1 loss on statutory impairments

• Mayfield Childcare reported a statutory net loss after tax of $31.9 million for the half year to June 30, driven by $29 million in non-cash impairment charges.
• The company raised $2.8 million in net proceeds through an entitlement offer and extended its Westpac debt facility to September 2027.
• Lower average occupancy and higher marketing costs affected earnings, while labour discipline reduced wage-to-revenue costs to 61.5%.

Childcare centre operator Mayfield Childcare (ASX:MFD) reported a statutory net loss after tax of $31.9 million for the half year ended June 30.

The result compares to a statutory net loss of $21.9 million recorded in the prior corresponding period.

The financial report contained no formal executive quotes regarding the half-year results.

Impairment charges included $10.9 million in goodwill impairments and $18.1 million related to right-of-use assets following a centre closure.

The business completed a $3 million entitlement offer after the reporting period to bolster working capital.

Following the announcement, the Mayfield Childcare share price was unchanged at $0.12.

Revenue fell 6.0% to $41.3 million due to reduced average occupancy across its centre network.

Spot occupancy recovered to 54.4% in late August, up 5.1 percentage points from February lows.