Highlights

  • Underlying Centre EBITDA rose 6.6% to $3.2m, with the centre margin up 140 basis points to 14.2%.
  • Revenue was $22.8m, down 3.8% on the prior corresponding period due mainly to lower occupancy.
  • Net operating cash inflow was $1.9m, and a $3.0m entitlement offer was completed.
  • A head office restructure is expected to deliver about $1.5m in annualised savings, with FY26 guidance unchanged.

Mayfield Childcare Limited (ASX:MFD) has released its Appendix 4C and quarterly activities report for the quarter ended 30 September 2026 (Q3 FY26). The early learning operator, which runs 45 centres across Victoria, Queensland and South Australia, reported improved centre earnings and margins despite lower revenue.

Earnings and Margin Improvement

Revenue for the quarter was $22.8m, down 3.8% from $23.7m in Q3 FY25, mainly due to lower occupancy, partly offset by fee increases. Underlying Centre EBITDA rose 6.6% to $3.2m, and the Centre EBITDA margin improved to 14.2% from 12.8%.

Underlying Group EBITDA was $1.2m, in line with the prior corresponding period. September alone recorded Group EBITDA of $0.71m, up 80% on September 2025. The centre wage-to-revenue ratio improved to 57.2% from 60.0%, despite award wage increases and sector cost pressures.

Occupancy, Restructure and Capital Raise

Spot occupancy was 55.6% in the week beginning 16 October 2026, up from 54.2% in early July but below 59.6% a year earlier. Mayfield said occupancy improved through the quarter as centres took direct responsibility for enrolments and investment in marketing and enquiry conversion continued.

A head office restructure was completed, with about $1.5m in annualised savings expected and full monthly benefit from November 2026. The company also completed a non-renounceable entitlement offer of two shares for every five held at $0.10 per share, raising $3.0m before costs to fund working capital.

Cash Flow, Funding and Outlook

Net operating cash inflow was $1.9m, up from $1.3m in the previous quarter. Cash rose to $1.1m, facility drawings were reduced to $4.3m and $4.5m remained available under the working capital facility.

Management noted ongoing sector pressures, including oversupply in some catchments, cost-of-living strain on households and rising direct costs. Priorities for the rest of the year include occupancy recovery, child safety and compliance, cost discipline and family experience. FY26 guidance issued on 15 October 2026 was left unchanged.

Key Takeaways

  • Centre-level earnings and margins improved even as revenue declined.
  • Wage efficiency gains were achieved before any benefit from the head office restructure.
  • The entitlement offer and positive operating cash flow strengthened the balance sheet.
  • Occupancy remains below the prior year and is a key focus for the remainder of FY26.