Highlights

  • HY26 Revenue decreased 6.0% to $41.3 million as average occupancy moved lower.
  • Underlying Centre EBITDA declined 11% to $3.1 million, while the Margin remained broadly stable at 7.5%.
  • Statutory NPAT recorded a $31.9 million loss, including $29.0 million of non-cash Impairment charges.
  • Spot occupancy reached 54.4% in the week commencing 24 August 2026 after recovering from the February seasonal low.
  • Portfolio actions and restructuring are expected to deliver approximately $2.6 million in annualised structural Earnings improvement once fully implemented.

Mayfield Childcare Limited (ASX:MFD) has reported its financial results for the half year ended 30 June 2026, with lower occupancy weighing on revenue and earnings while management continued work on labour efficiency, enrolments, portfolio changes and corporate costs.

Mayfield shares were trading flat at AUD 0.12 during the morning session on 1 September 2026. The stock remained down 65.15%, or AUD 0.22, over the past year.

The childcare operator owns and operates 45 centres with more than 4,000 registered childcare places across Victoria, Queensland and South Australia. Its HY26 result reflected softer average occupancy across the network, partly offset by fee increases, while management continued reshaping its operating model and centre-level accountability.

Revenue and Earnings

Revenue decreased 6.0% to $41.3 million in HY26 from $43.9 million in HY25, primarily reflecting lower average occupancy across the centre network. Fee increases provided a partial offset.

Underlying Centre EBITDA fell 11% to $3.1 million from $3.4 million a year earlier. Despite the reduction in occupancy and inflationary cost pressures, the Underlying Centre EBITDA margin remained broadly stable at 7.5%, compared with 7.8% in HY25.

At group level, Underlying EBITDA recorded a loss of $0.8 million, compared with a $0.1 million loss in HY25. Mayfield attributed the movement to lower revenue, increased Marketing and enrolment investment, and the timing of structural cost reductions.

Statutory NPAT was a loss of $31.9 million, compared with a $21.9 million loss in the prior corresponding period.

The result included $29.0 million of non-cash impairment charges. This comprised a $10.9 million Goodwill impairment and an $18.1 million impairment of right-of-use Assets associated with a centre closure. HY25 had included a $19.4 million non-cash goodwill impairment.

Occupancy Shows Recovery

Average Group occupancy decreased by 1.3 percentage points to 51.3% in HY26 from 52.6% in HY25.

However, management reported an improvement from the February seasonal low. Spot occupancy, excluding centres currently marked for divestment, reached 54.4% in the week commencing 24 August 2026. This represented a 5.1 percentage-point recovery from February.

Mayfield said the recovery was 0.7 percentage points greater than over the corresponding period in HY25, although spot occupancy remained below the prior corresponding period.

The company also reported an increase in enrolment activity. August-to-date new-family pre-enrolments increased 49% compared with the prior corresponding period after enrolment accountability was returned to centre leaders and Investment increased in local marketing and family engagement.

The pre-enrolment-to-commencement conversion rate was 82%, providing a pipeline of potential family commencements and additional childcare sessions.

Labour Efficiency Improves

Labour management was one area where the company recorded measurable improvement despite lower occupancy.

The wage-to-revenue ratio decreased to 61.5% from 63.4% in HY25, representing a 1.9 percentage-point improvement. Mayfield attributed this to improved roster discipline and greater centre-level accountability, despite increased award rates.

Centre labour costs also decreased by 9% compared with HY25, supported by tighter staffing-cost management and minimal use of agency personnel.

During the half, management focused on strengthening centre-level accountability, improving roster management, returning enrolment and family-engagement responsibility to centre leaders, reviewing supplier arrangements and simplifying the operating and corporate structure.

Mayfield also recorded an HY26 Net Promoter Score of +69, with the company reporting favourable results across educator engagement, curriculum, meals and centre environment.

Restructuring Targets Cost Base

Mayfield is progressing portfolio actions involving three underperforming centres.

Two centres had previously been approved for divestment, with one having ceased trading. Separately, the company decided not to extend the Lease of a third centre, which is expected to close in November 2026.

Once fully implemented, these portfolio actions are expected to reduce the Group's annualised earnings drag by approximately $1.2 million.

Mayfield is also simplifying its operating model and restructuring corporate functions. These changes are expected to reduce annualised corporate costs by approximately $1.4 million once fully implemented.

Combined, management expects the operating-model restructuring and portfolio actions to generate approximately $2.6 million in annualised structural earnings improvement. The company emphasised that this is an expected annualised benefit and was not reflected in HY26 earnings.

Liquidity Position

Mayfield ended 30 June 2026 with cash of $0.2 million, compared with $0.1 million at 31 December 2025.

Drawn Debt under its Westpac Facility increased to $5.4 million from $1.8 million at the end of December 2025.

After the reporting period, the company completed a $3.0 million entitlement offer, generating approximately $2.8 million in net proceeds. Mayfield said the Capital raising improved its working-capital and Liquidity position.

Its Westpac banking facility was also extended to 3 September 2027, with revised occupancy-related covenants aligned with the Group's current operating position.

Mayfield 360 Progresses

The company is also developing Mayfield 360, its allied-health offering.

Mayfield 360 received NDIS provider certification during August 2026 and has commenced servicing participants. The operation remains at an early stage, with management focusing on building its participant pipeline, practitioner utilisation, service quality, compliance and a disciplined rollout across the Mayfield network.

Takeover Activity

Embark Early Education's Takeover offer for Mayfield closed during the period.

As at 31 August 2026, Embark held 49.8% of Mayfield's issued share capital. Mayfield incurred additional legal and advisory costs in responding to the takeover activity.

The Board said it would continue to inform shareholders of any material developments under its continuous disclosure obligations.

What Investors May Be Watching

Attention is now likely to centre on occupancy trends, enrolment conversion and the implementation of Mayfield's structural cost and portfolio initiatives.

The company withdrew its previously issued FY26 earnings guidance on 10 July 2026 and expects to provide revised FY26 guidance during September 2026. That guidance is expected after further assessment of occupancy trends and the effect of the operational and restructuring initiatives underway.

Supply and Demand conditions continue to differ between locations, with Mayfield tailoring pricing, marketing, staffing and portfolio strategies on a centre-by-centre basis. Management said recent enrolment momentum indicated renewed family engagement, although the timing and extent of occupancy improvement would vary by centre and jurisdiction.