Mayfield Reports 5% Revenue Growth and $2.7M EBITDA in Q3 FY25

Quarterly Financial Performance

Mayfield Childcare Limited (ASX, MFD) has delivered a solid financial performance in the third quarter of FY25, with revenue rising 5% to $23.7 million compared to the previous quarter. This growth was supported by stabilising occupancy rates and operational efficiency improvements, which together helped lift the underlying Centre EBITDA by 14% to $2.7 million. The company’s disciplined cost management kept operating expenses flat despite ongoing inflationary pressures, contributing to an improved EBITDA margin from 10% to 11%.

Strong operating cash flows enabled Mayfield to reduce its debt by $2.4 million during the quarter, reinforcing the company’s financial resilience. At quarter end, Mayfield held $3.2 million in cash and had $8.8 million of unused financing facilities available. The Group also secured an extension of its borrowing facility to August 2026, maintaining favourable terms.

Operational Highlights and Strategic Developments

Operationally, Mayfield continued to focus on stabilising occupancy and enhancing service quality across its 45 centres spanning Victoria, Queensland, and South Australia. The integration of the Precious Cargo network progressed well, with systems aligned and attention shifting towards brand consolidation and consistent delivery of its Montessori-inspired educational model.

Importantly, the company announced the termination of its previously planned divestment of 10 centres to Steps Learning Pty Ltd, halting all negotiations. This decision signals a strategic pivot, with Mayfield now concentrating on strengthening its existing portfolio rather than shedding assets.

In a move to boost community engagement and brand visibility, Mayfield forged a partnership with Melbourne Victory Football Club. This collaboration will see Mayfield’s branding featured in Melbourne Victory’s junior academy programs and offer exclusive benefits to Mayfield families, including discounted memberships and special event invitations.

Market Context and Outlook

The childcare sector remains challenged by inflationary cost pressures and workforce constraints, particularly in regional and outer-metro areas. Mayfield’s ongoing focus on cost discipline, rostering efficiency, and educator development aims to mitigate these headwinds while maintaining compliance with tightening regulatory standards.

Looking ahead, the company plans to invest in enrolment growth initiatives and deepen family engagement to drive occupancy improvements into Q4 FY25 and beyond. The rollout of the 3-Day Guarantee reform, which guarantees subsidised childcare for eligible families, is expected to support demand across the sector.

Board changes during the quarter included the resignation of Non-Executive Director Lubna Matta and the appointment of Ingrid Fraser-Williams, reflecting a refreshed governance approach as Mayfield navigates its next growth phase.