Mayfield FY25: Revenue Up 4.9%, EBITDA Falls 59% on Occupancy Woes

FY25 Performance Overview

Mayfield Childcare Limited’s FY25 results reveal a company in transition. Revenue increased by $4.3 million, or 4.9%, to $91.4 million, largely reflecting the full-year contribution from the Precious Cargo acquisitions. However, underlying EBITDA fell sharply by 59% to $2.3 million, impacted by lower occupancy rates in the first half of the year and integration challenges from recent acquisitions.

The company’s focus throughout FY25 was on stabilising operations, rebuilding centre-level margins, and strengthening its operational foundations. Cost control measures helped reduce operating expenses slightly, with operating costs falling to $5.8 million in FY25 from $6 million in FY24, demonstrating disciplined management despite ongoing wage pressures.

Occupancy and Operational Challenges

Occupancy rates were a key drag on performance, with spot occupancy at 64.1% in December 2025, slightly improved but still below optimal levels. Mayfield has implemented structured action plans targeting occupancy recovery and margin restoration, including divesting two underperforming centres expected to remove a $1.3 million annual earnings drag. The company also negotiated lease abatements worth $0.8 million, with further negotiations ongoing.

Enrolment conversion rates remain strong, supported by stable enquiry volumes and family engagement initiatives. The company’s strategic emphasis on workforce stability and operational efficiency aims to underpin a sustainable recovery in occupancy and profitability in FY26.

Strategic Initiatives and Growth Prospects

Mayfield is advancing several strategic pillars, including program and service delivery enhancements, compliance and quality improvements, and people and culture development. A notable growth initiative is the rollout of Mayfield 360, an allied health platform integrating clinical services within childcare centres. This capital-light model is expected to deliver $1 million in incremental EBITDA at scale, with a strong margin profile, diversifying revenue streams and enhancing long-term earnings resilience.

The company also plans to leverage AI-enabled rostering and compliance tools, alongside targeted marketing and joint venture opportunities, to drive sustainable growth and margin improvement.

Takeover Bid by Embark Education

Adding complexity to Mayfield’s outlook is the takeover bid by Embark Education, which became a substantial shareholder in October 2025 and currently holds 23.35% voting power. Embark’s bid, announced in November 2025, has progressed through regulatory stages, with all defeating conditions fulfilled or waived except for the quotation condition. The bid introduces potential strategic shifts and market speculation about Mayfield’s future direction.

Management retains the ability to implement pricing adjustments in FY26 to cover input cost increases deferred in 2H25, aiming to balance occupancy stability with margin recovery.

FY26 Outlook

Looking ahead, Mayfield projects an underlying group EBITDA of $4.7 million to $5.3 million and underlying centre EBITDA between $11.25 million and $12.5 million, reflecting confidence in operational momentum and portfolio improvements. The company’s disciplined approach to divestments, labour efficiency, and fee adjustments underpins this guidance, alongside the expected contribution from Mayfield 360.

While challenges remain, particularly in occupancy and integration, Mayfield’s strategic initiatives and the unfolding takeover bid set the stage for a pivotal year ahead.