EVO - Evolve Education

[Balance]

Looks as though buyer wants to clean out what’s available on NZX. Time to move listing solely to ASX?

Be a good thing.

EVO has a bad smell over here as a bad IPO. Need a refresh.

[Balance]

Be a good thing.

EVO has a bad smell over here as a bad IPO. Need a refresh.

ASX listing only from 29 June 2023.

Makes a lot of sense - hardly any liquidity in NZ and the company now operates purely in Australia.

Looking forward to better performance post delisting from NZX.

https://www.nzx.com/announcements/410698

[Balance]

Post disposal of NZ operations, Australian operations starting to really hum :

https://www.nzx.com/announcements/410704

Australian business continues to show strong growth

Further to the 29 March 2023 announcement, Embark Education Group Limited (NZX/ ASX: EVO) is pleased to advise that occupancy continues to grow strongly:
Occupancy (%) Jan Feb Mar Apr
2022 70.6 73.0 76.1 76.9
2023 74.0 78.0 80.6 81.8

The strong growth in occupancy is reflected in the Company’s first quarter trading results. For the first three months of the financial year Australian revenue is Australian Dollars (AUD) 13.9 million or 21% ahead of the same period last year and Australian Centre based EBITDA is AUD3.0m or 47% ahead.

[sb9]

ASX listing only from 29 June 2023.

Makes a lot of sense - hardly any liquidity in NZ and the company now operates purely in Australia.

Looking forward to better performance post delisting from NZX.

https://www.nzx.com/announcements/410698

As expected and I'm sure there's going to be another announcements soon re some acquisitions in Aus. A buck is surely waiting in the wings...

[sb9]

Here’s hoping some solid business updates around acquiring more centres in AU at ASM tmrw.

[whatsup]

IMO this outfit is now almost a startup with 24 centres in Aust and cash.

[cyclist]

Anyone else hold EVO on the NZX with Jarden? My portfolio hasn't been automatically updated to reflect the holding now being EVO.AU rather than EVO.NZ. Actually, I see it hasn't updated in Link Market Services either.
I'm figuring I will need to make manual entries. Anyone else already done the same or received any advice from Jarden or Link?

[kiwical]

Anyone else hold EVO on the NZX with Jarden? My portfolio hasn't been automatically updated to reflect the holding now being EVO.AU rather than EVO.NZ. Actually, I see it hasn't updated in Link Market Services either.
I'm figuring I will need to make manual entries. Anyone else already done the same or received any advice from Jarden or Link? Ditto with Sharesies. I was just assuming they'd eventually catch up and swap it over, but I might send an enquiry through. Probably because of LINK that it hasn't updated on other platforms yet either?

[cyclist]

In case it is helpful to anyone:

Yesterday I asked link market services nz:


"Hi Can you please advise what is happening with the transfer of this holding to EVO.AU. I can see the transfer out of EVO.NZ, with corresponding zero balance, but there is no corresponding transfer into EVO.AU. When can I expect to see this happen, and is there anything needed from me?"

Today's reply:


Link Australia is now looking after to EVO, they sent out letters to all shareholders confirm your new SRN numbers last week.

These would have been posted out to your registered address from Australia so it will be on its way to you.

[Snow Leopard]

You need to be aware that there are SRN (issuer) and HIN (broker) numbers in the land of Oz.
Check with the broker you use whether they want/need you to move from SRN to HIN.
It may avoid a lot of trouble later.

[cyclist]

You need to be aware that there are SRN (issuer) and HIN (broker) numbers in the land of Oz.
Check with the broker you use whether they want/need you to move from SRN to HIN.
It may avoid a lot of trouble later.

Thanks. They have just confirmed I can sell as long as I have the SRN.

For other's interest: I've never done the paperwork to buy and sell on the ASX, but selling an existing holding can be done via Jarden without that. Or that is what they said anyway. Once prompted, Jarden also very quickly did the entries to correctly reflect the transfer in my portfolio.

[maclir]

In case it is helpful to anyone:

Yesterday I asked link market services nz:



Today's reply:

.


Letters???? Email, please.

[sb9]

Positive market update with occupancy into mid 80s now and topped it off with 2c divvy. Onwards and upwards!!!

[Balance]

Positive market update with occupancy into mid 80s now and topped it off with 2c divvy. Onwards and upwards!!!

Nice!

Best thing they have done to jettison NZ and concentrate on Australia.

https://quoteapi.com/resources/97bfb25d2adf3f5b/announcements/evo.asx/2A1461161/EVO_Announcement_2A1461161.pdf?download=1

[sb9]

Nice!

Best thing they have done to jettison NZ and concentrate on Australia.

https://quoteapi.com/resources/97bfb25d2adf3f5b/announcements/evo.asx/2A1461161/EVO_Announcement_2A1461161.pdf?download=1

Strong close at 70c, should see it get close to a buck soon.

[Balance]

Strong close at 70c, should see it get close to a buck soon.

Hope so! Been a hard turnaround story!

But she is finally on the way!

[nztx]

Still a nice pile of Imputation credits with this one to pad up the Div's for Kiwi holders ? ;)

[silverblizzard888]

Hope so! Been a hard turnaround story!

But she is finally on the way!

More to come once things settle. I think they wanted to complete the NZX delisting and ASX main listing before they started too much more expansion. Now that everythings complete they should be full steam ahead!

[Balance]

More to come once things settle. I think they wanted to complete the NZX delisting before they started too much more expansion. Now that everythings complete they should be full steam ahead!

I recall being told by one of the EVO executives that they operate on the basis that their childcare centres breakeven at 70% occupancy, reasonable return at 80% and super profits from above 85%.

They are now comfortably above 85%.

[silverblizzard888]

I recall being told by one of the EVO executives that they operate on the basis that their childcare centres breakeven at 70% occupancy, reasonable return at 80% and super profits from above 85%.

They are now comfortably above 85%.

Yes you're right I think I remember coming across a similar stat too. They will be making a extra couple of million of profit at the current rate since the leasing cost is usually their biggest cost, more occupancy is nearly pure profit apart from the labour cost. Last year the profit for Australia was $5 million NZD, if they bring that up to say $7 million NZD based on occupancy rates and make some extra acquisitions using their $26 million with no debt either, they could generate $8-10m be year end, which would be a good result. With interest rates looking like they will drop next year they should do pretty well as a high dividend payer. At some stage when interest rates are lower I expect them to start issuing bonds and going back to Chris Scott's famous G8 Education playbook.

[Balance]

Big volumes going through - 6m so far so looking like a solid base is forming around 70c mark.

Next results announcement in August should confirm the trend.

[golden city]

Looks like could jump very soon targeting one dollar around august

[sb9]

Couple of big blocks got crossed recently a big one couple of weeks back and another two lots today. Interesting to see who the buyer might be, Wilson seem be the seller at least of the last lot.

Looking forward to results to be announced end of month and divvy before that.

[Balance]

Big volumes going through - 6m so far so looking like a solid base is forming around 70c mark.

Next results announcement in August should confirm the trend.

https://stocknessmonster.com/announcements/evo.asx-2A1470955/

Excellent results showing recovery well underway.

Embark reported a net profit after tax from continuing operations of $2.386m compared with a loss of $1.696m
in the prior comparative period (pcp) driven by increased revenues (from materially higher occupancy), tight
control of support office costs and the prudent use of centre-based labour within Government mandated
guidelines.

Cash of $27.6m in the bank so group well placed to make more acquisitions.

https://stocknessmonster.com/announcements/evo.asx-2A1470958/

Occupancy above 85% in August 2023 which means that profitability will be very high for H2 2023.


I recall being told by one of the EVO executives that they operate on the basis that their childcare centres breakeven at 70% occupancy, reasonable return at 80% and super profits from above 85%.

They are now comfortably above 85%.

[sb9]

Should crack past $1 soon (A$)

[Balance]

Should crack past $1 soon (A$)

May take a while to reach there as market still skeptical after the years of disappointments from this company.

Slow and steady is how I perceive the sp will rise over the next 2 years.

Meanwhile, am a happy holder.

[sb9]

Another 2c (AU) divvy announced and growth got bit slower due to staff shortages and lower demand on Mon and Fri. Still very respectable occupancy rates.

[Balance]

Another 2c (AU) divvy announced and growth got bit slower due to staff shortages and lower demand on Mon and Fri. Still very respectable occupancy rates.

https://yourir.info/resources/6ea9ae295c94b513/announcements/evo.asx/2A1484096/EVO_Dividend_and_Market_Update_30_October_2023.pdf

Any occupancy over 80% is excellent. To have close to 90% on Tues - Thurs is super profits territory.

[golden city]

Good ongoing dividends

[WAIKEN]

It appears the big shareholders want dividends
I read that the Australian Govt is putting whatever money it takes to rectify the staff shortages.
The next target is 1.00 then 2.00 once the staffing issues are solved and we buy a few more centres which is Chris Scotts forte.

[DarkHorse]

Is anyone still following this now it's only on the ASX? Any thoughts?

[nztx]

Is anyone still following this now it's only on the ASX? Any thoughts?


It seemed to like the brighter sunshine over the way last time the balloon went up

Be interesting see how much of the Share Register is still Kiwi holders, if there are any Kiwi Imputation credits left

[nztx]

The last Release:


Embark Early Education (ASX:EVO)
Announcement Re Acquisition Of 9 Centres, Dividend And Debt Funding
Acquisition Of Nine Centres
=======================

The Board of Embark Early Education Limited is pleased to announce that conditional contracts have
been executed for the acquisition of nine childcare centres. These contracts are subject to customary
conditions such as transfer of license/lease assignment and are expected to settle from mid March
through to late April:
9 centres Five centres in Victoria. Four centres in Queensland.
Total LPs 917 licensed places.
Occupancy All centres experience high occupancy.
EBITDA Annualised forecast at $6.3m.
Price $25.2m.
Funding Expected to be funded from cash reserves and operating cash flow.
Extra Costs EVO expects to employ one more Support Office staff.

Dividend
=======
The Board of Embark Early Education Limited has resolved to pay a dividend of AUD0.015 (one and a
half cents) per share as an interim dividend for the second half of FY2023. This dividend will be fully
franked. The ex-div date for the will be 5 March 2024; the record date will be 6 March 2024; and the
payment date will be 26 March 2024.

Debt Funding
===========
The Board of Embark Early Education Limited is pleased to announce that Embark is in receipt of a bank
Credit Approved Facility for $20m based on past financial performance. This facility would be available
for further acquisitions.


Looks like the promised land is quite prosperous after dumping the NZ Operations before departing NZX


Another 1.5c AU shot out the door to the eagerly waiting stakeholders on 26 March 2024

[sb9]

Another robust trading update from Embark today, coupled with another divvy hitting the bank a/c. Wonder why its stock in the 65c-69c range for a long time.

[Leemsip]

Yeah, I have a small parcel of these. 13% divi?

[Balance]

Another robust trading update from Embark today, coupled with another divvy hitting the bank a/c. Wonder why its stock in the 65c-69c range for a long time.

Massive turnaround since they exited NZ and going from strength to strength. Been quietly adding onto my holdings as I like the alignment of interests of shareholders with shareholding directors/management and enjoying the dividend yield - 7c in the last 10 months!

Going to take marker a while yet to warm up to the stock given how disappointing it had been but that’s to be expected. Almost inevitable that at a certain size, major shareholders will facilitate sale to one of the bigger players to realise optimal value.

[Leemsip]

I hate getting oz dividends. Cant use the franking so get taxed twice....

Yeah hope so re: takeover. Fingers crossed.

[Balance]

I hate getting oz dividends. Cant use the franking so get taxed twice....

Yeah hope so re: takeover. Fingers crossed.

Such is life but think of how attractive EVO for Australian yield investors - should mean a better sp in time.

It's like investing in Australian banks - same deal.

[Balance]

Nice big move by EVO today.

Fingers crossed that the market saw yesterday’s update as the inflection point for this stock.

Previous stock movement upwards had been stalled and reversed due to lack of conviction.

[sb9]

Finally price starting to reflect business potential. Should be a buck soon.