The directors of Kidicorp Group Ltd (chairman Richard Waddel, executive director Wayne Wright) said today ebitda (earnings before interest, tax, depreciation & amortisation for the March year was expected to be $1.4 million, well short of the $2 million projected at the August 2003 annual meeting.
It’s the group’s first year of trading as Kidicorp Group Ltd. In its first 6 months as a listed company, it turned round from a $2.95 million loss in 2002 to a $388,000 net profit in the September 2003 half.
Directors said the company expanded rapidly in the March 2004 year, primarily through the acquisition of existing Early Childhood Education centres in Auckland & Wellington.
“The assimilation of these new acquisitions into, & the development of the infrastructure of, the group has taken longer than originally expected and has resulted in a lower than projected turnover for the period.
“The largest expense being that of employment costs, which would normally be expected to vary with revenue & numbers of children enrolled, has been maintained at levels associated with the higher anticipated activity.
“This has been a necessary approach in the face of the current shortage of qualified early-learning teachers and in order to meet the upturn in enrolments the group is now experiencing.”The number of children enrolled at centres owned by the group in April is in line with budget for the period & at the highest level recorded by the group to date. The directors believe that with the development of staff & infrastructure, the group is well positioned for the 2004/05 financial year.”