Nido Education Limited - 2024 Half-Year Results and Future Outlook
NIDO EDUCATION LIMITED (NDO) Share Update August 2024 Thursday 15th
Nido Education Limited Announces Strong Half-Year Results and Promising Forecasts
Nido Education Limited (ASX: NDO) has announced its half-year results for 2024, showcasing significant revenue growth and positive forecasts for the remainder of the year.
Instant Summary:
- $7.5 million first half EBITDA, a significant improvement from the previous year.
- Consistent week-on-week revenue growth.
- Wage efficiencies achieved through disciplined rostering.
- Forecast full-year EBITDA of $23.2 million.
- 18 centers in incubation by December 2024.
- Forecast full-year dividend based on 65% NPAT, estimated at 5.8 cents, payable in March 2025.
Half-Year Results Overview
Nido Education Limited has reported a strong performance for the first half of 2024, with a significant increase in revenue and EBITDA. The company's center revenue for the first half of 2024 was $73.7 million, up from $32.4 million in the same period in 2023, representing a 127% increase. Center EBITDA also saw a substantial rise, reaching $11.9 million compared to $1.1 million in the previous year.
The company attributed this growth to consistent week-on-week revenue increases and improved wage efficiencies achieved through disciplined rostering in the second quarter. These efforts have resulted in a wage-to-revenue ratio decrease from 68% to 60%, highlighting the company's effective cost management strategies.
Future Forecasts and Growth Plans
Nido Education Limited has set ambitious targets for the remainder of 2024 and beyond. The company forecasts a full-year EBITDA of $23.2 million, with underlying center performance in line with the prospectus. Additionally, the company expects to have 18 centers in incubation by December 2024, with up to 4 centers achieving acquisition metrics before the end of the year and 10 centers by June 2025.
The company also announced a forecast full-year dividend based on 65% of NPAT, estimated at 5.8 cents per share, payable in March 2025. This represents a 5.8% yield on the issue price and demonstrates the company's commitment to returning value to shareholders while not constraining growth.
Financial Performance and Funding Capacity
Nido Education Limited's financial performance for the first half of 2024 shows a strong recovery from the previous year. The company's profit before tax was $7.0 million, a significant improvement from the $2.4 million loss reported in the first half of 2023. The company's net debt stands at $1.2 million, with a net leverage ratio of 0.05x, indicating a strong financial position.
The company has also secured substantial funding capacity, with facility limits of $55.0 million from NAB, including an uncommitted accordion facility. This funding is expected to support at least 45 acquisitions, further driving the company's growth and expansion plans.
The strong half-year results and positive forecasts are likely to have a positive impact on Nido Education Limited's stock price. The significant revenue growth and improved financial performance demonstrate the company's resilience and effective management strategies. The forecasted dividend and ambitious growth plans further enhance investor confidence in the company's future prospects.
Investor Reaction:
Analysts are likely to react positively to Nido Education Limited's half-year results and future forecasts. The company's strong financial performance and growth plans indicate a promising outlook, which is expected to attract investor interest. However, analysts may also monitor the company's ability to achieve its ambitious targets and manage potential risks associated with its expansion plans.
Conclusion:
Investors should consider Nido Education Limited's strong half-year results and positive future forecasts when making investment decisions. The company's effective management strategies, significant revenue growth, and ambitious expansion plans position it well for future success. Investors are encouraged to monitor the company's progress and stay informed about upcoming developments.