MFD has settled on a transformational acquisition of a portfolio of 14 childcare centres operating under the Genius brand. The transaction will see MFD shift to a more meaningful operator of 36 centres, placing it within one of the top twenty largest childcare operators in Australia. Moreover, the transaction will provide MFD with a platform for growth, with the vendor becoming an incubator partner of MFD’s, agreeing to sell additional Genius centres once they have reached agreed levels of occupancy and profitability.
We have revised our estimates, which essentially see MFD’s CY22E EBITDA double to $16.2m.
The transaction is 9% EPS accretive and together with the incubator model and a low level of gearing, MFD is now well placed for strong double digit EPS growth, in our view. We have upgraded our target price to $1.70 per share and retain our BUY rating. With some strong tailwinds for the sector in CY22, we believe a re-rating is likely.
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Last
36.0¢ |
Change
0.000(0.00%) |
Mkt cap ! $27.15M | |||
| Open | High | Low | Value | Volume |
| 0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 49 | 38.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 41.5¢ | 1228 | 1 |
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| Last trade - 16.21pm 08/08/2025 (20 minute delay) ? |
| MFD (ASX) Chart |
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