Childs Family Kindergartens exceeds profit forecast
Listed child care provider, Childs Family Kindergartens (“CFK”) says that it has recorded a net profit of over $400,000 for its first year of operations, which is well up on its prospectus forecast of $109,000 (before tax).

CFK, which listed on 4 April this year, previously stated that it had achieved its Prospectus revenue forecast of $6.1 million for the same period. The fully audited figures will be released to the ASX in late August.

Managing Director Barrie Childs said that the financial result is a positive sign for the company’s growth strategy.

“This is a very solid result, especially considering that we are only in the early stages of growth, and the consolidation of the initial 37 child care centres was only completed in early July, which means not all of our current centres were on our books in the period under review.

“Our ‘hands-on’ approach to integrate the 37 centres has worked very effectively, and we’ve been able to achieve excellent economies of scale in terms of the IT infrastructure and accounting systems of each individual centre, which also makes their local operation run more smoothly.

“This makes us quite competitive and attractive to independently owned outlets who recognise the advantage of being part of a group.

“We are now well placed to continue with our plans to expand the group, and achieve our 30 June 2006 revenue target of $24.5 million and Net Profit After Tax target of $2.35 million,” said Childs.

CFK’s existing 37 centres are based in NSW, and since listing the company has concentrated on integrating their operations by centralising training functions, enforcing minimum standards in work practices in excess of regulatory requirements, and streamlining banking functions.

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Released for Childs Family Kindergartens by Dennis Rutzou Public Relations.
For further information or interviews please call David Lizzio
or Dennis Rutzou on (02) 9413 4244.