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Listed childcare centre operator KidiCorp said first half net profit of $360,000 was in line with forecasts, although it fell far short of the previous year.
Profit for the six months ended September was 0.8 per cent below projections in the Ferrier Hodgson appraisal report in August, during Mitchell Investment Trust's bid.
Kidicorp's interim profit last year was $1.1 million, boosted by $168,000 from the sale of some of its properties, which it acquired during the development and purchase of its childcare centres.
The company planned to place properties with a book value of almost $1.8m on the market in the next six months. It did not sell any property in the first half.
During the first half year the company added 270 new licensed child spaces and expected to beat its target of 15 per cent growth for the year.
Earnings before interest, tax, depreciation and amortisation rose by 14 per cent to $2.2m.
Kidicorp chairman Richard Waddel applauded the government's policy of 20 free hours of early childhood education a week for three- and four-year olds, to be implemented in July 2007.
"We expect that the 20 free hours will increase the demand for quality early childhood education at an affordable cost and we are looking forward to it," he said.
The company, which has 1250 employees, posted a $2m net profit last year, recovering from a loss of $766,000 the previous year as it improved its systems and occupancy at its centres.
Shares in Kidicorp were unchanged at 18.5c, having traded between 12c and 22c in the last year.
- NZPA
