Evolve says on track for 1H profit of $7m before non-recurring items

Evolve Education said it is on track to post a first-half profit of $7 million not including a non-recurring expense item of $3 million.

At the annual shareholders meeting in August, Evolve Education forecast first-half profit of $7 million, down 14 percent from a year earlier.

According to the early childhood education centre operator, its Porse In-Home Childcare subsidiary had been in discussions with Internal Revenue regarding the GST treatment of certain payments made to home-based educators and nannies. "The directors have resolved to make a provision for $3.0 million in the interim financial statements in anticipation of resolving this historic matter," Evolve said.

However, as the Porse GST provision does not relate to underlying earnings or prospects of the business going forward it will be excluded from net profit for dividend considerations. Evolve expects its interim dividend to be paid on Dec. 20 at 2.50 cents per share, in line with the commitment made at the 2017 annual meeting and in line with last year's interim dividend, it said.

Evolve is due to release its half-year result on Nov. 20.

The stock last traded at 78 cents and is down 22 percent this year.