Mayfield Childcare (ASX: MFD) is set to recoup $1 million from its former CEO Dean Clarke after a settlement was reached between the early childhood operator and its former boss in relation to misappropriation of funds which promptly led to Clarke’s termination in 2022.
The misappropriation of funds was first brought to public attention in February 2023, six months after Clarke had resigned as CEO in August 2022. A forensic investigation had been launched to uncover the extent of the wrongdoing, which covered the period from 2020 to 2022 under Clarke’s watch.
Under the terms of the settlement agreement, Clarke will be required to pay $1.06 million to Mayfield Childcare. This amount includes $45k of misappropriated funds that were already repaid by a supplier. Of the remaining amount, Clarke is obligated to pay $365k within one business day of the settlement agreement, with the remaining $693k due within 45 business days.
This resolution represents a significant step forward for Mayfield which is in the middle of a corporate rebrand to bring several of its operating brands under the single Mayfield Early Education brand.
Mayfield has also taken steps to secure warranties and indemnities to provide remedies for any future claims that may arise as a result of this scandal. This action underscores Mayfield Childcare’s determination to protect its stakeholders from any potential financial harm.
Mayfield Childcare, as a leading childcare services provider, is determined to put this episode behind it and continue its mission of providing high-quality care for children. The company has reiterated its dedication to maintaining the trust of its shareholders and the communities it serves at a time when competition amongst ASX-listed childcare operators heats up.
G8 Education (ASX: GEM) is still the largest provider amongst the for-profit operators listed on the ASX with 434 centres operating across Australia, charging parents an average daily fee of $145 per day. For the Half Year ended 30 June 2023, G8 Education reported $456.1 million revenue and $32.7 million EBITDA with 67.4% occupancy across its network.
The ASX has recently been joined by Nido Education (ASX: NDO) which commenced trading on the ASX on 12 October 2023 after raising $99.2 million from an IPO to acquire more clinics for its existing network of 52 purpose-built centres.
For the Half Year ended 30 June 2023, Mayfield reported $35.6 million revenue and $4.5 million underlying EBITDA with 63.9% occupancy across its network.
Mayfield is now led by former investment banker Ashok Naveinthiran who has vowed to grow Mayfield to be a top 5 operator within the next 5 years.
- RAS Technology dives deeper into European wagering with Playbook Engineering partnership - December 4, 2023
- The Calmer Co reports monthly record of eCommerce kava sales thanks to Black Friday - December 1, 2023
- InteliCare forges strategic partnership with Bolton Clarke to digitise aged care with AI technology - November 28, 2023