What we know about embattled childcare group Edge Early Learning’s incidents, financial woes
From safety concerns to parent complaints and financial losses, watch the video about the woes at Edge Early Learning childcare centres.
The childcare chain at the centre of a crackdown by the sector watchdog has also been flagged over financial concerns, it can be revealed.
Financial statements show auditors have had ongoing concerns over the ability of Edge Early Learning – which operates 70 centres across Australia – to continue operating.
Its parent company Edge Early Learning Holdings posted a $17.5m loss last year, up from a $12m loss in 2023, deepening questions about the financial stability of the provider.
It comes after a series of incidents involving children being injured or left unsupervised which have drawn scrutiny from authorities.
All 24 of the company’s South Australian centres are now under a year-long order to make improvements, creating uncertainty among thousands of parents.
Edge Early Learning chief executive Annie Bryce has moved to reassure parents about the company’s financial performance and “long-term prospects”, and says it is working closely with the regulator.
The auditors’ concerns go back to at least 2020 and relate to an ongoing loan between the company and the Commonwealth Bank.
Ms Bryce said a “reference to ‘material uncertainty’ in the auditor’s report related only to the timing of renewing our funding arrangement, which has since been completed”.
“No other matters were noted which give rise to uncertainty, and we remain confident in Edge’s operating performance and long-term prospects,” she said.
“On an operating basis Edge is in a solid cash-positive position.”
Ms Bryce added that the company had secured a $10m equity investment “further strengthening our position and reflecting confidence in the business”.
What do we know about Edge Early Learning?
Established in South East Queensland in 2017, the Brisbane-based childcare company soon acquired childcare centres in South Australia and later the Australian Capital Territory.
It now operates 43 centres in Queensland, 24 in SA and three in the ACT.
In August the company reported there were about 2000 children enrolled in SA, more than 3550 in Queensland and about 570 in the ACT.
The company took in $181m in revenue last financial year – but posted a loss of $17.5 million.
The company’s total number of employees decreased from 1800 to 1700 employees between 2023 and 2024.
However, its employee expenses increased from $102m to $118m, representing a 16 per cent increase over the same period.
Who is behind the company?
The company was originally founded by Mark Evans.
Edge is backed by a consortium of investors including private equity fund HEAL Partners, which holds a number of investments in education and healthcare ventures.
Other key investment groups include Centennial Property Group, Asia Principal Capital and Normanby Capital.
Mr Evans is a partner and member of the investment committee at HEAL Partners.
He first ventured into the childcare sector in 2003 when he founded, and was managing director of, Kids Campus.
He grew the company to 120 childcare centres across three states and in 2006 it was acquired by ABC Learning.
In 2018 Mr Evans founded tattoo removal business Recovery, and in 2020 he co-founded The Fertility Partners.
He has also been a director at the Western Bulldogs AFL club since 2015.
What has happened at Edge centres in South Australia?
Parents and the regulator, the Education Standards Board (ESB), have brought to light a series of incidents including in:
FEBRUARY: A baby suffered a concussion and blood nose after he was injured while being held by a childcare worker at the Plympton centre. The boy’s parents say they were not given the full details about how it happened and had to push to see CCTV footage. It was investigated by the ESB and Edge “addressed it internally by supporting the educator involved through performance management,” Ms Bryce said.
FEBRUARY: A mother says her crying toddler was “held down against her will” by a childcare worker at the Gawler East centre – but the woman was not told about the “traumatic” incident for a month. Ms Bryce said the “educator in question is no longer employed” by Edge.
AUGUST: The chain’s Plympton centre was put under strict conditions following an incident involving a child left in a classroom while children were moving to another area. An Edge spokeswoman said a parent of the “child involved was notified at the time” and there was “no risk to the children”.
SEPTEMBER: The Plympton centre was forced to close for two weeks after it was revealed two children were left alone by a student carer. It was also confirmed that an injury to a child was investigated and “formed part” of the decision to order the snap closure. Ms Bryce said the company was “using the closure period to deliver additional supervision training for all educators, embed stronger reporting procedures and finalise the appointment of a new centre director”.
SEPTEMBER: The Royal Park centre was required to conduct headcounts every 15 minutes after a group of children were left unsupervised “for a short time”. An Edge spokeswoman said the company “immediately took the opportunity to strengthen our supervision practices”.
SEPTEMBER: Staff at the Munno Para West centre were made to undergo training after an “incident” in which children were not properly supervised. Ms Bryce said the issue was “self-reported” by staff and “no child was harmed”.
“We take any concern about a child’s safety with the utmost seriousness,” she said.
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Originally published as What we know about embattled childcare group Edge Early Learning’s incidents, financial woes
