Since the last issue of Nursery Chains six months ago, we have seen a flurry of activity among the larger groups, resulting in two clear market leaders.
The merger of the nursery division of Asquith Court Schools with Kidsunlimited, previously the largest and seventh groups in the UK and Ireland respectively, completed in September, created the Nursery Years Group, which has entered the league table in the top spot with 10,336 places. However, both chains will continue to trade under their respective brands.
Private education company Nord Anglia has continued its run of acquisitions by buying 28 Jigsaw nurseries which, added to its purchase of Leapfrog in May, consolidates its second place. The company's nursery business has grown dramatically. This time last year the group was in eighth position with 34 nurseries and 2,832 places. It now has 103 settings and 9,833 places.
Just Learning continues to hold on to third place, but at 5,630 places there is now a significant gap between the top two chains and the rest of the table. And the number of places for the 20 largest chains for 2004 stands at 54,344, a jump of only 3,266 since June.
Bright Horizons Family Solutions has moved from fifth to fourth place, following acquisitions of Oxfordshire-based Child & Co, with 11 settings, and the Birrell Collection of six Edinburgh nurseries bought in August.
Busy Bees may have slipped one place to fifth position but at 4,257 places has continued to grow steadily and has several 100-place plus nurseries opening next year.
The rest of the league table remains largely unchanged.
Teddies Nurseries, part of BUPA Childcare, has made it known that it is looking for a buyer, but nevertheless says it will continue to open new sites.
A significant new entry at number 13 is Merseyside-based Wind in the Willows, with 1,008 places and 18 settings, including 15 Neighbourhood Nurseries. The chain is also keen to become involved in Children's Centres early next year.
Happy Child and TLC (Tender Loving Childcare) have both nudged into the bottom of the table at numbers 19 and 20 respectively.
City interest in the private day nursery sector has continued to grow.
Rachel Murphy, Alchemy investment director for Just Learning, says, 'I think it's a sector that City institutions would have an appetite for. It would not surprise me if we see a nursery group floating in the next 12 to 18 months.'
However, she predicted that one of the larger chains would make further acquisitions before taking this route.
She adds, 'I think the bigger chains will want to consolidate but that the market growth should be coming from high-quality new-builds where possible.'
Philip Blackburn, senior economist at healthcare consultancy Laing and Buisson, says, 'Acquisition activity has livened up city interest.' But he predicted that that there could be 'a rocky road' ahead for any chain which did float in the wake of Government initiatives which could see the private sector 'running for cover'.