North East nursery goes from £20k loss to £403k profit

Just two years ago, Thornaby nursery The Montessori People was losing money as the Covid fallout threatened its future.

Now the nursery has smashed through £1 million in turnover for the first time.

Founder Michelle Sheekey, who launched the business in 2011, said the pandemic could have "wiped us out" as the early years sector descended into turmoil.

She closed a separate site and focused on Thornaby, driving sales up 90 per cent and pre-tax profits to a record £403,304.

Michelle Sheekey with The Montessori People team (Image: GWP)

"Following Covid, the whole early years sector was in disarray, and nobody was safe," Michelle said.

"But we’ve worked tirelessly to not only stabilise the business but to put it on a completely different trajectory.

"The pandemic could have wiped us out, but we refused to go out without a fight."

The nursery recorded a loss of more than £20,000 just two years ago.

The Montessori People now employs 48 staff at its Tedder Avenue site after hiring 11 ahead of the new school year.

Despite recruitment and retention problems across childcare, Michelle says not one member of her team has left voluntarily during the turnaround.

She believes staff loyalty has driven the nursery's revival.

"Our team has helped pull us back from the brink, and their loyalty and strength are the foundation of this business," she said.

"Staff churn and recruitment are crippling the early years sector, yet not one member of our team has left of their own accord.

Michelle Sheekey (Image: GWP)

"For us, the fact staff want to stay is the biggest difference maker."

The nursery has doubled its places and can now accommodate 120 children a day.

The surge in popularity has pushed annual turnover beyond £1 million, while the latest accounts show a record pre-tax profit of £403,304.

Michelle founded the nursery after struggling to find suitable childcare for her own children; she says investing in staff drove the turnaround.

"Our team knows and cares deeply for the children and their families, and they are invested in this business," she said.

Michelle with her staff (Image: GWP)

"This isn't just another job. Our culture means staff see it as a career, something that the sector needs to do more to solve the staffing crisis – and we don't put a ceiling on our staff.

"We frequently promote, and we've invested significantly in their development, through training, education and their wellbeing.

"That's been a real difference maker, and it’s really fuelled our growth."

The recovery has left the nursery with what Michelle calls "incredibly healthy" reserves.

After one of the toughest periods in its history, she believes the nursery is now stronger than ever.

"Ultimately, you can have all the demand in the world, but you need the right people to deliver it," she said.

"Some of our staff have been with us through thick and thin, and I couldn’t have survived those periods without people believing in what we were trying to build.

"Now we’re seeing the other side of that. We’re growing, we’re recruiting, and we’re in a really strong position financially."