G8 PROFIT JUMPS

G8 PROFIT JUMPS

THE fortunes of childcare centre operator G8 Education Ltd (GEM) continue to rise with the company posting an 11 per cent lift in annual profit to $19.2 million.

The result has beaten consensus forecasts of a $19 million profit by analysts earlier this year as the Gold Coast-based G8 which continues to grow through key acquisitions nationally.

The profit has been built on a 26 per cent surge in revenue to $179.9 million.

G8 Education, whose financial year aligns with the calendar year, had 175 childcare centres under its control at the end of 2012, accounting for 13,421 childcare spaces.

The company paid a dividend of 2c a share for the December quarter, but has since announced quarterly dividends will increase to 2.5c a share.

Managing director Chris Scott describes it as an “excellent result” for the company that has been driven by the acquisition of better quality centres in Melbourne and Sydney in particular.

“We are getting better quality earnings because the rates are better down south,” says Scott.

He also attributes G8’s success to staff being disciplined in their application of the company’s systems.

G8 Educations posted pre-tax earnings of $26.8 million, up 18 per cent from 2011.

Group expenses rose 28 per cent to $150.5 million, while underlying earnings per share rose 23 per cent to 9.2c.

Shareholders applauded the result, driving G8 Education’s shares to a high of $1.85.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

How communications technology can raise the bar on customer service, employee experience
Partner Content
From capturing feedback early to providing messages with a higher rate of cut-through, ...
Advertisement

Related Stories

Gold Coast’s Stacked Farm to take vertical growing project national with $56m raise

Gold Coast’s Stacked Farm to take vertical growing project national with $56m raise

Stacked Farm is looking to expand its automated vertical farming mo...

QLD to launch Star Entertainment review in July as former judge appointed to probe casino operator

QLD to launch Star Entertainment review in July as former judge appointed to probe casino operator

Casino operations that account for more than half of The Star Enter...

Origin slapped with $17m fine for failing to protect vulnerable customers

Origin slapped with $17m fine for failing to protect vulnerable customers

Australian energy giant Origin Energy (ASX: ORG) has today been ord...

Salad chain FISHBOWL swims upstream with new stores in Brisbane, Gold Coast

Salad chain FISHBOWL swims upstream with new stores in Brisbane, Gold Coast

A Japanese-inspired salad bar from Bondi with "No More Fast Fo...