G8 PROFIT JUMPS

Written on the 25 February 2013

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.


Latest News

KOPLOVITZ GIVES SPRINGBOARD TO AGILE ENTREPRENEURS

FOR Kay Koplovitz, the key to being a successful entrepreneur is an agile mind - one that is always learning and q...

VITA GROUP SHARES SURGE UPON RESULTS

VITA Group (ASX: VTG), the Brisbane telco retailer tied up with Telstra (ASX: TLS), saw its share price surge 12 p...

SONAND TURNS THE TIDE AT SURFSTITCH

SURFSTITCH (ASX:SRF) has reduced its losses in the first half of FY17 as new CEO Mike Sonand executed his turnaround ...

EUREKA IMPROVES WHILE MANAGEMENT REMAINS UNIMPRESSED

EUREKA Group has collected the gains on its 'buy and build' strategy to achieve a net profit of $6.29 mill...

Related News

KOPLOVITZ GIVES SPRINGBOARD TO AGILE ENTREPRENEURS

FOR Kay Koplovitz, the key to being a successful entrepreneur is an agile mind - one that is always learning and q...

FASHION RETAILER'S TAKEOVER IN DOUBT AS PROFIT CLIMBS

IN the thick of takeover talks, Specialty Fashion Group (ASX: SFH) worked hard to cut costs and see its bottom lin...

HOW TO TAKE CONTROL OF YOUR CAREER THROUGH TRAINING

GIG economy, remote working, and freelance Friday are more than just buzz terms; our workforce is changing, and so...

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter