PROFITS NOW CHILD’S PLAY FOR G8

Written on the 27 February 2012

PROFITS NOW CHILD’S PLAY FOR G8

G8 Education Limited (ASX:GEM) has more than doubled its net profit for the full year ending December 31 as it pushes ahead to become Australia’s largest childcare services provider.

The company’s underlying net profit after tax was up 207 per cent to $13.91 million from $4.52 million the previous year, while revenue grew 115 per cent to $142.90 million from $66.55 million.

Earnings before interest and tax were up 262 per cent from $6.87 million to $24.88 million, while net profit before tax was up 309 per cent from $5.55 million to $22.69 million.

Expenses increased by 98 per cent from $59.68 million to $118.02 million as it acquired 53 centres and sold seven underperforming centres.

There will be smiles all round for stakeholders in the company today, as it announced it would increase its annual dividend from four cents to six cents per share per annum.

Managing director Chris Scott is also smiling after his remuneration of $890,315, jumped by $555,880 on the previous year in which he earned $334,435. That rise was largely the result of $520,000 in share-based payments he did not receive in 2010.

“The result for the 2011 full year is excellent,” says Scott.

“It shows that, operationally, G8 Education is delivering for all stakeholders. Our team has integrated and continues to integrate a significant number of child care service businesses in a way that exceeds expectations.

“G8 Education continues to perform strongly and is well positioned for further growth through acquisitions.”

Today’s result was above guidance with a 9 per cent better than expected NPAT.

Dividends are paid quarterly and as a consequence the quarterly dividend will increase from one cent per share per quarter to 1.5 cents per share per quarter.

“This increase reflects the strong performance of our operations,” says Scott.

The company has 142 centres, seven of those in Singapore, while it has another 64 managed or franchised centres in Singapore.

It can care for a total of 10,486 children per day and has 3118 employees, 2870 of them in Australia.

The company is still awaiting judgement on the legal proceedings between with Cherie Hearts Group, Sam Yap and Gurchran Singh in relation to contractual arrangements between the parties.

The case is expected to wrap up early this year.

G8 shares today rose 4.8 per cent to 86 cents a unit.


Latest News

THE COMPANY THAT DECIDED IT WAS GOING TO GIVE A CRAP THANKS TO CROWD FUNDING

SIMON Griffiths is using toilet paper to save the world.

In 2012, on the back of an IndieGoGo crowdfunding campaig...

TECHNOLOGYONE OUTSTRIPS PROFIT EXPECTATIONS AS R&D SKYROCKETS

TECHNOLOGYONE (ASX: TNE) has surpassed market expectations to achieve a half-year profit after tax of $8.1 million, u...

CLASS ACTION FILED AGAINST SURFSTITCH AFTER ANOTHER EARNINGS WIPEOUT

AS ONLINE retailer SurfStitch (ASX: SRF) battles for survival following another negative earnings forecast, a $100 mi...

SURFSTITCH DOWNGRADES EARNINGS AS SHARES PLUNGE 25 PER CENT IN A DAY

TROUBLED online sports clothing retailer SurfStitch is considering selling off more of its assets and will close i...

Related News

THE COMPANY THAT DECIDED IT WAS GOING TO GIVE A CRAP THANKS TO CROWD FUNDING

SIMON Griffiths is using toilet paper to save the world.

In 2012, on the back of an IndieGoGo crowdfunding campaig...

SURFSTITCH DOWNGRADES EARNINGS AS SHARES PLUNGE 25 PER CENT IN A DAY

TROUBLED online sports clothing retailer SurfStitch is considering selling off more of its assets and will close i...

AUSCANN RESUMES TRADE AFTER $12 MILLION CAPITAL RAISING

IT'S BEEN a big few days for medical cannabis manufacturer AusCann (ASX: AC8), as the company emerged from a trad...

APN AND oOh!media MERGER CALLED OFF, CEO 'AMAZED' AT ACCC'S DECISION

THE PROPOSED $1.6 billion merger between Australia's two largest advertising groups, APN (ASX: APO) and oOh!me...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter